THE MUST

Europe’s Magnificent 7 has a delicious name, strong dividends, and a good value: Should you buy?

The United States might have the Magnificent Seven, but Europe serves up something even more satisfying — GRANOLAS. No, I am not talking about the fiber-rich snack (which you should be eating btw); I am talking about 11 stocks that have become an essential part of Europe’s investing diet.

What’s in the mix? GRANOLAS is a basket of Europe’s most valuable stocks, mainly from the pharmaceutical and consumer goods sectors. Last year, these large-cap names made up over 60% of Europe’s STOXX 600 Index — and this year, they’re helping European markets book fresh all-time highs.

• Over the past five years, several GRANOLAS, like ASML, Novo Nordisk, LVMH, and L’Oréal, have seen triple-digit returns — benefiting from trends such as semiconductor growth, weight-loss drugs, and demand for luxury goods.

• Though some pharma giants like GSK, Roche, Novartis, AstraZeneca, and Sanofi have lagged due to post-COVID struggles, they’re now the cheapest in the group.

Goldman Sachs’ Guillaume Jaisson says that GRANOLAS have outperformed the Mag7 with half the volatility. And in 2024, investors still have many reasons to snack on them.

• Cheaper valuation: GRANOLAS trade at a price-to-earnings (P/E) ratio of 20x, below historical averages — and a 30% discount to the Mag7.

• Strong dividends: GRANOLAS stocks pay an average dividend yield of 2.5% — significantly higher than the S&P 500’s 1.6% and Mag7’s 0.3%.

These companies maintain high margins, robust financial positions, and strong earnings growth — which is impressive considering Europe’s economy took a massive beating in recent years. Looking closer, you’ll find that 80% of GRANOLAS’ revenues came from outside Europe. So, if you’re tired of the US talk, and you are a smart Tanamesa reader - take a break and eat some GRANOLAS.

What else in on

• Movie theater popcorn level markup. New studies found that a month’s supply of the new famous diabetes and weight loss drug Ozempic could be produced for less than $5—while it’s currently priced at ~$935 (before insurance)

• Look at her now: Pointed out as one of the "most sought-after M&A targets for 2024", Selena Gomez make up brand Rare Beauty has been valued at $2 billion.

• Big Boy’s Business. The governor of Florida has signed a law banning 14-year-olds from having profiles on any social network from next year.

Technology

is it me or is actually cold here?

Super rich want to be frozen and have money forever

It sounds like science fiction, but it's reality. Some billionares are trying to cheat death by freezing their own bodies in the hope of being revived when science figures out how to do it.

The name is cryogenics: instead of being buried or cremated, these people can have their bodies completely frozen and preserved with various chemicals.

The relevance: Some billionaires are embarking on cryogenics with the hope that they will keep their fortunes forever - without having to pass them on to heirs or family members. Imagine if this became a trend and future generations didn't receive their inheritance? I know some people who would be very upset…

In the US, a deceased person's money can be stored in a fund for up to 90 years. Now, these "immortals wannabe" are investing to try and change the law so that this money can be kept forever.

How does it work Micael?

The tanks filled with liquid nitrogen stay at -196 °C - less than Antarctica - and cost at least more than $200,000 to keep them indefinitely. Basically the person agrees to be frozen in the hope that one day science will evolve to the point where they can be revived.

Fun fact: The American cryogenics company Alcor has existed since 1967 and currently has 225 frozen bodies, as well as +1,000 who have paid to be frozen after death.

More tech:

• 1,5X speed never again. A new tool built by OpenAI is able to recreate a person's voice in a totally natural way, based on a recording of just 15 seconds.

• The truth for whom? Less than a week after Donald’s Trump social media company debut on the stock market, it disclosed that it lost nearly $58.2 million last year, sending its stock tumbling more than 21%.

• 20 years of Gmail. The revolutionary domain completed two decades this week. But where’s it heading next?

• Non obvious player. The small Caribbean island of Anguilla has generated over $32M - over 10% of its total GDP - due to domain fees. The country earns a fee every time someone registers a URL ending in .ai - because “ai” happens to be the country’s assigned domain. Not bad Anguilla, not bad…

Ginny & Georgia by Sarah Lampert:The Guardian 2021 review of the TV show stated: “such perfect trash deserves a special award” and although I think “trash” might be too harsh, this show is something far more precious and valuable than trash. It is good trash.

In recent years, Netflix has found incredible success in its trashy canon of shows, offering audiences an escape from the realities of everyday life. Ginny & Georgia fits the purpose with the first two seasons ranked in second and third place of Netflix most-viewed shows last year.

This mother-daughter drama is a fast, fun watch that blends all of the emotional colors of teenagehood and motherhood while also ensuring none of the characters come off as one-dimensional. Very overly dramatic (not complaning), somehow the show never gets boring and quite the opposite, it is surprisingly entertaining. But you were warned: I do love a good trash sitcom.

• Good news: Netflix renewed the series for third and fourth seasons last year.

For those that like Gilmore Girls, Desperate Housewife, Mom and Emily in Paris. (Rating 7/10)

• Tired of Yoga? Hiking in India seems a pretty worthwhile way to spend your time.

• Golden tip. The Financial Times has compiled a list of the best business books of 2023.

• Gossip time. Dua Lipa’s newsletter Service 95 made an really interesting article explaining why do we gossip.

• Magic without Mike. A magician revealed to Vanity Fair how those sleight of hand tricks in films and TV really work.

• Don’t touch, it’s art. The Getty Museum has released tens of thousands of images of artworks into the public domain, including paintings by Vincent van Gogh.

Hi fans,

To change things a bit, I decided to leave the deep reflections aside today and share one personal memory with you all.

I don't know about here in Italy, but in Brazil, instead of directly handing a chocolate egg to a child on Easter, we would hide it, as if the Easter Bunny himself had visited. To be honest, I'm not even sure if this is a universal tradition - but it should be!

My father and I had our own version of this tradition though. He would have me wait in my room while he hid the eggs around the house. Then, he would take me out of the room and give me just one piece of information: The number of eggs. I had one hour, and any eggs I didn't find would be donated. And don't get me wrong - but I couldn't let those children have my chocolate. I was determined to find every last one - whether for the chocolate or to beat my father in our playful competition.

But dear Walter didn't facilitate. He'd start off easy, but the more special the egg, the more challenging it was to find. I've found eggs inside the air purifier, exactly in the middle of sealed rice bags, at the bottom of plant pots full of soil, perfectly hidden in chandeliers - one hiding spot was better than the other. Each discovery was a victory. As I ran through the house, he watched me, went away, came back, and would say "40 minutes left..."; "20 minutes left..." I would start to sweat, adrenaline running through me, and for a non-sporty child, it was THE race.

Despite my best efforts, my dad and I would always end up donating a couple of eggs. It was his way of teaching me the importance of sharing what we have, an Easter tradition that I maintain to this day here in Italy.

Chocolate was, and still is, a weakness of mine. Those Easter eggs were treasured, often lasting months as I rationed them carefully, making the joy of Easter linger as much as I could. I would eat them slowly, bite by bite, one by one, and we would be eating Easter chocolate until about September - I'm dead serious. 

This is one of my favorite memories with my father, and I wanted to share it with you.

With love,

Micael. 

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