Sunday, October 28, 2007

Yay, girl power!

In the October issue of MoneySense, an U.S. study titled Boys will be Boys: Gender, Overconfidence and Common Stock Investment finds that women are better investors. Go girls!

I can’t find a link, so here is a short excerpt:

[based on analysis of 35,000 investments accounts] The women in the study earned
returns that were approximately 1.1 percentage points a year more than their
male counterparts after expenses. Single women got the highest returns,
beating the single men’s earnings by about 1.7 percentage points a year.

What men and women could learn from each other:

What men can learn from women:

  • It pays to trade less: men trade their accounts 45% more then women, racking
    up big transaction fee and tax bills in the process.

  • Big egos means small results: 52% of men say they’re confident in their
    investing abilities compared to only 38% of women, but women’s portfolios
    typically beat men’s

What women can learn from men:

  • Investing doesn’t have to be intimidating: twice as many women (48%) as men
    ay investing is scary for them.

  • A bit of risk is okay: venturing outside of GICs to generate growth makes
    sense, especially given women’s longer lifespans.
More on girl power. I recently found the women’s personal finance network - wpersonalfinance. I’m really excited to be on the blog roll and it’s great to see some of the blogs I read regularly to be listed


Anonymous said...

very interesting! thanks for posting this.