Post-purchase Mercado Libre

After having built up my position in $MELI (+2.5%) by means of a savings plan, I had the opportunity to invest in a first large tranche today after the setback.

Some thoughts on $MELI (+2.5%) :

• high growth in the emerging region of South and Central America (Brazil, Argentina, Mexico)
• already profitable despite huge investments in growth
• interesting combination of e-commerce and FinTech

The high and profitable growth naturally has its price: the share is currently trading at a P/E ratio of 57. The free cash flow yield is nevertheless attractive and currently stands at around 5.7%. The company therefore generates a high level of cash from its operating business.

The share is comparatively volatile, so I will continue to take a cautious approach here and continuously expand the position via a savings plan.

Stay tuned

Yours Nico Uhlig