Growth Stock Portfolio: 12 Stock Picks By Warren Buffett

1. Nu Holdings Ltd. (NYSE:NU)

5-year average revenue growth (YoY): 103.36%

Warren Buffett’s Growth Stock Portfolio includes Nu Holdings Ltd. (NYSE:NU). The business of the firm is offering online banking services. It provides several financial services, including business accounts, rewards, investments, personal loans, credit cards, insurance, and mobile payments. The company’s primary source of revenue is Brazil.

In the third quarter of 2024, Nu Holdings Ltd. (NYSE:NU)’s revenues surged by 56% year on year on an FX-neutral basis, establishing a new record of $2.9 billion. The firm doubled its customer base in the last year, reaching 10 million in January, five years after its Mexican launch. Nearly 12% of Mexico’s adult population is currently impacted by its expanded offers since its introduction, which now include a credit card, a debit card, a savings account with Cajitas (Money Boxes), and personal loans. The company said in the same month that NuCel, which was introduced in October of last year, had grown its clientele. Soon, Brazilian users will be able to purchase the product, receive notifications, and digitally transfer their numbers through the NuCel tab of the Nu app.

As the company tackles major issues that banking consumers in the area encounter, such as exorbitant fees, subpar customer service, and restricted access to financial goods, investors continue to have faith in Nu Holdings Ltd. (NYSE:NU) growth possibilities. They believe it will continue to increase its market share in the huge and expanding Latin American market due to its exceptional product offering.

Overall, NU ranks first on our list of the Growth Stock Portfolio: 12 Stock Picks By Warren Buffett. While we acknowledge the potential for NU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NU but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. Growth Stock Portfolio: 12 Stock Picks By Warren Buffett is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.