Core Insights - The podcast discusses the emotional pitfalls of selling stocks too soon, emphasizing that selling good companies prematurely can lead to significant missed opportunities for gains [2][4][12] - Historical examples, such as Netflix and Sea Limited, illustrate how selling decisions based on short-term performance can result in substantial long-term losses [3][5][10] - A framework for evaluating when to sell stocks is proposed, focusing on business fundamentals rather than emotional reactions to market fluctuations [12][14] Emotional Temptations of Selling - Investors often succumb to emotional impulses driven by fear and greed, leading to premature selling of stocks that may recover or grow significantly [2][3] - The pain of perceived losses is more intense than the pleasure of gains, influencing investors to sell stocks that are declining or have appreciated significantly [2][3] Historical Examples of Selling Mistakes - David Gardner's sale of Netflix in 2003 for valuation reasons resulted in a missed opportunity for 26,000% gains had he held onto the stock [3] - Sea Limited was sold in November 2023, missing out on 223% gains, despite logical reasons for selling at the time [5][10] Framework for Selling Decisions - A structured approach to selling stocks is recommended, including evaluating whether the decision is based on business fundamentals, macroeconomic factors, or valuation concerns [12][13] - Key questions to consider include whether the stock has reached a financial milestone or if the business is still aligned with the investor's thesis [12][13][14] Importance of Patience and Long-Term Perspective - Holding onto stocks that have the potential for significant growth can outweigh the risks of short-term volatility [10][11] - The concept of asymmetric returns highlights that the potential upside of successful investments can far exceed the downside risk [9][10] Lessons from Past Sales - The podcast emphasizes the importance of reflecting on past selling decisions to avoid repeating mistakes and to recognize the potential for recovery in previously sold stocks [6][16] - Building a habit of reviewing earnings reports and company fundamentals can help investors resist the urge to sell based on market noise [15][16]

Group 1: MercadoLibre - MercadoLibre is the leading player in the Latin American e-commerce and fintech markets, with a compound annual growth rate exceeding 30% over the past five and ten years [2] - The stock has recently declined approximately 20% from its all-time high due to increased competition from Amazon in Latin America [3] - E-commerce penetration in Latin America is still in the mid-teens as a percentage of total retail sales, indicating significant growth potential [5] Group 2: TransMedics Group - TransMedics Group is innovating the organ transplantation market with its Organ Care System (OCS), which keeps donor organs alive during transport, addressing issues associated with traditional cold storage methods [6][7] - OCS technology allows for over 80% of donor hearts and lungs to be usable, significantly increasing transplant rates compared to cold storage [9] - The company is expanding into Italy in 2026 and developing a version of OCS for kidneys, which could transform the kidney transplant landscape [11] Group 3: Vertex Pharmaceuticals - Vertex Pharmaceuticals holds a dominant position in the cystic fibrosis market with the only approved therapies targeting the disease's underlying cause [12] - The company is also exploring opportunities in other therapeutic areas, including a non-opioid pain drug that is expected to be a blockbuster [13] - Vertex is advancing its pipeline with plans for regulatory submissions for treatments targeting IgA nephropathy and severe Type 1 diabetes, which could address significant patient populations [15][16]

Core Insights - MercadoLibre, Inc. (NASDAQ:MELI) is recognized as one of the best consumer cyclical stocks, being a leading eCommerce firm in Latin America with 94 million unique buyers on its platform [1] Analyst Recommendations - As of November 28th, 18 out of 26 analysts recommend MercadoLibre, Inc. shares as a Buy, with 5 Strong Buy and 3 Hold ratings, and an average price target of $2,847 [2] Recent Analyst Coverage - UBS maintained a Buy rating for MercadoLibre, Inc. on November 24th but reduced the price target from $3,000 to $2,900, previously set on October 22nd and June 2nd, indicating a focus on the firm's ability to sustain margins and growth amid competition [3] Earnings Performance - MercadoLibre's third-quarter earnings reported a net income of $421 million, which fell short of analyst estimates of $481 million [4] AI Integration - The CEO of MercadoLibre expressed excitement about the potential of agentic AI to enhance discovery, service, and productivity, highlighting the launch of a seller assistant and an AI assistant for fintech services [4]

