Shocking News! Men Far Too Emotional When it Comes to ….

Photo courtesy of NaijaGists.com

…money! Who’d have thought it? We know men take far more risks financially than women do, that there is a large body of thought that believes had more women been involved in finance before the last crash it wouldn’t have happened, and that a rise in testosterone levels in young men causes them to become even riskier, but too emotional?

Well, a 2018 study by Warwick Business School looking at the habits of 2,8000 men and women who trade shares using Barclays Smart Investor Service over 3 years, suggests this is true. It found that the annual return made by men who invested on the site was just 0.14% above the performance of the FTSE 100. The results for women were very different; female investors on average achieved an annual gain of 1.94% better than the FTSE. Over a longer period  that means if the FTSE grows by 5% a year, a monthly investment of £100 would mean the men making a gain of £18,000 over 20 years while the women would make £28,000. That is a significant amount.

Why Are Men So Bad at Investing?

The biggest difference found was that men like to buy a different type of share to the women, namely the more speculative, exciting looking ones, which promise high returns. Men seem to like a gamble.  As Patrick Collinson, a financial journalist, remarks:

So in the past they [men] probably bought penny shares in Turkmenistan oil companies because, you know, they’re a dead cert “ten-bagger”. The same fools today buy initial coin offerings believing them to be the next bit coin. Good luck on that one.”

I have no idea what that means (I’d still have be buying Post Office savings stamps if they hadn’t been got rid of) but you get the drift. The study also shows that men are more likely to hold onto shares after they have dived in the hope that they will recover. Women are more likely to be realistic, accept their losses and get rid of them. Also, women tended to trade about 9 times a year while for men it was 13.  Neil Stewart, the Warwick Business School professor who led the study says:

Men are just a little more likely to be drawn to more speculative stocks, whereas women are more likely to focus on shares that have a good track record. Women also take a more long term perspective, trading less frequently. This possibly means more women are investing more to support their financial goals, whereas men are attracted to what they see as the thrill of investing.

The vast majority of fund managers are male. Nearly all the bosses of big banks are male. About 26,000 of the 31,000 individuals regulated to give financial advice are men. Yet, it seems that in reality men aren’t quite as good at it as women are. What could the answer be?

Coaching and Courses

Coaching

I’ve had a few questions about coaching recently asking if I still offer it as a service. The answer is, yes, I do, just not very often. I coach anywhere we can work out the time difference (furthest currently is New York) but I keep the numbers low so I can really give women my full attention. I do have some spaces to start in January so if you were thinking about it please do get in touch. There is more information here.

Courses

Speak Up is running at Arnos Vale in Bristol next March, on Tuesday 26th to be exact. In the last post that went out I inadvertently said 2018. I was definitely having a bad hair day with IT. It is, of course, 2019. Sorry about that. Because it is so helpful to us to know numbers there is an early booking discount. More details are here. If organisations are sending more than one person I am happy to discuss discounts, just get in touch.

RenewYou we are planning to run once again in London around the beginning of April, possibly 11th. If you’d like to put your name down for that please do get in touch. Thanks. One of the reasons for the lack of  open courses from me has been that we have been focussing on running them in house and I’m really pleased to say that last week I personally licensed four senior members of staff  from UWE Business School to run RenewYou, (Huge Congratulations to Lynn, Zaineb, Carol and Harriet!), and that next month Edinburgh University is using both RenewYou and Speak Up for their staff.

Licensing

RenewYou is licensed worldwide to experienced trainers and to in house staff. More details on that here.

And finally – #WWBC

Our book for December is Three Things About Elsie by Joanna Cannon. We are meeting on December 10th in reality but please join us virtually by sharing your tweets using hashtag #WWBC (Women Writers Book Club), getting in touch via LinkedIn or email me. I love to hear from you and will always reply if I can.

Changing People licences experienced trainers to deliver its International RenewYou programme for women.

Read more about it here.

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Posted on November 27th, 2018 by

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