The Norwegian Oil fund is the largest sovereign investment fund in the world.
The fund is supposed to finance the Norwegians' future pensions.
At 1.7 trillion USD, it's the 8th most valuable asset in the world, with a market cap equivalent to about 10% of all of the gold that has been mined throughout history.
Gold tops the list of the most valuable asset (market cap).
When we include the fund, bitcoin is No. 11 on this list, only 14 years after the digital currency started to have economic value.
The fund is only allowed to invest in real estate, bonds and stocks outside of Norway.
It isn't allowed to invest in gold or Bitcoin.
The fund owns 0.6 % of Microstrategy, meaning that it indirectly owns a tiny bit of bitcoin.
Compared to the gold price, it has had an annual average loss of about 1.9% over the 26 years since its inception.
This is notable, considering that the fund invests in risk assets, while gold is considered to be one of the safest assets money can buy.
In other words, the fund doesn't profit from taking risk.
A major reason why the fund performs badly is that real estate, bonds and stocks, are assets that currently are being demonetized by gold and bitcoin.
Oddbean new post about login | logout