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Warren Buffett Invests Like a Girl: And Why You Should, Too – The Wall Street Journal Bestselling Investment Guide from Motley Fool

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*** Wall Street Journal bestseller *** Investing isn’t a man’s world anymore—and this provocative and enlightening book shows why that’s a good thing for Wall Street, the global financial system, and your own personal portfolio. Warren Buffett and all of the women of the world have one thing in They are better investors than the average man. It’s been proved by psychologists and scientists, and the market calamities of the past two years have only provided more statistical and anecdotal evidence of the same. Here are just a few characteristics of female investors that distinguish them from their male counterparts. • Women spend more time researching their investment choices than men do. This prevents them from chasing “hot” tips and trading on whims -- behavior that tends to weaken men’s portfolios. • Men trade 45% more often than women do, and although men are more confident investors, they tend to be overconfident. By trading more often -- and without enough research -- men reduce their net returns. But by trading less often, women get better returns and also save on transaction costs and capital gains taxes. • A study by the University of California at Davis found that women’s portfolios gained 1.4% more than men’s portfolios did. What’s more, single women did even better than single men, with 2.3% greater gains. • Women tend to look at more than just numbers when deciding whether to invest in a company. They invest in companies they feel good about ethically and personally. And companies with good products, good services, and ethics tend to have better long-term prospects -- and face fewer lawsuits. Women, with their capability for patience and good decision-making, epitomize the Foolish investment philosophy and the investment practices of the most successful investor in Warren Buffett. While men are brash, compulsive, and overly daring, women tend to be more studious, skeptical, and reasonable. This indispensable volume from the multimedia financial education company Motley Fool offers essential advice for every investor hoping to turn today’s savings into wealth for a better tomorrow.

272 pages, Paperback

First published June 21, 2011

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755 people want to read

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5 stars
110 (21%)
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155 (30%)
3 stars
175 (34%)
2 stars
59 (11%)
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7 (1%)
Displaying 1 - 30 of 52 reviews
53 reviews1 follower
December 30, 2011
I wouldn't rate this book very highly or recommend it as I don't feel there is a lot of insightful information. Being a follower of Motley Fool and very small investor in Berkshire, I felt it was worth it to me to read... although, is the positive reinforcement really a good thing.

Although I must inform those that haven't read it, that it isn't as offensive as the name suggests. Much of the beginning actually sites studies describing the benefits of female temperament with respect to investing, and the end of the book continues with some interviews of some top female fund managers. So for a young female investor, you may find this book quite motivating.

For me, what I appreciated the most was the interviews at the end, and particularly the suggested reading list with respect to investing. So while there wasn't a lot of groundbreaking info to take from this volume, hopefully it will lead me to more interesting texts...
10 reviews
October 3, 2011
The book is exactly what its supposed to be. No investing advice, just a relationship between personality & styles of investing. Recommended for people new to investing & warren buffet.
Profile Image for Yen Lian.
96 reviews13 followers
May 30, 2021
Contemplating between 4 or 5 stars but since I learned something from this book I decided to give it a 5. I gained fresh perspectives on investment as in how my usual view towards putting money to work can be seen as a female temperament which should be used to advantage. The stories and experience shared also helped me to reflect and motivated me to read more.
Profile Image for Sasha Minh.
25 reviews22 followers
November 10, 2016
Trình bày rõ ràng, dễ hiểu nhưung ý tưởng không có gì mới. Vẫn chỉ là một mô tip ideas chỉ nằm trong một trang sách nhưng tác giả kéo dài ra để thành 1 cuốn sách.
Khá tốn thời gian, bạn chỉ cần đọc 2 chaps cuối (15-16) là được.
Profile Image for Kat Riethmuller.
113 reviews13 followers
January 31, 2021
Buffet invests like female investors. He's:
- listens to his feminine side when making investment decisions
- studious, informed investment style like that of women - ideal investment temperament

