In other words, I’ve already done the hard work of researching the stock. And if it still looks attractive to me, why not buy more of it rather than something new and shiny?

With this in mind, here are two shares that I’m thinking about adding to in June.

Digital bank

Nu Holdings (NYSE:NU) is the company behind Nubank, the largest digital bank in Latin America. The company has been growing like bamboo in recent years, with revenue crossing the $5bn mark for the first time in Q1.

One thing I like about this disruptive fintech firm is that it’s already very profitable. In Q1, net income jumped 41% to $871m, compounding at an annualised rate of 84% since 2022.

Meanwhile, the return on equity (ROE) came in at 29%, which is roughly double what traditional UK banks generate. And with over 135m customers now using the platform across Brazil, Mexico and Colombia, further profitable growth looks very likely.

Despite this progress, the stock has dropped 35% since late January. The culprit is high consumer debt in Brazil, the lender’s largest market. If this gets any worse, it could act as a brake on Nu’s growth.

Taking a long-term view though, this doesn’t worry me too much. One reason is that the fintech is growing strongly in Mexico and Colombia, where management estimates it has only captured around 1% of the gross consumer profit pool.

Mexico is a massive opportunity— [the] market has a long runway ahead, and we are scaling into it.
Nu Holdings.

Moreover, the company is entering the US, which has more than 65m Hispanic and Latino residents. The firm notes that despite the highly competitive nature of US banking, a massive segment of this population remains under-served. 

There’s also the massive cross-border money transfer market (particularly remittances from Mexico to the US). Given these opportunities (and others to come), I think the firm’s long-term growth story extends beyond Brazil.

After the sharp pullback, the stock’s trading at a reasonable 18 times forward earnings. And the company has just announced a $1bn share buyback, which makes sense given the valuation.

Writing this, I think I’ve just talked myself into buying more shares around $12!

FTSE 100 software firm

The second stock tempting me is Sage Group (LSE:SGE), which has slumped 34% since early 2025.

The reason that investors have soured on the company — which provides finance, payroll and HR software for small and mid-sized businesses — is because of AI disruption fears. If these prove to be warranted, this will likely prove a lousy buy.

The thing is though, Sage itself is embedding autonomous AI agents into its customers’ core workflows, deepening its competitive position in the process. That’s because the accuracy and compliance needed for accounting is non-negotiable.

In H1 2026, underlying total revenue in North America rose by 14% to £616m, with strong adoption of AI-powered functionality. I see no evidence of disruption.

So, with the stock trading cheaply at 15 times forward earnings, I’m considering a top-up.

Should you invest £5,000 in Sage Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Sage Group Plc made the list?

Ben McPoland owns shares in Nu Holdings and Sage.

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Here’s one stock that keeps standing out to me as a dip-buying opportunity worth assessing more closely.

Something Nu

The stock in question is Nu Holdings (NYSE:NU), the company behind Nubank. If any reader has visited Brazil, they’re probably familiar with the digital bank’s purple cards. An incredible 100m Brazilians are now monthly active customers!

This makes Nu the largest private financial institution in Latin America’s biggest economy. But adoption is also happening quickly in Mexico and Colombia, where it now has over 15m and 5m customers respectively.

What’s exciting here is that the lender’s already firmly profitable. In Q1, it generated net income of $871m on revenue of $5.3bn, with an attractive return on equity (ROE) of 29%. But its average revenue per active customer (ARPAC) continues to rise as newer customer cohorts mature.

Indeed, ARPAC has expanded sequentially every quarter for four years, reaching $16 in Q1. But mature cohorts in Brazil generate almost $27 as they’ve moved their payroll, taken out loans, insurance, and started investing with Nu.

This highlights the scalability of the platform.

The banking system in Mexico remains structurally under-penetrated. Cash still dominates everyday transactions. Less than half of adults hold a formal credit product, and a meaningful portion of the population still lacks access to banking.

Nu Holdings, Q1, 2026.

Is Nu taking on too much risk?

As a shareholder, the question I’m asking now is whether the lender can continue increasing revenue per user without taking on excessive credit risk (riskier lending).

In Q1, the credit portfolio expanded 40% to $37.2bn, including a sharp rise in unsecured personal loans (up 53% to $10bn). The 15-to-90-day non-performing loan ratio ticked up to 5%, a 89 basis points rise from Q4 2025.