Core Viewpoint - The U.S. stock market is currently trading at a premium P/E ratio compared to global markets, making some overseas stocks, like MercadoLibre, attractive investment opportunities due to their potential for growth [2][3]. Company Overview - MercadoLibre operates as a leading e-commerce platform and financial services provider in Latin America, with a current market cap of $100 billion and a significant presence in countries such as Mexico, Brazil, and Argentina [3][4]. - The company has a history of impressive revenue growth, with total revenue increasing by 49% in constant currency last quarter and nearly 4,000% cumulatively over the past decade [5][6]. Financial Performance - The company has layered financial services through its Mercado Pago subsidiary, which boasts 72 million monthly active users and achieved a 65% year-over-year revenue growth last quarter [5]. - MercadoLibre's trailing earnings before interest and taxes are just over $3 billion, leading to a trailing earnings multiple between 30 and 35 based on its current market cap [9]. Market Potential - E-commerce penetration in Latin America remains low compared to other regions, presenting significant growth opportunities as internet adoption and economic conditions improve [6][7]. - The economic recovery in Argentina, one of MercadoLibre's largest markets, could further enhance growth prospects if ongoing reforms continue to yield positive results [7]. Future Projections - If MercadoLibre achieves $100 billion in revenue with a 20% profit margin in ten years, it could generate $20 billion in earnings, justifying a market cap of $500 billion based on a forward earnings multiple of 25 [11].

Core Viewpoint - The article emphasizes the importance of portfolio diversification and highlights five growth stocks that present significant short-term and long-term investment opportunities beyond artificial intelligence stocks [2]. Group 1: MercadoLibre - MercadoLibre operates an online marketplace across 18 Latin American countries, benefiting from the region's growing e-commerce adoption [3]. - The company reported a 49% year-over-year revenue increase (currency neutral) in Q3 2025, with gross merchandise volume (GMV) rising by 35% [4]. - MercadoLibre is expanding its fintech services, gaining new users rapidly and increasing its credit portfolio, indicating strong growth potential [4][5]. Group 2: Dutch Bros - Dutch Bros operates over 1,000 stores in the U.S. and plans to expand significantly, aiming for 7,000 stores in the future [9]. - The company achieved a 25% year-over-year sales increase in Q3 2025, with comparable sales up by 5.7% and earnings per share rising from $0.11 to $0.14 [9]. - Dutch Bros focuses on speed and friendly service, with a business model primarily consisting of drive-thru locations and mobile ordering [8]. Group 3: On Holding - On has established a premium athletic wear brand, particularly known for its Cloudtec footwear, and is experiencing robust growth despite a challenging market [12][13]. - The company reported a 35% year-over-year revenue increase (currency neutral) in Q3 2025, with a gross margin of 60.6% and a 290% increase in net income [13]. - On is expanding its brand presence through both direct-to-consumer and wholesale channels, indicating potential for significant investor gains [13]. Group 4: Nu Holdings - Nu is a digital bank based in Brazil, serving over 60% of the adult population and expanding into new regions like Mexico and Colombia [14][15]. - The company reported a 39% year-over-year increase in revenue and net income in Q3 2025, with average revenue per active user rising from $11 to $12 [15]. - Nu is pursuing long-term expansion plans, including applying for a bank charter in the U.S., which presents substantial growth opportunities [15]. Group 5: Amazon - Amazon is the largest e-commerce company in the U.S., with a significant market share of around 40%, and is continuously launching new services [17]. - The company’s Amazon Web Services (AWS) is the largest cloud computing provider globally, playing a crucial role in its growth, particularly in AI [18]. - Management sees explosive growth opportunities in AI, indicating that Amazon could be a major long-term winner in this space [18].

