Buffett closed all positions in the Brazilian encryption-friendly bank Nu Holdings, "earning $250 million," and Berkshire's cash reserves reached a record high of $347.8 billion.

Berkshire Hathaway, the investment firm of Warren Buffett, recently sold all of its shares in Nu Holdings, the parent company behind Brazilian cryptocurrency-friendly bank Nubank. The sale of shares not only ended Buffett's investment relationship with the digital bank, but also marked Berkshire's cumulative profit of $250 million from this investment. (Synopsis: Buffett admitted: I really feel that I am old, and I feel that I am struggling to think and read. First talk about the decision to step down as Berkshire CEO) (Background supplement: Buffett invested in Brazil's crypto-friendly bank Nu Holdings early, and Berkshire Hathaway's position reached 1.2 billion magnesium) According to the latest data disclosed by the US Securities and Exchange Commission (SEC), the investment company of Warren Buffett, Berkshire Hathaway, has sold all of its shares in Nu Holdings, the parent company behind Brazilian cryptocurrency-friendly bank Nubank. The sale of shares not only ended Buffett's investment relationship with the digital bank, but also marked Berkshire's cumulative profit of $250 million from this investment. Buffett's history of investing in Nubank According to public information, Nubank is the largest digital bank in Brazil, founded in 2013. Nubank actively embraced cryptocurrencies, allowing users to trade mainstream cryptocurrencies such as Bitcoin, Ether, and Ripple directly in the app, and in 2022 allocated 1% of its net worth to Bitcoin, becoming one of the most crypto-friendly financial institutions in Latin America. Although Buffett has long been skeptical of cryptocurrencies, even calling them "the square of rat poison," Berkshire invested indirectly in the cryptocurrency space by investing in Nu Holdings in his early years. However, from 2024, Berkshire began to reduce its stake in Nubank. According to the data, Berkshire sold 20.7 million shares at an average of $13.46 per share in the third quarter of 2024, 46.3 million shares at $13.22 per share in the fourth quarter, and the last 40.2 million shares at $11.83 per share in the first quarter of 2025. The deal closed Berkshire's entire stake in Nubank, totaling a gain of about $250 million. Berkshire's cash reserves reach $347.8 billion However, it is worth mentioning that Buffett's decision to empty Nubank's holdings does not seem to be due to poor performance, but part of Berkshire's overall investment strategy adjustment. The reason is that in the first quarter of 2025, Berkshire not only sold Nubank shares, but also liquidated Citigroup's holdings and significantly reduced its stake in Bank of America, selling a total of more than $2.1 billion in financial stocks. This set of operations sent Berkshire's cash reserves soaring to a record $347.8 billion, of which $305.5 billion was invested in short-term U.S. Treasury bills. In addition, Nubank's financial performance remains impressive. In the first quarter of 2025, the company's net income was $557.2 million, an annual increase of 47%; Adjusted net income was $606.5 million, up 37% year-over-year. For the full year 2024, Nubank's net income reached $1.97 billion, up 91% year-over-year, demonstrating its strong competitiveness in the Latin American market. In addition, according to Google financial data, the stock price of Nu Holdings is currently tentatively at $13, a slight increase from Buffett's clearance price, and an increase of 21% in the past 1 month, with a market value of about $62.6 billion. Strategic considerations behind Buffett's investment reduction Buffett's recent move to significantly reduce his holdings in financial stocks reflects his cautious approach to the current market environment. Analysts believe Berkshire is hoarding huge amounts of cash to prepare for potential economic uncertainty or wait for more attractive investment opportunities. Buffett's past emphasis on "cash is king" has further highlighted Nubank's holdings in other financial stocks, further highlighting its focus on liquidity and risk management. Moreover, Buffett's liquidation of Nubank holdings does not seem to negate its potential, but rather a continuation of his investment philosophy in the current market environment. With Berkshire's cash reserves hitting new highs, the giant's next move is still worthy of market attention. Related reports Buffett's shareholder letter hides a mystery: full of cash and other U.S. stocks crash? 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