The world's largest piggy bank
When oil was found in the North Sea in the late 1960s, Norway faced a historic choice: Spend the revenues immediately — or save them for future generations.
Norway chose to save. It was one of the wisest financial decisions any country has made in modern times.
Today the Government Pension Fund Global — popularly called the Oil Fund — is the world's largest sovereign wealth fund with over 19,000 billion NOK under management. That corresponds to approximately 3 million NOK per Norwegian.
"The great decisions are not made for yourself — they are made for those who come after you. That is true wisdom."
— Florence Scovel Shinn
What does the fund invest in?
Stocks — 70%
Over 9,000 companies in 70 countries. The fund owns on average 1.5% of all listed companies in the world. Stocks provide the highest expected return over time.
Bonds — 27%
Government and corporate bonds from around the world. Safer than stocks but lower returns. Provides stability to the portfolio.
Real estate — 3%
Prestige properties in the world's major cities — Paris, London, New York, Tokyo. The fund owns parts of Regent Street in London and Times Square in New York.
What can we learn from the Oil Fund?
Start early
Norway started saving from day one of the oil era. The earlier you start — the larger the fund over time. The same applies to private individuals.
Stay the course
During the financial crisis in 2008 the fund did not sell — it bought more. Discipline during downturns is what separates good investors from poor ones.
Remember: The Oil Fund belongs to you — and all other Norwegians. It is your piggy bank as much as the nation's. Next time you hear the fund has passed a new record, you can smile — you are a co-owner of the world's most impressive investment fund!
"The one who plants a tree today knows they may never sit in its shade. But they plant anyway — because it is the wise thing to do."
— Florence Scovel Shinn