Management put this mainly down to post-holiday seasonality, which does fit with Q1 patterns in previous years. The 90+ day ratio actually improved slightly to 6.5%, so I don’t see any fundamental deterioration in asset quality. 

I think the opportunity to displace the region’s traditional banking system is a uniquely massive one, so is worth pursuing at pace. But it’s worth keeping an eye on non-performing loans moving forward.

Why does the stock look so cheap?

The stock’s down 31% since January, giving it a forward earnings multiple of 17. This drops to just 8.9 by 2028, if Wall Street has its profit forecasts correct.

Why is it so cheap? Well, Latin America can be economically and politically volatile. And there’s currency risk to consider as well here, as Nu reports earnings in US dollars but its business is tied to the Brazilian, Mexican and Colombian currencies.

Another current issue is that levels of household debt are rising in Brazil. However, it’s worth noting that employment remains strong there and Desenrola 2.0 — a massive Brazilian government debt-relief and debt-renegotiation programme — is expected to act as a tailwind later in 2026.

Weighing everything up, I think the stock’s worth considering at $12. It’s on my own ‘to buy’ list for June.

Should you invest £5,000 in Nu Holdings right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Nu Holdings made the list?

Ben McPoland has positions in Nu Holdings.

The post 1 world-class growth stock to consider for an ISA while it’s this cheap appeared first on The Twelfth Magpie.

Here are three stocks that I reckon are worth considering for a SIPP for at least the next five years.

Latin America

Let’s start with Nu Holdings (NYSE:NU), which is the leading digital bank in Latin America. In Q1, the firm added another 4m customers, bringing the total to over 135m.

Most of those are in Brazil, but the profitable lender is also growing rapidly in Mexico and Colombia. All three countries still have low penetration rates when it comes to financial services, indicating that this is a growing market.

However, Nu’s share of the existing monetisation pie is still small. In Brazil, for example, the annual total industry gross profit pool today is about $100bn. The digital bank has about 7% of that, and just 1% of Mexico’s $43bn.

One near-term concern here is rising household debt in Brazil, which has spooked the market. However, employment remains high overall and there’s a massive government-backed programme to help people reduce and restructure debt.

After losing 32% of its value inside five months, the stock looks enticing from a long-term perspective. It’s trading at about 15 times next year’s forecast earnings, which is cheap for a company that has a very large opportunity ahead.

Income and growth in Asia

Turning to Asia now, I want to flag Schroder Oriental Income Fund (LSE:SOI). Its purpose is “to tap into the Asian income story and help investors diversify their dividends“.

However, beyond income, the investment trust also targets capital growth. It has found great success here recently with top holdings Taiwan Semiconductor (TSMC) and Samsung Electronics. These stocks are up 121% and 395% respectively in the past year, driven by massive global investment in artificial intelligence (AI) infrastructure.

This pair of leading semiconductor foundries have helped the Schroder Oriental Income share price jump 51% in the past 12 months. And this has boosted the annualised 10-year return to around 12.5%, which is comfortably ahead of the benchmark (MSCI AC Pacific Ex Japan Index).

Despite this surge, the trust’s still trading at a near-6% discount to net asset value (NAV), while also offering a 3% dividend yield. I think this offers solid value, albeit the stock could sell off if investors sour on AI and its top two holdings.

Big US growth opportunity

Finally, I reckon international money transfer specialist Wise (LSE:WISE) deserves a closer look after falling 16% in a month.

The firm has moved its primary listing to the US, where it estimates Americans will lose $43bn this year in hidden cross-border fees. As such, it sees a massive opportunity to sign up millions of customers to save them money, including thousands of banks.

Last year, cross-border volume rose 25% to £181.7bn. However, the firm sees a longer-term opportunity to move trillions, with the US being a key pillar of this strategy.

Looking ahead, Wise could face potential regulatory hurdles in the US (it wants to settle US dollar payments directly with the Federal Reserve).

But at 23 times forward earnings, I think the stock looks attractive given the disruptive growth potential.

Should you invest £5,000 in Wise Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Wise Plc made the list?

Ben McPoland has positions in Nu Holdings, TSMC, and Wise.

