For decades, investing was often perceived as a predominantly male activity. Today, that picture is changing rapidly.

Across Europe and globally, more women are entering the investment market, building wealth, and managing increasingly significant portfolios. Yet numerous studies suggest that men and women often approach investing differently - not necessarily in terms of ambition, but in terms of behavior, risk assessment, and decision-making.

Interestingly, some of these differences may help explain why female investors have consistently achieved competitive - and in some cases superior - long-term investment results.

Different Approaches to Investing

Research from Fidelity Investments found that women investors outperformed men by an average of 0.4 percentage points annually over a ten-year period. While this may seem modest, the effect compounds significantly over time.

The explanation was not that women took more risk. In fact, the opposite was true.

Researchers found that women generally traded less frequently, made fewer impulsive decisions, and were less likely to react emotionally to short-term market movements.

In investing, activity does not always equal performance. Sometimes patience becomes an advantage.

Women Tend to Focus More on Capital Preservation

Several studies from Fidelity, Vanguard, and behavioral finance researchers have highlighted another consistent trend: women often place greater emphasis on preserving capital rather than maximizing short-term returns.

This does not mean avoiding risk entirely. Rather, it often means asking different questions:

• Is the asset understandable?

• What creates its value?

• How resilient is it during market downturns?

• What are the long-term fundamentals?

This approach naturally leads many investors toward assets with tangible underlying value rather than purely speculative opportunities.

Real Assets Often Appeal More to Female Investors

Research from wealth management firms and private banking institutions has shown that women are generally more interested in investments linked to real-world assets and long-term sustainability.

These often include:

• Real estate

• Land

• Infrastructure

• Renewable energy projects

• Sustainable investments

• Forestry and agricultural assets

The common denominator is straightforward: these assets generate value through ownership, productive use, and long-term development rather than short-term market sentiment alone.

Looking at Our Own Data

Curious whether these broader trends were reflected within the FF Forest community, we analyzed the 20 largest portfolios on the platform.

The results were remarkably consistent with many of the findings highlighted by academic and industry research.

Among the holders of our largest portfolios:

• The average age is approximately 40+ years.

• Participants primarily come from Germany, Spain, Austria, Portugal, and Ireland.

• Men represent the majority by number.

However, one observation stood out. The holder of the single largest portfolio at FF Forest is a woman.

When we compared portfolio sizes among the largest participants, women represented a smaller share of individuals but a disproportionately larger share of allocated capital.

Among the top 20 portfolio holders:

• Women account for approximately 25% of participants.

• Women account for approximately 33% of total allocated capital.

• The average portfolio size among women is significantly larger than the average portfolio size among men.

While the sample size is naturally limited, the pattern aligns closely with broader research suggesting that women often make fewer investment decisions but commit capital with strong conviction once they have completed their evaluation process.

Why Forestry May Appeal to Long-Term Capital Allocators

We cannot speak for the motivations of individual participants. However, forestry possesses several characteristics that align with the qualities many people seek when allocating capital for the long term.

A forest is not simply a financial asset. Its value is supported by multiple underlying components:

• Productive forest land, a finite asset class that has historically demonstrated long-term value growth

• Timber resources

• Biological growth

• Forest quality

• Future harvesting potential

• Active forest management and asset development

Unlike many financial assets, forests continue to develop regardless of daily market sentiment.

Trees do not react to headlines.

Biological growth continues whether markets are optimistic or pessimistic.

For individuals focused on long-term wealth preservation and asset-backed value creation, this characteristic can be particularly attractive.

What Our Data Suggests

Our analysis does not suggest that men allocate capital better than women, or vice versa. What it does suggest is that people with different backgrounds, experiences, and decision-making styles can arrive at similar conclusions when evaluating a tangible long-term asset.

The most notable finding from our own data is straightforward:

Among the largest portfolio holders at FF Forest, women may be fewer in number, but they represent a disproportionately large share of committed capital.

Perhaps this reflects a broader trend increasingly visible across the investment landscape: successful long-term wealth building is often less about reacting quickly and more about understanding what creates value over time.

Sources

• Fidelity Investments, “Women and Investing Study”

• Vanguard Research, “How America Invests”

• Morningstar Behavioral Finance Research

• BNY Mellon Wealth Management, “Women and Investing”

• OECD Research on Financial Literacy and Investment Behaviour