Times are changing in the finance industry. Warren Buffett’s Berkshire Hathaway decided to get rid of its Visa and Mastercard stock, which is rather unusual. However, the fund acquired a $1 billion stake in a different financial service provider.
Berkshire Hathaway Shops For Stocks
The current market conditions favor a diversification of one’s portfolio. That applies to stocks and other assets, as there is plenty of volatility abound. Berkshire Hathaway, Warren Buffett’s company, decided to get rid of its shares in Visa and Mastercard. The fund sold $3.1 billion in shares, which is rather steep.
SEC filings confirm Berkshire Hathaway sold $1.8 billion in Visa stock and $1.3 billion in Mastercard shares. Instead, the company used the funds to acquire $1 billion in shares from Nubank, a Brazilian digital lender that went public last December at a $40 billion valuation. It is the second investment by Berkshire Hathaway in Nubank, after partaking in Series G funding in the Summer of 2021.
The sale doesn’t affect the appeal of Visa and Mastercard to investors. Both companies are still considered blue chip stocks, even if they are subject to ongoing market volatility like most publicly traded companies. When Berkshire Hathaway gets rid of its holdings in both companies, it creates a strong market signal for other traders to take note of.
Additionally, Nubank continues to turn heads among investors. It is one of the potential fintech unicorns active in Brazil, Mexico, and Colombia. Those three regions are essential to the future of fintech in Latin and South America.