The David Rubenstein Show Nicolai Tangen
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Feb 20, 2025 
Nicolai Tangen, CEO of Norges Bank Investment Management and overseer of a massive $1.8 trillion sovereign wealth fund, discusses the intricacies of asset allocation and the challenges of diversification. He shares insights on the historical impact of Norway's oil wealth and the importance of ethical investment practices. Tangen also addresses the geopolitical ramifications of the Russia-Ukraine conflict and reflects on balancing personal happiness with professional success in the high-stakes world of finance.
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Norway's Oil Discovery
- Norway discovered oil in 1969 on a cold autumn day, initially thinking it was their last well.
- This discovery, the largest offshore find at the time, transformed Norway's economy and led to the creation of their sovereign wealth fund.
Norway's Spending Rule
- Norway's sovereign wealth fund follows a spending rule, using only 3% of the fund annually for the state budget.
- This rule ensures the fund's long-term growth and stability.
Long-Term Investment Strategy
- Long-term investors should diversify widely across asset classes and geographies.
- Tactical asset allocation is difficult; consider contrarian approaches, but be prepared for periods of underperformance.