Tag: Stock Portfolio

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Berkshire Hathaway-backed Nubank has reached a significant milestone, surpassing 100 million customers following a record-breaking first quarter in 2024. David Vélez, the founder and CEO, celebrated this achievement at the company’s headquarters in São Paulo, Brazil, on May 15.

Reflecting on the journey, Vélez remarked, “Seven years ago, the goal of 100 million customers seemed unattainable. Even one million or ten million seemed impossible. But here we are.”

Vélez attributed this success to Nubank’s commitment to addressing customer needs with innovative products and top-quality service. The company’s first-quarter results for 2024 showcased a revenue increase to $2.7 billion and a net income rise to $379 million, along with a 23% return on equity for Nu Holdings. Despite being over-capitalized and still in the early stages of profitability in Mexico and Colombia, these new markets are growing faster in customers, deposits, revenue, and credit card market share compared to Brazil at a similar stage.

Throughout the celebration, Vélez emphasized Nubank’s customer-centric culture. “By doing what is best for our customers, we are winning them over for decades. We focus on long-term value creation, not short-term gains. It’s an infinite game. Our strategy and culture evolve with our growing customer base,” he stated.

As of March 31, 2024, Berkshire Hathaway owned 107,118,784 shares of Nu Holdings, representing a 2.32 percent ownership stake in the company.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway, the conglomerate led by Warren Buffett, has added Diageo plc to its ever-expanding portfolio. Diageo, a renowned liquor purveyor, boasts a vast array of over 200 brands, with a global presence in more than 180 countries.

In a recent filing with the U.S. Securities and Exchange Commission (SEC), Berkshire disclosed its acquisition of 227,750 shares of Diageo. This investment represents a relatively modest 0.04% ownership stake in the company, but it signifies Berkshire’s interest in the liquor giant.

Diageo, a name synonymous with top-quality beverages, offers a stellar lineup of best-selling brands, including the iconic Johnnie Walker Scotch whisky, Tanqueray gin, Smirnoff vodka, Guinness stout, and Baileys cream liqueur. These brands have long been favorites among consumers and have played a significant role in establishing Diageo as a leading player in the spirits industry.

Notably, Diageo has set ambitious goals for the future. Currently holding a 4.7% share of the global Total Beverage Alcohol (TBA) market, the company has its sights set on increasing that value share to an impressive 6% by the year 2030. This aspiration reflects Diageo’s commitment to growth and innovation within the dynamic world of beverages.

Moreover, Diageo recently announced a share buy-back program, demonstrating their dedication to creating value for their shareholders. This program aims to return up to $1.0 billion of capital to investors and is scheduled to be completed before June 26, 2024. The buy-back follows the successful completion of Diageo’s return of capital program during the second half of fiscal 2023, in which £0.5 billion of capital was returned to shareholders.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway, the renowned conglomerate helmed by legendary investor Warren Buffett, is not typically associated with high-tech investments. However, this year’s top-performing stock in Berkshire’s portfolio might raise a few eyebrows. It’s none other than NU Holdings, one of the world’s largest digital financial services platforms.

Based in São Paulo, Brazil, NU has rapidly risen to become one of the globe’s premier digital financial service providers. Remarkably, it ranks as the fifth-largest financial institution in Latin America, boasting an impressive number of customers. This unforeseen success in NU is a testament to the changing landscape of finance and technology’s growing role in the industry.

During the second quarter of 2023, NU experienced an impressive surge in its customer base. The platform added a staggering 4.6 million new customers, a testament to its widespread appeal and competitive offerings. In a year-over-year comparison, NU saw strong growth of 18.4 million customers, reaching an overall total of 83.7 million customers worldwide by June 30th, 2023. This surge represents a remarkable 28% growth when compared to the previous year.

What makes this story even more intriguing is Berkshire Hathaway’s substantial stake in NU. The conglomerate owns a substantial 107,118,784 shares of the company, valued at approximately $845 million. This strategic investment is a clear indicator of Berkshire’s confidence in the future of digital financial services.

NU Holdings’ place in Berkshire Hathaway’s portfolio emphasizes the changing dynamics of the financial sector. Traditional investment giants are recognizing the potential of innovative digital platforms, which have demonstrated tremendous growth and resilience in today’s fast-paced, technology-driven world. As the global economy continues to evolve, such investments may become an increasingly common occurrence, surprising investors and industry experts alike.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway’s subsidiary, National Indemnity Company, has announced an increase in its ownership stake in five prominent Japanese trading companies. The companies in question – Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo – hold significant positions in Japan’s economic landscape. Berkshire Hathaway’s investments in these companies are currently the only publicly traded holdings it possesses in Japan, and their combined value surpasses that of any other publicly traded stocks owned by the company outside of the United States.

Berkshire Hathaway’s ownership interest in each of the five companies now averages more than 8.5%, excluding treasury stock shares. This disclosure aligns with how Berkshire Hathaway reports its ownership in publicly traded U.S. companies. The conglomerate intends to maintain its Japanese investments for the long term. While the company might consider increasing its holdings in these companies, it has set a self-imposed limit of 9.9% ownership. Warren Buffett, the CEO of Berkshire Hathaway, has assured that any additional purchases beyond this threshold will only occur with the explicit approval of the investee’s board of directors.

Earlier this year, Mr. Buffett, accompanied by Gregory E. Abel, Berkshire’s Vice Chairman for Non-Insurance Operations, visited Japan to meet with the CEOs of the five companies. The discussions were fruitful, leaving both Mr. Buffett and Mr. Abel extremely pleased with the progress made. Their vision for the future may involve gradually increasing Berkshire Hathaway’s stake in each of these companies to 9.9% ownership, if prices warrant it.

Berkshire Hathaway continues to demonstrate its long-term commitment to the Japanese market and its confidence in the potential of these esteemed trading companies.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

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Berkshire Hathaway has sold the last of its stake in consumer goods corporation Procter & Gamble.

As of September 30, 2022, Berkshire still held 315,400 shares of the company, but that position has now been sold.

The sale was reported by NASDAQ in their change of institutional ownership of PG stock as of 9/30/2022.  

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.