Today, we celebrate the power of being a woman. And more specifically, the power women have when it comes to investing. Women investors tend to outperform their male counterparts, so it pays off to invest like a woman. But why is that? Let’s look at 3 factors that typically help women be better investors.
Before we dive in, it’s vital to remember that everyone should invest. Whether you are a man or a woman, investing could help you build a more secure financial future ⭐
Based on various studies, certain factors tend to make women better at investing than their male counterparts. These factors are:
- Long-term thinking
- Risk-taking tendencies
Let’s look at each of these factors in more detail
1. Women excel at long-term thinking
One thing that helps women succeed in investing is their ability to prioritize long-term investment goals. When markets become unstable, women are more likely to hold on to their investment and ride out the storm, which they know will stabilize in the long term. This behavior means they don’t diminish their returns and trust in the power of long-term investing.
On the other hand, men are quicker to interfere in their investments for short-term gains, which could cause them to lose money in the long run.
2. Women take on less risk
It’s important to note that women aren’t necessarily completely risk-averse, but they take on less risk than men when investing. By taking on more appropriate levels of risk or diversifying their portfolios to mitigate risks, they have more success in their investments. They also do their research to understand their investment options more, enabling them to take on more appropriate risk levels.
3. Women have more patience
This might sound like a stereotype, but when looking at the numbers, it turns out there’s some truth to the statement. It also ties in with our first point about thinking long-term. By keeping the bigger picture in mind and not flinching when a market crashes or performs less than advantageously, women are more likely to let their investment be. They have the patience to let the investment take its time to do its thing. In contrast, men are more likely to jump ship, panic sell, or trade at the ‘wrong’ times. This behavior means their investment rarely has the opportunity to mature, and they rob themselves of the benefits.
If you’re looking for more ways to invest like a woman, get some top tips from the women in Bondora right here.