If you close your eyes and imagine a professional investor, you'll probably picture a man in a suit and a tie.
But while finance may be a male-dominated industry, there are plenty of successful female investors, and there's also evidence that female attributes can make women better investors than men. For instance, women tend to be more patient and less competitive than men and aren't afraid to seek out and take advice. The women who are professional investors have already demonstrated their ability to make it an industry dominated by men and have a different perspective than men, potentially giving them an edge.
In fact, one study from Fidelity showed that in a pool of 5 million customers over a 10-year period, women outperformed men in investing.
Let's look at three of the top female investors of all time.
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1. Sallie Krawcheck
Sallie Krawcheck isn't just a successful female investor in her own right. She's brought plenty of women along with her.
Krawcheck is the chief executive officer and co-founder of Ellevest, a financial planning and investment platform by women for women. On Ellevest, women can take advantage of financial and retirement planning tools, roll over a 401(k), and invest in stocks and alternative investments.
From its genesis in 2014, Ellevest has grown to encompass a community of more than 3 million women and $1.5 billion in assets under management.
Krawcheck cut her teeth as an analyst for Sanford Bernstein and was recognized by Institutional Investor as the top-rated analyst in the brokerage sector. She became CEO of Bernstein in 2001, before joining Citigroup as chief financial officer and head of wealth management. Later on, she ran Merrill Lynch after Bank of America acquired it.
Krawcheck has not only had great success as an investor and a leader in the finance industry, but she's also paid it forward for the next generation with Ellevest.
2. Cathie Wood
Cathie Wood is probably the most famous female investor today. Wood rose to prominence during the pandemic as her growth-oriented Ark Invest exchange-traded funds (ETFs) surged, with some more than doubling in 2020.
Wood also made a bold call on Tesla (TSLA -1.92%), predicting in 2019 that the stock would hit $4,000. While many dismissed that price target as outlandish, Tesla, indeed, hit that target on a split-adjusted basis in 2021.
Wood has become known for investing in disruptive technology, and her Ark Invest funds have also gained a following by disclosing their trades each day, something most funds don't do.
Wood got her start at Jenniston Associates, where she spent 18 years before becoming chief economist at Alliance Bernstein before launching Ark Invest in 2014.
While Ark's funds have underperformed the S&P 500 more recently as the pandemic has unwound, Wood still commands a lot of respect on Wall Street and her investing style is popular with growth investors.
3. Geraldine Weiss
Finally, Geraldine Weiss is one of the oldest female influencers in investing, and the first woman to launch a successful investment newsletter, called Investment Quality Trends.
Weiss died in 2022 at 96 and was known for her newsletter, which she signed as G. Weiss in her early years to hide her identity as a woman.
Weiss argued that dividends were the best way to assess a company's performance as they represented real cash, while financial statements are often manipulated.
She was also the author along with her son Gregory of The Dividend Connection: How Dividends Create Value in the Stock Market, which was published in 1995.
Most importantly, her newsletter's recommendations consistently delivered strong results, with an average annual return including dividends of 11.8% from 1986 to early 2022, though Weiss retired from the newsletter in 2002.
Arguably, more than any other female investor, Weiss paved the way for women in finance today, and her focus on value and steady dividends is a timeless way to make money in the stock market.
