Mixed-Gender Clubs Perform Better.

• Position: Study of investment clubs - Brief Article

Mixed company means more money, according to Brooke Harrington, assistant professor of sociology, Brown University, Providence, R.I. In a two-year study of investment clubs throughout the U.S., she found that clubs made up of men and women together earn significantly higher returns on their stock portfolios than those with men or women only.

The stocks owned by mixed-gender investment clubs earn a rate of return two percent higher than that of same-sex clubs. This is equivalent to a savings account paying three vs. five percent interest--the small difference in interest rates makes a big difference in profits.

Mixed investment clubs make more profitable investing decisions than their same-sex counterparts for two reasons. First, men and women have fundamentally different approaches to investing. Women select stocks based on their consumer experience, while men usually choose stocks based on their work experience. As a result, the portfolios of mixed clubs are often better diversified than those of same-sex...