Individual Stocks

Selecting Individual Stocks

Using principles of behavioral economics, how do men and women differ when it comes to investing?

After concluding a study of the investing behavior of men compared with women, experts from the University of California found that single women investors outperformed single men investors by a 2.3% average return. When it comes to investment groups, female-based investment groups outperformed male-based investment groups by 4.6%. The experts assert that the reasons behind this are that men traded 45% more often than women, generally making poor decisions, and holding on to a position too long because of ego and a constant comparison to other investor friends, as opposed to rationally selling laggards and retaining winners.



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