MELI is a top-tier company with sustained high growth (30%+ for 27 quarters) and large remaining opportunity; currently trading at its lowest historical valuation.

The megat trends are so attractive that Peter, the former CFO of Melly where he worked 25 years, actually left that job to join DLo as a CEO.

So if you just think about New Bank and Mac Libra which are two companies that we hold or own in our portfolio they offer credit cards and their credit cards for example run on Visa and Mastercard Rail.

You already got a CEO that probably had one of the best jobs in South American tech and commerce going to DLO choosing it over Melly which to me as someone who really likes Melly as a company as you would know is a huge bonus point for DLO as a company and Petro basically said that he wouldn't have left if he didn't believe DLO is one of the most exciting place in the South American market today

One of the things I was thinking a lot about is you know can I leverage what I saw at Marcato Libre an early stage technology trend across the emerging world and somehow find something similar to that at an earlier stage and be able to ride a similar secular wave.

Right? And so I thought you know payments is a clear example. We're seeing that in in Marcato Pago with the emergence of all the neo banks in Latam.

picking emerging market winners is that it's very hard to know who will be the next new bank or the next Melly and who will go by the wayside.

So, you know, if you think about companies like Melly or like New Bank, there's no credit risk in this payments company.

and if I can just bring up another analogy here it's similar to how Amazon would need to invest tens of billions of dollars to compete with Mac Libra in Brazil or their main markets because you know e-commerce is not the same everywhere and the customer needs are different and that's not the game that Amazon is used to playing

That's sort of the same argument that we've seen with Amazon investing in Brazil relative to Marcato Libre that they just haven't put in enough money to really prioritize winning.

And so, ultimately, Melly has pretty much won Brazil over Amazon and DLO won it over Audient.

But we also want to be mindful of our exposure to emerging markets which is not too small if we think about Mac Libra, if we think about new bank and then also the local.

You don't often have a chance to invest in a company that is literally the best in a certain category of all public companies in the world. Macado Libra is that company out of over 80,000 companies.

It is the only one that managed to grow by more than 30% for 27 consecutive quarters. That's almost seven years. And that type of growth is just utterly ridiculous. But the best part is that there's still a lot of room for growth.

Still, e-commerce penetration in Latin America is only 14%. That is much, much lower than other parts of the world, which means there's just more opportunity to grow. And while Melly isn't obviously cheap, it is trading at its lowest valuation ever. So, it's a good time for us to look into it.