The post 3 top stocks to inject strong international growth into a SIPP appeared first on The Twelfth Magpie.

However, with fears about a UK recession rising, I think this pair of bank stocks is worth looking at before Lloyds in May.

Caucasus region

Georgian lender Lion Finance (LSE:BGEO) only joined the FTSE 100 last month, but it’s already up 16% since then. This puts the five-year return at a breathtaking 904%, with loads of dividends on top.

Despite this, the lender (formerly Bank of Georgia) is trading at just 6.6 times forward earnings. And there’s a 3.5% forecast dividend yield.

Just writing all this makes me regret selling this stock in 2024. But the reasons I did so — political risk from contested elections and sanctions from the EU and US — haven’t gone away. These could still cause problems for the bank and its share price.

However, economic growth in Georgia is still expected to be around 5% in 2026, driven by high consumption, robust tourism, and credit growth. And Lion Finance, which is part of a banking duopoly in the country, continues to grow profits strongly.

The lender also owns Ameriabank, one of Armenia’s largest banks. This is another strong economy, with GDP growth of about 7.2% in 2025.

Still trading cheaply and now in the bright lights of the FTSE 100, the stock’s run could be set to continue.

Latin America

Turning to Latin America now, we have Nu Holdings (NYSE:NU). This is the region’s largest digital bank, with an astonishing 131m customers in three countries (Brazil, Mexico, and Colombia) at the end of 2025.

Since Nu is a digital bank with no physical branches, it doesn’t have to rent more buildings and hire branch managers to serve extra customers. As such, the asset-light company is growing revenue and profits very quickly.

One impressive metric worth highlighting is that Nu’s monthly average revenue per active customer reached $15 in Q4, up from $11 a year earlier. But the cost to serve each customer was very low, at just $0.80.

Last year, the lender’s return on equity reached a record 33%. Even for a digital bank, that’s very impressive.

Founder and CEO David Vélez commented: “As we enter 2026, we remain fully focused on winning in Latin America, while building the capabilities that will allow Nubank to evolve into a global digital banking platform over time.”

Of course, there’s no guarantee the firm will enjoy success in the US and Europe. And there’s even a chance international expansion could significantly increase customer acquisition costs and therefore profitability. Expansion overseas always comes with execution risk.

However, the long-term growth opportunity just in Latin America appears massive. Nu serves roughly 15% of the adult population in Mexico, where it’s now the leading issuer of new credit cards, and just 11% in Colombia.

It still has Chile, Argentina, and Peru to enter, and possibly Panama and Costa Rica in Central America.

True to its origins as a tech-focused disruptor, the company is investing heavily in AI. The CEO says Nu will “continue putting AI directly into customers’ hands, moving closer to our long-term vision of an AI-powered personal banker in every customer’s pockets“.

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At The Motley Fool, we’re big believers in diversification (essentially a fancy term for not putting all your eggs in one basket). In terms of investing, it means spreading your money across different companies, sectors (tech, banking, property, etc), and geographies.

With this in mind, here’s a stock that I think offers something different in terms of growth potential and geographic diversification.

Digital banking powerhouse

Nu Holdings (NYSE:NU) is the company behind Nubank, the largest digital banking platform in Latin America. While founded in Brazil, (still its largest market by far), Nu has expanded to Mexico and Colombia.

Currently a smidgeon over $15, the stock is down 18% since reaching an all-time high of $19 at the end of January.

There are a few reasons why I’m bullish on this neobank (and I’m a shareholder). The first is just how quickly it has been able to capture large amounts of customers, with 113m users in Brazil, representing 62% of the adult population. And it now serves over 15% of Mexico’s population!

Clearly then, its product offering is far more compelling than the region’s legacy banks, many of which have long been notorious for high fees and poor customer service. Nubank has a consistently high NPS (Net Promoter Score), displaying customer satisfaction with its service.

Last year, revenue soared 45% to $16.3bn, with record net profit of $2.9bn. And as the company scales, it’s generating more revenue per client, while keeping customer acquisition costs low (many new customers come via word of mouth). The lender’s credit portfolio expanded 40% to $32.7bn.

Global expansion

While still laser-focused on growing in Brazil, Mexico and Colombia, Nu has firmly set its eyes on international expansion. For example, it has started laying the foundations for US operations.

