Warren Buffett Surprises the Street Invests in Fintech

Last updated: June 11, 2021 8:56 pm

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#Buffett #fintech #digital #banking

Earlier this week, Warren Buffett and Berkshire Hathaway Inc. invested $500-M in Nubank, a Brazilian digital bank. Famously cool to the world of fintech and digital money, Mr. Buffett’s investment took the Street by surprise.

Mr. Buffett has been selling shares of traditional banks since last yr. At the end of Y 2019, 41% of Berkshire’s portfolio of investments was concentrated in financial firms. At the end of Y 2020, that percentage had dropped to 23.6%.

Mr. Buffett’s fintech bet appears less a testament to his beliefs about the future of banking than a hunt for standout growth potential, driven by consumers.

Berkshire already owns a stake of around 4% in another Brazilian payments firm, StoneCo Ltd., and India’s Paytm.

Have a healthy weekend, Keep the Faith!

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By Paul Ebeling

Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.