Updated: Nov 19, 2020
Which sex are better at investing?
Many articles out there, here is my experience.
Gender equality has increasing become a hot topic over the years and slowly-slowly, seems to be improving. However, in the world of investment finance, we do not read many headlines about ladies.
I am sure we have all heard of Warren buffet, George Soros, Peter Lynch. How many women can you identify?
A question often asked me, who are the better traders or investors you have worked with over the past two decades. My unequivocal answer is women. You may wonder why. Let’s have a look at some pioneering female traders and investors and why I think women are better than men in general. P.s, this was not influenced by my daughter.
Let’s get some facts.
In terms of financial investing there is still a big gender gap in the industry.
According to Catalyst Research, finance remains a male-dominated profession, especially at the top. Women in the U.S. made up 46.9% of the total work force in finance in 2018, according to the U.S. Bureau of Labour Statistics, but accounted for only 19.4% of senior-level managers in the sector.
There are undoubtably more opportunities in finance than ever before for women, either in leadership roles or actual traders, hedge fund managers and portfolio managers. The advancement of fintech & online trading has made access to the markets easier for all.
Past and present investors & trading pioneering women.
1.Geraldine Weiss, Investment Advisor
Geraldine Weiss was one of the first women to make a name for herself in finance and to prove that women could be successful investors. Struggling to find work in the industry she overcame many barriers eventually becoming the co-founder of Investment Quality Trends and is nicknamed "the Grande Dame of Dividends" and "The Dividend Detective". Boasting an enormously successful career until her retirement.
2. Muriel Siebert, Brokerage Founder
Muriel Faye "Mickie" Siebert was known as The First Woman of Finance because she was the first woman to own a seat on the New York Stock Exchange and was the first woman to head one of the NYSE's member firms. She joined the 1,365 male members of the exchange in 1967.Her firm became the first female-owned member of the NYSE. It is still the only national, female-owned brokerage on the exchange.
3.Abigail Johnson, Investment Advisor
Born December 19, 1961 (age 58 years) Abigail Johnson is an American billionaire businesswoman. Since 2014, Johnson has been president and CEO of American investment firm Fidelity Investments, and chairman of its international sister company Fidelity International. She owns nearly 25% of the company, and her net worth is estimated at about $11 billion.
4.Linda Bradford Raschke, fund manager
A world-renowned commodities and futures trader. She started as a member of the Pacific Coast Stock Exchange, traded on the Philadelphia Exchange, and then became a registered CTA and founded LBR Asset Management. In her 38 years of trading career, she invented a lot of trading strategies and methods, which helped her to make millions.
5. Jennifer Fan, fund manager
Jennifer Fan, 29, is the founder of Arbalet Capital, CEO of a $650 million hedge fund specialising in energy and agricultural commodities that she launched in 2012. As young as 19 she graduated from NYU and later traded at Morgan Stanley and as a partner at a hedge fund, Arrowhawk Capital Management, where she was partner and portfolio manager.
6. Lucy Baldwin, Trader
Lucy Baldwin is a remarkable trader who is managed to land on the highly-coveted the Forbes “30 Under 30 in Finance” list for two consecutive years.
She has also assumed the sought-after title of Managing Director at both Goldman Sachs and Bank of America Merrill Lynch where she oversaw trading European equities. She is currently at Credit Suisse where she has taken up a leading position in equity trading.
Doing my research, I could have mentioned many more noteworthy ladies, and it seems not only countless more women are entering the finance world they are arguably outperforming the opposite sex.
There are many reasons I believe women make better investors & traders.
There are plenty of studies proving the point. As an example.
In July 2016 Warwick Business School conducted a study of 2,800 UK men and women investing with Barclays’ Smart Investor, tracking their performance over three years. Not only did the women that were examined outperform the FTSE 100 over the time, but they also achieved better returns than their male counterparts.
My experience, working in the industry.
Increasingly women are closing the gender gap and essentially are achieving a greater sense of financial equality and independence by looking after their own money. They know what they want and how to achieve it.
Women outperform men on this, ‘hands down’. Trading, investing, other pursuits, family etc. they can do it better than me!
They do not have the same urge as most men to win at all costs and will control their emotions better. Logic prevails.
They take less risk and do not gamble.
Men are seven-and-a-half times more likely than women to become problem gamblers, research suggests. What makes them more prone to developing an unhealthy gambling habit.
In my experience women will listen to others, experts etc. but will make their own decisions independently. They often stick to something they believe and succeed.
I can honestly say that over the year’s women outperformed men in my career.
Investing & trading is not an exact science and this blog is a generalisation, but as we evolve, it seems in the near future, we will be talking about individuals not genders when it comes to success in the finance world.