Of course we are. But I might be a tad bit biased since I’m a girl and all.
Recently though Barclays Wealth did a study into different investment personalities and styles and how they handle different challenges.
Most interestingly from this study they looked at gender differences in investment styles and overall it probably comes as no surprise that men tend to choose riskier strategies and not always to their benefit. Men tend to trade more often and think timing the market is more important than waiting out the ups and downs.
Women on the other hand tend to be more risk-adverse and choose longer term investments. They are willing to ride out the market ups and downs and while they do get stressed from falls in the market are more likely to have self-control and not panic sell during tough times.
Women also want to become more knowledgeable about their finances and take a more proactive role in choosing their investments.
So far there probably isn’t a lot to the study that surprised you. Generally women prefer a longer term approach and are less likely to buy and sell into risky stock investments whereas men prefer shorter term strategies and will chase those stocks that promise more return.
So which strategy is better?
Personally I think both methods can work – short term and long term and there is room in your portfolio for both of the different strategies. However if we are looking at JUST profits and dollars then unless you get lucky and choose a hot stock that doubles overnight (low chances of this happening) then long term investing wins out every time. Yes every time.
Right now the winners in the stock market are those that are taking a long term strategy. Those that panic sold when shares started to fall at the beginning of the economic meltdown have done much worse in the market that those that still hold their investments.
So does this mean that women are better stock investors than men?
While the market certainly doesn’t care whether you are male or female it’s the safer strategies of choosing good companies with strong fundamentals that is proving to be the most profitable right now. Exactly the investment temperament that women exhibit more often than men.
So it’s not completely true that women are better investors than men are, but rather their investment styles and personalities that are. So if men can learn anything from this it’s that taking more time to choose strong investments is worth the research over using riskier strategies.
Take more time for research, choose safer investments, and be confident if the company you chose still has strong fundamentals.
And that’s why women are better at investing in the stock market than men are.
Besides, women just do everything better anyway don’t they? Don’t they? Hello?