Warren Buffett’s Berkshire Hathaway Ditches Visa and MasterCard Stock for Nubank

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Warren Buffett CEO of Berkshire Hathaway
Warren Buffett CEO of Berkshire Hathaway

Warren Buffett’s Berkshire Hathaway ditched a portion of its MasterCard and Visa holdings and increased exposure in Nubank instead. The latter is the largest fintech bank in Brazil, and one of the most popular among crypto enthusiasts. 

In a securities filing late February 14, the conglomerate disclosed a $1 billion purchase of Nubank Class A stock in Q4/2021. Meanwhile, Berkshire Hathaway sold $1.8 billion and $1.3 billion worth of Visa and Mastercard stock, respectively, a move that suggests that Buffett’s firm is gaining is shifting its focus to fintech.

Buffett, also known as “Oracle of Omaha” is popular for being extremely cautious when it comes to investing, especially in hot sectors such as fintech. The billionaire is not a big fan of Bitcoin, and has once said that the digital asset “does not create anything”. 

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Berkshire had invested $500 million in the startup in July 2021. Its return on the investment amounted to $150 million as of December 2021 after Nubank debuted on the New York Stock Exchange (NYSE).

$NU Buffett-backed Nubank stock set for NYSE debut as IPO pricing valued the company at about $41.5 Billion.

The company raised $2.60 Billion as it sold 289.15 Million shares in IPO. Berkshire bought 10% of the shares in the offering.#fintechnews pic.twitter.com/HTujZZvCtJ

— InvestingDesk (@InvestingDesk) December 9, 2021

So far, Buffett has not shown any intention to sell his position in Nubank.