Interview with Janneke Willemse

Women are better investors than men. They have a better focus and more eye for diversification, invest more sustainably, take less risk and keep still at times when things are going less well. Janneke Willemse, author of ‘Blondes invest better’, adds another reason: “women are less emotional”.

You might think that men are particularly good at investing. Given that finance is traditionally seen as a men’s world. Roles like brokers, financial advisers, CFOs, and accountants are often dominated by men. However, this couldn’t be further from the truth. Time and again, research, including studies by Fidelity Investments, shows that women achieve better returns than men in the long run. According to this study, women outperform men by 0.4%. While this may not seem like a significant difference, it is noteworthy. This is especially remarkable considering that, until 1956, married women were not allowed to open their own bank accounts, take out mortgages, or obtain insurance.

Women are less impulsive
Janneke Willemse, who, in addition to being an author is also a presenter, on, for example, RTL Z, does have an explanation as to why women achieve better results than men: “Women are less emotional than men when it comes to investing.” Yes indeed, you read that correctly: not more, but less emotional. She explains: “Women keep themselves well informed, choose sustainable funds more often than not and they do not invest to get rich quick. In short, they act less impulsively than men do.”

Prefer the quick win
The latter is a tendency mostly men have. Janneke: “They prefer to go for the quick win. And if things don't go so well and they see their capital shrink before their very eyes, they quickly get rid of the shares and look for new opportunities. Women are more patient and wait things out quietly. In this, too, they are wiser than men, as composure in investing also means better long-term results." Women may invest better than men, but they do not share that conviction themselves. According to an ABN Amro survey, over 4 in 10 women lack the confidence to invest. For men, the figure is a strikingly 25% only.

Losing €10 million in one single day
Above all, keeping you cool when the world collapses is something women are better at than men. In Marco van Basten's biography, we can read what happens if you don't. In the late 1990s, he invested his entire fortune of around €23 million in shares. A few years later, 9/11 came around the corner and the financial world collapsed completely. Van Basten's wealth had shrunk by €10 million in 1 day. He freaked out and took his losses. A poor choice. Had he done nothing, his money would have more than doubled by now.

The art of keeping still
Those who master the art of keeping still and possess nerves of steel tend do better on the stock markets. Janneke: “That’s why you should invest with money you won’t need in the coming years. If the stock market suddenly drops, there’s little to worry about as long as you don’t have to sell. Over time, the market will recover. You need to be in a position to wait things out calmly.”

Record after record
Constantly switching and reacting to market changes, as in Van Basten's example, is not advisable once you decide to invest. That can cost you a lot of money. Janneke explains: “Not only will your transaction costs be higher, but you can also increase the change of making a mistake. Because one thing you pretty much know for sure: if you wait long enough and do nothing at all, your shares will rise. In fact, stock market records are often followed by new record highs.”

Initial capital quadrupled
Janneke has also made some poor decisions in the stock market. “For example, I sold my shares in Galapagos far too late. I bought them for €18 and sold them at €40. Not bad, you might think, but I could have sold them for €240. It just goes to show, sitting still doesn’t always pay off.” Despite this, she has managed to quadruple her initial capital of €20,000 since 2013. “And I’ve enjoyed every minute of it. I find investing really fun. I read a lot about the companies I invest in and feel much more engaged with the news as a result.”

Time is more important than timing
According to Janneke, anyone looking to grow their money should start investing. “Not with everything you have, but with the portion you won’t need in the near future, “she advises. Her most important tip is to start now! Janneke says, “Don’t be afraid of entering the market at the wrong time. Time is more important than timing. The earlier you start, the more time you have to benefit from share price increases.”