Most of the best known investors are men. Why are there so few well known women investors? Is it really so, that men invest better than women, or are women just too careful and scared of investing?
I’ve read a couple of articles of women investing, and all of the articles do think, that women might be better as investors than men. Women tend to be more careful with their money and they seem to take more time to explore their chances and considering their options. People think men are more impulsive as investors than women and that may be the reason why women investors make better choices than men.
An article in a Finnish newspaper, Helsingin Sanomat, lists a few facts why women are better as investors than men. To give an example, the article stated that women have a higher moral as investors and that they use more time to analyze their target. Testosterone has also been mentioned; men have a habit to over estimate their talents and due that they make too quick decisions without really thinking if it’s a good one.
In the article an investor Marika af Enehjelm says that the biggest difference between men and women as an investor is that men invest in shares and women in companies. Do women use their emotions while choosing investing targets? Maybe women do take better chances by really getting to know the companies and making them feel personal and more important to them.
When you familiarize yourself with the companies, take time with the company’s annual report. By reading it you will easily find how the firm is growing and are the company’s management reacting the right way to different situations. You should try to get to know the morals of employees. If the employees work with 70% of motivation it doesn’t help the firm to grow. But if you find their employees working with a 120% motivation, it will certainly affect the company’s profit more positively.
The more you follow the company’s news and search different facts about it, the more confident you will be with the decision to invest. Apparently people think that is exactly what women investors tend to do and in that way they make themselves better investors than most men.