When you do a simple Google image search of the word “investor,” you are instantly overwhelmed by photos of men in suits and ties, peering seriously at stock charts, pointing at computer screens together, and even holding handfuls of money. To the extent that women are included, they are usually standing behind their male partner gently offering emotional support. The message is loud and clear: the world generally considers men to be the more skilled and knowledgeable gender when it comes to investing.
We dispelled the myth that men are better investors than women. In fact, the opposite is true. The data shows that women earn better investment results. Why? As women, we usually conduct more research before investing, maintain a long-term perspective more often, and tend to view investing less as a game to be won, and more as a means to accomplish our goals. But what if you are new to investing?
In our experience, in spite of what they may say, women are already money smart. We often serve as the de facto family CFO, have budding or demanding careers, or gain valuable experience via volunteer work. This is a great starting point for learning more and in doing so, building confidence. We also know that the world of investing is filled with jargon and unnecessary complication.
Over the years, we’ve stood arm-in-arm with many women as they’ve faced the steep end of their individual learning curve. We know that women’s behavioral tendencies, combined with a willingness to learn, make for great results. Many women surprise themselves by just how good they are at “money stuff.”
Our advice for how to get started? By focusing on a short-list of investment principles, you can achieve excellent investment results. Curate your investment resources and don’t get distracted by dazzle and jargon. Vanguard, a mutual fund company that has long advocated for individual investors, is a great place to start.
