1. Nu Holdings Ltd. (NYSE:NU)
Warren Buffett’s Q2 2024 Stake: $1.38 Billion
Year to Date Gain as of September 20: 82.04%
Number of Hedge Fund Investors In Q2 2024: 59
Nu Holdings Ltd. (NYSE:NU) is a financial services company that provides a digital banking platform in Latin America and Europe. It offers financial solutions, including Nu credit and prepaid card, a technologically advanced card that serves as both a credit card and a prepaid card.
Nu Holdings Ltd. (NYSE:NU) is the best-performing Warren Buffet stock in 2024, up 82.04%, due to its strong business model with a well-established brand, efficient cost structure, and effective monetization strategies.
The company’s competitive edge in the highly competitive financial services sector stems from its ability to attract and keep customers with minimal marketing spend. Concentrating on populations that are currently overlooked or not yet reached. It builds a devoted customer following naturally, cutting down on the need for expensive advertising efforts.
This shift means more of its earnings can be put back into expanding the business instead of being used to attract new clients. The lean and expandable framework of Nu’s approach makes it highly efficient in serving active customers. Reduced expenses lead to greater profit margins and improved financial stability over time. This expandability also lets Nu Holdings Ltd. (NYSE:NU) grew without the need for significant investments in facilities or staff, allowing Nu Holdings to prioritize customer satisfaction and growth.
The company’s Q2 2024 financial results underscore the growth trajectory as revenues increased 52% to $2.85 billion and earnings doubled to $0.12 per share. Throughout the quarter, Nu Holdings Ltd. (NYSE:NU) gained 5.7 million new customers, reaching a worldwide total of 105 million. This upward trend in digitalization is anticipated to propel NU Holding’s growth even more.
As of the second quarter of 2024, 59 hedge funds were bullish on Nu Holdings Ltd. (NYSE:NU), a decrease from 63 during Q1. Warren Buffett’s Berkshire Hathaway is the most significant shareholder of the company, with stakes worth $1.38 billion.
Baron Funds mentioned Nu Holdings Ltd. (NYSE:NU) in its Q2 2024 investor letter. Here is what the firm said:
“Nu Holdings Ltd. is a digital bank with operations in Brazil, Mexico, and Colombia. Shares appreciated during the quarter after the company reported strong balance sheet growth and improving margins. New product launches and expansion in newer countries are yielding favorable results. Nu also benefited from inclusion in the MSCI Brazil Index, which prompted buying from passively managed funds. We continue to own the stock because Nu is disrupting the financial services industry in Latin America with its digital distribution and intense focus on user experience. The company has grown to serve over 90 million customers in less than 10 years, largely through word-of-mouth referrals. We believe the company’s superior product offering will drive continued share gains in large and growing markets.”
The best-performing Warren Buffett stocks in 2024 are companies well-poised to generate long-term value owing to their solid underlying fundamentals. However, given that the artificial intelligence arms race is just but starting, there are under-the-radar AI stocks trading at highly discounted valuations that hold greater promise for anyone looking to diversify their portfolio. If you are looking for an AI stock that is more promising than NU, check out our report about the cheapest AI stock.
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