Berkshire Hathaway Portfolio Investment, StoneCo Ltd., Up 12% on Takeover Talks

StoneCo Ltd. (STNE), a financial technology company in Brazil, is up 12% at $52.85 on takeover talks with Linx S.A. (LINX) a Brazilian software firm. It is now 120% above the IPO price of $24 paid by Todd Combs of Berkshire Hathaway in October, 2018.

StoneCo Ltd. is a financial technology company based in Brazil, the fourth-largest payment processor by volume in that country. Brazil is the fourth-largest market for non-cash transaction volumes in the world, which gives the company a lot of scope for growth.  Todd Combs of Berkshire Hathaway invested $340 million in the company’s initial public offering, buying about 11 percent of the company.  This stake is now valued at about $700 million. Berkshire had not previously invested in an IPO in decades.