u/Heavy_Discussion3518

DLO is a Uruguayan payment integration company whose behind-the-scenes connections between large subscription services like Netflix and scattered emerging-market local payment systems are relationship- and integration-intensive and not easily replaced by AI. The author cites rapid revenue growth, improving net margin, virtually no debt (D/E 0.13 on $66m debt), PEG 0.47, a dividend and a sub-$4b market cap, and frames DLO as a way to own a growing company with exposure to broad financial markets and currencies. Main stated risks are Latin American inflationary policies (e.g., Argentina, Chile, Uruguay), corporate-governance concerns despite a Nasdaq listing, and an unproven moat as a relatively new company. The author started a DLO position today and intends to double it while watching for negative momentum from the 'all software is worthless' narrative; horizon unspecified.

Author argues MSFT is the biggest value opportunity because it has 45 years of success, strong earnings with continued revenue growth, and the market is irrationally rotating away from AI plays. The stated headwind is that MSFT outsourced its AI and is not loved by users, but the author says this is not what is driving the selloff. Horizon is a decade-plus, framed as a long-history compounder being irrationally discounted.

The author set up a long position in Lennox International, citing a reasonable PE, forever-growing revenue and EPS, leadership in energy-efficient residential HVAC, and a world that keeps getting hotter. Supporting factors include not too much debt and outstanding shares declining for years, with LII regarded as higher-end HVAC with top product and balance sheet quality. The author expects 2026 to reward companies focused on innovation and quality over margins.