He has the ideal nature for an investor:
- Unemotional
- Skeptical
- Patient
- Not concerned with the actions of other investors
- He remains calm and methodological
- Before selecting any stock he does his research
- He doesnt invest in stocks he doesnt understand
- He avoids risks. This involves the margin of safety concept, an idea he learned from Graham (you believe a firm is worth $100 per share, since it trades at $ 75 per share, you have a 25% safety margin Careful value investors purchase stocks only if they offer a safety margin of 40 - 50%. Exhibit similar prudence when you buy shares
- Catastrophic stock slide 2008 when Dow Jones dropped by more 10000 points for first time in 4 years and the smp 500 dropped by 42% many wall st traders and other investors dumped their shares. Buffett assessed the financial carnage, examined many famous corporations whose stock prices had fallen to bargain rates and began to invest. He spent $20B in companies like Goldman Sachs and General Electric. Buy low sell high. Once he buys a stock he normally holds on to it for a long time. He detests short-term trading. He envisages his stock purchases as actual brick and mortar companies with real products, employees and management teams. Says each person who buys a stock should think of the process as a punch card with only 20 punches permitted during a lifetime. Each stock purchase represents one punch. He jokes his favourite holding period is forever.

Temperamentally, Buffet is the opposite of the stereotypical, typical, overconfident male trader who tends to trade too often, take undue risks and think only short-term and follow the herd thinking of others. Many let testosterone rather than careful decisions drive their choices. These men hit the panic button in 2008, helping to make a dismal financial situation infinitely worse.

Buffett’s disposition reflects that of studious and thoughtful female traders

Most female investors:
- spend more time than men researching their stock picks
- buy stocks only when they're certain its the right move
- don't have testosterone driving their decisions, which results in less risk-taking and potentially less extreme market cycles
- excel at collaboration
- are often more patient than men
- work hard to develop relationships.

Such qualities could have helped stem the market mania that roared through Wall Street in 2008. Unfortunately, at that time, men called the shots in the financial community.

According to neuroeconomics and behavioral finance research, women investors exhibit a variety of useful investing tendencies, including that women:
- don’t trade as often as men.
- don’t suffer from overconfidence.
- avoid risks that men accept.
- are not as optimistic or unrealistic as men
- spend more time researching their stock picks.
- keep their minds open to alternative viewpoints.
- are less likely to succumb to peer pressure.
- learn valuable lessons when they make mistakes.

These are the ideal traits for any investor, so you shouldn’t be surprised to learn that female investors often outperform male investors.

The hedge funds women manage do better than hedge funds run by men. But, male or female, no one invests more successfully than Buffett.

“Like risk, mistakes are an unavoidable part of investing, so it’s best to learn to embrace the lessons that can come from them.”
Buffett also learned about investing from David Dodd, another investment guru and co-author with Graham of Security Analysis, a bible for investors.
- Graham was a leading proponent of value investing. This philosophy appealed to Buffett, who decided to become a “‘value’ guy.”

Buffett also learned about investing from David Dodd, another investment guru and co-author with Graham of Security Analysis, a bible for investors. Graham was a leading proponent of value investing. This philosophy appealed to Buffett, who decided to become a “‘value’ guy.” After graduation, Buffett returned to Omaha to work for his father’s brokerage firm. Later, Buffett relocated to New York to work as an analyst for Graham at the Graham-Newman Corporation.

“If you aren’t willing to own a stock for 10 years, don’t even think about owning it for 10 minutes.” – Warren Buffett
But when Graham retired, Buffett moved back home to Omaha to establish his own investment partnerships. Every year, Buffett made terrific profits for his investors, but in 1969 he closed the partnerships to focus on Berkshire Hathaway, a New England textile company he had purchased a few years earlier. Eventually, he closed the organization’s textile operations and, with his lifetime business partner, Charlie Munger, transformed Berkshire Hathaway into an investment holding firm which now owns many companies.

Buy Like Buffett
Here are 12 of Buffett’s most important investing principles:

1. “Embrace Feminine Influences”
Buffett invests like a woman and has relied on smart women, both personally and professionally, throughout his life. The women who influenced him include his late wife, Susan Buffett; bridge expert Sharon Osberg; reporter Carol Loomis; and Rose Blumkin, the famous “Mrs. B,” who founded and ran the Nebraska Furniture Mart in Omaha. Buffett also was close to the late Katharine Graham, owner of The Washington Post.

2. “Trade Less, Make More”
Buffett detests short-term trading. He once proposed that the US government should tax profits from short-term trades – wherein investors hold a stock for less than a year – at a 100% rate. Buffett envisions his stock purchases as actual brick-and-mortar companies with real products, employees and management teams. He says each person who buys a stock should think of the process as a “punchcard” with only 20 punches permitted during a lifetime. Each stock purchase represents one punch.

