Hey, You Invest Like a Girl!
What an insult! No testosterone laden man would put up with a jab like that. Several studies have shown that women:
- Often have doubts about their ability to invest
- Don’t enjoy investing as much as men
- Are financially insecure, therefore, are unwilling to take a risk with their resources
- Want to preserve their assets so they don’t lose them
- Don’t know how a mutual fund works
And to top it all off, another study by the University of California at Davis found that women’s portfolios gained 1.4% more than men’s portfolios did. Some other interesting nuggets:
- Single women did even better than single men, with 2.3% greater gains.
- The average women’s investment club outperforms the average men’s investment club according to Professor Hersh Shefrin, (Santa Clara University) author of Beyond Greed and Fear: Understanding Behavioral Finance and the Psychology of Investing.
- Women are more likely to do research before they make an investment decision, rather than to gamble on a high-flier.
- They trade less often and the less often you trade the better your returns because you save money on commissions. Men actually traded 45% more often than women — a result they attributed to overconfidence.
- A Merrill Lynch study found that men are also more prone than women to hold a losing stock too long or waiting too long to sell a winner.
- Women tend to look at more than just numbers when deciding whether to invest in a company. They invest in companies they feel good about ethically and personally. And companies with good products, good services, and ethics tend to have better long-term prospects — and face fewer lawsuits.
Upon further review, investing like a girl might not be such a bad thing.
Related Articles:
- Dividends Are Gold in a Down Market
- My Top 3 Investing Mistakes
- Morningstar Dividend Leaders Index
- Is It Time To Upgrade Your Portfolio?
- Tracking Yield On Cost
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