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Investment work

The stocks of Amazon.com, Inc. (AMZN) and MercadoLibre, Inc. (MELI) lagged the market well in 2021. A phenomenal year followed in 2020 as both companies rode the tailwind of the pandemic. However, the year quickly turned into headwinds as 2021 developed, exacerbated by supply chain disruptions and cost inflation. So we weren’t surprised that investors decided to reduce their exposure to both stocks as they shifted their focus to the “stationary” stocks over the past year.

There are certainly some companies whose businesses have been severely and permanently hit by the reopening headwinds. However, we believe that both Amazon and MercadoLibre are strong secular companies, already riding their e-commerce tailwinds before the pandemic broke out.

Although the pandemic has accelerated the digital transformation towards m- and e-commerce, we believe these secular …

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