So are there any superstar countries when it comes to finance? Is there a country that seems to follow The Warren Buffett Way? While all analogies break down at some point, there does seem to be one country that fits the description. That country is Norway.
The Norwegian government established a sovereign wealth fund in 1990, funded by taxes and exploration licenses from the petroleum sector of the Norwegian economy. Over time, this fund has grown into an enormous financial powerhouse. You can read more about the fund on their official website.
Note the following Buffett-like characteristics of the fund:
- The fund is currently worth $810 billion!
- It's now the largest sovereign wealth fund in the world.
- The population of Norway is approximately 5 million. Thus, the fund is worth more than $137,000 per person.
- The fund takes a buy-and-hold approach, and has been patient through market downturns.
- The government has resisted raiding the fund, even after it grew very large.
- Unlike many large pension and endowment funds, the fund eschews unconventional and illiquid investments.
- 99% of the assets of the fund are invested in publicly traded stocks and bonds.
- The market footprint of the fund is huge. It holds more than 1% of the entire global equity market, and almost 2% of the European equity market.
- The fund stresses transparency in holdings and accounting.
In conclusion, I would also note that a similar management and investment style has produced similar long term results for Norway and Warren Buffett.