May 24, 2006
Nicola Horlick: Are Women Better Money Managers?
Nicola Horlick is a Brit who is a mother of five (plus another daughter who died of leukemia a few years ago).
She is also a top money manager at Bramdean Asset Management in London who has just opened a new division of her company, specifically targeting female customers — “Bramdiva.”
Here’s the interesting claim: Nicola says women are better money managers.
This article in the International Herald Tribune cites several studies and experts on this question, and concludes that men have a testosterone-driven approach to money management that leads them to take risks that don’t pay off in the long term.
Women, alternatively, are steadier and don’t “churn” accounts to generate fees or for the appearance of action.
Super-successful male money managers, like Warren Buffett, succeed because they employ the “feminine” approach.
I believe Buffett would appreciate that assessment.
Cross post from Reasoned Audacity.