3. “Rein in Overconfidence”
Buffett never invests in companies he doesn’t fully understand. This includes technology firms, which Buffett says do not fall within his “sphere of understanding.” Investment involves estimating a firm’s future prospects. Buffett doesn’t believe he can do this for technology companies. Don’t invest in firms if you don’t understand their business.

4. “Shun Risk”
Investing is always a risk. But smart investors like Buffett do everything possible to limit their risk when they purchase stocks. For Buffett, this involves the “margin of safety” concept, an idea he learned from Graham. It works like this: You believe a firm is worth $100 per share. Since it currently trades at $75, you have a 25% safety margin. Careful value investors purchase stocks only if they offer a safety margin of at least 40%-50%. Exhibit similar prudence when you buy shares.

5. “Focus on the Positives of Pessimism”
Buffett is an optimist and a strong “Buy American” proponent. However, as a seasoned investor, he understands that depressed financial periods offer unusually profitable opportunities for savvy investors. In a 2008 op-ed piece for The New York Times, Buffett wrote, “Bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.”

6. “Research Extensively”
Buffett never invests in a company until he performs extensive research about the firm, its competitive position, its products or services, its management team, and any special attributes that distinguish it in the marketplace. Do the same with your stock selections. The Internet makes research so much easier than when Buffett started out. Buffett would go to the Securities and Exchange Commission to review corporate filings. He did the same with Moody’s and Standard & Poor’s. He visited companies and talked to their senior executives. Never buy a stock unless you first secure the vital information required to make an intelligent investment decision.

7. “Ignore Peer Pressure”
To many in the investment community, Warren Buffett is an anomaly, someone who is seriously “out of step,” as the Omaha investment genius described himself in a 1960s letter to his investment partners. He is an anachronism. Many mock Buffett’s aversion to technology stocks. This has no impact on Buffett, who maintains his value investment philosophy no matter what others say or think. Thanks to his independent attitude, Buffett has avoided bubble markets that inevitably burst. Employ this same frame of mind about your investments. Do your own careful research, and select your stocks accordingly.

8. “Learn from Mistakes”
Even Buffett makes mistakes when he invests. The trick is to learn from your mistakes so you won’t make them again. For Buffett, these blunders fall into two categories: “mistakes of commission” – investments he shouldn’t have made – and “mistakes of omission” – investments he failed to make. The latter bother Buffett most. For example, he decided not to invest in Walmart at a certain price, an omission that cost him $10 billion in lost profits. But, he never beats himself up. Instead, he admits his errors and learns from them.

9. “Maintain Consistent, Persistent Results”
Buffett is reliably consistent. At age 25, he began managing other people’s money. Since then, year after year, he has achieved returns for his investment partners that no one else has matched: 32% average annual returns (less fees) in his initial partnership and, at Berkshire Hathaway, a 20.2% “compounded annual gain in per-share book value from 1965 to 2010.” Clearly, Buffett’s value investment system works for him and you can put it to work for you.

10. “Value People and Relationships”
Buffett believes strongly that people make up a firm’s value. When he finds a firm with an executive team he likes, Buffett stays invested with that company, even if a hot new competitor appears that excites everyone else. As Buffett says, “It seems foolish to rush from situation to situation to earn a few more percentage points.” Buffett always attempts to maximize his return on capital. His willingness to forego incidental profits to stay invested with a firm run by people he respects demonstrates how important this concept is to him.

11. “Question the Masters”
Buffett has the greatest respect for the legendary Benjamin Graham and his philosophy of value investing. However, he adapted Graham’s investment approach to suit his style. For example, Graham believed that investing was basically a numbers game. Graham didn’t care about the actual companies, who ran them or where they stood in the marketplace. He focused solely on bottom-line value. If Graham could purchase a company’s stock at a price less than his evaluation suggested, he considered it a promising investment. Instead, Buffett wants to know everything about a company before he purchases its shares. Buffett learned a lot from Graham but has always been willing to think – and act – for himself.

12. “Act Fairly and Ethically”
Buffett believes that all stakeholders should receive the same advantages. In the past, Wall Street did not agree; most firms updated big institutional investors ahead of small investors. This “selective disclosure” policy is now illegal. Buffett explains that at his company, “We do not follow the usual practice of giving earnings ‘guidance’ to analysts or shareholders.” As Buffett shows, you can act ethically as an investor and still become wealthy.

