MELI - A Financial Powerhouse In Latin America: Mini Deep Dive On Nu Holdings

2024-03-26 16:23:39 ET

Summary

• Nu Holdings Ltd. has achieved significant growth in Brazil, characterized by a large customer base, high usage rates, low operational costs, and strengthening existing relationships with additional products.
• The company is strategically expanding into new Latin American markets like Colombia and Mexico, set to replicate success in Brazil.
• Nu Holdings is positioned for continued growth; already becoming a highly profitable business that is still undervalued by most metrics.
• The company is firing on all cylinders with a seasoned management team and strong balance sheet which will allow Nu Holdings to pursue growth new opportunities.

Nu Holdings Ltd. ( NU ) has been on my radar since October 2022, when I published my first mini writeup on the company and started a small position. I did not hold the stock into year-end, but got back in on February 21st, 2023.

At the time, I was actively looking at companies outside the U.S. as a potential hedge against possible U.S. recession while diversifying my investment portfolio and still focusing on stocks that I believed had 100% upside within the next 3 years. Nu Holdings and Coupang ( CPNG ) were the two most promising/compelling, besides MercadoLibre (MELI), which has been in my portfolio on and off since 2020....

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