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.
There are also a small number of female investors who are starting to make their voices heard in the investment world. Take Cathie Wood of ARK Invest – known for her controversial (bullish) views on Tesla – who grew its assets from $40 million to over $18 billion in just 6 years. Her investment journey was anything but easy; for most of her career up until early 2020, she was widely derided on Twitter for her bullish convictions on Tesla. It was only after the electric-car maker’s stock surged in 2020 that the world started to take her seriously.
Closer to home, there’s also Kathy Xu of Shanghai-based firm Capital Today, who started being recognized after her prescient bets on JD.com, NetEase and Meituan-Dianping helped her turn $18 million into $2.9 billion.
Still think women can’t perform better than the men?
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 π
But 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.
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 events or online communities.
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. If you lack one, you’re more than welcomed to join our support circle in this Facebook Group – Women Who Invest.
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? π
With love,
BB
16 comments
Hi Dawn, I'm keen to attend the Future is Female conference! π
I'm especially interested in the Real Estate and REITs session and through reading your blog, I've learnt handy tips on investing safely while aiming high on my investment journey. Keep it up!
Hi BB! I am most interested to learn about having a structured finance plan as most often than not, I am confused with how to start and what is the next step to do to manage my finance efficiently. I have learnt a lot from your writings, from saving hacks to credit card comparison to exclusive interview content to stock analysis and many more! Always feeling grateful towards you for sharing with us your knowledge and opinions selflessly through many platforms e.g this blog, Instagram, Dayre, fb, fb closed group etc. Also, after reading your writings, I am so motivated to the point I started looking around for more information and investment courses to attend to gain more knowledge and insights. I am so thankful and hope I am given the chance to participate in the conference!
Hi BudgetBabe, Thank you for this blog post.
Your post on "How I Saved $20,000 in a Year" influenced me and left me thinking about my personal finance situation
after I have read your post even days after. I have learned so much about myself from that post.
I realized that my desire to YOLO, look good, have fun, and enjoy myself comes at a cost and should be
budgeted for. I realized the unncessary money spent on social activities hurt my chance of saving more each month
to have more security about the future.
There are a few reasons why I would like to attend this conference. I am extremely interested in how
I can start to invest section. I haven't had the courage to begin on my investment journey yet.
I want to be at a place where women surround each other give each other tips, advice and support each other to
meet their financial goals. I have attended a few financial seminars before, however
I've always felt very intimidated when I attend financial seminars and its in a male dominated environment,
I hope you will consider my entry for the ticket.
P.S I've liked your facebook and instagram π
Thank you.
Regards,
Xin Yi
chuaxy05@gmail.com
Hi Dawn, dawn here. LOL yes we share the same name.
your blog posts especially the one on saving 20k in a year – ignite this flame in me to strive for financial independence. Your insight has also enabled me to realise the importance of money – to be more mindful about money – not to spend unnecessarily – just because its "on trend" doesn't mean that everyone has to follow – if you know what i mean. i appreciate all of your blog posts thus far, and i wish you nothing but happiness for your upcoming marriage π
Love, Dawn.
Hi budgetbabe! Thank you for the giveaway, i would like to attend the conference to learn about investing. What interests me the most is "Investing For Beginners" as i am in my 30s, single, and clueless! I am an avid reader of your blog and your "How I Saved $20,000 In A Year" post showed me that there is no excuse for not saving. Hope to attend the conference and start on my journey to investing…!
Hi BB, I have always enjoyed reading your posts~ Thanks for sharing your analysis/findings on the different stocks, as well as information on saving, bank accounts, lifestyle and financial products etc. I'm so glad to have come across your blog as you have always managed to share your financial knowledge in a very 'understandable manner'. I've just started working and am looking into investing some of my savings. I hope I'll be given a chance to attend this conference as the topics seem really interesting. The discussion points which interest me most are how do I start investing and what can I invest in?
Have fun with your marriage planning & I'll look forward to your next post!
P/S: Thanks much for replying to my questions the other timeπ
Hi Dawn!
I have chanced upon your "How I Saved $20,000 in a Year" article from a shared facebook post around 2 years ago. I am really excited when I saw that you are also on dayre and so generous in sharing your in depth knowledge with us! The sharing event at NUS was an eye opener for me and thank you so much again for spending the evening with us.
I hope that I have this chance to attend this event to gain more insights about providing structure for women on how they can manage their personal finances effectively and investment by life stages. As for me, I am more towards risk averse, forever waiting for the right time and don't dare to step out of the waiting zone. Just like what you have mentioned that it is really hard to find girls who can discuss together. At this moment, there isn't any ladies whom I know are investing. I hope I will be brave for once to step out of my comfort zone soon to join the investment world and spread the words to my girl-friends!
And I really liked about your credit cards and debit card post. Now I am a huge fan of the DBS visa paywave debit and I have gathered my whole family to get that card! Since we can't hit the minimum spending requirements for the credit cards and having this debit card really helped us saved a lot!
Thank you for holding this giveaway! And I have followed you in your facebook, instagram, dayre and joined the women who invest group! Are there more platforms for me to get your first hand updates? hahaha
Congratulations to you and enjoy your honeymoon to the fullest!!! π
From: Still in comfort zone and risk averse (but I will be brave) Carol hahaha
Hello BB!
