Q: You spoke about women as better investors than men because they hold on to investments longer. Are there any examples on that you can cite?
Kahneman: I’m really talking here about overconfidence and the risks of overconfidence. And this is a real problem for financial advisors. And I’m sure you face it very day.
Q: How?
Kahneman: And that is your clients coming to you because they seek confidence. They want to talk to a guru who really knows what’s going to happen. I remember when I lost faith in a financial advisor many years ago. This was way back in the Nixon administration, a very long time ago. And he said something about being worried, then added that Nixon would do this or that. And then he touched wood. And then I saw him touching wood and I thought he has no idea. So overconfidence is certainly a problem. And women are certainly better at figuring out that problem. And men ought to emulate women in those respects if they are to serve their clients better.