With Nubank (NUBR33) and Stone (STOC31) in the portfolio, Warren Buffett loses BRL 4.4 billion this year
The mega-investor does not live on earnings alone Warren Buffett, which lost R$ 4.4 billion this year with the only two Brazilian companies in its portfolio. Berkshire Hathaway (BERK34) shares in Nubank (NUBR33) and Stone (STOC31) devalued with the performance of the shares of the two companies in the technology sector due to high interest rates in the world and the Brazilian economy. The information was published by the newspaper The State of São Paulo.
Between the two Brazilian companies, the biggest drop in Warren Buffett’s investment portfolio it was from Nubank. This year alone, fintech has dropped 64%. With the accumulated drops, the digital bank, which had already been considered the most valuable bank in Latin America, currently has a market capitalization of US$ 17.3 billion, around R$ 83.4 billion at the exchange rate of the day.
This means that it has dropped several positions in the list of banks with the highest market values, to sixth place, behind:
- Itau (ITUB4): BRL 233.3 billion
- Bradesco (BBDC3, BBDC4): BRL 194.2 billion
- Santander (SANB11): BRL 126.9 billion
- Bank of Brazil (BBAS3): R$110.0 billion; and
- BTG Pactual (BPAC11): R$99.3 billion.
It is worth remembering that Buffett invests in Nubank before the arrival of the digital bank to the Stock Exchange in 2021. The mega investor still decided to keep his positions in fintech.
Warren Buffett sold part of his position in Stone
At stone shares collapsed last year with problems in granting credit. As of December 31, the machine company’s shares on the US stock exchange Nasdaq were trading at US$16.86, after an all-time high of US$94.09 in February 2021, which represented a decline of 82.1%. Now the company is looking to turn this page with the relaunch of credit lines and price readjustments to customers.
With that, in 2021, Berkshire decided to sell part of its position. But this year it kept its investments in the company intact.
Nubank and Stone are a small fraction of the investments of Warren Buffett which today total around R$ 1.6 trillion.