Nu Holdings Ltd.

“Nu Holdings is one of the most compelling long-duration compounders in emerging markets: a 30%-ROE digital bank with a 15-20x structural cost advantage over incumbents, near-zero customer acquisition costs, a proven earnings engine ($2.87B net income in 2025, up from a loss in 2022), and a multi-decade reinvestment runway across Latin America's 650M+ underbanked population — all trading at 11x forward earnings. The primary risk is Brazilian regulatory intervention in consumer credit economics, which could structurally impair margins, but the probability of permanent capital impairment is low given Nu's adaptability, capital strength, and international diversification underway. A two-to-three tranche entry strategy is recommended, with an initial 40-50% allocation at current prices and reserves deployed on macro-driven weakness toward the $10-11 range.”