- Our Thinking
The global economy is moving at a faster pace and on a bigger scale than we’ve ever seen in the past . . . We’ve got enormous numbers of people who are, for the first time, earning enough money to enter into global consumer markets, who are making purchase decisions on factors other simply than price, and who are beginning to become part of the global economy.
Those companies that can sustain success, that can continue to thrive - particularly given the increasing pace of change that we’re seeing globally - will do disproportionately well.
Global Investment Research
GS SUSTAIN is the long-term investment strategy of Goldman Sachs’ Global Investment Research division (GIR). GS SUSTAIN is focused on identifying the companies in each industry best positioned to deliver long-term outperformance through sustained industry leadership and profitability.
Companies compete in increasingly dynamic and challenging industries. The rewards to those companies able to sustain competitive advantage and strong cash generation are growing, as are the costs to those companies that cannot.
GS SUSTAIN brings together GIR’s global economic, financial and industry expertise to create a consistent and objective long term investment framework. The framework examines the major structural trends impacting each global industry and aims to identify well-managed, strategically well- positioned and highly cash-generative businesses able to benefit from those trends.
We apply consistent and objective measures to the key elements of corporate performance across companies in each global industry to identify sustainable leaders:
- Cash returns: Proprietary measure of the cash flow companies generate relative to the capital invested in their business
- Industry positioning: Objective measures of the strategic strength of companies’ business models
- Management quality: Quantifiable analysis of the effectiveness with which companies recognize, address and manage the key environmental, social and governance issues facing their industry
Our analysis shows that companies effectively addressing all those aspects of performance will be in the strongest positions to sustain industry leadership, achieve superior cash returns and deliver long run outperformance.