
Bi Dong shared a striking news story: When Norway’s sovereign wealth fund was launched in 1996, it began with just about $300 million. Thirty years later, its size has grown to $2.3 trillion. Its most remarkable feature is that the vast majority of this growth did not come from continuously injecting proceeds from oil sales, but from investment returns—an exemplary case of compound interest. Today, this fund holds an average of 1.5% of every publicly traded company worldwide. It also has a strict rule: the government can withdraw at most 3% annually—only spending the returns generated by investments, leaving the principal untouched. This revenue supports more than a quarter of Norway’s national budget. Looking at the breakdown of its growth, the size consists of three components: new contributions, investment returns, and currency fluctuations. The true driver behind its massive scale is decades of consistent investment returns. Saudi Arabia also has a sovereign wealth fund that performs exceptionally well. The greatest advantage of this wealth model is its ability to reliably underpin the livelihood and social welfare of ordinary citizens.
