Is NU a good stock to buy? We came across a bullish thesis on Nu Holdings Ltd. on Patient Capital Fund Newsletter’s Substack by Patient Capital. In this article, we will summarize the bulls’ thesis on NU. Nu Holdings Ltd.’s share was trading at $14.02 as of March 26th. NU’s trailing and forward P/E were 23.85 and 17.76 respectively according to Yahoo Finance.
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Nu Holdings (NU), Latin America’s largest digital bank, has built a dominant position in Brazil by combining a customer-first approach with highly efficient operations. Founded in 2013 by David Vélez, Christina Junqueira, and Edward Wible, Nubank began with a no-fee credit card and rapidly expanded to a full suite of banking products, including savings accounts, personal loans, and investments.
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Today, the bank serves 131 million customers across Brazil, Mexico, and Colombia, with 113 million in Brazil alone, generating $15.8 billion in revenue and $2.9 billion in net income in FY25. Its credit portfolio stands at $32.7 billion, while customer deposits total $41.9 billion. Nubank’s competitive edge lies in structural cost advantages across customer acquisition, cost to serve, funding, and risk management, resulting in an efficiency ratio of 21%, a 30% return on equity, and revenue per employee five times higher than peers.
Brazil’s highly developed financial system, coupled with the instant payment system Pix, has accelerated digital adoption and increased convenience, yet credit cards remain critical due to interest-free installment plans. Nubank captures 25-30% of Brazil’s credit card market, with high penetration, strong engagement, and a Net Promoter Score around 90.
Its in-house cloud-based core banking system enables scalable growth at a cost to serve of only $0.8 per active customer, roughly 85% lower than incumbents. Asset quality is prudently managed, with 90+ day NPL coverage consistently above 200%, and risk-adjusted margins remain attractive despite elevated defaults.
Looking forward, Nubank’s expansion into Mexico and the U.S. provides a clear growth runway, leveraging its proven ability to acquire customers cost-effectively and deliver superior experiences. With high customer engagement, low marketing spend, and a scalable platform, Nu Holdings is well-positioned to continue expanding market share, increase profitability, and capitalize on opportunities in underbanked regions, making it a compelling investment with significant upside potential.
Previously, we covered a bullish thesis on Nu Holdings Ltd. (NU) by Ray Myers in May 2025, which highlighted the company’s strong Latin American presence, robust customer growth, and accelerating monetization in Brazil, Mexico, and Colombia. NU’s stock price has appreciated by approximately 6.77% since our coverage. Patient Capital shares a similar view but emphasizes NU’s operational efficiency and scalable cloud-based platform as growth drivers.
Nu Holdings Ltd. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 108 hedge fund portfolios held NU at the end of the fourth quarter which was 99 in the previous quarter. While we acknowledge the risk and potential of NU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than NU and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
