Norway’s ‘Trillion Dollar Man’ believes that attitude towards US failures is helping propel the country ahead of less ambitious European countries, although workers have a better work-life balance. I believe it is helpful. Norway’s ‘Trillion Dollar Man’ believes that attitude towards US failures is helping propel the country ahead of less ambitious European countries, although workers have a better work-life balance. I believe it is helpful.
Nikolaj Tangen heads Norges Bank Investment Management, the Nordic giant that manages the profits from Norway’s oil and gas resources, ensuring that the profits are distributed equitably between current and future generations of Norwegians. It is intended to guarantee.
It’s no coincidence that since 2020, and over the past decade, under Mr. Tangen’s leadership, the $1.6 trillion fund has invested increasingly heavily in the United States rather than its European neighbors.
Mr Tangen told the Financial Times that in contrast to Europe, the US performance, particularly in innovation, was “alarming”.
Tangen added that it’s also a matter of mindset, and how we accept mistakes and risks on each continent. In Europe, you’re dead,” he said.
But it goes deeper than that, he added, with a difference in “general level of ambition”. “We’re not very ambitious. We have to be careful about talking about work-life balance, but Americans just work hard,” Tangen continued.
How many hours do Americans work each week?
The data suggest that Tangen is correct, but only by a small margin. According to the European Union, the average weekly working hours for people aged 22 to 65 in 2022 was 37.5 hours. The longest working week recorded was 41 hours per week in Greece and 40.4 hours per week in Poland. In contrast, the Netherlands had the shortest working week at 33.2 hours, followed by Germany at 35.3 hours.
Meanwhile, U.S. workers worked an average of 38 hours a week, according to International Labor Organization data last updated in January. However, 13% of these employees worked more than 49 hours a week, higher than the majority of European countries.
Additionally, in countries like the UK, there is a legal requirement for staff to receive 28 days of paid holiday per year if they are a full-time employee. In the United States, it is not a legal requirement to provide paid time off to your staff. However, according to the Bureau of Labor Statistics, the average employee takes eight days of PTO during their first year on the job.
Is CEO compensation too high?
Although Tangen praises the work ethic of American employees, he has made it clear that he does not agree with the extreme pay scales imposed on executives. Last year, he told Fortune that CEOs who make more than $20 million a year, for example, are “creating wealth for us.”
“It’s like a robbery in broad daylight,” he added.
Norges Bank’s investment strategy is certainly leaning towards US trends. After all, the United States is home to the Magnificent Seven and has provided the basis for the stock market boom, and analysts say it will continue to do so.
And the backing of institutions like Norges Bank Investment Management will encourage other investors to jump on board. The group is one of the most powerful financial institutions on the planet and the world’s largest single owner of the global stock market, controlling 1.5% of the world’s publicly traded companies.
investing in usa
The group also owns luxury real estate, including a 25% stake in London’s Regent Street and about 50% of New York’s Times Square and Washington’s Pennsylvania Avenue offices.
Investments in the US now account for 46.9% of Norges Bank’s portfolio, compared to just under 30% a decade ago. Going back another decade, in 2003, the organization’s investments in the United States accounted for only 26.3% of its total investments.
Conversely, in 2003, 59.5% of Norges Bank’s portfolio was invested in European countries, but by 2023 this figure had fallen to 28.7%.
The 2024 election is at stake for business.
Of course, like many American investors, Tangen is keeping a close eye on the 2024 presidential election, which could rock the investment boat.
The CEO, who makes less than $1 million a year as a civil servant, said there are people within the organization who are concerned about the upcoming race, but added: “I probably shouldn’t say much about it.” We simply invest in great American companies for the long term. There is no impact on our capital allocation. We have nearly half of our assets in the United States. We will continue to invest in America. ”
Magnificent Seven shares account for 12% of Norges Bank’s holdings, according to the FT, and Tangen said: “The argument is that big gets bigger, (and) the winner takes all.” he added.
Of course, all Magnificent Seven businesses have one thing in common: Wall Street’s current favorite phrase: artificial intelligence.
Again, Tangen said, this is an area where Europe is making life difficult for itself. He said tech CEOs are frustrated by the amount of bureaucracy in Europe compared to the United States.
Indeed, even those leading the charge on AI in the United States are looking for guardrails. Just ask OpenAI’s Sam Altman and Tesla CEO Elon Musk.
“I’m not saying it’s good, but in America we have a lot of AI and no regulation. In Europe we don’t have AI and we have a lot of regulation. It’s interesting,” Tangen added.
