Women Outperform The S&P 500


#1

I found a report this morning about women CEOs outperforming the S&P 500 index…

The study found that women CEOs would be worth $448,158 after an investment is $100,000 whereas an investment in the S&P 500 index would have only returned $222,306 or 122%

Initially, I couldn’t really make sense of the report. Obviously, the study had been carried out with due diligence because it has been done by a well-funded and reputed start-up Quantopian.

When I thought about it a little more, however, I think there could be fairly reasonable explanation for it.

I am not a woman, but I know it has always been more difficult for a woman in the workplace. This is demonstrated by the visceral MeToo movement which has emerged in the past year.

So, if women were to rise to the top in this climate, it follows that they would have to be extremely good and far better than their male counterparts in the office…

I think a good comparison would be Margaret Thatcher. The odds were severely stacked against young lawyer Margaret Thatcher (a Grocer’s daughter) when she wanted to start her political career in the Tory.

But though willpower, steeliness and high levels of competence, she became leader of the conservative party in the 1970s…

margaret

There is absolutely no question that:

• This journey was more difficult because she was a woman

• She had to more to prove

But she got there, because she was the best candidate…

To apply this to the previous example, I wonder if women CEOs outperform the index because they have to be more competant and better leaders than all their male counterparts by a large margin…


#2

Hmmm - definitely an interesting one alright. Fair to say I will be sticking with index funds though!