Warren Buffett Exits Nubank with $250M Profit Amid Financial Sector Pullback

Warren Buffett’s Berkshire Hathaway has fully divested its stake in Nu Holdings, the parent company of Brazil’s digital bank Nubank, realizing a profit of approximately $250 million. This move is part of a broader strategy by Berkshire to reduce exposure to the financial sector, which also included exiting positions in Citigroup and significantly reducing holdings in Bank of America, totaling over $2.1 billion in financial stock sales.

Despite Nubank’s strong financial performance—reporting a net income of $557.2 million in Q1 2025, a 47% increase from the previous year—Buffett’s decision to sell does not appear to be based on the company’s fundamentals. In fact, Nu Holdings achieved an annual net income of $1.97 billion in 2024, marking a 91% increase from 2023. The divestment aligns with Berkshire’s strategy to increase liquidity, with cash reserves reaching a record $347.8 billion, including $305.5 billion in short-term U.S. Treasurys.

Nubank has been recognized for its embrace of cryptocurrency services, offering trading in Bitcoin (BTC), Ether (ETH), XRP (XRP), and other top cryptocurrencies directly through its app. In 2022, the bank allocated 1% of its net assets to BTC, providing Berkshire with indirect exposure to Bitcoin despite Buffett’s well-known skepticism toward cryptocurrencies.

Buffett’s exit from Nubank underscores a cautious approach to the financial sector amid market uncertainties. While Nubank continues to thrive in the digital banking and crypto space, Berkshire Hathaway appears to be positioning itself defensively, prioritizing liquidity and reducing exposure to potential market volatility.