Tuesday, January 14

4 Ways women make better investors

4 Ways women make better investors
| By Tom sightings, US News & world report

Guys could stand, a couple of things about the investment of their female pendants--risk-averse as the virtues of patience and learning research.

The proof is: after a number of studies by banks and investment firms over the past decade, women make better investors than men. The youngest, determined by the tax and advisory firm Rothstein of Kass, that hedge funds, led by women, which surpassed the managed by men by 6 percentage points over a nine-month period in 2012.

Why do women, better than the average? No one knows exactly. And of course there are exceptions, such as Warren Buffett.

But if in the long term, women generally have better investment returns than men produce. Here are four possible causes:

You think this would be a good thing, right? But as in so many areas to invest, the obvious answer is not correct. For many men, the most important thing is not the absolute return on an investment, but whether their rivals to beat. This leads often male managers of to risky bets that can pay off which are less.

Is one more important investment criteria for many men bragging about their income. And as we all know, men are less likely, for advice on issues. Somehow, it is seen as a sign of weakness. All of this leads to men focus on short term and lose the primary purpose of investments out of sight: to produce consistent, positive returns over a longer period of time.

According to a study by behavioral scientists, women are typically averse than men. Women are more inclined, to wear than men, seatbelts, cigarette smoking and blood pressure avoid checks. You are 40% less likely, that to run the yellow traffic light. So it should not surprise attracted the women towards safer investments and hold portfolios of stocks, which are less volatile.

An investment study showed, that if something goes wrong, men become angry fearful while women. Anger can cause that people ruthlessly trade will double to more losses, such as to lose investments or to try, "a falling knife to collect." However, afraid of women are more likely to avoid market downturn in the first place, and then if they suffer losses are more likely pull the reins and move away from large disasters.

Women, who are less confident than men are likely to less deceived to believe they know more than is actually the case. They want to control and therefore not more research to find out exactly what they invest.

Women are also more realistic ideas, what can reasonably afford an investment. In short, they have lower expectations from their investments. Therefore, they are less likely to jump on the "next big thing" or a "don't miss" fall on stock tip.

In a report found that a quarter of the men surveyed gave, that she would gamble on a "hot" investment, without any real research to do, because many women have the same while making only half of error would. As a result, trading women of less frequently. They are less transaction costs and less tax consequences. Women undertake their investments, and because they have done their homework, are more likely to their obligations to meet. You are patient investors and typically not by a short-term setback in the performance of one frightened company.

Surveys have shown that women more likely than men to the attribute success to factors outside themselves as luck or fate. This apparent contradiction lay - with the goal of achieving the control if you know that you can only so much control - are women the perspective they need to avoid panic. And yet paradoxically, it allows also to admit when they've made a mistake.

Women looking for the next storm. When it arrives, they batten to the hatches and it ride. You know the market like the ocean. It is much larger than an investor subject to any large global forces. But in the course of time, there is a certain ebb and flow, and if you're a good Navigator you can rich coastal sailing.

How is it that the best investor of all, the legendary Warren Buffett, happens to be a man? Maybe you should ask author Louann Lofton, who wrote the book "Warren Buffett invests like a girl: and why would you want to."

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