Bayern have opted against big-money veteran signings, instead buying young with the likes of Corentin Tolisso and Serge Gnabry brought in.
Niklas Sule and Sebastian Rudy are also joining from Hoffenheim in deals that were confirmed back in January and Thiago, who does not feel there is any difference between his club and the continent's best, is optimistic about their 2017-18 prospects.
"Compare the teams, we have world stars as well," Thiago said to Bild when asked about how Bayern compared to Madrid and Barca.
"There is no difference in quality. We are on the same level, 100 per cent.
"But one thing is for sure, in the dressing room we don't talk about world stars but about team spirit.
"Sule and Rudy convinced me in our games against Hoffenheim - they can do it here.
"You don't necessarily have to spend lots of money. There are so many players with big talent who are still to be scouted. That is Bayern Munich's way - to sign a player and build him.
"That was something I admired about this club already in Spain. The officials work very well and with a good eye."
"We partly played fantastic football and also suffered from unfortunate decisions," said the former Barca midfielder.
"Ancelotti's critics are [talking] nonsense, he got the best out of the team."