Norway Sovereign Wealth Fund's Investment Philosophy

Norway's $1.8 trillion sovereign wealth fund enjoys a rare political consensus that helps guide its success.
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[@shaqisumari304]

For me Norwegen SWF is the epitome of democratic good governance

[@JillWhitcomb1966]

Here in North Dakota, we copied that same idea from the Norwegians. The North Dakota Legacy Fund receives 30 % of the state's oil and gas tax revenue and was created to preserve wealth from natural resources for future generations. The Legacy Fund was founded in 2010 and now contains $10.7 billion dollars. Only 7 % of the Legacy Fund can be spent every 2 years on projects to benefit North Dakotans such as education, infrastructure, economic development, and bioscience innovation grants.

[@jabsdrahm.3232]

For a small country such as Norway to own $1 trillion is amazing

[@musicloveranthony]

Doesn’t a country need a surplus first?

[@jimbojimbo6873]

It could use debt, but yh that’d be the idea

[@geoms6263]

Doesn’t a country need a insufficient first?

[@jia7833]

not if you are reserve currency. other countries need to reserve your currency by exporting to you and you have to import goods to export your currency

[@TheBielrangel]

No, if you can borrow at 1% and invest with 10% return, then that would be a nice idea.

[@PeterParker-wj3cr]

@@TheBielrangel Where else could you get a 10% return. Other than our s&p?

[@Mrdresden]

Huh, the video just ends abrubtly

[@sebastianschmidtataktien-e4705]

It would be interesting to see what would need to change so a US Sovereign Wealth Fund could operate efficiently. I think there are a lot of Cons. 1. US is much larger - 60x population of Norway. So to have a comparable effect to the Norwegian Fund (Norway population 5.5 Mio) - which claims holding approx. 1.5 percent of all global public equities the US would need to own 90%. This of course would not work - instead it would help inflate the everything bubble and could possibly „help“ stimulate inflation in an undesirable way. 2. The countries that successfully employ a sovereign wealth fund are all amongst the top ranked countries when it comes to a trade surplus (China, Singapore, Norway - which have been mentioned here are all in the Top 10). US has by a huge amount the highest trade deficit. 3. I think each country doing this step seem to be able to or at least agrees to sacrifice something for the fund to grow. I don‘t know the details in case of the other Funds mentioned, but I do know a little about the Norwegian one that gets his fund from taxation of oil companies, a special petroleum tax and there is huge state ownership of the oil companies like Petoro and major stakes in Equinor (ex-Statoil). They are putting all petroleum related net cash-flows into the fund. That is their sacrifice for the future. So I am challenging what would the US be willing to sacrifice for their future that would be approximately 60x the amount Norway does? Technology, which seems a great export resource - but it is also a field where companies are known for their „tax-optimization“ strategies. They would need to give away from the cake. There could be challenges to align this with the MAGA and America First mentality. I am not an economist or financial expert. But my gut feeling tells me that the attempt to build a large scale US Sovereign Wealth Fund would in the end help further overheating your own economy - just due to the fact how world-wide market caps are distributed.

[@omonkkonen6676]

Have you heard Alaska Permanent Fund APF? 1600$ per person annually…. Last time I checked Alaska is USA

[@sebastianschmidtataktien-e4705]

@ Not sure what you mean with the question. Are you suggesting to distribute the 1600$ per annum - which is not quite a lot (normalized to population of Alaska) to the 330 Mio population of US? That would be like 4 US$ per capita.

[@omonkkonen6676]

@@sebastianschmidtataktien-e4705 Just saying one model of sovereign wealth fund already exists in USA. Little bit different model than Norway so these are nothing new for USA at all. Seems to work pretty nicely to people of Alaska.

[@jamesbyrne9312]

You're argument is ridiculous. The scale if the fund does not need to be so extreme. Why are you being obtuse warden Norton?

[@kkollsga]

Norway's fund was set up because the country's economy was not big enough to handle the massive income from oil and gas exports. The main purpose is to cool down an overheating economy and also to have the ability to inject stimulus into an economy that is slowing down. It works like a counterbalance. I imagine the US would use it similarly, increasing the fund's size when the economy is doing well, and spending from it when it's cooling down. You are correct to question how big a US fund would need to be to achieve this. I imagine it would need to be of astronomical proportions.

[@exentrikk]

The US already has a sovereign wealth fund - it's called the USD

[@biskit7]

OMG. The last thing i want is for the government to invest my money, i can manage my own fund thank you...

