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Anonymous
Anonymous asked in Business & FinanceInvesting · 9 years ago

Why do they say that Warren Buffett invests like a girl?

Update:

This is not a Troll (whatever that means) - it is a response to the news article with this headline.

12 Answers

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  • Anonymous
    9 years ago
    Favorite Answer

    This could be as a response to the new book STOCK TRADING not just FOR GIRLS. Women, like Mr Buffett tend to have a much more structured approach to investing and are much less likely to take speculative punts.

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  • Thor
    Lv 7
    9 years ago

    Studies have shown that women invest much more conservatively than men. Women also focus more on the longer term while men are much more willing to take risks for a shot at short term gains.

    So I think what they are saying is that he invests very carefully for the long term and that is not a bad thing. For instance his fund made very few purchases during the last decade. After the internet bubble burst, stocks fell, he said he thought valuations were still too high, he wasn't buying and one could expect only a below average return of 6-7% in stocks, for the decade. He was right on the money. He also put most of the cash his companies were generating in to treasuries and bonds and made a killing.

    I doubt there are few if any investors that have a better long term sense of businesses and the markets than Buffett.

    He says he buys good companies at a low price.

    If that is investing like a girl call me a sissy. ;)

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  • 9 years ago

    I am assuming this isn't a troll -

    If you look at investment styles, women do a much, much better job than men. Men tend to double down on terrible gambles - like Nick Leeson and the yen, or AIG and bond insurance. Women tend to cut their losses early, investigate their options very carefully and understand what they are doing.

    Tests and surveys show that men tend to believe in the certitude of their good judgment, in spite of massive evidence to the contrary. They will carry a losing position way beyond any hope of salvage, and jettison it the day before it rebounds. Women are far more disciplined as investors, don't trust anyone's judgment and tend to invest within a plan and toward a defined goal.

    Careful investment, strict loss management, thorough knowledge of management and investments, buy low and sell high - all characteristics that Buffett shares with the ladies.

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  • ensign
    Lv 4
    4 years ago

    Buffett makes use of leverage and continuously has. He began out working a private investment partnership which bought Berkshire Hathaway low-cost while it replaced into the final fabric organization in New England and then used it because of the fact the protecting organization for extra investments. Berkshire Hathaway has investors in its publicly traded inventory and it subject concerns bonds and has credit traces. Buffett and his better half, Charles Munger, and their households are the biggest shareholders in Berkshire Hathaway.

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  • JoeyV
    Lv 7
    9 years ago

    Wish I knew some girls that invested like Warren Buffet.

    Edit: That stuff that flhill posted is garbage. First off, it's offensive stereotyping. Saying that "women are much better than men at [blah]" is every bit os offensive as "men are better than women at [blah]". Second, it doesn't even strike me as remotely true. It's hard to think of any terribly successful woman investors ("the witch of wall street" at the turn of the century and, uh, Martha Stewart?). It's a huge stretch to say that this is the result of sexism as most people I know don't care at all about the personal characteristics of a person who can make money for them.

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  • Anonymous
    9 years ago

    I wish my wife invested like Warren Buffett.

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  • 9 years ago

    Notice dmark27 has a point. Picure the following and tell me if it sounds realistic:

    You are about to enter an office. It says on the door "THEY." Just as you walk in, someone answers the phone and says: "Hellow - THEY. You know what we always say."

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  • Anonymous
    9 years ago

    Dear reader,

    If this question is asked to insult buffet, then its not good.

    As per my understanding, girls try to choose a guy who is basically strong, healthy & can look after them.

    Same is in investment. You should choose a stock which is fundamentally strong, healthy & can give you good returns. Buffet chooses stocks on this test.

    In this context your statement is true.

    Source(s): 5+ years finance advisory experience
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  • 9 years ago

    For the same reason Nabron James shoots like a sissy lately.

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  • Ed Fox
    Lv 7
    9 years ago

    This makes no sense. Are you sure you're using the right word. Investing is finance related

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