Do women make better investors than men? What "special" feminine traits or instincts might we have that could potentially give us an advantage over our male counterparts?
While investing success doesn't necessarily boil down to gender differences - whether biological or psychological - there's no denying that it has been mostly the men who have been receiving recognition for their investing prowess so far.
Warren Buffett. Charlie Munger. Bill Ackman. Benjamin Graham. Carl Icahn. Peter Lynch. George Soros. Sir John Templeton.
Where are the women?
Now, before we jump the gun, perhaps it might be worth understanding why the men have been getting all the attention. After all, if we look further back into history and into the eras where gender roles were more entrenched, men were mainly the breadwinners earning money for the household. Since most women relied on their husbands to support the family, few had money of their own to invest. That's my wild guess.
Fast forward to the 21st century and we women are finally acknowledged for our contributions to the workforce, and being fully capable of earning our own keep. We don't need no man to be financially independent.
According to research data published by SMU, there are also some generic differences between female and male investors:
- Women spend more time researching their options than men
- Women tend to trade less often
- Women tend to remain calmer during the crisis periods that unnerve male investors
- Female investors prefer to buy underpriced stocks and sell the ones which are overpriced
An analysis of 60,000 users of US online investment-sharing platform Openfolio showed that women investors outperformed men by an average of 0.4%. In 2015, women avoided the worst effects of a failing market and lost an average of 2.5% vs. the 3.8% loss among men.
Hedge funds managed by women in the US returned 59% since 2007, whereas the overall returns across hedge funds stood at 37%. How's that for female power!
Researchers believe there is some evidence that women have an unusual kind of sensitivity and are extremely skeptical of "pumped" investments when prices are rising rapidly. (Oh, is that why people always call my writings skeptical? Now I can blame it on my gender!)
I'm not saying you have to be female to be a good investor, nor that females make for smarter investors, but I'll like to believe it is so :P
For those of you who are looking to learn how to perhaps tap your feminine side to guide your investment decisions towards success, this upcoming conference in two weeks might offer some ideas.
The organisers reached out to me a few months ago to invite me to speak on a panel and it got me super excited, but alas, I had to turn the opportunity down because I'll be away on my honeymoon then :(
It can get lonely being a female investor in a world dominated by men. On my entire list of Whatsapp contacts, I only have one fellow female friend whom I regularly chat with to discuss stocks and investment ideas. Everyone else...is male.
But having a support network is crucial, otherwise you won't be able to hear a diversity of views and analysis, nor sustain the emotional strength to stay on this journey for the long run.
Yes I know, most females only like to talk about makeup, beauty, their OOTDs and fashion, or food. If you don't have fellow female friends to accompany you on this journey, you'll probably want to meet the other like-minded females at this event.
This conference is catered specifically to modern, independent-minded women who are ready and keen to make smarter decisions about their finances. Decisions that can and will transform your relationship with your finances — and change your life. The organisers and speakers will be simplifying financial concepts to suit the interests of women specifically. They've also promised to teach you how to tap into your feminine instincts to help you invest better.
You can register for tickets here: www.futurefemale.peatix.com
Unfortunately the 20% early bird discount has already closed (sorry, I really should have posted about this earlier but I've been insanely busy with my wedding preparations!) so the full price of the ticket is $250 to attend.
However, BB readers get special treatment! I've managed to secure a 12% discount code for you to use if you're attending as a Budget Babe reader : TNSBudgetBabe valid until 7th April 2017, a day before the conference.
I'm also giving away 2 tickets (worth $250 each) to 2 lucky readers of Budget Babe.
To thank you for being a loyal reader, I'll like to give away 2 tickets to two of you to attend the conference since I can't be there in person.
All you have to do is to leave a comment below and tell me which session in the conference agenda interests you the most + what you've learnt from reading my writings. This can be your biggest takeaway you've had from my blog ramblings, or any insight or even motivation to start getting your personal finances in order. Anything goes.
I'll give bonus points if you've liked my Facebook and Instagram page (sgbudgetbabe) haha!
Submission deadline: 22 March 2017
Winners notified by: 25 March 2017
Here are the rest of the event details:
Date: 8 April 2017, Saturday
Venue: SGX Auditorium, 2 Shenton Way
Registration link: www.futurefemale.peatix.com
Still not convinced that your female instincts might just make you a better investor? Perhaps this might give you that extra push:
Till then, ciao, and see you guys after my wedding! Maybe I should change my name from Budget Babe to Budget Wife, followed by Budget Mom in a few years after that? Haha!