Are Women Better Stock Investors Than Men
Are women better stock investors than men? Yes! Numerous studies have indicated that women earn higher returns than their male counterparts over time! Women have a different approach to investing than men do. This article will discuss the advantages women have over men in the investment world. And, hopefully, the article will achieve its’ intended purpose…which is to get more women interested in investing in stocks! There is no better way to grow your money today!
Women investors are more patient than men. They tend to hold onto their stocks for the long-term. Women realize that constant buying and selling of their stocks “only” serves to reduce their returns. This “low” turnover in their portfolios “saves” them tons of brokerage fees and, of course, lower taxes…both of which can eat into their returns.
Men, on the other hand, buy and sell their stocks much more frequently than women…increasing their transaction costs and reducing their returns! This “constant” buying and selling is often unnecessary and could be due to male overconfidence.
Many women think long-term and use a “buy and hold” strategy. They will hold their stocks for more than a year. This gives them the advantage of “long-term” capital gains. These gains serve to decrease their tax liability…resulting in fewer taxes to pay. Short-term capital gains, on the other hand, are taxed at a woman’s “normal” tax rate…which could result in a larger tax liability. Not a good deal!
Women investors do not take as much risk as men. However, they realize that all investing involves risk and do everything in their power can to limit this risk. The conservative approach they take includes “thorough” research on the underlying company before they buy! Taking less risk and not selling, (or buying) prematurely, pays off for the female stock investor over the long-term.
The woman investor, also, does not have a tendency to give in to peer pressure…as men may be inclined to do. Women prefer to think for themselves…often shunning others advice. Most women will make their “own” investment decisions based on careful research and very well thought-out goals. They will take the necessary time out to do their homework.
This article demonstrates that women have outperformed men in the investment arena. Women are “gifted” stock investors! And, more women today should be investing in stocks! This should no longer be a field dominated by men…when we women are so good at it!
This article was written by Linda Brown, an Accountant, Blogger & Investment Consultant with a “Bachelor of Business Administration” degree. She runs www.lindasstocks.com.