Core Insights - Growth stocks are companies that typically grow faster than the overall market or their industry peers, often dominating a specific niche within a profitable and expanding market [1][2] Group 1: MercadoLibre - MercadoLibre is the leading e-commerce and digital financial services provider in Latin America, benefiting from a strong brand and operational scale that are hard for new entrants to replicate [3][4] - The company has a significant growth opportunity as e-commerce penetration in Latin America is still behind developed markets, allowing for a durable growth runway [4] - MercadoLibre's fintech services target a large underbanked population, creating a substantial addressable market [5] - The company's services, including Mercado Pago, Mercado Envíos, and Mercado Crédito, create a flywheel effect that enhances customer satisfaction and transaction volumes [6] - In Q3, MercadoLibre reported net revenue of $7.4 billion, a 40% year-over-year increase, marking the 27th consecutive quarter of over 30% growth [9] Group 2: Eli Lilly - Eli Lilly has gained attention due to the success of its GLP-1 treatments, but it has a long history of growth and a diverse portfolio beyond these drugs [11] - The company reported a 54% year-over-year revenue increase in Q3, driven by its leading market share in a weight-loss market projected to exceed $100 billion by 2030 [13] - Eli Lilly's market capitalization surpassed $1 trillion, making it the first healthcare company to reach this milestone [13] - The company has a promising pipeline of new drugs, including orforglipron, an oral GLP-1 treatment expected to launch next year [15][18] - Eli Lilly is investing heavily in manufacturing and leveraging AI to accelerate drug development, positioning itself for future growth [18]

Core Viewpoint - MercadoLibre is positioned for growth despite recent stock pullbacks, presenting a buying opportunity for investors as it continues to show strong revenue growth and competitive advantages in the Latin American e-commerce market [1][4]. Company Overview - Founded in 1999, MercadoLibre has established itself as a leading e-commerce operator in Latin America, with a diverse range of services including Mercado Pago, Mercado Envios, Mercado Crédito, and Mercado Fondo [5]. - The company has experienced a remarkable stock increase of 7,000% since its IPO in 2007, demonstrating its long-term success [1]. Financial Performance - In the third quarter, MercadoLibre's revenue surged by 39% year-over-year to $7.4 billion, marking its 27th consecutive quarter of at least 30% revenue growth [6]. - The company's credit portfolio grew by 83% to $11 billion, although concerns about the rapid expansion of its credit business have emerged [15]. Market Potential - E-commerce penetration in Latin America is still relatively low, providing significant growth opportunities for MercadoLibre, particularly in Brazil, Mexico, and Argentina [8]. - Management anticipates that e-commerce penetration could double in the coming years, with strategies in place to enhance growth, such as lowering minimum order sizes for free shipping [9]. Competitive Landscape - Despite increased competition from Amazon and other players, MercadoLibre maintains a strong market position due to its established brand and competitive advantages, including a Prime-like membership program [10][11]. - The company has a solid economic moat, making it difficult for competitors to gain significant market share in Brazil [12]. Long-term Outlook - Historical trends indicate that MercadoLibre has successfully recovered from past stock pullbacks, suggesting potential for future growth following the current decline [16]. - The company’s long-term growth trajectory, combined with its competitive advantages, positions it as a strong investment opportunity [14].

