What do Warren Buffett and Scottish Mortgage have in common? This $14 growth stock!

We rarely talk about Warren Buffett anymore Scottish Mortgage Investment Trust in the same soul. After all, the former is a blue-blooded investor, while the latter invests heavily in technology innovators.

However a portfolio of both Berkshire Hathawaythe big company that owns Buffett, and the FTSE 100 A growth-oriented trust has one stock in common: Nu Holdings share price (NYSE: NU).

Oh, and Cathie Wood of Ark Invest also likes this under-the-radar company!

What do these top investors see in Nu Holdings stock? And at $14, should I invest?

What's going on?

Nubank (owned by Nu Holdings) is a Brazilian fintech company, but not just any old one. The largest digital bank in Latin America, with 105m customers in Brazil, Mexico and Colombia.

Nubank's purple credit cards are ubiquitous in Brazil, where 56% of adults now use the app. Obviously, do something (very) right!

Founded in 2013, the company provides customers with a wide range of financial services through their smartphones. They can pay bills, apply for loans and insurance, invest in stocks, trade crypto, and more.

A great opportunity

Admittedly, that doesn't sound different from other opposition banks. However, it is important to remember that Latin America still has tens of millions of people who are unbanked (limited access to financial products) or unbanked (no access at all). Nubank can offer them credit while traditional banks cannot.

It costs the company just $7 to acquire a new account, but average monthly revenue per active customer reached $11.20 in Q2. That's an eye-catching ratio.

To look Reddit I note that Nubank has an excellent reputation for customer service, something that traditional banks in the region lack.

Fast growing

In the past two years, the branchless bank has tripled its revenue and seen its net income grow steadily. In Q2, revenue jumped 65% year-on-year on a currency basis, to a record $2.8bn. Adjusted revenue rose 131% to $562m.

Given this impressive dividend growth, it's easy to see why some top investors value Nu Holdings so much. The best thing though is that the stock isn't ridiculously underperforming in terms of its growth.

Wall Street expects earnings per share to grow by an average of 53% over the next five years. This means that the 24-fold income of 2025 may end up looking ridiculously cheap a few years from now.

Should I buy?

Naturally, there are risks associated with Latin America, which is not unusual for economic instability. As a company expands its loan portfolio, non-performing loans may increase.

Meanwhile, the fintech giant MercadoLibre – the largest company in the region – will continue to present serious competition.

Despite these challenges, I am still standing. Millions of people in rural areas across the region do not have access to physical banking, often placing minimum balance requirements that are difficult for low-income people to meet. This is fertile ground for Nubank to continue growing for a very long time.

CEO and founder David Vélez is thinking beyond three countries. “100 million…represents only 1.25% of the world's population. We are convinced that by doing the best for our customers, we win for decades. We promote long-term value creation, not short-term. It's an endless game.”

This compelling growth stock ticks all my boxes. For $14, I think I'll buy it for my portfolio.