Motley Fool Investing
The Motley Fool advisory service recommends following Buffett’s investment principles. With financial planning and investments, be conscious of the amazing power of compound interest. After 40 years, an initial investment of $1,200 could be worth $37,691, based on a typical stock market return over that period of time. Thus, you should save as much as possible in order to have money to invest. Invest only when you know that for the next five years you will not need the money you plan to put in the market.
This entire review has been hidden because of spoilers.
Profile Image for Ngoc Vu.
129 reviews12 followers
January 14, 2018
Cuốn sách này đề cập đến khía cạnh tính cách và mối quan hệ với phong cách đầu tư của Warren Buffett, như nhan đề gợi ý đó là phong cách rất ‘nữ tính’, tránh rủi ro ở mức độ cao, đề cao giá trị, ko đầu tư dàn trải, ko bị ảnh hưởng bởi tâm lý của những người khác (cái này có vẻ ko giống phụ nữ lắm) Là một phụ nữ thì đọc cuốn này khá có tính động viên :D Một chút về tiểu sử, một ít lời khuyên về đầu tư và 1 ít phân tích về mối quan hệ giữa tính cách và kết quả đầu tư, nhiều đoạn bị lặp lại nhưng nhìn chung là cũng khá dễ đọc. Với một người chả biết gì về đầu tư thì cuốn sách cũng cung cấp kha khá kiến thức ( ít nhất ở khía cạnh nó ko quá khó hiểu và cao siêu đến độ muốn bỏ cuộc khi mới đọc xong 1 cuốn sách) , đọc xong cũng thấy hào hứng về đầu tư và cổ phiếu phết
Profile Image for PP |SIRIWIMON WISUTSAKCHAI.
26 reviews12 followers
January 11, 2017
แก่นของหนังสือเล่มนี้ คือ จงเป็นผู้เรียนรู้อย่างหิวกระหาย โฟกัสกับการลงทุนระยะยาวและรอ ต้องพิจารณาความจริงอย่างรอบคอบ และหลักการสำคัญ ที่ต้องเรียนรู้ และมันจำเป็นมาก ๆ มีอยู่ 3 อย่าง คือ 1. การเรียนรู้หลักการลงทุนแบบเน้นมูลค่า 2. เรียนรู้วิธีการคำนวณหามูลค่าที่แท้จริง และ 3. เรียนรู้การหามูลค่าของบริษัทในปัจจุบันและอนาคต เหนือสิ่งอื่นใด คือ การควบคุมสภาวะทางอารมณ์ เรียนรู้จากเซียนได้ แต่ต้องกลับมาพัฒนาระบบการลงทุนของตัวเอง
Profile Image for Batzul Gerelsaikhan.
30 reviews29 followers
March 8, 2017
The title may seem offensive, but the author really tries to explain and link Warren Buffet's success/investment style with female temperaments - less is more, be less arrogant, shun more risk, be more realistic, do more research, ignore peer pressure, learn from mistakes and have less testosterone
This entire review has been hidden because of spoilers.
Profile Image for Alanna.
2 reviews
June 7, 2012
Good intro if new to investing world. A quick and overall enjoyable read, with great list of resources for curious investors in the making. Temperament is undoubtedly important in value investing, regardless of sex.
Profile Image for Sudais Asif.
7 reviews
September 24, 2018
A great book for beginning and existing investors because it sheds light on the psychological aspects of investing including your temperament which is even more important than your intellect in investing. 💯
20 reviews
June 16, 2018
Well written, easy to understand book about investing. Great overview and explanations about the basics of value investing with a focus on Warren Buffett's approach to investing. Since I learned about this book from financial advisors who specialize in helping attorneys in family law and helping women who are in the process of divorcing and dealing with investing, I felt like it would be a good read. It was and I would recommend it to anyone, particularly women without a lot of investing experience.
12 reviews
May 7, 2024
Its difficult to explain but the analogy that they used to compare male and female thinking drive is exceptional. In simple words, Men are more risk taking and women are more risk-averse. This would briefly explain our lifestyle choices as well. Its biological. And when it comes to stock market, risk is against the money invested and money earned. Hence, this book is a take on how Mr. Warren Buffet invests in stocks and how his technique is involves evaluating all possible parameters before investing.
Profile Image for K. L. Matusik.
17 reviews1 follower
April 27, 2019
Warren Buffet Invests Like A Girl (And Why You Should, Too)
Louann Lofton

