I am a much tighter player. I fold a lot of hands and I play only cards I feel confident about. When I'm in a hand, I think of all the combinations that could beat me, and I usually assume one of the other players has a better hand than mine. I am more likely to lose a hand to a flush when I have a straight. Jake often loses to a straight when he has a pocket pair.
Patience is a virtue.
Jake has a "go big or go home" mentality when it comes to poker, and my goal is to make it to the final table. I know that if I play conservatively, most of the dudes knock each other out before the night is over.
How does this relate to investing? Men are much more likely to chase hot stocks because they want the big win. They want to brag to their neighbors that they bought
when it was at $20 a share.
Patience is important in investing, as well. I notice that my female clients tend be more interested in long-term growth rather than chasing the next big win. Women are more guided by a plan and are more likely to stick with it. This patience usually pays off in time.
Warren Buffett, perhaps the most successful investor of the past century, takes a more "female" approach. Buffett doesn't take foolhardy risks on hunches. He makes prudent investments for the long haul based on the research of many talented analysts. He doesn't plunk down money in investments that he doesn't understand.
This means that he missed out on the big run-up in
, one of the hottest investments of the past few years. But Buffett is perennially No. 1 or No. 2 on the
list of America's richest people. You can't say the same for speculators in gold or anything else.
Regardless of gender, you should invest for the long haul, not chase hot stocks and have a plan. Find a financial adviser who does comprehensive financial planning above and beyond investment allocation. Investing is only one piece, not the whole pie. Once you have an asset allocation that meets your time horizon and risk tolerance, make sure you or your advisor rebalance your portfolio each year.
-- By Sophia Bera, CFP, a fee-only financial planner that caters investors in their 20s and 30s. She has been in the financial planning industry since 2007 and is the founder of Gen Y Planning in Minneapolis. She works with clients throughout the U.S. She has been quoted on websites and publications including Forbes, Business Insider, AOL, Yahoo, Money Magazine, The Fiscal Times, Fox Business and The Huffington Post. Money Under 30 recently named her one of the "Top Financial Advisers for Millennials."
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