Warren Buffett Invests Like A Girl

So, this is the first book I read for my 2019 resolution – that is to read one book per month. At least. I haven’t spend much time on reading last year because I have this habit of – if I want to read a book, I will make sure I will spend about an hour or more on it. Now it’s going to change. I will spend at least 30 minutes a day to read. 30 minutes or more, because I will use any free time I have to read now.

Let’s go to this book I bought during a book fest held in Labuan last year. This book, and few other books were left collecting dust on my book shelf. Sorry, I was struggling to manage my time last year due to helping my wife starting her business.

I chose this book because it seems this was the only book I found to be relevant at least in Economic section – or pile of books. This book comes with a cover, but I lost it anyway during housekeeping early this year.

Invests Like A Girl

This book is about investing. It focuses on the factors that will best determine if you will make or lose money, and whether you’ll beat the market. This book focuses on analysis of what will make or break your performance as an investor. As the title suggest, the writer focuses on female traits and its relation to investing.

Temperament

Apparently this is the keyword to this book as a whole. 

“The American Heritage DIctionary defines temperament as “the manner of thinking, behaving, or reacting characteristics of a particular person”

Compare to men, women, as I understand from this book is much more careful, not overconfidence and learn from their mistakes. These are the qualities an investor must possess to reduce risk of loss and sustain a long term investment. The more I read, the more I realised I’ve been thinking of investment, perhaps, the wrong way. Obviously, I’m a guy, and this book tells me I might be wrong about investment.

Here, I quote “Portrait of a Female Investors” under chapter “The Science Behind The Girl”

Female investors tend to :

Trade less than men do.

Exhibit less overconfidence: men think they know more than they do, while women are more likely to know what they don’t know.

Shun more risk more than male investors do.

Be less optimistic, and therefore more realistic, than their male counterpart.

Put in more time and effort researching possible investments, considering every angle and detail, as well as considering alternate points of view.

Be more immune to peer pressure and tend to make decisions the same way regardless of who’s watching.

Learn from their mistakes.

Have less testosterones than men do, making them less willing to take extreme risks, which, in turn, could lead to less extreme market cycles.

The rest of the books discuss more on these points with simple explanations. I’ve learned a lot from reading those. I would recommend this book for people who want to have an idea of what investment is about.  

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