One of the many projects I have been working on for a while is the writing of a white paper that takes a comprehensive look at women as investment professionals, with a focus on women as traders, hedge fund managers, and portfolios managers. In collaboration with a good friend Carrie McCabe, a true goddess in the institutional hedge fund space, and the National Council for Research on Women ( http://www.ncrw.org/ ) we hope to uncover some of the reasons why women are so underrepresented in these important areas. As many of you know, I was a trader and have for almost twenty years been actively involved with promoting investment careers to women. I participated in countless recruiting events while at Goldman, and today still enjoy speaking at University gatherings on the topic.I was very excited to hear about an upcoming book on Warren Buffet in a piece appearing in Motley Fool, and online investment news source. It seems that one of the greatest investors of all time has been accused of investing like a girl! The article hints at sound research that is out there and our upcoming paper, which we hope to release in the fall, will provide you with the full bibliography of such research. For now here is what the writer, Lou Ann DiCosmo, has to say:
“So how exactly do women invest? Check out these characteristics of female investors that distinguish them from their male counterparts.
- Women spend more time researching their investment choices than men do. This prevents them from chasing "hot" tips and trading on whims -- behavior that tends to weaken men's portfolios.
- Men trade 45% more often than women do, and although men are more confident investors, they tend to be overconfident. By trading more often -- and without enough research -- men reduce their net returns. But by trading less often, women get better returns and also save on transaction costs and capital gains taxes.
-A study by the University of California at Davis found that women's portfolios gained 1.4% more than men's portfolios did. What's more, single women did even better than single men, with 2.3% greater gains.
- Women tend to look at more than just numbers when deciding whether to invest in a company. They invest in companies they feel good about ethically and personally. And companies with good products, good services, and ethics tend to have better long-term prospects -- and face fewer lawsuits. “
- Women spend more time researching their investment choices than men do. This prevents them from chasing "hot" tips and trading on whims -- behavior that tends to weaken men's portfolios.
- Men trade 45% more often than women do, and although men are more confident investors, they tend to be overconfident. By trading more often -- and without enough research -- men reduce their net returns. But by trading less often, women get better returns and also save on transaction costs and capital gains taxes.
-A study by the University of California at Davis found that women's portfolios gained 1.4% more than men's portfolios did. What's more, single women did even better than single men, with 2.3% greater gains.
- Women tend to look at more than just numbers when deciding whether to invest in a company. They invest in companies they feel good about ethically and personally. And companies with good products, good services, and ethics tend to have better long-term prospects -- and face fewer lawsuits. “
I look forward to the day when like a girl is no longer used in a derogatory sense and books like these will no doubt help that day come sooner.
No comments:
Post a Comment