What Are `GRANOLAS' and Why Does Goldman Sachs Like Them?

The video discusses how to identify companies that create value in Europe, contrasting the US and European markets. It highlights the dominance of technology companies in the US and the shift in European market leadership from oil and telecoms to companies with strong growth and balance sheets. The discussion also covers economic challenges, such as high debt and low growth, and the potential for companies with predictable growth to thrive.

What is a key reason for the strong performance of the US equity market over the last decade?

• The dominance of technology companies

• The rise of oil companies

• The growth of telecom companies

• The expansion of the banking sector

Which type of companies have become more prominent in the European market over the last 20 years?

• Banks

• Telecom companies

• Oil companies

• Companies with strong balance sheets and growth

What has happened to the presence of telecom companies in the top 10 European companies over the past two decades?

• It has slightly decreased

• It has decreased to none

• It has remained the same

• It has increased significantly

What is a major concern for companies in the current economic environment?

• High levels of government debt

• Increasing oil prices

• Rapid economic growth

• Low interest rates

Why might companies with strong balance sheets become more valuable in a challenging economic climate?

• They can pay higher dividends

• They can expand rapidly

• They can grow predictably even in modest ways

• They can reduce their workforce