Warren Buffett and Cathie Wood typically don't agree on much when it comes to assembling a portfolio. Only rarely have they owned the same company.

But there's one growth stock that both of these investors love -- Latin American fintech Nu Holdings (NYSE: NU) -- so much so that they have invested nearly $1.5 billion combined into the business. And yet many investors have never heard of this company.

You can use this ignorance to your advantage by snapping up shares at an incredible discount.

This growth stock is a proven winner

It's not often that you can buy a proven growth stock at a reasonable valuation, nonetheless a discounted valuation. That's because once a growth trajectory has begun, the market rushes to price that proven potential into the stock.

This is, in part, what makes growth investing so challenging. You can buy and hold a stock that grows revenue by 500% over your holding period. But if the market had been pricing in 600% growth, you could still end up underperforming the market.

How do you get a discount on a proven growth stock? Just look at one that the market is ignoring -- like Nu Holdings. And that might be the reason shares trade at just 32 times forward earnings, even though its bottom line has skyrocketed in recent years.

The issue for Nu isn't a lack of famous investors. Buffett owns a bit more than $1.4 billion in shares through his holding company, Berkshire Hathaway -- a position it has held since Nu's initial public offering (IPO) in 2021. And through her company ARK Invest, Cathie Wood owns around 1.5 million shares of Nu, worth roughly $20 million.

The issue isn't scale, either. Right now, Nu has more than 100 million customers. The issue is simply that Nu operates in just three countries: Brazil, Mexico, and Colombia. Unless you live in one of these nations, you likely have never heard of Nu -- and certainly have never used its services.

What exactly is Nu's business? It's a fintech that offers a suite of financial services directly to customers through their smartphones. This might not sound so innovative today, but it was in Latin America in 2013.

Back then, a few stodgy incumbents controlled most of Latin America's banking industry. Nu took the market by storm, offering more advanced services at a lower cost, available to anyone instantly through the device in their pocket.

There was clearly a lot of pent-up demand. Nu's customer base went from essentially zero to more than 100 million over its first decade in business. And new product lines like its crypto trading platform surpassed 1 million users in its first month of operation.

Suffice it to say that the financials look great for Nu. Two years ago, its sales base had just surpassed $2 billion. Today, it's approaching $8 billion. Meanwhile, earnings have flipped positive -- a trajectory that is likely to be sustained for years to come. Over the next five years, for example, analysts expect earnings to grow at an average of 54% annually.

Should you follow Wood and Buffett into Nu stock?

Nu has an incredible story, a proven track record, and a reputable platform to build on. And its valuation -- just 32 times forward earnings -- is almost too good to pass up.

Just don't think this will be a smooth ride. After its IPO, Nu shares actually lost 70% of their value over the first year of trading. Shares have completely rebounded since, but it's a good reminder than rapid-growth stocks are often at the mercy of market volatility. The multiples assigned to these companies can vary widely based on market sentiment.

Like Buffett and Wood, I'm a big fan of Nu Holdings as an investment. But as with most stocks, it will be patience that ultimately generates the biggest returns. Don't buy unless you're willing to hold through the downward swings.

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Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy.

Warren Buffett and Cathie Wood Agree: This Growth Stock Is a Buy was originally published by The Motley Fool