The market still has a wild ride in 2025 and S&P 500 briefly entered Repair area Last week before he rocked back. For new investors it can be a scary time. But seasoned investors know that it is not only a couple for the course, but there is a silver lining: you will find excellent supplies at amazing prices.
Now Holdings (NYSE: Now Last year it reached the market, which is less than 1%, while the S&P 500 is 10%. However, it is beginning to bounce. Is it time to buy now?
NU provides digital banking and financial services in Brazil, Mexico and Colombia. It has solved the niche by opening in the region with significant input barriers for banking customers and members are attracted to easy use of NO. It shows consistent solid quarterly growth and regions in which they operate, still have a small digital financial approach, giving it a healthy track.
In the fourth quarter of 2024, sales increased by 50% neutral year -on -year and net income increased from $ 360.9 million to $ 552.6 million. The cost of administration remained a stable quarter in a quarter to $ 0.80 per customer, a decrease from $ 0.90 in the previous year.
Nu was originally created to meet the needs of the mass population that was unable to gain access to the highly regulated and expensive Brazil banking system, but catching up with anyone looking for better bank experience. Although 58% of the adult population in Brazil already has customers, it continues to add 1 million new members a month and 61% of its monthly assets use NO as its primary bank account. Nu is now in terms of members the third largest bank in Brazil, but there is much more growth in Brazil. For example, Ultravileta customers, its rich consumer service, increased by 132%year -on -year, but the number is still small to 688,000.
Nu's only has a modest presence in Mexico and Colombia, where she was launched after Brazil and still has no full operations. In these two markets that attract new members, the savings account has highly committed and growth is faster there than in Brazil. This ended 2024 with 10 million customers in Mexico, which is 91% year -on -year increase or 12% of the adult population. There are many other adjacent countries that may enter that they do not have optimal fintech solutions.
Now Warren is Buffett StockAlthough it is not quite suitable for the classic form of Buffett, because they are young growth shares. He loves banking shares, but is something other remarkable about Nu, which Buffett has mentioned several times, which is essential in a large business: a high return on its own capital (ROE). Nu's Low-Nadhead model brings high profits and Nu's ROE was 28% in 2024 and placed it at the highest level of financial institutions around the world.
