Men and Woman - Investing

This is the excerpt of an interesting article found on The Business Times today. It is good to find out and understand how our attitude affects our investment decision.

The original article: Why he just leaps when she hesitates 20/08/08

The excerpt:

Men tolerate more risk than women, which means that over time, women's returns could be less.


'It's true that most men are willing to take more risks than women. 'Women sometimes take overly conservative positions, and then sometimes they don't make as much money as men

Women prefer to invest in large-cap, slower-growth companies and that men prefer riskier, small-cap firms with big upsides.

'Men are more willing to make decisions without studying them

'Men also feel like they can beat the market. On the other hand, when women get involved, they are more diligent workers. They study. They talk. They learn. They don't have the urge to beat the market.'

Men were also more likely than women to allocate too much money to one particular stock, buy a hot stock without doing any research, attempt to beat the market and ignore the tax consequences of their trades.

Men also reported that they traded stocks far more often than they should, which is a considerable problem.

'if you are a male investing alone, you should adopt a female perspective

'If you are a female investing alone, you should adopt a male perspective.

If you put the two groups together, you get balance.

My take: Bisexual make a perfect investor?