Are men or women better at investing?
Turns out, women have the edge.
Studies show that female investors beat male investors by almost 1% each year
And while that may not sound like much - those small losses add up bc then there's less money to compound -- so in the end - women actually end up with 23% more money -- just because -- well -- they have less testosterone
testosterone causes men to make faster decisions, take risks and it makes them less inclined to fact check - let's face it... too often, they just assume they're right
So they have way more confidence in their investment decisions than women -
If women had that confidence, they may be up more than just 1% over the guys.
I recently spoke with Wall Street legend Sallie Krawcheck, founder of Ellevest, who told me that women spend way too much time analyzing - almost to a fault.
So women need a little confidence boost and Several studies have showed that working with a female financial advisor might be the solution
Especially bc female advisors think like them.
That's something Shark Tank's Kevin O'Leary agrees with.
But being conservative actually is a good thing, turns out Female investors tend to outperform men over longer periods of time .
Women also tend to be more open to diversifying whereas men often stick with what they know..
So while that testosterone is good for some things...your portfolio might not be one of them.
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Editors' pick: Originally published Nov. 16.