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

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

Gerard Miller | CNBC

Warren Buffett’s Berkshire Hathaway invested $500 million in the parent company of NuBank, a privately held digital bank based in Brazil, South America. The 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 about 40 million customers.

The CEO of the company told wall street journal that an initial public offering is likely but not planned.

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, according to the securities filing, Buffett had sold nearly all of his stake in Wells Fargo by the end of the first quarter.

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Berkshire’s Class B shares were little changed Tuesday morning following the announcement. The stock is up about 25% year to date.

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