Guan Cha Zhe Wang·2025-09-17 06:35Core Viewpoint - The Swiss National Bank (SNB) has become a significant player in the tech stock market, with a U.S. equity portfolio valued at $167 billion, nearly one-fifth of Switzerland's GDP, covering over 2,300 listed companies [1] Group 1: Investment Strategy - The SNB's investment in major tech companies, including Apple, Microsoft, Amazon, Meta, Nvidia, Alphabet, and Tesla, accounts for $51.6 billion of its portfolio, with Nvidia alone exceeding $11 billion [1] - The SNB's balance sheet has expanded to $855 billion, positioning it alongside sovereign wealth funds from countries like Singapore and Qatar [1] - The SNB employs a unique strategy of regularly selling Swiss francs and buying foreign currencies to manage the appreciation of the Swiss franc, which is often seen as a safe-haven currency [2][4] Group 2: Market Position and Flexibility - Approximately 87% of the SNB's assets are in foreign currencies, including two-thirds in government bonds, 10% in corporate bonds, and 25% in stocks [6] - The SNB has shown flexibility in its investment approach, having established a position of over $2 billion in Berkshire Hathaway by 2025, despite not holding any shares in 2023 [6] - The SNB significantly increased its holdings in Nvidia, with the number of shares growing over sixfold in two years, leading to a 175% increase in value from March 2023 to March 2025 [8] Group 3: Risks and Challenges - The SNB has faced substantial losses due to asset price corrections and currency fluctuations, with a reported loss of 15.3 billion Swiss francs (approximately $19.5 billion) in the first half of the year due to a weakening dollar [9] - Discussions have arisen regarding the potential outsourcing of some assets to professional management for higher returns, although many economists believe the current system remains advantageous [9] - The SNB's ability to quickly mobilize foreign currency assets to manage inflation pressures post-COVID-19 highlights the importance of maintaining liquidity and flexibility in its investment strategy [9]