This last week was an important one for my LatAm-focused positions.
After MercadoLibre reported earnings, both $MELI (MercadoLibre Inc) and $NU (Nu Holdings Ltd.) saw strong volatility, with the market reacting negatively to short-term margin pressure, higher investment, and uncertainty around future growth.
In my view, the long-term thesis remains intact.
MercadoLibre continues to build one of the strongest ecosystems in Latin America: e-commerce, payments, credit, logistics, and a powerful regional brand. Nubank, meanwhile, remains one of the most disruptive financial platforms in the region, especially in Brazil.
That’s why I used the weakness on Friday to increase my positions in both companies.
I’m still very bullish on Brazil. It’s not a “comfortable” market, and there will always be political, macro, and currency noise. But it’s also one of the largest economies in the world, with a huge consumer base, low financial inclusion, growing digital adoption, and many quality companies still trading at attractive valuations.
For me, the key question is simple: are these companies weaker today than before earnings? Or is the market just reacting to short-term noise while these businesses keep investing for long-term dominance?
I believe MercadoLibre and Nubank are two of the strongest regional leaders in Latin America, with massive competitive advantages and plenty of room to grow.
Not financial advice. Just sharing how I’m thinking about my own portfolio.... Show More
Not investment advice. The author may have financial interests in the mentioned instruments.
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