Additional Coverage:
- ‘Americans just work harder’ than Europeans, says CEO of Norway’s $1.6 trillion oil fund, because they have a higher ‘general level of ambition’ (newsbreak.com)
In a frank assessment of work ethics and investment philosophies across continents, Nicolai Tangen, the chief executive officer of Norges Bank Investment Management, the arm behind the management of Norway’s colossal $1.6 trillion fund, has shed light on why the fund is increasingly bankrolling American ventures. Since taking the helm in 2020, Tangen’s observation that Americans tend to exhibit a greater degree of hard work and ambition compared to their European counterparts has influenced the fund’s strategic direction, with a notable tilt towards investments in the United States.
This move towards U.S.-based investments is underpinned by what Tangen perceives as America’s edge in innovation and a culture that is more inclined towards taking risks. Statistics underscore this viewpoint, revealing that Americans indeed tend to log longer hours at work, with about 13% of the workforce engaging in 49-hour weeks or longer. This indication of a more pronounced work ethic in the U.S., Tangen believes, is one of the key drivers behind the country’s dynamic and burgeoning innovation landscape.
However, Tangen does not shy away from critiquing aspects of the American business ethos he finds questionable, such as the overly generous compensation packages awarded to CEOs, which he outrightly deems as “daylight robbery.” This critical view, however, hasn’t deterred Norges Bank’s investment arm from deepening its financial commitments in the U.S.
The fund’s U.S. investments now constitute a significant 46.9% of its portfolio, marking a dramatic increase from 26.3% in 2003. This surge underscores the fund’s conviction in the U.S. market’s robustness and its role as a hotbed for groundbreaking technological advancements, particularly in artificial intelligence (AI).
Dubbing the most influential of these investments as the “Magnificent 7,” Tangen highlighted the fund’s focus on AI, a sector where the U.S. is currently blazing the trail, largely thanks to a regulatory environment that is more conducive to innovation than Europe’s stringent framework. The contrast in AI regulatory attitudes between the U.S. and Europe, according to Tangen, significantly contributes to the innovation gap, with the U.S.’s less restrictive oversight fostering a more vibrant tech sector.
While the looming 2024 U.S. presidential election is on Tangen’s radar, he asserts that the political outcome is unlikely to sway Norges Bank’s investment strategy. The organization remains steadfast in its commitment to nurturing long-term investments in U.S. companies, believing in the fundamental strengths and innovation capacity of the American market. As such, Norges Bank Investment Management continues to cast a vote of confidence in the U.S., banking on its culture of hard work, ambition, and unparalleled innovation to drive future growth.