Explaining the investment gender divide

Book Review: 'Warren Buffett Invests Like a Girl'

Articles, books and whole industries have arisen to address the issue of women’s self-confidence (and the lack thereof) and boosting it. In her new book, Louann Lofton, the managing editor for online content for investment resource The Motley Fool, pleads a persuasive case that there’s an upside to this dearth of self-confidence: it makes for a smart and steady investment approach.

Men, Lofton repeatedly points out, have been shown time and time again to be overconfident in their investment decision-making, which is just one of many so-called "male" temperamental characteristics that make a masculine investment approach riskier, less profitable over time and generally inferior to a feminine one.

In fact, the titular thesis of Lofton’s book is that the "Oracle of Omaha’s" approach, and the elements about it we should all emulate, is characterized by a number of temperamental characteristics that are, Lofton says, feminine in nature.

And thus starts "Warren Buffett Invests Like a Girl: And Why You Should, Too — 8 Essential Principles Every Investor Needs to Create a Profitable Portfolio." With the caveat that the book is based on and full of gender stereotypes (if you can make a conscious decision from the start to suspend your political correctness, overlooking the obvious fact that not every man is overconfident and risk-loving, nor every woman underconfident and risk averse), I suspect you might find in this book a novel angle to understanding and organizing the attitudes and viewpoints that can create a successful, long-term personal investment approach.