Women investors better than men ?

Stacy Schill |

There has been debate over the years about whether men or women are better investors. Studies give women an edge over men with regard to investment performance. One recent study in particular is the Warwick (U.K.) Business School study of 2800 people that showed women outperforming both the market and their male counterparts. Several factors most likely account for this. Women tend to take less risk than men with their investments and therefore may be less impacted by investments that implode. Women also tend to trade less which a) reduces the chances of mistakes and b) allows for better compounded growth of investments. Also, women are more likely to seek the advice of experts and advisors, are more willing to ask questions, and are more willing to admit they don’t know something. Understanding and accepting what you don’t know is a huge advantage in investing and men tend to be less willing to do this.