However, there’s no guarantee that it will have success in the ultra-competitive US market. After all, legacy lenders like Bank of America are hardly slouches when it comes to digital banking.

And there are established fintech players there like Chime, SoFi, and Revolut. Therefore, I do see potential risk if Nu spreads itself too thinly.

Then again, there are almost 70m Latinos in America, so the long-term growth opportunity could be substantial. Management has proven itself highly capable of identifying such growth opportunities, so I’m happy to give the benefit of the doubt.

Valuation?

Turning to valuation, Nu is trading at 3.5 times forward sales and 21.5 times forward earnings. To me, these don’t look like high multiples for a world-class growth company scaling profits rapidly.

The price/earnings-to-growth (PEG) ratio is just under 0.5. Remember, anything below one is often considered potentially undervalued.

Final thoughts

Summing up then, Nu has top-class management, excellent profitability, and big future growth potential. It’s also very innovative, constantly rolling out new products and services, and is deepening adoption of AI.

In a few years’ time, I think Nu stock could look like a steal at $15. As such, this is one I’m looking to add to in the coming weeks.

The post 1 quality stock to consider buying for a brand spanking new ISA appeared first on The Twelfth Magpie.

Here are a pair of top fintech firms that I think deserve closer attention right now. 

Cross-border payments 

First up is Wise (LSE:WISE), formerly TransferWise. The company helps individuals, businesses, and financial institutions move money quickly and cheaply across borders.  

In the six months to the end of September, Wise’s cross-border volume increased 24% to £84.9bn, while customer holdings jumped 37% to £25.3bn. Revenue rose 11% to £658m, up from £397m three years earlier.  

If the difference between cross-border volume (24%) and revenue growth (11%) stands out like a sore thumb, that’s to do with Wise’s disruptive business model. Its mission is to drive prices as low as possible to capture market share.

Wise’s average cross-border take rate is at 0.52%, down from 0.64% three years earlier. But this is allowing Wise to capture share in a truly massive global market estimated at roughly £32trn per year. 

Of course, such a large opportunity attracts a fair amount of competition, which adds risk. Wise will have to keep innovating to stay nimble and fend off rivals. 

Meanwhile, with the stock trading at a premium 22.5 times earnings, any growth hiccups could cause problems.  

However, with the share price down 28% since September, I reckon this is a potential buying opportunity worth taking seriously.

Today, Wise has just 1% share of the global small and mid-sized business market, and significantly less in the large enterprise segment of the market. This shows the potential growth opportunity ahead.

Latin American juggernaut

Let’s head to Latin America now with Nu Holdings (NYSE:NU). This is the firm behind Brazilian digital lender Nubank, which continues to grow at a torrid pace.

In Q3, it added another 4.3m new customers, bringing its total to an astonishing 127m. That would be impressive if Nu was a globetrotting lender like HSBC, operating in 57 countries. However, it’s currently in just three (Brazil, Mexico, and Colombia)!

Founded in 2013, Nu is now the third-largest financial institution in Brazil by number of customers, where more than 60% of the adult population use its app. The penetration rate in Mexico (14%) and Colombia (10%) is lower but growing strongly.

This expansion reinforces Nu’s position as the leading digital bank in Latin America and one of the leading fintech platforms globally. 
Nu, Q3 2025

In Q3, revenue surged 39% at constant currency to $4.2bn, with net income rising by the same amount to reach a record $783m.

Meanwhile, the company’s annualised return on equity (ROE), a key profitability metric, reached a record 31%. This signals high profitability alongside the rapid growth. 

The market has rewarded this top-notch performance with a 47% share price rise over the past year. On paper, this makes the stock look pricey at 32 times earnings. If political instability or inflation hits one of its markets, it might pull back sharply.

However, given the high rate of earnings growth here (above 35% between 2025 and 2027), I feel this premium valuation is justified. The forward earnings multiple actually falls to 15 by 2027, making this another top fintech stock to consider for an ISA.

The post 2 top fintech stocks to consider buying for an ISA appeared first on The Twelfth Magpie.

Beforehand, there were rumours that the 25% tax-free lump sum might be in danger. But the major announcements related to inheritance tax on unspent pension pots. So for investors wanting to build a chunky pot for later in life, the path is still open.

