Investing for long-term wealth creation can appear daunting, but focusing on established businesses with strong growth potential can simplify the process. Three companies – MercadoLibre, Lululemon Athletica, and Costco Wholesale – demonstrate characteristics that suggest they could deliver substantial returns over the next two decades.
MercadoLibre: Expanding Financial Access in Latin America
MercadoLibre (MELI 1.47%) is the dominant e-commerce and fintech platform in Latin America. The company reported a 45% year-over-year revenue increase in the fourth quarter, driven by expanding access to financial services in a region with historically limited banking infrastructure. As of late 2025, the platform reached 121 million unique buyers, alongside its rapidly growing payments ecosystem, Mercado Pago, which boasts 78 million monthly active users. Mercado Pago’s integration with the marketplace creates a synergistic effect, enhancing convenience and fostering customer loyalty.
Significant opportunities remain, particularly in countries like Mexico, where a substantial portion of the population remains unbanked. According to MercadoLibre’s recent financial reports, only approximately half of Mexicans have a bank account, and even fewer possess credit cards. This underpenetration presents a considerable runway for Mercado Pago’s credit products, which saw a 90% year-over-year surge in the last quarter. Over the past decade, MercadoLibre’s total revenue has compounded at an impressive 46% annually, and 40% over the last three years. This sustained growth, despite operating in a dynamic Latin American market for 26 years, underscores the company’s resilience and potential for continued value creation.
Lululemon Athletica: Global Brand Expansion
Lululemon Athletica (LULU 1.96%) is capitalizing on the growing demand for athletic apparel and its expanding international presence. The company has achieved a 19% compound annual revenue growth rate over the past decade, a pace maintained in recent years. While recent growth has slowed, with revenue increasing by only 7% year-over-year in the latest quarter due to challenges in the U.S. Market and increased tariff costs, management anticipates an improvement with the introduction of new product lines this spring.
Lululemon’s international growth is a key driver of its future prospects. Mainland China, representing 18% of fiscal third-quarter revenue, is the fastest-growing region, with sales up 46% year-over-year. The global athletic apparel market is projected to expand from $440 billion to $677 billion by 2030, according to research from Grand View Research, positioning Lululemon for continued success. Currently trading at a price-to-earnings ratio of 12, the stock may represent a compelling value proposition given the broader market opportunity.
Costco Wholesale: Loyalty and Expansion
Costco Wholesale (COST 0.84%) has consistently attracted a loyal customer base through its value-driven model, offering products at prices often near wholesale levels while generating substantial profits from membership fees. As of the end of fiscal 2025, Costco boasts 81 million paid members, a figure that has steadily increased over the years, with a 6.2% rise in fiscal 2025 and 7.3% in fiscal 2024.
Despite its already substantial membership base, Costco has significant room for international expansion. The company currently operates 633 warehouses in the U.S. And Puerto Rico, out of a total of 923 worldwide. Its presence in China remains limited, with only seven locations, and its footprint in Europe is similarly modest, encompassing a few locations in France, Spain, and Sweden. Costco’s management emphasizes a deliberate and cost-conscious expansion strategy, aligning with the company’s long-standing culture. While the stock’s valuation appears relatively high, its consistent focus on providing exceptional value to customers positions it as a strong long-term investment.
