Portfolio Review - August 2025
A New Position and Taking Profits on an Old One
Welcome back to the Wolf of Harcourt Street Newsletter.
Every month, I'll provide you with an update on my portfolio, including all of the transactions, the current allocation, and my buy list. In addition, I'll share a recap of the articles you may have missed from the previous month.
Transactions
Amazon (AMZN)
I added to my position in Amazon after the stock dropped 8% following its Q2 earnings release. I thought the results were impressive, especially considering the growth of AWS, which is now a $123 billion run-rate business with a $195 billion backlog. The backlog grew 25%, outpacing delivered revenue growth of 17%. Capacity remains constrained, which is a very good problem to have. Roughly 85% of IT spend is still on-premises, and that’s before factoring in Gen AI, most of which will be built from scratch in the cloud over the next 10 to 20 years. The opportunity ahead for Amazon and AWS remains enormous.
Mercado Libre (MELI)
I added to my position in MELI after it opened in the red following Q2 earnings. The opportunity did not last long, as the dip was quickly bought by the market. The earnings themselves were strong, with MELI prioritising long-term growth and market leadership over short-term profitability.
You can read the comprehensive review below, but in short, the revenue beat and earnings miss were no surprise. I predicted this in the Portfolio Review – July 2025. MELI is borrowing from Costco’s playbook, reinvesting scale efficiencies into lower prices and better services rather than maximising short-term profits. Whether through free shipping, market-leading yields, or credit offerings, MELI is doubling down on its value proposition to expand market share and entrench leadership in Latin America.
Since earnings, MELI has continued executing, and the business feels like it is firing on all cylinders:
First distribution centre in Peru: Designed to accelerate 24-hour shipments, expand product assortment, and optimise the shopping experience for thousands of users.
Launched Mercado Pago credit card in Argentina: With only 37% credit card penetration (vs 54% in Brazil), this product could add 6 million+ people to the system. It lowers barriers to entry with no costly fees or credit history required. MELI can then leverage e-commerce data to offer personalised credit through AI-driven scoring models.
Launched DineroPlus in Argentina: A new financing alternative for small and medium-sized merchants. Funds are deposited instantly into the digital wallet and can be withdrawn free of charge to a linked bank account.
Home Depot (HD)
I sold my full position in HD, booking a 40% total gain. I initiated the position back in 2023 when the stock traded at just 18x forward earnings. This was always a value play, I believed the multiple would rerate. It felt like a very low-risk trade with strong risk-adjusted returns.
Fast forward to today: the forward multiple is 26, close to the historical high. I see this as too expensive for a business expected to grow revenue only in the low single digits over the next five years. Since I have been consolidating my portfolio, this felt like the obvious time to take profits on a stock with limited future return potential compared to when I bought it.
Rubrik (RBRK)
I opened a new position in Rubrik, which I believe has the potential to become a future cyber resilience leader. I shared a quick pitch with full details, but in short: cybersecurity today is focused on prevention. As breaches become inevitable, the focus will shift to resilience, where Rubrik’s “undo button” for cyberattacks is mission-critical. Rubrik reports Q2 FY26 earnings later this month, so you can expect a comprehensive review.
Allocation
I’ve been using Portseido to track my portfolio for years, and I highly recommend it. It consolidates all my transactions in one place, while its data visualisation and analytics capabilities guide my future decision-making and, ultimately, enhance my returns. Sign up using my affiliate link here.
Buy List
Rubrik (RBRK)
I want to build Rubrik into a larger position but don’t plan to add more until after earnings later this month. Given the premium valuation, I would look to buy more closer to the initial entry point of $83 if the market offers the opportunity.
Uber (UBER)
Uber has been one of the best-performing stocks in the portfolio this year, up 55% YTD. I initiated the position in December and, while I managed to time the bottom perfectly (a rare occurrence), the rally since has left the portfolio weight under 4%.
The company delivered superb Q2 2025 earnings, which I reviewed in detail below. What impressed me most was the strength of the platform strategy. By integrating Uber Rides and Uber Eats, the company is driving record engagement while massively reducing customer acquisition costs, as both apps serve as free acquisition channels. I’m looking to add more shares if there is any meaningful pullback.
In Case You Missed It
Some of the articles you might have missed during the past month:
Final Words
This was an extremely busy month. I published five earnings reviews, a new stock pitch on Rubrik, and my investment philosophy. Having written this newsletter for five years now, I wanted to create a reference point for both current and prospective subscribers. It should give you a clear understanding of the kinds of investment ideas I pursue. Writing it was also a valuable exercise for me personally, as it allowed me to reflect on how I’ve evolved as an investor.
I continued to consolidate the portfolio this month. Despite initiating a new position in Rubrik, I now hold a cash position of 5.5%. With the portfolio once again hitting an all-time high, I plan to maintain this cash buffer unless compelling opportunities emerge. Consolidating to a maximum of 15 positions remains a key priority.
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Happy investing
Wolf of Harcourt Street
Contact me
Twitter: @wolfofharcourt
Email: wolfofharcourtstreet@gmail.com
Excellent buys and performance, I guess.
I don't see Evolution anymore, did you sell everything?