Warren Buffett doubles down on Brazilian fintech Nubank with $1bn stake

After already making $150m from Nubank’s IPO.

After cutting a $500m cheque for leading Latin American fintech Nubank in 2021, the Oracle of Omaha has increased his stake in the business to $1bn.

Berkshire Hathaway first invested as part of Nubank’s Series G funding round last June, and was handsomely rewarded during the fintech’s IPO with gains to the tune of $150m.

With Nubank now floated on the stock market Warren Buffett disclosed in a filing on 14 February that he has invested further in the business, picking up the stake via his company Berkshire Hathaway.

Nubank’s share price leapt nearly 12 per cent as a result of Buffett’s increased backing, while the US investor also disclosed that he had sold off his $1.8bn stake in Visa and $1.3bn stake in Mastercard.

The shifting investments clearly show Buffett’s desire to increase his exposure to fintech, while reducing his stake in more ‘traditional’ financial firms.

It’s also not the first time that Berkshire Hathaway has backed Brazilian fintechs. In 2018 Buffett bought 14m shares or an 8 per cent stake at the IPO of StoneCo, a payments group that offers similar services to Zettle (formerly iZettle) and Square in the Latin American market.

In the years since its listing, StoneCo’s share price has risen over 100 per cent to $7.58bn and today it’s the fourth-largest payment processor in Brazil.