Warren Buffett’s Berkshire Hathaway makes $500 million investment in Brazilian digital bank

Investing

In this article

Warren Buffett at Berkshire Hathaway’s annual meeting in Los Angeles, California. May 1, 2021.
Gerard Miller | CNBC

Warren Buffett’s Berkshire Hathaway made a $500 million investment in the parent company of Nubank, a privately held digital bank based in Brazil, the South American company announced on Tuesday.

Nubank, which was founded in 2013, made its first appearance on CNBC’s Disruptor 50 list earlier this year. The company said it has roughly 40 million customers.

The company’s CEO told the Wall Street Journal that an initial public offering is not currently planned but is likely in the future.

Buffett is no stranger to investing in financial firms, as traditional banks and insurance companies make up a large portion of Berkshire’s investment portfolio. However, Buffett had sold nearly all of his stake in Wells Fargo by the end of the first quarter, according to securities filings.

Berkshire’s class B shares were little changed on Tuesday morning following the announcement. The stock has risen nearly 25% year to date.

Become a smarter investor with CNBC Pro
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV. 
Sign up to start a free trial today.

Products You May Like

Articles You May Like

United will require new employees to show proof of Covid vaccine, following Delta
El Salvador looks to become the world’s first country to adopt bitcoin as legal tender
Ron Insana: The so-called Reddit Rebellion in markets is nothing more than rank speculation
His book looks at the history of money and explains our obsession with cryptocurrency
Financial advisors feel pull of cryptocurrency wave as more clients express interest

Leave a Reply

Your email address will not be published. Required fields are marked *