Every investor needs an investing tole model. Who would you say is your investing role model?
Okay. Most of you likely thought of Warren Buffet, George Soros, Benjamin Graham, John C. Bogle, Peter Lynch and all the other lads.
Did any of you think of a woman’s name? No, I didn’t think so.
Because no women are usually mentioned when we talk about great investors.
Don’t believe me? Try it for your selves. Go on Google and search for ‘greatest investors’. You’ll see approximately 50 photos, including Donald Trump for crying out loud. Not a single woman among them.
Isn’t this annoying?
It is annoying not only because women seem not to exist when it comes to big-pants investing. It is also annoying because, correct me if I’m wrong, investing women would find it hard to identify with anybody in this gallery of greatest investors. Who would I identify with? Donald Trump? (We know what he thinks women are good for…)
Women investors need investing role models who are women. That’s it.
While it is true that women fund managers are few and far between, there are some. There is also a woman who is an investing legend; problem is, you probably have not heard about her.
Have you heard about Hetty Green also know as The Witch of Wall Street? No, I didn’t think you had.
Hetty Green was legendary US investor at the end of the 19th and the beginning of the 20th century. When J.P. Morgan called a meeting of the New York’s financial leaders after the stock market crash of 1907, Hetty green was the only woman in the room. When she dies in 1916 she had amassed over $2 billion (current value). Yet, the thing she is in the Guinness Book of World Records is not her investing; oh, no. She is there as the World’s Greatest Miser.
Do you know who, in Iceland, was called to save the day after the financial crisis in 2008? Women! Women took over politics, banking and business in Iceland. We need to mention to women in investing here: Halla Tomasdottir and Kristin Petursdottir who founded Audur Capital in 2007. Their company, founded on “feminine values”, survived the Icelandic crash intact.
You see; there are role models for investing women. Maybe we don’t hear much about them because they are removed from the mythology of the exploding hero who gambles all in a single sweep of fortune; be it jumping over a ravine, crossing the sea or fighting monsters.
Do you invest? Who is your investing role model?
AHA of the week
Last week we were targeted by scammers. No, we didn’t fall for it but analysing how it was done, made me realise something important:
“There is very little difference between money scams and aggressive marketing in the cognitive biases they use and the pressure techniques they employ.”
This is my AHA for this week. I’ve also decided to study behavioural economics in a bit more detail; after all, this is the only part of economics I can stomach to begin with.
Finally, I’m still enjoying the fact that we have no car payment every month. It is like one of the joys of life now (yes, my life is that boring).
What am I reading?
Last week I finished reading ‘Warren Buffett Invests Like a Girl: And Why You Should Too’ by Louann Lofton. Found it interesting but less helpful and interesting than I expected. (Will publish a review on The Money Principle.)
Now, started reading ‘Women of the Street: Why Female Money Mangers Generate Higher Returns’ by Meredith Jones. Will let you know how this one goes.
My favourite blog posts of the week
And here are my favourite blog posts of the week (these are not all about money, mind):
- ‘University Killed my Creativity: And How to Reawaken Your Creative Mojo’ [The Financial Graduate]: Probably don’t agree with all that has been said. There is something in it though: we’ve started training our Grad students to search for the right answer rather than encourage them to explore and to turn visions of the world on their head. This is a problem because education needs to be infused with creativity not prepare people to be ‘safe pair of hands’.
- ’18 favorite financial rules of thumb (and some useful money guidelines)’ (Get Rich Slowly]: I just like this one. And some of these rules are really handy.
- ‘7 income producing assets to invest in today’ [I Will Teach You To Be Rich]: this one is informative and potentially very helpful for beginners.
- ‘20 tried and tested ways to make money’ [Money Mental]: some interesting ideas here and all doable and sustainable (none of the ‘sell your old make-up’ type). I’m not sure about idea 20 but each to their own (oh, you ought to read the blog to see what is this one).
- ‘How much does it cost to buy a house’ [Much More With Less]: when we buy a house, it is easy to forget all expenses that go with it. Here is a comprehensive list of spending. Oh, and buying a house is expensive.
This is all for now, friends. Speak soon.