"Is your Valentine a better stock picker than you?" by Eric Cheni.
Total assets amounted to $350 billion, and the bottom line was women had a return of 4.7% and men had a return of 4.1%. The finding that women tend to perform better as investors is fairly consistent because they trade less and generally are more patient. Plus they don't have an exaggerated opinion of their investment prowess!
But what about the most patient, non-stock-picking approach of all? Pull out again the BlackRock chart and find that, in 2014, the Diversified Portfolio achieved a return of 8.1%! This portfolio is 35% Barclay's Aggregate Bond Index, 10% MSCI EAFE Index, 10% Russel 2000 Index, 22.5% Russell 1000 Growth Index, and 22.5% Russell 1000 Value Index. This portfolio is easily replicated. In fact, it could have been set up on 1/1/2014 and you could have enjoyed the rest of year leaving the stock picking and market timing to those with the big egos!
Thoughts and observations for those investing on their own or contemplating doing it themselves.
If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.
Friday, February 13, 2015
Are Men or Women Better Investors?
Posted by Robert Wasilewski at 9:57 AM
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