Here, I’ll take a look at how someone starting with £5k in a SIPP today could end up with an attractive sum.

Snowball effect

For simplicity’s sake, let’s assume that this investor is a basic-rate taxpayer. Their £5,000 contribution is topped up by HMRC, becoming £6,250. And if they contributed a further £100 every month, the tax relief would turn this into £125 (or £1,500 per year).

Given that this is a pension account, where the investing runway is likely going to be decades, I don’t think there’s any point in taking excessive risk by swinging for the fences. So an 8% average annual return is a realistic goal, in my opinion.

Yet these modest figures could quietly snowball into something surprisingly meaningful. After 35 years, the SIPP would grow to roughly £360,360, excluding platform fees.

At this point, an investor could choose to draw down 5% per year, equivalent to £18,900 (or £1,575 per month). And while inflation will naturally chip away at spending power over 35 years, it still underlines just how worthwhile a SIPP can is for long-term investors.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Outperforming growth stock

This is why I put bits and bobs into my own SIPP when I can, taking advantage of the tax relief. One stock I have bought a couple of times over the past year is Nu Holdings (NYSE:NU).

It’s up 65% year to date.

So, what does Nu Holdings do? Well, this is the holding company behind Nubank, which is the leading digital bank in Latin America (and now one of the largest fintech platforms globally). 

In Q3, Nu reported that its customer base swelled to 127m. But the incredible thing is that it still only operates in three countries — Brazil, Mexico, and Colombia.

In Brazil, an astonishing 60% of the adult population are Nu customers. However, in Mexico and Colombia, the population penetration rate is still low. Just 14% and 10%, respectively.

This highlights the growth potential ahead in those two countries, never mind worldwide (Nu has ambitious global expansion plans).

Turning to the financials, Q3 revenue jumped 39% to a record $4.2bn, while net income also increased 39% to $783m. Adjusted net income was $829m. This demonstrates how Nu is becoming very profitable as it scales.

Total deposits reached $38.8bn, up 34%, and the credit portfolio expanded 42% to $30.4bn. While this is highly encouraging, it would be naive to assume that Latin America is Switzerland. Inflation, currency risks, and political instability are all risks.

On the other hand, tens of millions of Latin American consumers are accessing financial services for the first time. Traditional banks have not been customer-friendly (high fees, poor customer service, etc), and this is making Nu’s seamless digital banking experience a far superior proposition.

Given the long runway of growth ahead, and excellent profitability and management team, I think the stock is worth considering. I reckon it will continue doing the business in my SIPP over the long run.

The post £5,000 in a SIPP? Here’s how it could snowball into £360k appeared first on The Twelfth Magpie.

Run by Andrew Hollingworth, it has returned 77.8% for the three-year period to 30 June. That destroys its Investment Association Global Sector benchmark (25.7%), and also beats both the FTSE 100 and S&P 500.

Helping drive some of the recent portfolio outperformance has been a pair of top growth stocks (which I also own). Let’s take a closer look at them.

A snowball at the top of a hill

The first stock is Nu Holdings (NYSE:NU), which is the firm behind Brazilian digital lender Nubank. It’s up 35% year to date.

Nubank was built from the ground up as a digital-only bank, with no physical branches. It offers customers far superior and cheaper services than the legacy banks across Latin America.

Our enthusiasm for Nubank is that we can see a potential revolution in its customer offering vs sleepy, fat banking incumbents.

Andrew Hollingworth

In Q1, Nu grew its customer base to an incredible 118.6m, adding over 4m in the quarter. Yet it only operates in three countries (Brazil, Mexico, and Colombia). And while around 60% of adults in Brazil are customers, the other two nations offer significant growth potential (never mind elsewhere).

That said, the lender could come unstuck as its credit portfolio grows. If the loss ratio worsens, that could quickly eat into margins and dent investors’ confidence.

Nevertheless, the firm’s fundamentals are impressive. Average monthly revenue per customer has increased from $7 in 2022 to $11.20 in Q1 2025. But among longer-term customers who use more of services, that figure jumps to nearly $26.

This is why Hollingworth has described the company as “a snowball at the top of a hill“. I agree, making this share worth considering for the long term, in my opinion.

