Two Stocks, A Decade, So It Goes

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People chase growth, you know. They want more. It’s a perfectly reasonable, utterly predictable thing. Peter Lynch, a man who knew a thing or two about money, said look for it. Look for companies actually doing something. And in the world of finance, things are definitely being done. The old ways are crumbling, replaced by glowing rectangles and algorithms. It’s all rather inevitable, really.

Two companies, Nu Holdings and SoFi Technologies, are attempting to capitalize on this. I say “attempting” because, in the grand scheme of things, we’re all just flailing about. But they’re flailing with a bit more purpose, perhaps. So, here’s my take, and it’s a simple one. These are the two I’m holding for the next ten years. Don’t ask me why. Just…trust me. Or don’t. So it goes.

Latin America’s Little Miracle

Nu Holdings, parent of Nu Bank, has grown. A lot. They went from three million customers to 106 million in what feels like a blink. It’s a number, really. A large number, but just a number. What’s interesting is how they did it. They treated people decently. Imagine that. In Brazil, Colombia, Mexico, they offered easy apps, less predatory lending, even free debit cards. It’s almost…un-American.

The revenue followed, of course. Nearly $13 billion over the last year. $2.5 billion in net income. They’re still spending, reinvesting. Good. A company that doesn’t invest is a company slowly dying. They trade at a premium, 32.6 P/E. It’s high, yes. But growth should bring that down. It usually does. Or it doesn’t. So it goes.

A Dip Worth Considering

SoFi stock took a tumble, down 39% from its peak. People panic. They always do. It’s a perfectly natural reaction to seeing numbers go down. The stock had gotten ahead of itself, inflated by hope and hype. Now it’s coming back to earth. Good. A little gravity is healthy.

But the actual performance is…okay. Adjusted revenue up 37% to $1 billion. Pre-tax income doubled. Members are joining, a million per quarter. 13.6 million in total. More people using the platform. It’s a simple equation, really. More users, more revenue. It’s not magic. It’s just…arithmetic.

Like Nu, SoFi trades at a premium – 52 P/E. High, yes. But if those customers keep joining, that P/E should fall. It usually does. Or it doesn’t. So it goes.

So, buy both. Nu Holdings. SoFi Technologies. Hold them for ten years. Watch what happens. Or don’t. It won’t change the fundamental trajectory of the universe, but it might make your portfolio a little more interesting. And in the end, isn’t that all any of us really want? A little bit of interest? So it goes.

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2026-02-19 19:22