Vibrant capitalism and Silicon Valley: The secret sauce of US equities

What sets companies on both sides of the Atlantic apart?

In 1962, a young Stanford graduate and former middle-distance runner named Phil Knight sold his car and bought a ticket to Japan, at the time a leading supplier of sprinting shoes.

Once there he persuaded a local manufacturer, Onitsuka, to grant him exclusive distribution rights over its Tiger line in the Western US. The business he built on the back of the agreement became the $100bn powerhouse Nike, while Tiger trainers' original owner, now renamed Asics, is listed in Japan with a market value of about $3bn. This story illustrates the superior innovation, dominance and management skill of US companies. Other enduring American franchises that have conquered international markets include Coca Cola, Starbucks, McDonald's, Disney, Apple and Colgate.  Chamber...