Duan Bin reposted a striking piece of news: Norway’s sovereign wealth fund started in 1996 with only about $300 million. Thirty years later, it has grown to $2.3 trillion. What’s most impressive is that most of this growth didn’t come from continually investing oil revenues—it came from investment returns, making it a textbook example of compound growth.
Today, the fund holds an average of 1.5% of the shares in every publicly listed company worldwide. It also has a strict rule: the government can withdraw no more than 3% each year, spending only the returns on its investments and leaving the principal untouched. This fund can cover more than a quarter of Norway’s national budget.
The growth breakdown makes it clear: the fund’s size comes from three sources—new contributions, investment returns, and currency fluctuations. What has truly built its vast wealth is the investment returns accumulated over many years.
Saudi Arabia also has a sovereign wealth fund, and it has done very well too. The greatest benefit of this kind of wealth system is that it can reliably support ordinary people’s livelihoods. $SOL
Today, the fund holds an average of 1.5% of the shares in every publicly listed company worldwide. It also has a strict rule: the government can withdraw no more than 3% each year, spending only the returns on its investments and leaving the principal untouched. This fund can cover more than a quarter of Norway’s national budget.
The growth breakdown makes it clear: the fund’s size comes from three sources—new contributions, investment returns, and currency fluctuations. What has truly built its vast wealth is the investment returns accumulated over many years.
Saudi Arabia also has a sovereign wealth fund, and it has done very well too. The greatest benefit of this kind of wealth system is that it can reliably support ordinary people’s livelihoods. $SOL
