It's the artificial intelligence (AI) giants that are capturing market attention these days, but these huge companies are mostly past their highest-growth days. Growth investors looking for serious gains often have to dig a little deeper to find the overlooked stocks that offer the greatest potential. Consider that several years ago, the larger investing community had never heard of Nvidia, but investors looking for something different had already found it and reaped big rewards.
If you're looking for something a little out of the box today, consider Nu Holdings (NU +0.11%), which could be one of the best investments of the next decade.
Image source: Nu Holdings.
Something a little new
Nu was started by a group of young, affluent consumers who felt locked out of the banking system in Brazil. The traditional banks there have high barriers to entry, making it difficult for lower-income users to participate at all and challenging even for the higher-income population. The founders sought to open up access through a digital app that had a limited assortment of financial services, and it's exploded in the decade since.
Today, Nu counts more than 60% of the population in Brazil as customers, from all sociodemographic strata. It's also getting a proper bank charter to offer a greater selection of services. It has expanded into Mexico and Colombia, and together these three countries have the largest populations in Latin America. It's still a small presence in the newer markets, but it's growing quickly, and as of the end of the 2025 third quarter, 14% of the adult population in Mexico and 10% of the adult population in Colombia are on the platform.
Nu added 4.3 million new members in total in the third quarter, and there's still a lot more to bring on. Beyond new customers, management sees a huge growth runway in cross-selling and monetizing the existing consumer base. It continues to add new services, including specific products aimed at the affluent membership, and it has years of growth opportunities available as customers engage with the platform and make it their primary bank.
The company is also making moves to expand into more global locations, including the U.S., and the runway is wide open.
NYSE: NU
Key Data Points
Buffett stock no more
Nu gained a name as a Buffett stock, since Berkshire Hathaway invested in its last round of funding before it became a public company in 2021. The holding company sold out of its position in 2024, but Nu has continued to soar, gaining 62% last year. So even if it's lost the Buffett cachet, you shouldn't relegate it to the has-been pile. In fact, it could be just the kind of rare deal Buffett himself has spoken about many times. While other investors peruse the Berkshire Hathaway portfolio for ideas, buy yourself some Nu stock, which could end up being one of the best investments of the decade.
