Warren Buffett Invests Like A Girl
No doubt the title of this new book —Warren Buffett Invests Like A Girl And Why You Should, Too — grabs your attention.
But no snickering allowed. Calling legendary investor Warren Buffett a girly investor is not a put-down.
Turns out "investing like a girl" is a good thing.
It refers to Buffett’s even temperament — calm, disciplined, patient, realistic.
The result: long-term investing success.
Here are the eight traits gleaned from scientific research studies about female vs. male investors that Buffett epitomizes,
Female investors tend to:
- Trade less than men do. One study found that men trade 45% more often than women do.
- Exhibit less self-confidence: men think they know more than they do, while women are more likely to know what they don’t know.
- Shun risk more than male investors do.
- Be less optimistic, and therefore, more realistic, than their male counterparts.
- Put in more time and effort researching possible investments, considering every angle and detail, as well as considering alternative points of view.
- Be more immune to peer pressure and tend to make decisions the same way regardless of who’s watching.
- Learn from their mistakes.
- Have less testosterone than men do, making them less willing to take extreme risks, which, in turn, could lead to less extreme market cycles.
The new book by Louann Lofton, ‘Why Warren Buffett Invests like a girl’, ticks off these feminine investment characteristics, dedicating a chapter to each one, and uses Buffett and his publicly traded holding company, Berkshire Hathaway, as the billboard for this winning approach.
The book is a tad repetitive, but the message is a winner. Investing is the only way to take control of your businesses and your own financial future.
Before you can be taught how to pick stocks, you must learn how to master your temperament. No lipstick necessary.