Are Women Better Investors Than Men?
Since my blog’s audience is primarily the Los Angeles Unified School District (LAUSD) and 71% of teachers are female, I thought this post would catch your attention.
The answer is YES! However, I am not the only one who says this. Read the inscription of this female-authored book: Click here.
I agree that Warren Buffett is the greatest investor of all time. But Mr. Buffett and women share similar philosophies of investing in the stock and bond markets. Like Mr. Buffett, women tend to be better investors because they approach the process with a long-term mindset and less trading, and are humble enough to acknowledge that they cannot consistently beat the market averages. That approach is much more mature, realistic, and suited for the counterintuitive and frustrating activity of the stock market (yet alluring, albeit to the detriment of too many male investors). Women have it naturally, but we fellows can learn a lot from women investors. Men are more confident than women according to research, BUT men are often OVERLY CONFIDENT, and that’s deadly in the uncertain and totally random stock market.
For years, Wall Street has celebrated the loudest voices, the fastest traders, and the most significant risk-takers. But when the noise dies down and the data speaks, one truth shines through loud and clear: women are often the better investors.
Why Women Win the Long Game
A classic MarketWatch article once tried to paint women’s greater risk aversion as a weakness. But let’s be clear — that so-called “risk aversion” is often just another word for wisdom. Women aren’t afraid of the market; they simply refuse to gamble. They play the long game — and it pays off.
Being risk-averse, or more accurately loss-averse, means avoiding the dangerous temptation of market timing — that emotional urge to jump in and out of investments, trying to “beat” the market. History has shown over and over again that trying to outguess the market is a loser’s game. Men, driven by overconfidence or the thrill of the chase, too often fall into that trap. Women, on the other hand, stay the course.
The Data: Patience Pays
As investment educator Paul Merriman shared in one of his podcasts, multiple studies confirm that women investors tend to outperform men over time — not because they’re luckier or “smarter,” but because they trade less, spend less, and panic less.
- Men: trade frequently, chase hot stocks or expensive active managers, and rack up fees and taxes.
- Women: pick a strategy, stick with it, and avoid unnecessary costs.
That patience and discipline translate directly into higher long-term returns. The difference isn’t in intelligence — it’s in behavior.
Behavior Beats Bravado
Let’s face it: men are often conditioned to believe that confidence equals competence in investing. They think they can outsmart the market. But that confidence can morph into overconfidence — and overconfidence is expensive.
Women, meanwhile, are less likely to view investing as a competitive sport. They don’t confuse movement with progress. They think in terms of goals — security, independence, long-term success — not in terms of “beating” someone else.
What We Can All Learn From Women Investors
Beginning investors of any gender can take a page from women’s playbook:
- Invest for the long term — don’t get rattled by headlines or market noise.
- Use low-cost index funds — expenses matter more than almost anything else.
- Trade less, save more — every dollar not wasted on trading fees or “hot tips” compounds for your future.
- Stay humble — the market doesn’t care about your opinions.
The Verdict
So, are women better investors than men?
Hell YES — and the numbers prove it.
Not because women are inherently more intelligent or analytical, but because they are often more disciplined, patient, and focused on the big picture. They invest with their hearts steady and their eyes on the horizon — not on the daily ticker tape.
It’s time for all of us — especially men — to learn from that approach. The evidence is mounting, and the lesson is simple: slow, steady, mindful, and thoughtful beats fast, flashy, and foolish every single time.
Steve’s Bio
Stephen A. Schullo, Ph.D. (UCLA ’96) taught elementary students and educational technology to teachers and students in the Los Angeles Unified School District (LAUSD) for 24 years, and UCLA Extension taught educational technology to student teachers. Due to his negative experiences with annuity agents, unions, and his school district’s benefits personnel regarding the most horrific tax-deferred plan in history, the 403(b), Steve wrote investment articles for the United Teachers-Los Angeles (UTLA) newspaper for 13 years.
So, he became a 403(b) activist and spoke to anyone who would listen about reforming this flawed plan. He simply wanted to inform his colleagues that districts and the insurance industry are looking out for their best interests, not teachers. The media began listening for the first time in the entire history of the 403(b) plan, commonly known as the TSA, in 1998. From 1961 to 1998, no one in or out of education ever discussed this terrible 403(b) specifically with K-12 school districts. I kid you not!
Consequently, he thrice featured as a retirement plan advocate for reformed 403(b) plans for public K-12 colleagues in the Los Angeles Times and U.S. News and World Report. He co-founded an investor self-help group (403bAware with a colleague, Sandy) for teacher colleagues. He also wrote 7,000 helpful posts in three online investment forums since 1997. Frequently quoted by the media, testified at California State legislative hearings and was honored with the “Unsung Hero” award by United Teachers Los Angeles (UTLA) for his retirement planning advocacy.
For the last 19 years, he continues to serve on LAUSD’s Retirement Investment Advisory Committee (RIAC) as a “Member-at-Large” and former co-chair. The committee monitors the district’s 457b/403b of 55,000 former and current LAUSD employees, worth $3.2 billion in total assets. Lastly, Steve and his late husband, Dan, were featured participants in the award-winning PBS Frontline documentary “The Retirement Gamble,” which aired on April 23, 2013.
Steve is the author of two books, “Fighting Powerful Interests: Educators Challenge Tax-sheltered Annuities and WIN!“, a story of how a handful of LAUSD educators struggled for years to improve the 403(b) to no avail. But we never quit! We were instrumental in LAUSD’s implementation of the new 457(b) plan and earned a very rare “Plan Design” award.
Steve is the co-author with his late husband, Dan, of a book on learning the investment process from the ground up, Late Bloomer Millionaires. It’s a heartfelt story about two ordinary chaps and how they discovered investing and money management without a professional financial adviser. They list all of their successes and massive mistakes, and they still retired earlier than most Americans.
For a copy of both books, email Steve at steve.schullo@latebloomerwealth.com, and he will happily email you both books, FREE, with no obligation except to read them and get informed, in a pdf file format.