Americans 'simply work harder' than Europeans, wealth chief says

People in Europe are less ambitious and more risk-averse than their peers in the United States, says Nikolai Tangen. Photo: Chris Ratcliffe/Bloomberg

Europeans are “less hardworking” than Americans, said the head of the world's largest sovereign wealth fund.

Nikolai Tangen, manager of the $1.6 trillion (£1.3 trillion) Norwegian Wealth Fund, said people in Europe are less ambitious and more risk-averse than their US counterparts.

In comments first reported by the Financial Times, Mr Tangen said: “We are not very ambitious.

“I have to be careful when talking about work-life balance, but Americans simply work more.”

“There is a problem with thinking in terms of accepting mistakes and taking risks. If you go bankrupt in America, you will have another chance. In Europe you are dead.»

The Norwegian wealth fund, which invests excess oil and gas revenues, owns about 1.5% of all shares listed on the world market and has stakes in more than 9,200 companies.

Mr Tangen's comments come amid growing concerns in Britain and Europe over the struggle to keep up with America's booming stock markets.

The London Stock Exchange has already fallen victim to this trend, with a number of well-known firms abandoning the Square Mile in favor of New York.

The malaise gripping European stocks has been underscored by Norway's shift in investment priorities.

Half of its wealth is now invested in U.S. stocks compared to last year. a third in 2013.

Meanwhile, its share of UK shares has fallen to 6%, down from 15% a decade ago.

In contrast, every eighth dollar in its stock portfolio is invested in the Magnificent Seven, a group of American companies. tech giants including Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.

Mr Tangen also fired a warning shot at bureaucratic red tape in Europe, saying American leaders see heavy regulation as a hindrance to everything. continent, especially in the technology sector.

He said: “I'm not saying it's good, but America has a lot of AI and no regulation, Europe has no AI and a lot of regulation. It's interesting.”

Asked about Donald Trump's potential return to the White House, he said it was a concern but stressed that Norway would remain committed to U.S. stocks.

He said, “We will continue to invest in America.”

The wealth fund returned 16% last year as tech stocks recovered, the third-best year in its history.

< p >The fund, set up in the 1990s, largely tracks a benchmark index based on a system it receives from Parliament.

Mr Tangen's remarks came as it emerged that US fund managers were turning away from investing in ESG after senior Republicans called them «woke.»

Data from Morningstar shows that in the first three months of the year, US investors pulled $8.8 billion in cash out of ESG stocks, compared with Europeans, who poured in $11 billion.