Grade: C

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This book was given to me as a gift. I'm not normally one for finance books but I did want to learn more about investing. Most of this book reads more like a biography with a list of personality traits that tend to make people better at investing. This part could have been condensed into one or two chapters instead of half the book. The second part I found more interesting which involved interviews of women in finance. The end of the book is more of a reference guide to other books which may actually help you learn about investing. This was a little bit of a struggle to get through, but it did pique my interest to start reading other books on finance.
Profile Image for Camila Betterelli Giuliano.
13 reviews
December 2, 2020
This book got me to consider investing in riskier things. I've been investing in safer options for some time now and, after reading it, I consider trying something new. But the book itself is rather average. There was a lot about Warren Buffet that I didn't know and I appreciated getting to know him better, and the studies about gender differences in investing are interesting as well, but I wasn't fulling convinced.
Profile Image for Joel Berrocal.
40 reviews
March 15, 2024
Warren Buffett Invests Like a Girl: And Why You Should Too is a compelling read that offers a fresh take on investment strategy through the lens of gender analysis and psychological traits. Whether you’re a novice investor looking to learn the ropes or an experienced player seeking a new perspective, Lofton’s insights provide valuable food for thought on how to approach the art and science of investing thoughtfully and successfully.
Profile Image for Huong Pham.
147 reviews40 followers
April 1, 2024
I personally don't appreciate the section analyzing traits of female investors in the book. I feel a sense of forced association in the investment style of renowned investors like Warren Buffet to female attributes. Despite the neuroscience or behavioral psychology studies with statistics cited at the beginning of the book, it still comes off as rather annoying to me. The subsequent sections of the book are worth learning from and reflecting on the investment methods of successful investors.
515 reviews
Read
March 18, 2025
The views on gender are of their times but what it had to say about investing styles is true. What styles are the most valuable? Are certain gender cultures (still a spectrum) better at giving advice for certain decisions? Really good book that stood the test of time. Sigh, and now to see if I can actually change my own habits and show that level of care and disciplined thinking!
1 review
January 2, 2020
The book introduces you to the investing style of Buffet but most of the content is repitative in nature. Same things have been reiterated many times to increase the length of the book. Overall a so so book which could be summed up in a blog post.
Profile Image for Stephanie.
17 reviews1 follower
October 7, 2020
I feel I owe an explanation of the 3 star review. Overall I liked it, but at around the last 100 pages I felt like I either lost interest or it just became reading to finish the book. I did get a lot of great info to start researching whether I want to invest. It was just harder to read through.
40 reviews2 followers
July 26, 2021
This reads like a Buzzfeed listicle. Pretending to be over 200 pages by repeating themes and having an appendix that's a third of the content. There's some interesting insight in the opening chapters, but generally you could get by reading the first 50 pages and reviewing chapter titles.
Profile Image for Lana Nguyen.
42 reviews
April 26, 2022
Gần cuối sách có cái list 101 điều về sự khác nhau giữa đầu tư của con trai và con gái. Mình nghĩ đọc mỗi phần đó là đủ hiểu cả cuốn sách rồi.
Các phần còn lại chủ yếu là kể chuyện với phỏng vấn người này người nọ.
Profile Image for Mark Skinner.
178 reviews2 followers
November 20, 2022
I enjoyed learning about beahvioral economics and what characterisitics they have found successful investors to have over the years and incfancy of nueroscience and its insights into successful investing. Thank you for a well written piece on what looks like it makes a successful investor.
Profile Image for Jessica Clark.
26 reviews1 follower
January 9, 2023
I read this book a little while ago. The main benefit for me was getting exposed to some well known female investors and what "investing like a girl" actually means. I enjoyed this book and really appreciated the interviews.
Profile Image for Nan.
1,016 reviews7 followers
December 1, 2018
I guess I already knew a lot about Buffett since not much in this book was new to me. Good for a beginning young investor.
Profile Image for Upen.
163 reviews11 followers
July 15, 2019
Really enjoyed this book and learning the basic values and temperament of Warren Buffett. A great book for any investing novice as myself
17 reviews
January 24, 2020
Good overview of some sound investing principles. A bit fun, easy read.
Profile Image for Tiana Thai.
124 reviews11 followers
February 4, 2022
Dễ đọc nhưng không mấy đặc sắc. Vẫn dụng phẩm chất của phụ nữ để gợi lên những phẩm chất cần có của nhà đầu tư.
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