Why women are better investors
According to Professor Terry Odean at the University of California, men and women have different motivations and styles when it comes to investments. “When it comes to trading, men are more hormonal than women,” Coates says. Women tend to be far less emotional when it comes to trading than men. Coates believes male testosterone plays an important role in the fact that men take more risks and, therefore, lose more than women.
LouAnn Lofton, author of Warren Buffet Invests Like a Girl: And Why You Should, Too, agrees. She believes that male testosterone leads men to want to compete more with each other, or as she states, "Stock picking with men is too often about one-upmanship and bragging."
Anthony Zalesky, a certified financial planner, also agrees that “Women are more loss averse than men, more emotionally unattached and are far quicker to unload losers. Whereas men with their bravado, they don’t want to admit they’re wrong.”
Yes, but men trade more than women...
It's true that men trade about 45 percent more than women, but in the stock market, that's a bad thing! As Professor Odean explains it, “Men are just making a lot more bad decisions than women. More trading leads to lower performance.”
To read more, visit www.washingtonpost.com/business/behavioral-economics-show-that-women-tend-to-make-better-investments-than-men/2013/10/10/5347f40e-2d50-11e3-97a3-ff2758228523_story.html
