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#11 How Do Men and Women Invest Differently?

Updated: Jan 7, 2022

We at MCM always looking to find that “gap” that we can fill with knowledge. When it comes to investing whether it’s in PROPERTY or a BUSINESS with potential there is no bulletproof formula that

would just simply work in every scenario. At the first meeting I ever attended when I joined MCM, Maxshangkar said something that has stuck in my head ever since:

“In our line of work, we can’t get comfortable thinking that we know everything, we need to constantly learn about new trends, change in economy or a ‘switch’ in people’s mindset. To be able to see through and predict the possible outcomes when an opportunity presents itself, we need to be ready and understand it almost immediately. This requires you to learn every day, to stay sharp and ready at all times and to have an open mind. Don’t ever be too afraid to ask a question even if you think it’s ‘stupid’.”

It took a couple of days until I was able to understand why he said this and why he continues to say it every time a new person join the company. There are a number of people at MCM, who works in a so called “research/study department”. As you can already

guess, their job is to carry out complex studies and analyze an incredible amount of data on daily basis so our team can always stay on top of the game with the best possible understanding of investment.

Being “YOUR RELIABLE GLOBAL INVESTMENT EDUCATION PLATFORM”, it’s most important to the GIC members to be able to share our knowledge and teach our skills

to those who want to be a successful investor.“

“People before profit” – says Maxshangkar with a twinkle in his eye.

A couple of weeks ago during a brainstorming session one of our team member’s threw in a very interesting question: “Is there a difference in the behavior and mindset between man and woman when it comes to creating different investment strategies?“ – this is exactly that moment when the “don’t ever be too afraid to ask a question” served as the perfect example. This is what I’m going to share with you next:

We are finally living in a world where gender equality is not from a science fiction book. Yet, we still use common stereotypes and clichés like: “Women always want a new pair of shoes or another pretty dress they don’t need” or “Man, is the provider of the family, the savvy investors who understands money and that’s why they deserve that sports car.” These images are presented to us on social media every day.

- What do you think, how accurate are these statements?

It is clearly stated that it is impossible to generalize in this topic, but we try find out if there are similarities and/or differences in the way men and women handle their money.

I. Men are most likely to invest

At MCM we have managed and hosted over 400

events, workshops and seminars all around the

world, in more than 30 cities, over the past 3

years. There has always been a male dominance

at our events, but more and more ladies are

starting to represent themselves. We have found

out that women hold most of their assets in cash

while men keep a lesser in cash, the rest they tend to put towards the future with a long term investment plan.

II. Women are more likely wear modesty

When we surveyed our GIC members about how confident they feel about managing their investment plan, almost 70% men were sure about their knowledge and have made positive calculations

in the outcome while only less than 50% of the female investors felt the same way. The remaining 50% were worried about unfavorable outcomes. This gap is also created by differences in education because more men choose a career in finance than women. MCM GIC was created to be able to help everyone who seeks to know more about investments.

III. Women earn higher returns

A women’s self-doubt about investing is unwarranted

when you look at the facts. Several studies have

shown that women are better investors than men as a

whole. Studies show that women do tend to save

more money for rainy days or retirement out of their

pay checks. For example, the higher rate of return

would mean that a woman who invested 9% of her

salary annually (the average for women) starting at age 22 would end up with 15% more at age 67 than a man who invested 8.6% annually (the average for men). Stated by: SoFi Learn

“Risk comes from not knowing what you are doing.” - Warren Buffet
IV. Men vs. risk

Even when we look at stories from ancient times,

when “hairy cavemen” were the rulers of the world “risk” was the middle name of all men. While the

ladies were looking after the fire our primitive ancestors were busy chasing a Saber Tooth Tiger

with stick and rocks. We can simply say that it just runs in our blood to be a little braver then our female compatriots. Women’s discomfort with risk is a mixed bag. Overly aggressive investing may make returns more volatile and lead to big losses. But not taking enough risk may mean not earning high enough returns to fund long-term goals.

V. Asking for advice

When it comes to investing, woman are less shy about asking for advice than men. This desire for education could stem from that pervasive feeling among women that they don’t know enough. But a desire for guidance doesn’t necessarily translate into action.

Past trends are not a predictor of the future. Men and women both have lessons to learn from each other’s investing patterns. Generally speaking, women might want to think about investing more and taking lesser risks that are appropriate for their age and life goals.

Some men, on the other hand, might want to think about taking a less hands-on approach to buying and selling properties or stocks and tempering their confidence with diversified assets and advice from professionals.

“When thinking about risk, rather than making things unnecessarily complicated, there are really two main things you should want to know about an investment strategy:
1. What is the risk of losing money following that strategy over the long term?
2. What is the risk that your chosen strategy will perform worse than alternative or creative strategies over the long term?” - Joel Greenblatt

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