The Truth of Why Women Make Better Investors
How do we become good investors?
This age-old question has collected thousands of answers and theories over the years.
Some suggest that a person must be intelligent in order to profit in the stock market; while others feel that a person can earn big bucks by trading based on market patterns and charts.
While these theories are true to a certain degree, there is actually one group of people who are in some ways, already gifted and somewhat born to become good investors by nature.
This is of course, not being gender-biased, but simply because most women would already be in touch with many brands and listed companies out there just by observing their daily habits alone, which increases their chances of finding good investments!
Jewelleries… Cosmetics… Even when they are grocery-shopping for the family!
That is to say, women naturally have a wider circle of competence.
And this is on top of the things they know from their daily professions.
So, if you identify as a woman, or have habits that are similar to a woman’s, here are 6 industries or companies that you most probably can relate to or even invest in, because you will certainly be no stranger to their products!
1. Lovisa Holdings Ltd (Jewelleries/ Accessories)
This Australian-based company has been expanding far and wide across the world in recent years with store presence in countries like Singapore, Vietnam, South Africa and even the United Kingdom.
Known for their wide array yet reasonably-priced jewellery, Lovisa is close in becoming a woman’s best friends.
Pretty, expensive-looking and hardy enough to be worn until a woman decides to get something new, Lovisa is fast fashion jewellery brand that is capturing more and more women’s attention when it comes to accessorizing.
2. Coty, Inc. (Hair Products)
Go to your vanity and check the label on one of your hair products.
You just might see that it is owned by Coty Inc.
Fronted by brands like Wella, Clairol, Sassoon and Good Hair Day (ghd), Coty is a multinational beauty company founded by François Coty and is the proud owner 77 brands as of 2018.
Darling of the mani-pedi industry, O.P.I and celebrity brands like Katy Perry and David Beckham, also makes up for a part of Coty’s brand portfolio.
3. Amorepacific Corporation (Skincare)
With the K-pop craze within the last decade, it is hard to ignore the outpour and emergence of more and more Korean brands in the market, especially when it comes to skincare.
If brands like LaNeige, Sulwhasoo, Innisfree and Etude House rings a bell in your head, you can ascertain that Amorepacific is within your investing circle of competence.
Owner of 29 brands for skincare, oral care and even tea, Amorepacific has brand presence even in the US, proving that their skincare technology is suitable not only for Asians, but also women in the western countries.
4. Nestlé S.A. (Groceries)
The largest food company in the world since 2014, Nestlé has playing a part in many people’s lives, regardless of which stage they may be at.
Maybe they have had a bowl of their breakfast cereal each day before going to school when you were younger; maybe they’d given a bar of KitKat to their date when their first went out; or maybe they’re still habitually mixing a teaspoon of Coffee-mate in their morning coffee each day.
While these products may seem like the usual item on the Average Joe (or Average Jane’s) grocery list, the keen investor eye would realise that these products are merely the different masks put on by the same company.
5. The Estée Lauder Companies Inc. (Perfumes and Fragrances)
DKNY, Jo Malone, Tommy Hilfiger and Aramis.
These are only some of the brands owned by Estée Lauder Companies Inc, who also produces its namesake fragrances. Priding itself as a multinational manufacturer and marketer of prestige skincare, makeup, fragrance and hair care products, this Manhattan-based company owns a diverse portfolio of brands both online and offline.
Luxury brand Michael Kors and cosmetic brands M.A.C and Bobbi Brown are also a part of their product line-up.
6. L Brands, Inc. (Lingerie)
While most women are well-versed with popular lingerie brands Victoria’s Secret and La Senza, few know that they are in fact, owned by the same company called L Brands Inc.
Spectacular fashion shows with Victoria Secret Angels showcasing their latest line of lingerie, coupled with decorative wings to complete their “angel” look and musical performances by top artists, Victoria’s Secret has established a name for itself as a lingerie retailer over the years.
L Brands also owns beauty brand Bath and Body Works, who is known for their 3-wick scented candles.
While it is not a guarantee that ALL women are better investors than men, it is certain that women have more interactions with public listed companies due to their habits.
Natural-born bargain hunters, most women will find the best deals they can get while walking the shopping malls and making purchases, be it for herself, or for her family.
Based on the companies above, we are not suggesting a buy or sell recommendation, but rather, sharing with you what are some of the companies you can lookout for, especially for those of you who are consumers of their products but are unaware of their potential.
If you’d like to find out more about similar companies that you can consider adding to your portfolio, why not learn how to start investing by joining our FREE value investing masterclass that can help you identify undervalued stocks and generate positive returns?
Once you’ve applied what you’ve learnt, you’ll even be able to pick out which company pays out the most consistent dividend stocks to help you earn a stream of passive income!