Value creation is fundamental to long term equity valuation. Comparing US and EU, EU value creation is a rounding error. I am surprised that the difference in investment returns between the US and EU is as small as it actually is. If you understand/believe in power laws, you will understand that having a half dozen monster companies is related to having a very large and diverse ecosystem of small/mid/large sized companies, and is not necessarily an anomaly. Not having these monster companies is more likely to be a symptom of not having a large enough or healthy enough eco-system.
Which eco-system do you think is healthier and which one would you want to invest in ?
https://geekway.substack.com/p/a-visual ... non-bubbly
“there is no EU company with a market capitalisation over EUR 100 billion that has been set up from scratch in the last fifty years, while all six US companies with a valuation above EUR 1 trillion have been created in this period.”
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Which eco-system do you think is healthier and which one would you want to invest in ?
https://geekway.substack.com/p/a-visual ... non-bubbly
“there is no EU company with a market capitalisation over EUR 100 billion that has been set up from scratch in the last fifty years, while all six US companies with a valuation above EUR 1 trillion have been created in this period.”
Statistics: Posted by skeptical — Fri Dec 06, 2024 7:09 am — Replies 7629 — Views 1758596