While the 2001 study, Boys Will Be Boys indeed indicated that men’s (and particularly single men’s) trading activity lowered their returns by approximately 1% over those of the female investors, we could reasonably conclude that women are better investors.
My 32 years of experience has shown me that women gather and process information differently than men, such that the incubation period for a female investor is far longer than that of men. Women often prefer to do their research and homework before they begin investing, such that their plan often rewards that research and intentionality with higher returns. With women’s inherent need to understand their investments and how each investment relates to the others and her overall plan, she will often make a buying decision and stick to it, which often bodes well with her return.
Most male investors on the other hand, tend to act more quickly, investing in the stocks their friends and/or the daily news “tips” them off to. Consequently, when the next “tip” comes along, some men would sell their first choice, and invest those proceeds into the second “tip” stock, not allowing their monies to remain invested anywhere near a full market cycle.
Remember, anyone can buy stocks, bonds or mutual funds; the real question is when to sell them. My experience is that women investors are more buy-and-hold investors than their male counterparts. When looking at women and money....(you can read the rest of my rationale here on Ms Morrison Speaks Money)
So should women be given step-by-step investment instruction, cautioned about intertwining their emotions with their investments, and informed about the historic long-term returns of various types of investments so they can stretch their nest eggs out for their (longer) lifetimes?
Yes, absolutely.
Should it be pinked up, watered down or sugar coated?
Absolutely not!
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