NU — All updates

Yes, stock number three belongs to a completely different sector than the two stocks we talked about today. I want to talk about Nu Holdings. This is the parent company of Nubank.

It is a digital bank that was founded in Brazil in 2013.

At that time, the banking sector in Brazil was dominated by five established institutions, which controlled about 80% of the market. Furthermore, they imposed some of the highest fees and rates in the world while customers were waiting to receive basic service.

So, Nubank’s response was a no-fee purple credit card that could be ordered entirely by phone, and that was the beginning of a fully integrated digital banking platform, now based on accounts, loans, investments and insurance, built entirely on a cloud infrastructure with no physical branches at all.

All right, let's now move on to the next stock that I want to talk about which is New Bank. New Bank had a fantastic earnings report and the stock was up over 10% the next day after earnings.

However, it has pretty much given all of its gains back, which I think is kind of surprising because this was truly an incredible report from the business.

We are talking about N U, the ticker there is N U, and it's a really interesting conversation. This is a company that is very, very popular among FinTwit compounder types, and Evan lays out a really compelling reason why why.

You know, you've got a fintech that's grow ROE 30%, growing quickly, trading at a reasonable valuation, the the much better KPIs, founder-led. Like, he lays out a really good reason why, and we are going to have a really insightful conversation on the risks, on the risks to Nubank in particular, the risk of the financial sector in general, as you're just going We've got lots of parallels to Capital One in the '90s, to a bunch of other things.