The man is Warren Buffett.
Lucas Jackson.
It is thought that Warren Buffet's company bought close to 30 million shares of Nubank at the IPO price of $9. $500 million was added to the Brazilian fintech in June.
Nubank has ties to Sequoia Capital. The venture-capital firm gave Nubank seed funding and now has a stake worth over $8 billion. David Vélez is the CEO of Nubank.
High-valued technology companies, lossmaking startups, overseas companies, and IPOs have largely been avoided by Charlie Munger and his business partner, Warren Buffet. Munger has praised Sequoia's ability to find and back future world-beaters.
"Sequoia is the most remarkable investment firm in America," the 97-year-old investor said last year. They have made more money than anyone else and have the best investment record. It's absolutely amazing what they have done.
Munger said at the Daily Journal's annual meeting that he and Warren are better at buying mature industries than they are at backing startups. I don't want to compete with them in their field. They would run rings around me.
The digital bank lost $100 million in the nine months to September 30, but it has a $50 billion market cap and is profitable.
Todd Combs, a deputy to Warren Buffet, has spearheaded investments in Indian mobile-payments group Paytm, Brazilian fintech Stone Co, and US cloud-data platform Snowflake in recent years. He may have simply identified Nubank as a good investment.
Either way, the decision by the team at Berkshire to invest $500 million in a private, foreign, unprofitable tech company, then to inject another $250 million during the startup's IPO suggests that they are happy to follow in the footsteps of Sequoia.
Business Insider has an original article.
