The European stocks that could be better value than the Magnificent Seven. So is it time to invest in Granolas?

Are you searching for a new strategy to give your investments a crunchy uplift? The answer may be found in two favourite breakfast cereals.

The ‘Magnificent Seven’ tech shares dominate headlines but the professionals have quietly accumulated stakes in the ‘Granolas’ – 11 UK and Continental European companies.

They are composed of GSK, Roche, ASML, Nestle, Novartis, Novo Nordisk, L’Oreal, LVMH, AstraZeneca, SAP and Sanofi.

This list of businesses compiled earlier this year by the US investment bank Goldman Sachs, actually spells out ‘Grannnollass’.

But let’s not be picky. As Sharon Bell, the bank’s strategist says, these groups have ‘good growth, extremely good balance sheets and offer nice dividends’.

They are multinationals, not dependent on their domestic economies, but also set to benefit from lower interest rate in their home nations.

Granola cereal combines honey, maple syrup, nuts, oats and seeds. Honey and nuts are also some of the ingredients of the Nestle cereal Cheerios, the name that’s been given to a group of smaller European companies that are also ‘culturally diverse’ – that is, multinational enterprises.

This new acronym, devised by Paras Anand, chief investment officer of Artemis, is based on an analysis that identifies companies with the most attractive fundamentals, at the best prices.

The companies in question are: Coface, H Lundbeck, Evonik, Eramet, Repsol, Indra Sistemas, OTP Bank and SAF Holland.

Breakfast cereals of any type may not be your way to start the day. Yet a combination of Granolas and Cheerios will give you exposure to a variety of sectors.

But the diversification should limit your risk.