Why Women Beat Men When It Comes to Investing
by Jan 22nd 2011 9:00AM
When it comes to famous investors, lots of names come to mind, such as Warren Buffett, Peter Lynch and of course, Benjamin Graham. Yet plenty of studies show that while the most famous investors are men, women generally outperform men when it comes to generating significant returns.
So why aren't there more famous women investors? Hilary Kramer, editor of GameChangerStocks.com, says it's because women don't invest as much. "Women should be investing in stocks," says Kramer, "because women make better investors."
Kramer goes on to point out that women do a better job of looking at the broader picture when evaluating a company, they are better at noticing which stores are the busiest, which parking lots are the fullest and they are better at multitasking, making smart but risky decisions and knowing when to cut their losses.
Men, explains Kramer, tend to have blinders on and will sometimes try to catch "falling knives" -- stocks that are plummeting and could become worthless. Ego, she says, also gets in the way of making smart decisions.
For more on why men could learn a thing or two from women investors, watch the short video above.
Hilary Kramer is editor of the investment newsletter GameChangerStocks.com.
Come See Hilary Kramer at the World Money Show in Orlando, Fl., February 9 to 12, 2011.