Five years ago, Nu Holdings $NU was just starting its public trading journey, with shares around $5–$6. Today, it's closed at $17.75—a very strong 206%+ rise that reflects its rapid expansion as Latin America's leading digital bank, offering accounts, credit cards, loans, investments, and insurance to millions of unbanked and underbanked customers in Brazil, Mexico, and Colombia. The chart shows a clear long-term upward trend: a base-building phase through 2023, followed by consistent gains in 2024–2025 as customer numbers and profitability improved. The 52-week high of $18.98 (reached recently) shows the stock is near its strongest levels in the past year.

In straightforward terms, the compound annual growth rate (CAGR) over the past five years is approximately 24.6%. That's the average yearly increase—calculated by raising the total growth factor to the 1/5 power and subtracting 1. It means growing your money by roughly 25% each year, on average.

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Dollar-cost averaging (DCA) fits this growth story well: Invest $500 every month for five years, totaling $30,000. This buys more shares when prices are lower (during any pullbacks) and fewer when they're higher, which helps smooth out the natural volatility of a fast-growing fintech company. Projecting forward at the same historical CAGR, with a monthly growth rate of about 1.84% from $17.75, your position builds steadily.

After 60 months, your portfolio could reach approximately $55,200. That's a gain of about $25,200—a 84% return on your invested capital. The earliest contributions benefit most from compounding, while later ones still participate in the overall upward trend.

This projection follows historical performance, which does not guarantee future results. Nu is a high-growth fintech operating in emerging markets, so it carries risks including economic slowdowns in Latin America, currency fluctuations, regulatory changes, competition, and potential shifts in consumer borrowing behavior. The current P/E ratio of 34.39 reflects high expectations for future earnings growth, and there is no dividend yet as the company continues to reinvest heavily in expansion.

With a $86.01B market cap and the 52-week high of $18.98 still in reach, Nu remains one of the most dynamic digital banking stories in the world. If you're comfortable with the risk and believe in its long-term vision, DCA allows you to participate consistently without trying to time the market. Your $500 monthly habit could build a meaningful position by 2031. Keep the account growing?