Warren Buffett Invests Like a Girl: And Why You Should, Too (Motley Fool) - Hardcover

Motley Fool, The; Lofton, LouAnn

Hardcover

ISBN 10: 0061567558 ISBN 13: 9780061567551

Publisher: Harper Business, 2011

Synopsis

*** Wall Street Journal bestseller ***

Investing isn’t a man’s world anymore—and this provocative and enlightening book shows why that’s a good thing for Wall Street, the global financial system, and your own personal portfolio.

Warren Buffett and all of the women of the world have one thing in common: They are better investors than the average man. It’s been proved by psychologists and scientists, and the market calamities of the past two years have only provided more statistical and anecdotal evidence of the same. Here are just a few 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, with their capability for patience and good decision-making, epitomize the Foolish investment philosophy and the investment practices of the most successful investor in history: Warren Buffett. While men are brash, compulsive, and overly daring, women tend to be more studious, skeptical, and reasonable. This indispensable volume from the multimedia financial education company Motley Fool offers essential advice for every investor hoping to turn today’s savings into wealth for a better tomorrow.

About this title

About the Authors

Tom Gardner, along with his brother David, cofounded The Motley Fool, a multimedia financial education company, in 1993. They have coauthored five books and oversee the award-winning website Fool.com (with approximately five million unique visitors per month); a nationally syndicated newspaper column, carried by over two hundred papers; and fourteen premium investing services.

LouAnn Lofton has been with The Motley Fool since January 2000, first as a writer, then as the managing editor for online content. She lives in New Orleans, Louisiana.

From the Back Cover

Investing isn't a man's world anymore—and that's a good thing for individual portfolios, Wall Street, and the world's financial system.

Warren Buffett and the women of the world have one thing in common: They are better investors than the average man. Psychologists and scientists have shown that women have the kind of temperaments that help them achieve long-term success in the market. The calamities of the past several years have only provided more statistical and anecdotal evidence of the same. Here are just a few characteristics of female investors that distinguish them from their male counterparts:

• Women spend more time researching their investment choices and tend to take less risk than men do. This prevents them from chasing "hot" tips and trading on whims. Women are also more likely to seek out information that challenges their assumptions.
• One study found that men trade 45 percent more often than women do, and although men are more confident investors, they are also more susceptible to becoming overconfident. By trading more often—and without enough research—men reduce their net returns and increase transaction costs and capital gains taxes.
• Women aren't as susceptible to peer pressure as men are, which results in a more levelheaded, patient approach to investing.
• Women have less testosterone than men do (not a surprise, we know). New and continually unfolding science points to the possibility that testosterone is responsible for herdlike risk-taking behavior from men in the financial markets.

This book shows that women, with their patience and good decision making, epitomize the Foolish investment philosophy, as well as the investment temperament of the most successful investor in history: Warren Buffett. While men may be brash, compulsive, and overly daring, women tend to be more studious, skeptical, and reasonable. The book will empower and educate women—and the men smart enough to embrace a "feminine" investing style—on how to strengthen their portfolios and find success in the market.

Edition details

• Publisher: Harper Business
• Publication date: 2011
• Language: English
• ISBN 10: 0061567558
• ISBN 13: 9780061567551
• Binding: Hardcover
• Edition number: 1
• Number of pages: 272