Classic disruptor

The second stock I want to highlight from VT Holland Advisors’ portfolio is one I finally bought earlier this month: Wise (LSE: WISE). This fintech stock is up around 31% over the past year.

Wise helps people and businesses send money across borders quickly, cheaply, and transparently. Around two-thirds of the company’s new customers come by word of mouth. 

The firm takes a cut of the transfers, but what Hollingworth likes is how Wise keeps lowering fees as it scales (similar to Nubank). Wise’s cross-border take rate in Q1 was 0.52% globally, down from 0.58% the year before.

The fund manager says this is “classic disruptor behaviour“, with the firm “building a powerful…[and] hard-to-copy scalable network“.

Looking ahead, Wise could face rising competition, with rivals all looking to take share in the massive £32trn cross-border money market. A global economic downturn would also likely slow payment volumes.

Yet, I think Wise is still worth considering right now, along with VT Holland Advisors Fund. The latter’s portfolio of just 30 stocks does present some concentration risk, but I reckon the manager’s strategy to “find great companies run by great managers available at great prices” will continue to bear fruit.

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In the first quarter, Buffett’s holding company Berkshire Hathaway offloaded a couple of bank stocks, namely Citigroup and Nu Holdings (NYSE: NU). This was part of a pattern, as Berkshire had been cutting its exposure to the financial sector over the preceding quarters.

Here’s why I won’t be following Buffett’s lead by selling my own Nu shares.

A totally different universe

Before getting onto the company, I want to briefly explain why I don’t blindly copy the Oracle of Omaha’s trades.

Berkshire Hathaway is a $1.05trn behemoth, with a stock portfolio worth around $250bn. It also had $347bn in cash at the end of March.

In the second quarter of 2024, Buffett owned roughly 107m Nu shares. That’s roughly 107m more than I do. My position is just a tiny sliver of the 107,118,784 shares I casually rounded down to 107m!

Back then, Berkshire’s Nu holding was worth around $1.38bn, or 0.49% of the portfolio. Therefore, the Nu share price could have trebled and still barely moved the needle for Berkshire.

Fact is, Buffett’s investing universe is completely different to mine. He needs elephant-sized opportunities to move the needle, whereas I don’t. For my infinitely smaller portfolio, a trebling of one of my stocks would make a big difference to performance.

What is Nu anyway?

For those unfamiliar, Nu is a Brazilian fintech company — commonly called Nubank — that operates one of the world’s largest digital banking platforms.

It offers various financial services, including digital current accounts, credit and debit cards, personal loans, insurance, stock and crypto trading, corporate services, and more.

Customer growth has been truly spectacular. It ended 2021 with 53.9m customers across Brazil, Mexico, and Colombia. By the first quarter of this year, that figure had swelled to 118.6m.

Revenue growth has been equally explosive, going from $1.7bn in 2021 to $11.5bn in 2024! Meanwhile, the firm has gone from an adjusted net loss of $26.8m in 2020 to nearly $2bn in net profit last year.

Still early days

Nu’s secret sauce is the far superior banking experience that it’s bringing to Latin America. Customers love the digital-first model and far lower — or zero — fees.

Indeed, the brand is so strong in Brazil that around 60% of the adult population now use the app! And an increasing number are using it as their primary banking account.

Now, one thing to note here is that Nu reports in US dollars but earns in Brazilian, Mexican, and Colombian currencies. So if those weaken, earnings can drop even when local growth is strong. This is a risk.

The stock is also trading at 24 times forward earnings, which isn’t cheap. Any growth hiccups are likely to be punished by the market.

However, execution has been impeccable so far, and forecasts point to a doubling in revenue and trebling in earnings by 2028. So there’s a chance the stock will look cheap in future.

Through geographic expansion and rising customer adoption of services, Nu looks well placed to drive significant earnings growth over the coming years. Buffett may have exited, but I’m certainly not, and reckon it’s worth considering at $13.

The post Warren Buffett’s Berkshire Hathaway dumped this growth stock. Here’s why I won’t appeared first on The Twelfth Magpie.

Cellebrite

What it does: Cellebrite is a software-as-a-service enterprise specialising in digital forensics and encrypted data extraction.

