Warren Buffett and his team at Berkshire Hathaway (BRK.A 1.32%) (BRK.B 1.16%) make numerous investments across many sectors. While some companies Berkshire invests in, like Apple and Coca-Cola, are well known, sometimes the team will open positions in stocks not closely watched by the average investor.

One area of interest seems to be the Brazilian fintech space, a sector where Berkshire made two pre-IPO investments in recent years. And those positions in Nu Holdings (NU 2.08%) and StoneCo (STNE -0.18%) look particularly attractive at current prices.

If you have $1,000 available that isn't needed to pay off monthly bills, bolster an emergency fund or pay down short-term debt, you might want to consider putting it toward these two Buffett- and Berkshire-backed stocks. Here's why.

1. StoneCo

When it comes to businesses in Brazil, StoneCo's value proposition looks increasingly attractive. It provides fintech services and enterprise software to small and medium-sized businesses (SMBs) in Brazil. Investors often compare it to Block's Square ecosystem, which performs similar functions for SMBs in the developed world.

The stock flew high before COVID-19 following its 2018 IPO. However, pandemic-related shutdowns, rising inflation, and changing reserve requirements on its loan business decimated its stock. Between early 2021 and the middle of 2022, StoneCo stock lost over 90% of its value.

Brazil is making real efforts to move past the pandemic, and inflation now sits at about half of what it was at its peak and continues to fall. Also, previous CEO Thiago Piau has moved to the chairman position and put Pedro Zinner in charge. This change could reinvigorate the company.

Indeed, growth appears to have returned. In the first quarter of 2023, StoneCo reported 2.7 billion reais ($549 million) in revenue, a 31% year-over-year increase. Also, net income was 226 million reais ($46 million), up from a loss of 313 million reais in the year-ago quarter.

And recovery has barely begun, with the stock up just 8% over the last year. At about $13 per share, it makes it easier for investors to buy numerous shares of the stock with a $1,000 budget. Such purchases are further helped by a price-to-sales (P/S) ratio of 2, near a record low.

As SMBs adopt more fintech and software services, the stock will likely validate Berkshire's faith in the company and drive significant returns.

2. Nu Holdings

Nu Holdings, which operates under the Nubank name, is the world's largest digital bank. Although most of its business operations are in Brazil, it has increased its presence in Mexico and Colombia.

You have to understand finance in Latin America to understand its significance. Latin American countries are primarily cash-based societies with only a small number of banks operating in each country. This arrangement left much of the population unserved by the mainstream financial sector.

Nubank has reached out to much of this unbanked population, with the bank issuing the first credit card to about 5.7 million Brazilians between July 2021 and July 2022. Hence, instead of relying on prepaid cards and other workarounds, these customers are now full participants in the financial system.

So popular is Nubank that at the end of the first quarter, its customer count had grown by 19.5 million over the previous year to 79.1 million. That helped boost quarterly revenue to more than $1.6 billion, an 85% increase compared to the same quarter in 2022. It also reported its third profitable quarter, earning nearly $142 million.

Moreover, the fintech stock's price is up 52% over the last 12 months, with much of that gain coming over the previous three months. Despite that increase, the stock sells for about $7, making shares available on a modest investing budget. Lastly, at a P/S of 9, it appears cheap, given the considerable revenue growth rate.

As Nubank brings more Latin Americans into the financial system, the bank and its investors should prosper.