Here’s Generation Investment Management’s Views on MercadoLibre (MELI)

Company Overview - Generation Investment Management released its "Global Equity Strategy" fourth quarter 2025 investor letter, emphasizing the importance of patient, quality-focused investing in a market shaped by uncertainty and distortion [1] - The firm believes its portfolio is well-positioned for future success, as current trends driving underperformance will ultimately lead to better results [1] - As of December 31, 2025, the Global Equity strategy has total assets under management of USD 21.0 billion [1] Market Insights - The research indicates that sectors in AI will provide long-term value, especially as global computing demands increase, potentially tripling if a third of internet users engage with AI via voice for 20 minutes daily [1] - The market currently penalizes strong companies that do not participate in the 'beat and raise' game [1] Focus on MercadoLibre, Inc. - MercadoLibre, Inc. (NASDAQ:MELI) is highlighted as a leading online commerce platform in Latin America, with a market capitalization of USD 82.09 billion [2] - The stock closed at $1,619.20 per share on March 30, 2026, with a one-month return of -5.53% and a 52-week loss of 15.45% [2] - Generation Investment's investment in MercadoLibre began over a decade ago, believing it could become the core digital infrastructure for Latin America, and considers it an outstanding business with deep moats [3] Leadership and Company History - MercadoLibre was founded in 1999 by Marcos Galperin, who led the company for 25 years, making it Latin America's most valuable listed company with a market cap exceeding USD 100 billion [4] - Galperin stepped down as CEO at the end of 2025 but remains as executive chairman, while Ariel Szarfsztejn, who joined in 2017, is the new CEO [4] Operational Highlights - MercadoLibre operates in 18 countries, with strong positions in Brazil, Argentina, and Mexico, where independent merchants list on the platform and the company takes a commission [5] - In 2024, Mercado Envios, its logistics solution, handled 1.8 billion shipments, roughly doubling its 2020 figures [5]