Throw out every stereotype that said men are superior when it comes to money and investments. A recent article from U.S. News & World Report says that women might make better investors than men. Given that more women are claiming increased financial responsibility, this might be true.
Here are five reasons why men could learn a thing or two about investing from women:
1. Women save more money.
A Fidelity Investments study found that women save 8.3 percent of their earnings, compared to 7.9 percent for men. The result could mean hundreds of dollars per year and tens of thousands of dollars over many years.
2. Men might take too much risk.
Trading expert Gary Dayton says that men might display more overconfidence when it comes to investing.
"Overconfidence can lead men to take on too much risk and invest in companies they really don't know," he said to U.S. News & World Report. "Men also tend to believe their interpretations of news and market movement is sound and feel they can make profitable trading decisions, but this isn't as true as they may think."
3. Men are more prone to stock market losses.
Men are 25 percent more likely than women to lose money in the stock market, which is pretty significant.
4. Women are more likely to be patient investors.
Abigail Sussman, assistant professor at the University of Chicago Booth School of Business, says that women might be more patient when it comes to investing and this could be beneficial.
"Women are more likely to give their investments time to grow," she said to U.S. News & World Report. "This is important because checking returns and acting on short-term fluctuations in stock performance leads to negative outcomes."
5. Women put in more time to research investments.
Louann Lofton, author of Warren Buffett Invests Like a Girl: And Why You Should Too, said that women put more time and effort into researching investment opportunities. Lofton also said women are more likely to learn from investment mistakes.
(H/T: U.S. News & World Report)
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