Think investing is a male field? Successful investor and entrepreneur Kim Kiyosaki is here to tell you: that’s bogus.
In fact, Kim says, “women bring four unique advantages to investing that makes them better suited to it than men.”
Men are notorious for their reluctance to ask for directions. Women, however, are more than willing to ask questions and admit when they don’t know something.
“The advantage we women have in being confident enough to say, ‘I don’t know’ is that it opens up the doors for us to learn so many answers,” says Kim.
“It pushes you to seek out information, to research things online or attend seminars, and talk to more industry experts.”
“So, ladies, stand up and proudly admit, ‘I don’t know!’ or ask someone to explain something again. You’ll be amazed at how much you’ll learn.”
In addition to admitting when they don’t know something, women are also more willing to ask for help than men, says Kim.
“If your husband has ever tried to fix a broken faucet or light fixture, you know this is true—he’ll probably do anything possible to avoid admitting defeat and calling a plumber or electrician.”
“The difference is, a woman will trust her instinct and ask for help if she knows something is well outside her wheelhouse.”
And when it comes to investing, Kim says it’s crucial to ask for help when you need it.
“That way you’ll avoid a rookie mistake or even prevent a small problem from snowballing into a bigger one.”
“Let’s face it,” says Kim, “we’ve had a lot of experience looking for bargains—from grocery shopping with coupons to clothing children, women know how to snag a deal.”
“This is an important skill for investing, because you’ll want to look for something that is priced below its actual value and buy it.”
If women can take their talent for spotting a sale and apply it to investing, says Kim, “you’ll soon be able to spot the good deals as soon as they appear.”
Kim points out that women are more likely to research an investment before purchasing, rather than jumping at a ‘hot tip’.
“According to the National Centre for Women and Retirement Research, women spend more time researching their investment choices than men do,” explains Kim.
“This prevents women from trading on whims and going after the ‘hot tips’—behaviours that tend to weaken men’s portfolios.”
Kim isn’t the only one who says women make better investors than men, either—last year, a Warwick Business School study comparing men and women investors found that women outperformed men by 1.8%, with better long-term portfolios.
Key to the success of the women in the study was that they were less drawn to speculative stocks and tended to take a longer-term perspective.
So, there you have it—women are made to make money!