Warren Buffett’s Berkshire is investing $ 500 million in Brazilian digital bank

Warren Buffett at the Berkshire Hathaway Annual Meeting in Los Angeles, California. 05/01/2021.

Gerard Miller | CNBC

Warren Buffett’s Berkshire Hathaway has invested $ 500 million in the parent company of Nubank, a private digital bank based in Brazil, the South American company said on Tuesday.

Founded in 2013, Nubank first appeared on CNBC’s Disruptor 50 list earlier this year. The company says it has around 40 million customers.

The company’s CEO told the Wall Street Journal that an IPO was likely but not planned.

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

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Berkshire’s class B shares saw little change on Tuesday morning following the announcement. The stock is up nearly 25% since the start of the year.

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