#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!