Warren Buffett Invests Like a Girl: And Why You Should, Too (Motley Fool)
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“Their Panache is a cover for a belief in the old-fashioned virtues of patience, simplicity, and prudence.” (U.S. News & World Report )
“They’ve built up a large and much-deserved following.” (Washington Post )
Product Description
Investing isn't a man's world anymore—and that's a good thing for individual portfolios, Wall Street, and the world's financial system.
Warren Buffett and the women of the world have one thing in common: They are better investors than the average man. Psychologists and scientists have shown that women have the kind of temperaments that help them achieve long-term success in the market. The calamities of the past several years have only provided more statistical and anecdotal evidence of the same. Here are just a few characteristics of female investors that distinguish them from their male counterparts:
Warren Buffett and the women of the world have one thing in common: They are better investors than the average man. Psychologists and scientists have shown that women have the kind of temperaments that help them achieve long-term success in the market. The calamities of the past several years have only provided more statistical and anecdotal evidence of the same. Here are just a few characteristics of female investors that distinguish them from their male counterparts:
- Women spend more time researching their investment choices and tend to take less risk than men do. This prevents them from chasing "hot" tips and trading on whims. Women are also more likely to seek out information that challenges their assumptions.
- One study found that men trade 45 percent more often than women do, and although men are more confident investors, they are also more susceptible to becoming overconfident. By trading more often—and without enough research—men reduce their net returns and increase transaction costs and capital gains taxes.
- Women aren't as susceptible to peer pressure as men are, which results in a more levelheaded, patient approach to investing.
- Women have less testosterone than men do (not a surprise, we know). New and continually unfolding science points to the possibility that testosterone is responsible for herdlike risk-taking behavior from men in the financial markets.
About the Author
Brothers David Gardner and Tom Gardner cofounded The Motley Fool, a multimedia financial education company, in 1993. They have coauthored five New York Times bestsellers, including The Motley Fool Million Dollar Portfolio, The Motley Fool Investment Guide, The Motley Fool You Have More than You Think, and The Motley Fool's Rule Breakers, Rule Makers. The Gardners also oversee the award-winning website Fool.com (with over four million unique visitors per month); a nationally syndicated newspaper column, carried by over 200 papers; and fourteen paid newsletters. They live in Washington, D.C. LouAnn Lofton has been with The Motley Fool since January 2000, first as a writer, and later as the Managing Editor for all of the Fool's online content. As a largely self-taught investor and a believer in taking the long-term view, her interests and portfolio lean towards owning stocks she can easily understand and then holding onto them for basically forever. She's also a Berkshire Hathaway "B" shares shareholder, and has no plans to sell that stock ever. (Mr. Buffett would be proud.) She lives happily in New Orleans, Louisiana. LouAnn Lofton has been with The Motley Fool since January 2000, first as a writer, and later as the Managing Editor for all of the Fool's online content. As a largely self-taught investor and a believer in taking the long-term view, her interests and portfolio lean towards owning stocks she can easily understand and then holding onto them for basically forever. She's also a Berkshire Hathaway "B" shares shareholder, and has no plans to sell that stock ever. (Mr. Buffett would be proud.) She lives happily in New Orleans, Louisiana
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