By Zaven Boyrazian. In the world of law enforcement and cybersecurity, digital evidence has become a critical. In fact, an estimated 90% of reported crime today has some form of digital element. And with most criminal devices being locked or encrypted, demand for Cellebrite’s (NASDAQ:CLBT) C2C platform has surged.

The platform offers solutions for digital forensics, case & evidence management, and AI-powered analytics. And it is the global standard for extracting evidence from encrypted mobile phones, combating terrorism, fraud, human trafficking, and organised crime.

Revenue has been expanding at a 20% annualised rate over the last five years, with operating profits surging by an average of 44% annually on the back of rapidly expanding margins thanks to the increasingly lucrative opportunities within the digital forensics market.

Of course, such explosive returns invite challenge. And fierce competition is forcing Cellebrite to allocate considerable funds to research & development. If it can’t out-innovate its rivals, the group’s leading position could become compromised.

Nevertheless, given the explosive opportunity and long track record of defying expectations, this is a risk I’m willing to take.

Zaven Boyrazian owns shares in Cellebrite.

Devon Energy

What it does: Devon Energy is an oil and gas producer in the U.S. with a diversified multi-basin portfolio, including in the Delaware Basin.

By Andrew Mackie. I have been looking for an opportunity to enter the pure-play exploration space for some time. With the recent tariff-induced sell-off I took the opportunity to buy my favoured pick Devon Energy (NYSE: DVN).

Unlike oil majors such as BP and Shell, earnings come purely from oil and gas production. The company is effectively a leveraged play on such prices. Unsurprisingly, as prices have fallen for some time, so too as the share price. However, I remain extremely bullish on prices over the next decade plus.

In the short to medium term, I expect natural gas demand to rise significantly off the back of data centre growth. The recent conversion of a decommissioned coal-fired to natural gas power plant in Homer, Pennsylvania, provides a good illustration of demand growth. Unlike nuclear, gas fired power stations can come online very quickly.

Should the US enter a recession in 2025, then oil prices will undoubtedly fall even more, impacting Devon’s profitability. However, with globalisation unwinding, defence spending increasing and the US boosting domestic manufacturing, I expect hydrocarbon demand to remain buoyant well into the future.

Andrew Mackie owns shares in Devon Energy, BP and Shell.

Nu Holdings

What it does: Nu Holdings owns Nubank, which is Latin America’s largest digital bank.

By Ben McPoland. I recently added to my position in Nu Holdings (NYSE: NU). The Brazil-based digital bank ended the first quarter with nearly 119m customers, 19% more than the year before.

Incredibly, 59% of Brazil’s adult population are now customers, while strong growth continued in Mexico (12% of the adult population) and Colombia (8%). Quarterly revenue jumped 40% to $3.2bn on a currency-neutral basis, while adjusted net income rose 37% to $606.5m.

There were some negative currency swings in the quarter, which could continue. Also, the bank’s risk-adjusted net interest margin fell to 8.2%, down from 9.5%. This was largely due to aggressive expansion in Mexico and Colombia, which involves offering higher deposit rates to attract users. So the quarter wasn’t totally flawless.

Nevertheless, I’m very impressed with the way Nu continues to grow at scale. The neobank is barely scratching the surface when it comes to monetising its vast – and growing – base of customers.

The stock isn’t cheap, but the company appears to have a long runway of growth ahead of it, with large swathes of Latin America still either unbanked or underbanked.

Ben McPoland owns shares of Nu Holdings.

RWE

What it does: RWE AG is a leading German energy company focused on renewables, power generation, and trading.

By Mark Hartley. I recently invested in RWE (FRA: RWE) due to its strong financial performance and strategic plans for 2025. Last year, it reported an adjusted EBITDA of €5.7bn and adjusted net income of €2.3bn, surpassing expectations. The energy supplier also announced a €1.5bn share buyback program, reflecting a commitment to shareholder returns.

However, it faces some uncertainties in the US offshore wind market following revised policies that could affect renewable energy. As a result, it recently reduced its five-year investment outlook by €10bn, indicating caution amid these market challenges. This could impact future growth and returns, so I hope the US sees the advantages in renewables and reconsiders its policies.

Despite these risks, I remain optimistic about RWE’s focus on renewables and look forward to seeing it drive innovation in the sector. It also has a decent 3.42% yield and a P/E ratio of 4.65.

Mark Hartley owns shares in RWE.

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