Core Insights - Holding shares of growing companies is an efficient way to build wealth over time, focusing on long-term investments and companies with competitive advantages [1] Group 1: Reddit - Reddit has become one of the top three most visited sites in the U.S., attracting advertisers due to its conversation-driven platform [2] - The platform saw a 19% year-over-year increase in daily active users, reaching 116 million in Q3 [3] - Reddit's revenue increased by 68% year-over-year to $585 million last quarter, driven by higher user engagement and ad spending [5] - The company reported a net profit of $163 million last quarter and generated $509 million in free cash flow, a 387% year-over-year increase [6] - Analysts project free cash flow to grow at a 62% annualized rate, reaching $2.4 billion by 2029, potentially doubling the share price in five years [6] Group 2: MercadoLibre - MercadoLibre is the leading e-commerce company in Latin America, with over 110 million unique buyers and $56 billion in quarterly gross merchandise volume [7] - The company's fintech services significantly contribute to its e-commerce growth, with Mercado Pago accounting for approximately 25% of marketplace transactions [9] - MercadoLibre's credit portfolio grew 83% year-over-year to $11 billion, with 1.3 million new credit cards issued in Brazil last quarter [10] - The company has maintained a 39% year-over-year revenue growth for 30 consecutive quarters, indicating strong business performance [11] - The stock is trading at a price-to-sales (P/S) ratio of 3.8, which is low compared to its historical range, with expected revenue growth of 24% annually through 2029 [12]

Core Insights - The company reported a 39% year-on-year revenue growth, marking the 27th consecutive quarter of growth above 30% [4][76] - Strategic investments in logistics, free shipping, and credit card offerings are driving growth while putting some pressure on EBIT margins [1][4] - Argentina remains a key market with strong long-term growth potential despite macroeconomic challenges [7][10] Financial Performance - Operating income reached USD 724 million, growing by 30% year-on-year [1] - Revenue growth in Argentina was 39% year-on-year in USD and 97% in local currency, with items sold increasing by 34% [8] - The credit portfolio grew by 100% year-on-year while maintaining low first pay defaults [9] Market Dynamics - The reduction in the free shipping threshold in Brazil has led to accelerated GMV and items sold, with items sold growth increasing from 26% to 42% quarter-on-quarter [29] - Monthly active users in Mercado Pago grew significantly, with record high NPS levels in Brazil [3][52] - The company is experiencing strong demand from sellers, particularly in the lower price range, leading to increased listings [3] Strategic Initiatives - The company opened a second fulfillment center in Argentina and launched a new credit card, indicating ongoing investment in growth [7][38] - Marketing spend represented about 11% of revenues, with a focus on user acquisition through performance and affiliate channels [15][16] - The company is deploying robotics and technology in warehouses to improve efficiency and reduce shipping costs, which decreased by 8% quarter-on-quarter in Brazil [22][25] User Engagement - The total unique buyers on the platform reached 75 million, with 7.8 million being new buyers in the latest quarter [12][39] - The company is focused on improving the value proposition for users, which has resulted in higher retention and conversion rates [52][66] - The credit card business is seeing positive engagement metrics, with older cohorts becoming profitable [26][60] Competitive Landscape - The company maintains a strong market position in Brazil, with a tripling of market share since 2014 and a doubling since the pandemic [72] - The competitive environment remains intense, but the company believes its strategies are rational and focused on user satisfaction [71][73] - The company is optimistic about future growth opportunities in both e-commerce and fintech sectors [4][51]

Core Viewpoint - MercadoLibre, Inc. (NASDAQ:MELI) is considered a strong long-term investment despite recent price target adjustments and short-term concerns, with a favorable risk/reward profile following an 11% pullback post-earnings [1][2]. Financial Performance - The company reported fiscal Q3 2025 earnings on October 29, achieving a 39% year-over-year growth in net revenue, totaling $7.4 billion, marking the 27th consecutive quarter of over 30% year-over-year growth [2]. Competitive Position - NPS data and market share indicate a significant strengthening in MercadoLibre's competitive position, supported by ongoing investments in free shipping, user experience, fulfillment, and product assortment, particularly in Mexico, Brazil, and Argentina [3]. Business Operations - MercadoLibre operates an online commerce platform focusing on e-commerce and associated services, with operations segmented into Brazil, Argentina, Mexico, and Other Countries [4].