Core Viewpoint - MercadoLibre is identified as a strong candidate for inclusion in Berkshire Hathaway's portfolio due to its significant growth potential and competitive advantages in the e-commerce and financial sectors of Latin America [3][15]. Company Overview - MercadoLibre is valued at approximately $120 billion, making it a suitable investment target for Berkshire Hathaway, which seeks large companies for impactful investments [6][4]. - The company operates as the leading e-commerce and financial platform in Latin America, with a growing user base and extensive logistics capabilities [7][15]. Growth Potential - MercadoLibre's revenue growth rates were 38%, 37%, and 49% for the years 2024, 2023, and 2022 respectively, indicating robust business expansion [11]. - The company is well-positioned to benefit from ongoing economic growth, increased e-commerce adoption, and the expansion of digital financial products, suggesting a favorable outlook for the next decade [11]. Competitive Advantages - MercadoLibre has developed a strong logistics network, allowing over half of its shipments to be delivered within one to two days, which enhances customer satisfaction and retention [13]. - The growing base of over 70 million active buyers supports the company's future growth through increased third-party listings, subscription services, and advertising demand [14].
If I Could Pick Stocks for Warren Buffett, I'd Choose This One