Have been reading your blog for quite some time and to be honest, I wish I have started reading your blog much earlier. Please continue to share as your writings have inspired many of us to start our own financial journey. For myself, one of the many things I have learned from you is your determination and perseverance to save a decent amount every month. You teach us how to save while spending and also how to maximize the savings we have on hand. Also, your analysis on various insurances, credit cards, stocks etc. has shaped many readers like myself to someone who makes better decision in terms of personal finance and investment.
For the conference, what I would like to learn most is the topic on REITS as I would like to diversify my investment portfolio to a wider range. I would really love to be given the chance to participate in the conference!
I would also like to thank you for organizing this lucky draw despite having such a tight schedule handing over your duties at work and preparing for the upcoming wedding. Please take care and rest well too!
Hello Sgbudgetbabe!
I'm really keen to attend this conference but tickets price are too steep so I'm gonna give this a shot! π
Coming from a family with unstable financial circumstances, I learnt the importance and value of money the harder way. I taught tuition in order to be self-sufficient while studying through polytechnic and university. I have followed you since your viral blogpost "How I saved $20k in a year" and some of your posts were even added to bookmarks! I enjoy reading your tips on personal finance and viewpoints on financial matters like buying direct insurance! If I have to pinpoint my greatest takeaway, the viral post "How I saved $20k in a year" would drive it home for me. I was in my final year of university when I first read the post and was determined to save just as much in my first job! 9 months into my first job, I have managed to hit this milestone. It took significant effort as I tried to adopt a minimalist lifestyle in the first few months of working, had tight budgeting, all while continuing to teach tuition during the weekends. I'm glad to say, it's all worth the effort! I also begin to realize what worked well for me and what didn't. Now I try not to be too hard on myself especially when it comes to shopping and entertainment expenses. There has to be a balance somewhere π
I'm particularly keen in the REIT topic of the conference agenda as I'm looking to make my first investment in this asset class by EOY. Besides that, I am very passionate about personal finance in general! I even wrote a dayre post titled "Savings tips I actually preach" to which you commented liking the 3rd tip and I was honored to have you coming by to read, let alone leaving a comment! π Till today, I'm constantly trying to soak up more knowledge about financial management and I know this learning journey never ends.
Really hope to be able to win the tickets! I've just followed you on IG (I didn't know you go by the same handle!), and Facebook (liked it since the viral post!).
Joanne
inhisgallery3@gmail.com
Thanks for doing this giveaway!
Hi BudgetBabe!
Thanks for doing this giveaway. I've been flip-flopping on whether to shell out the $ to attend this conference until I checked in and saw this, voila! It must be a sign π
I'd love to attend the conference and learn to take charge of my finances. I'm especially interested in attending the session "What You Need To Know As A First Time Investor" because well, *insert emoji with girl raising her hand eagerly* that's me! I've recently passed the bar (yay!), started working and really want to start building good saving and investment habits NOW. As you say, our 20s is the best time to do this. I hope to increase my knowledge through the conference and as a result, decrease my fear and anxiety about investing! Slowly but surely, I hope the conference spurs me on to take the first few steps towards my #girlboss goals and financial freedom. I'd also love to meet and get to know other #girlbosses at the conference so we can really learn and support each other in this journey.
I've been very inspired by your posts and admire how you managed to save 20k a year as a fresh grad through pure grit and determination. I've not yet managed to do this, but through you I know it's achievable! Your discipline is very admirable. I also really appreciate the straightforward and practical tips you give to help beginners like me learn to take control of our money and save more (as in your post "How to Save More than $100,000 Before 30 (Without Working in Finance)). Thank you for busting that myth and for breaking it down step by step i.e.:
1) Save 50% of take-home pay
2) Save your bonus
3) Park $ in a good savings account
These are really simple and actionable steps (Will finally stop procrastinating and go request that HR credit my salary via GIRO beginning this month right after this… ) and I love how understandable and accessible all your posts are! Thank you for sharing your knowledge with all of us.
PS. I've followed your FB and Insta accounts π
Cheryl
cherylaidenteo@gmail.com
Hi BudgetBabe!
I never really thought much about my personal finances until I was approached by a couple of insurance agents while out shopping recently. I wanted to make an informed decision so I started researching on the different types of insurance and hence, found your blog. Your post on the topic of term versus life insurance was informative and insightful and helped me choose a term insurance that is suitable for my current life stage (and saved me lots of premium payments!). I have since subscribed to your posts and devoured many of them. You have inspired me to take charge of not only my finances, but my life. I have been working for more than a year since graduation and have come to realize that working a nine-to-five desk job every weekday for the next 40 years is not what I want. I am striving for financial freedom in order to have more time to pursue my interests and invest in relationships that matter. I'm really glad to have found a financial blogger like you, a millennial woman who I can relate to!
I am interested in ALL of the sessions of the conference. If I must pick one, I am most interested in the "How To Keep Your Personal Brand Authentic In The Digital World". I am drawn to freedom and flexibility of the digital nomad lifestyle and hope to build an online business, in order to travel the world while working remotely.
Thank you for sharing all the good stuff!
Love,
Shujun
c.shujun23@gmail.com
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Congrats May Ying, you've won a free ticket for yourself! Please drop me an email (contact at bottom of blog) for details on how to claim it for me before I go off for my wedding this weekend π
Hi May, I tried searching Facebook / Google + / Dayre but was not able to find your email address! I hope you're seeing this and my last message notifying you of your win! But sorry if you're not able to email me before I fly off on the 27th I won't be able to give you the details of the giveaway in time! Unfortunately if that's the case then I will choose a new winner so please email me by the 27th before I flyyyyyy.
Hi BB! I have emailed you. Thanks for choosing me! π
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