Investing

ARE WOMEN INVESTORS BETTER THAN MEN?

by Kevin Schoon August 17, 2017
Woman investor

In the early days of the nuclear family, the Man of the House would make the money and the Queen of the Castle would stay home to rear the children and maintain the home’s upkeep.  When the U.S. entered into World World II the value and abilities of the Woman was put on full display. This sparked progressive movements such as “Rosie the Riveter” and the Feminism. Women investors have began to gain more recognition and are even outperforming many men in the industry. Here are some reason why:

Women Invest in What They Know

As stated in the opening of this post women were responsible for the upkeep of the home and making purchases. In many ways that is still true today. In the consumer economy women are responsible for 70-80% of the purchases. Why is does benefit women as investors? This benefits them because they have a real world experience with the company. Also, they tend to recommend or consider recommendations from other women. This accompanied with their intuition gives them a feel of how good the company is.

Women Investors are Less Impulsive

Despite the stigma that women are ” too emotional”, when it comes to investing they are actually less impulsive than men. Women are more consistent as they look for the easy wins versus men who tend to be more inclined to get the home run. According to a study by Fidelity Investments in 2013, women were more likely to hold 100% of assets. This meant they saved on taxes and saw bigger returns. Unlike men who had wider swings in value. Women investors are lot like Floyd Maeweather.  They are much more deliberate and analytical, compared to men who more like Mike Tyson, always looking for the knockout.

Women  Investors are More Patient

As mothers, sisters, and wives, the amount of stress can be overwhelming. Needless to say there’s no one better to do the job. So why wouldn’t that same ability to be patient translate well as an investor? As stated earlier, women are likely to hold their assets longer than men. So even through ups and downs in the market  women soldier through. That’s  because they are focused more on the large picture than empty goals.

strong women

Behind every strong man is an even stronger woman

Who are Some Leading Women in the Business

Have you ever heard of the Midas List? If not, it is a list co-produced by Forbes and TrueBridge Capital Partners. The list criteria according to Forbes “and size of exits over the past five years, with a premium on bolder early-stage deals. VCs in the top 10 averaged 10 deals involving companies with at least a $200 million acquisition or IPO, or a private valuation of more than $400 million. All 100 VCs averaged no less than nine of these deals”. You can read more about the list here. This year’s woman finalist were:

  • Mary Meeker – Kleiner Perkins Caufield & Byers
  • Rebecca Lynn – Canvas Ventures
  • Jenny Lee – GGV Capital
  • Theresia Gouw – Aspect Ventures
  • Anna Miura-Ko – Floodgate
  • Kirsten Green – Forerunner Ventures
  • Beth Seidenberg – Kleiner Perkins Caufield & Byers
  • Ann Lamont – Oak HC/ FT

You can read more about these prestigious women here.

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2 Comments

  • Reply Ms. Frugal Asian Finance August 22, 2017 at 7:14 pm

    This is an interesting perspective on investment and gender. I think male and female investors have their own strengths and weaknesses. When I was in college, people kept telling me that ibanking is a male-dominated industry and is not a good work environment for women. It was discouraging to hear, so I definitely respect all the female investors who are making it out there!

    • Reply Kevin Schoon August 22, 2017 at 9:25 pm

      Hey Ms. FAF, thanks for checking out my post. Means a lot you being big time and all lol. JK. In all seriousness though, I found this interesting mainly because women are represented as emotional and irrational in modern media. Two characteristics that are contrarian to being a good investor. I guess that theory has fallen on its face. Now let us laugh lol. Thanks for checking out my post. Hope to hear from you again.

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