Unless you've somehow kept your wealth a secret, your financial adviser has probably already urged you to "add alternatives" to your portfolio, or simply "invest like Yale." But here's a comeback to use next time this topic comes up: Tell the professional you've recently studied the Norway model—which will be true once you've finished reading this column.

There's certainly much to be said for Yale's investing approach. The university's $19bn endowment focuses almost exclusively on alternative assets, such as hedge funds, timber, oil and gas, real estate and private-equity funds that invest in corporate buyouts. It generally shuns stocks and bonds. Yale's reasoning: As an institution with a perpetual time horizon and extensive resources, it can capitalise on the extra return alternative assets should offer because they can't be easily traded like stocks and bonds.