Women and Warren Buffett have something in common: They're both better investors than the average man. Women are thorough researchers, more committed to the long-term plan and better at managing their emotions, says LouAnn Lofton, author of Warren Buffett Invests Like a Girl : And Why You Should Too. In her new book, she pulls research from a number of scientific and psychological studies on male and female investors. Ms. Lofton says women are set up to be great investors; we just need to take control and get in the game more.
If you've been on the sidelines until now, the first step is to recognize that investing isn't that hard and great success can come from investing in companies you understand, she says. Look at the products you know and trust, the ones you use and tell friends about. These can be great investment opportunities. If you own stock in Kraft, it's fun to go to the grocery store and pick up a pack of Oreos and know you own that company, she adds.
After selecting a company, open an online brokerage account through your bank or an independent firm and buy one share. This small step helps demystify the world of investing. Your bank may even have practice accounts that let you play with fake money while getting your feet wet.
Keep learning about your company. Read about its executives and history, and keep track of how your investment is doing. And if you want to learn directly from Mr. Buffett, Ms. Lofton suggests reading his letters to shareholders. Though geared toward women, Ms. Lofton's book can benefit men as well - if they're willing to tap into their feminine side.