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Norweigan oil fund

nbim.no

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Re: Norweigan oil fund

#21

Post by belltaco »

panpanna wrote: post #14

> On average, the fund holds 1.4 percent of all of the world’s listed companies. Why fund businesses in other countires? Shouldn't Norway try to set up some more industries at home? Everyone claim Europe (was: EU) needs more VC funding to stop the brain drain. Well, here is a huge pool of money just waiting to be spent

It's called diversification. If there's a downturn in Europe, you want to be insulated against it, otherwise you'd then be out of funds right when you actually need them the most.

It'd be like investing all your savings in your company stock. If the company falls into tough times and you get laid off, you'd be out of money exactly when you need it real bad.

Re: Norweigan oil fund

#22

Post by ISL »

ceejayoz wrote: post #16
BluffFace wrote: post #3

Earlier quoted context omitted.

Perhaps this is why they can afford many government programs that the US simply cannot. Without a prolific income stream comparable to Norwegian oil, the only way to provide more social services is to tax individuals and businesses harder. Tax any group too heavily and you create brain drain, which hurts in the long run.

The US produces 10x the oil Norway does, and was producing significant amounts of oil as far back as the 1860s. We've had that profit stream, we just let it get captured by private corporations (or in Alaska's case, given away to garner votes).

Population of Norway, 2017: 5.258 million

Population of United States, 2018: 327.2 million

Re: Norweigan oil fund

#23

Post by andy_ppp »

panpanna wrote: post #14

> On average, the fund holds 1.4 percent of all of the world’s listed companies. Why fund businesses in other countires? Shouldn't Norway try to set up some more industries at home? Everyone claim Europe (was: EU) needs more VC funding to stop the brain drain. Well, here is a huge pool of money just waiting to be spent

Because it allows them to maximise the returns?

If it was Norway first the fund would be worth nowhere near a trillion dollars...

Re: Norweigan oil fund

#24

Post by anthonybsd »

Keyframe wrote: post #15

What's the percentage of all US stocks fund owns?

https://www.nbim.no/contentassets/d3a372eb9d234e57a07caaf0f3...

Updated: 1.3%

Edit: Oops, I misunderstood a question. Actually further in PDF they specify that US specifically is 39%, which is roughly 400 billion. If we go by this number of total capitalization of the US stocks being 30 trillion, then Norwegian oil fund owns 0.4/30 which is 1.3%

Re: Norweigan oil fund

#25

Post by vetinari »

panpanna wrote: post #14

> On average, the fund holds 1.4 percent of all of the world’s listed companies. Why fund businesses in other countires? Shouldn't Norway try to set up some more industries at home? Everyone claim Europe (was: EU) needs more VC funding to stop the brain drain. Well, here is a huge pool of money just waiting to be spent

Norway is not an EU member, so by funding EU industries, they would found businesses in other countries ;)

Re: Norweigan oil fund

#27

Post by panpanna »

sct202 wrote: post #20
panpanna wrote: post #14

> On average, the fund holds 1.4 percent of all of the world’s listed companies. Why fund businesses in other countires? Shouldn't Norway try to set up some more industries at home? Everyone claim Europe (was: EU) needs more VC funding to stop the brain drain. Well, here is a huge pool of money just waiting to be spent

Norway isn't in the EU, so that wouldn't exactly be home for them either.

My bad, you are correct.

Anyway, the point still stands. Why not make Oslo the silicon valley of Europe?

I mean the weather is roughly the same, give or take 30 degrees :)

Re: Norweigan oil fund

#28

Post by lnsru »

Wow! These people must be extraordinary to use oil money this way! Not kidding! Never been in Norway, but in countries I have ever been this would be barely possible due to corruption and the needs of the politician’s buddies. Like yachts, private jets, Bentleys and Vertu phones. This $186k/person isn’t far from what average German poses: https://www.bundesbank.de/resource/blob/617492/cd59713c156ad...

Re: Norweigan oil fund

#29

Post by DanCarvajal »

BluffFace wrote: post #3
cheeky78 wrote: post #2

Isn't this contributing to climate change? The economy everyone uses as an example to replace the current system in the US...

Perhaps this is why they can afford many government programs that the US simply cannot. Without a prolific income stream comparable to Norwegian oil, the only way to provide more social services is to tax individuals and businesses harder. Tax any group too heavily and you create brain drain, which hurts in the long run.

U.S. Government spending is roughly 38% of GDP and in Norway it's 48%. I think it's safe to say that the U.S. can and does spend a lot, the debate is more towards what ends and how. I'm inclined to think we do a really poor job, with numerous reasons why.

Source: https://data.oecd.org/gga/general-government-spending.htm

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