How Women Investors Differ From Male Investors

For instance, women tend to spend more time alone than men.  A longer life expectancy is one reason.  Another is that women may choose to stay home during child-raising years.   The former may well mean a woman’s resources need to last a longer time; the latter may mean her income-earning years have been interrupted, likely affecting social security benefits and contributions to company-sponsored retirement plans.

But how do these and other circumstances manifest themselves?

A book entitled “Warren Buffet Invests Like a Girl – and Why You Should, Too” suggests that:

  • Women are more risk averse than men, meaning they tend to be more conservative investors.
  • Women trade less – and their portfolios perform better
  • Women are more consistent investors
  • Women engage in more thorough research
  • Women tend to ignore peer pressure

I keep these tendencies firmly in mind when working with my many women clients.  My next blog will explain how – while recognizing these factors -- I help women build their portfolios.