[@adamray7178]

For everyone saying the USA needs to pay debts first, tell me this. With family finances do you wait until your debts are paid to have savings, an Emergency fund, or save for retirement?? Smart money doesn't do that.

[@mpikamhlavemabunda7817]

Is there a country not endowed in natural resources, with a significant sovereign fund?

[@dalenbickenbach9533]

Which American people? Great Apprentice II?

[@razjackson5825]

Singapore. The only non-oil producing nation with such sovereign wealth fund.

[@MarketStoic]

Hi from Singapore. Also, China does not have significant natural resources - if you put it in per capita terms.

[@MarketStoic]

I think the media deliberately not cite the existence of Singapore’s SWF so that Larry Summer’s explanation on why SWFs exist due to states with high natural resources sounds more appealing.

[@I_Love_Figs]

Singapore and Ireland do it by being tax havens. Current and legacy mercantilists(China Japan SK etc) have explicit or implicit sovereign funds(ss/gov employee pension etc).

[@adamray7178]

For everyone saying the USA needs to pay debts first, tell me this. With family finances do you wait until your debts are paid to have savings, and Emergency fund, or save for retirement?? Smart money doesn't do that.

[@post_eternity]

USA can't have a wealth fund, where would it invest it? States within USA should have wealth funds.

[@jimbojimbo6873]

Alaska does

[@theYoutubeHandle]

USA can't even pay back its debt. What money is it going to invest with?😂

[@TheBielrangel]

It can

[@andys3010]

as long as they can pay the interest it can invest with debt lol

[@Otter-Destruction]

Just scale up Alaskas to make it the US's main fund. If the states are worried about "states rights" then make it a pool of collective states.

[@robertgoodson5528]

The US should've done this decades ago.

[@ev.c6]

Does America really think they are even similar to true developed nations like Norway and Sweden? 😅 A fund like this in America would never work.

[@kalebhgoodwin]

Convert social security to a wealth fund. Instead of 1% interest, it could get 10%. Would boost usa economy

[@boredphysicist]

The US yearly deficit is larger than the Norwegian Sovereign Wealth Fund. The US deficit is roughly 1.6% of global gdp. How does Trump think he can run the US like a small economy like Norway.

[@MyDagfinn]

32nd largest in the world, is that a small economy? If per capita it is fourth.

[@boredphysicist]

@MyDagfinn Yes, USA has an economy roughly 60x larger than Norway. The G20 is 85% of global GDP, so yes being the 32nd largest economy makes you a small economy. It would be like comparing a Beverley Hills mansion to the Burj Khalifa

[@MyDagfinn]

@@boredphysicist Actually 37 times larger, if facts matter ;)

[@anshumanparhi7328]

I think Trump answered his own question. USA is $35T in debt. Countries in debt can't have wealth funds, can they?

[@khairulnaeim756]

Today needs to think for future generations... probably they get very good grandpa...that think for others...

[@shoylu88]

Usa should start by having surplus.

[@greatdara]

This video and conversation were like cut in between :/

[@chessdad182]

Mr Bankruptcy speaks.

[@I_Love_Figs]

They don't do tobacco, the halal funds don't do tobacco, guess I'll have to continued be burdened with a 8.5% dividend yield then.

[@williamlouie569]

???what world funds when you are printing money like crazy?

[@jackofnone500]

Wealth fund? Not only you have big deficit, your infrastructure is also in tatters dude

[@SuperAndriukas]

Norwegians taken oil from the ground and sell it to other countries to use for the cars , and they are talking about green energy 🤣🤣🤣🤣🤣

[@MyDagfinn]

That is years since, it is for the largest part a financial fund these days.

[@bkern8536]

So a double win? Hell yeah!

[@rogersliu1200]

You sell usd already and now want to do what? Is like in a soccer game, you are both the players and the referees and you make the rule. Just take the money, don't pretend to earn it😂

[@c-loversbeat2453]

C est un gars qui m apparaît peu confiance et hypocrite , il a rejeté le package de elon musk

[@MyDagfinn]

Why should he - we are not all nuts.

[@Scott-ff2oe]

Nothing

[@MithunOnTheNet]

Clear the multi-trillion national debt first!

[@khairulnaeim756]

Good idea...🥸...so how share go.. probably with others private players+ government...🤝..not just American probably others country 😊

[@khairulnaeim756]

Yeah private sometimes very fuzzy...to get with...🥸