STUDY BUSINESS

“Revenue did grow 45 percent year over year. Items sold were up over 40 percent too, and the credit portfolio actually almost doubled. That means Melly has now extended its record for the longest ever streak of quarters with over 30 percent year over year revenue growth to 28 consecutive quarters. At Melly's size, that's an insane number, and Melly is actually the only company ever to achieve that.”

“The stock still reacted negatively because Melly's margins were down. It's mostly because they invested heavily in the credit card portfolio. They lowered free shipping thresholds in Brazil, and also they scaled its cross border and especially the first party businesses. Combined management said that those investments cost five to six percentage point headwind for operating margins.”

“To me, investing is mainly about understanding businesses and to some extent, how actually the world around me works. So the great thing at TIP or working for TIP is that you can really just let your curiosity guide you. And of course, that mostly means businesses. But honestly, it's so much more than that. I've learned so much about building a business in the last year that it has just been an amazing journey.”

“On today's episode, I'm joined by Daniel Mahncke to discuss the companies we find most interesting in today's market. We cover Mercado Libre's long-term growth potential, Amazon's expanding earnings power driven by AI and robotics, and how AI could impact Constellation Software and other related companies.”

“We wrap up the discussion by touching on a company that AI is very unlikely to disrupt, and that is Hermès. Daniel's thoughts on Hermès after the recent 40% pullback in the stock highlight why this specific luxury brand remains a durable investment despite market volatility and broader technological shifts.”