While throwing or screaming like a girl haven't exactly been populated as compliments, investing may give the usually downer-descriptor a positive twist. The folks at The Motley Fool have given women investors the ultimate confidence boost by claiming that Warren Buffett, Mr. Richest Person in the World himself, invests like a girl. Buffett's long-term, patient approach to investing sets him apart from typical male investors who react to the market by transforming their portfolios. To find out how to invest like a girl just read more
Women are typically more patient in most aspects of investing and below are the positive characteristics that women often bring to the investment table.
- Women spend more time researching their investment choices than men do which prevents them from chasing "hot" tips and trading on whims.
- Men trade 45 percent more often than women do and tend to be overconfident investors. Trading often without enough research can reduce net returns. Women trade less often and get better returns while saving on transaction costs.
- A study by the University of California at Davis found that women's portfolios gained 1.4 percent more than men's portfolios did. Single women did even better than single men, with 2.3 percent greater gains.
- 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.