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How Women Invest: Listen To Them

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Forge Your Wealth is meant for education and entertainment and should not be used for financial advice.

Women make better investors than men. They have returns of around 0.4% more than men. This could lead to an investment portfolio that is over $100,000 more in value. Want to know why? They invest for the long-term, diversify their portfolio, and have generally uncomplicated investing plans. You know, they do what the average investor does. You could really learn a lot from how women invest.

Bragging Rights Are Temporary

One of the reasons men do not invest as well as women is because men over-complicate things. If you are a woman nodding your head up and down, do not make a victory pose right now, women over-complicate things too. However, men like me try to turn everything into a competition because bigger matters to men in general. (Take a minute to laugh). Men love to brag about how big their cars are, their house, and… other things. But men also love to brag about successful trades.

However, to keep the guise as a successful trader they will not tell you about the unsuccessful trades. Considering the fact that only 1% of traders make money and that the average trader loses a good amount of money there are probably many significant losses. Even if you end up making $100,000 or a million in a day you could easily lose it the next.

Investing Long-Term Yields The Best Results

Investments have their ups and downs. But they tend to have more ups over time as long-term investors tend to outperform short-term investors. Something many men, sometimes myself included, have not learned.

Transaction And Trading Fees Can Erode Gains

If you have invested on any platform, you know that financial experts and everyone who make those brokerages happen do not work for free. There are numerous fees involved in many transactions, especially in transactions for less popular assets.

I actually had some hands on experience involving this. My curiosity for investments extended to commodities including precious metals recently. Unfortunately, I learned that there are usually fees involved with investing in these. Almost no discount brokerage invest directly in them. Furthermore, they require fairly large minimums. So I had to ask myself if I would part with a considerable amount of money with at the very least a 10% upfront loss. In other words, just to make the money back from the fees I would have to make a gain of more than 10%. In short, I realized that many of these special assets require upfront fees that could easily negate any short-term gains I have. I realized if I want to invest in more complicated assets I should wait till I have more money I can part with and hold long-term. Something probably many women investors know. You should do the same.

Final Thoughts

How women invest is uncomplicated and simple. Because of that they are able to yield the long-term gain of their investments, and avoid fees. This may sound boring, but let’s be honest money is boring most of the time. Making it exciting does not lead to better results. You should remember this today if you are scared of asset markets. Do not over-complicate your investment strategy because the world is a more uncertain place, instead keep your portfolio simple and uncomplicated.

Author: Papa Foxtrot

Most of my life I was careful with money and learned where I should invest it. I was very lucky to have parents who taught me financial literacy when I was young. Unfortunately, I am very lucky because many people lack the financial literacy I know. The purpose of Forge Your Wealth is to teach people who are just starting out in life how to obtain their wealth or anyone who just realized they may need to learn more to handle their finances. I currently have a PhD in biochemistry, just started a job in industry (will not disclose where exactly for personal and professional reasons) and am currently married to the love of my life. I am one of the lucky few people in America who graduated with no student debts, my wife was not. Over the series of a little over 3 years we paid for our wedding with no debt and paid off her federal student loans.

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