As an investor, I’m a big fan of David Vélez and the competitive advantages the bank has built.
That said, I do have some doubts about the growth projections - I think there are some structural barriers that might make it harder to replicate the business model in other Latin American countries. What's your take?
My projections are based on the data we have from other Latin American countries. At the moment, NU has achieved higher penetration in Mexico and Colombia compared to the same periods following its launch in Brazil.
I’d argue you’re not considering the second order impacts of Tariffs. Mexico and Brazil are both among the biggest exporters to US…tariffs in general will harm both economies and therefore potentially impact NU
This falls under emerging market risk for me and is reflected in the 15% discount rate, which is on the high end. A global recession would affect every company as a second-order impact but should not influence the long-term valuation of a company.
Thank you.
My pleasure
As a customer, I’m a big fan of Nubank’s service.
As an investor, I’m a big fan of David Vélez and the competitive advantages the bank has built.
That said, I do have some doubts about the growth projections - I think there are some structural barriers that might make it harder to replicate the business model in other Latin American countries. What's your take?
My projections are based on the data we have from other Latin American countries. At the moment, NU has achieved higher penetration in Mexico and Colombia compared to the same periods following its launch in Brazil.
I’d argue you’re not considering the second order impacts of Tariffs. Mexico and Brazil are both among the biggest exporters to US…tariffs in general will harm both economies and therefore potentially impact NU
This falls under emerging market risk for me and is reflected in the 15% discount rate, which is on the high end. A global recession would affect every company as a second-order impact but should not influence the long-term valuation of a company.