Legendary investor Warren Buffett has officially exited his position in Nubank, the crypto-friendly digital bank based in Brazil. Buffett’s firm, Berkshire Hathaway, made headlines in 2021 when it invested $500 million in Nubank just before the company went public. Now, with all shares sold, Berkshire has reportedly walked away with a $250 million profit.
The move comes after years of market growth for Nubank, which has attracted millions of users in Latin America by offering digital banking services and exposure to cryptocurrency products. Despite Buffett’s traditional skepticism toward cryptocurrencies, the investment was seen as a strategic bet on fintech innovation in emerging markets.
A Surprising Bet on a Crypto-Linked Fintech
When Berkshire Hathaway first invested in Nubank, many were surprised. Buffett has long been a vocal critic of Bitcoin and other cryptocurrencies, famously calling them “rat poison squared.” However, the investment in Nubank signaled a more open approach to businesses operating in the digital financial space, especially those with strong user growth and tech-driven models.
Nubank offers clients the ability to invest in Bitcoin ETFs and crypto-related products through its app. While Buffett likely invested in Nubank for its overall business model and regional growth potential rather than its crypto offerings, his firm indirectly benefited from the rise of digital asset services in the region.
Strategic Exit Amid Shifting Market Conditions
Buffett’s decision to exit now could reflect a strategic reallocation of capital amid evolving market conditions. Fintech valuations have stabilized after the explosive growth during the pandemic years, and investors are now being more selective. By exiting Nubank at a profit, Berkshire Hathaway has locked in gains while avoiding potential volatility.
Financial analysts note that while Nubank remains a strong player in the Latin American banking sector, the broader fintech and crypto landscapes are facing regulatory and economic challenges. Buffett’s exit may indicate a more cautious stance moving forward.
Conclusion: Profit Without Changing Philosophy
Buffett’s profitable exit from Nubank reinforces his reputation as a master of long-term value investing. Though he remains critical of cryptocurrencies, the investment proved that Berkshire is willing to back innovative financial companies when the business fundamentals are sound. The $250 million gain is not just a financial win, but a reminder that even the most traditional investors can find success in today’s evolving financial world—without compromising on their core principles.