Nicolai Tangen, the head of Norges Bank Investment Management, attributes America’s advancement compared to Europe to its attitude towards failure. He suggests that Americans have a more forgiving culture when it comes to mistakes, allowing for greater ambition and risk-taking, whereas Europeans may enjoy a better work-life balance but lack the same drive. Tangen, who oversees $1.6 trillion in investments largely from Norway’s oil and gas revenues, emphasizes that America’s innovative prowess is partly due to its acceptance of failure and hard work ethic.
Tangen notes that under his leadership since 2020, the fund has increasingly invested in U.S. markets rather than European ones. He highlights a significant difference in the “general level of ambition” and credits Americans for working harder, despite acknowledging that data shows only a marginal difference. In 2022, the average American worked 38 hours per week, slightly longer than their European counterparts, with a notable percentage working 49 hours or more weekly.
Although Tangen appreciates the American work ethic, he criticizes the substantial executive compensation in the U.S., describing it as “daylight robbery” for CEOs earning over $20 million annually. Despite this criticism, Norges Bank’s investment strategy continues to favor U.S. companies, including prominent tech firms known as the Magnificent Seven, which have significantly bolstered the stock market.
Norges Bank Investment Management’s stake in high-end properties and a growing proportion of its portfolio in the U.S. are indicative of its confident positioning in the American market. In 2023, investments in the U.S. accounted for 46.9% of the portfolio, a significant increase from a decade ago, while European investments decreased from 59.5% in 2003 to 28.7%.
As the 2024 U.S. presidential election approaches, Tangen remains attentive to potential impacts but affirms the organization’s commitment to long-term investments in U.S. companies. He recognizes the importance of artificial intelligence, noting that Europe’s regulatory environment poses challenges compared to the U.S.’s more lenient approach. Despite the call for AI regulation by figures such as OpenAI’s Sam Altman and Tesla’s Elon Musk, Tangen highlights the stark contrast between the two continents in terms of AI integration and governance.
