Investing has been around for a long time and has evolved with the times. People have been investing money to various deals, transactions, or arrangements since the earliest of days since money was invented. Whether it’s giving money to a tradesman or putting money into a business, investment is something that people who have capital have done to make more of it. People who have money, give it to people who need it, and then hope to grow the money they’ve invested. That’s the basis of investing.

The more we as a civilization has evolved, the more people have invested. The more they have looked for new ways to become more efficient, more effective, and more productive. And often times, those come with a need for investment whether its through monetary investment or human capital.

Business in the US experienced a massive growth trend in the late 19^th century, the Industrial Revolution. It was a time of growth and acceleration in regard to technology. There were lots of advancements developed like the printing press, the steam engine that would allow for new opportunities and businesses. A lot of the development allowed businesses to become more efficient, and effective in their operations. Companies and business had to find different ways and methods to keep up with the times and had to invest into new technology or areas to stay at the forefront of their industry. It was a time where inventor Thomas Edison flourished, and constantly tried to find new inventions. People showing their belief and confidence in him encouraged him to invest his time, resources, and energy into finding new ways to move technology forward.

Continuing off that trend, the days of the 20^th century were another time of significant investment. The US government had been investing in a lot of military and warfare advancements to meet the demand of WWI, and to keep manufacturing at a high. Over a few years, the brilliant Henry Ford would dramatically change the way people manufactured products and materials, encouraging a massive amount of investment into new businesses and areas. His creation and framework behind the assembly line, would shape a large part of investing at a large scale of the early to mid 20^th century. Companies were now investing large amounts of money at scale to follow a manufacturing and production method that he pioneered.

The late 20^th century was an interesting time for the world of investing. Different types of investing, and different methods were being created. Technology was moving and advancing at a pace that was unparalleled before, with a large focus on computing and personal computers. Computers were starting to be developed and incorporated into the culture and business world as well. Money was being invested into areas or ways for companies to develop more efficient ways to run their businesses through computers. New software’s, new hardware’s, a lot of money was being invested into the computing revolution. People saw it as a way to become more effective and organized in one place, rather than have to do things by hand and paper. A lot of what was being developed and invested in is the reason the world has gone to computers and technology today because of the time and money invested into it in the late 20^th century.

The 21^st century for investing has been incredibly different than that of the 20^th century. A lot of the investing in the 20^th century was through financial institutions, advisors, or intermediaries who had access to the financial markets. There were lots of parties involved whether it was brokers, dealers, or advisors. The 21^st century for investing has been filled with do it yourself, and directly to the consumer or investor themselves. The smartphone revolution has given an enormous amount of power, independence, and freedom to the investor. It’s allowed people to invest into various companies, markets, investment vehicles around the world with a tap of a finger. The amount of power that has been created and given to the consumer is unparalleled and unchallenged throughout our history.

Investing has truly gone from something that investors, advisors, or financial analysts primarily did, to something almost everyone does nowadays. It’s gone from something that multiple parties or people were normally involved to just the investor or consumer and the company itself. The digital evolution has given people the ability to get access to their company’s through a variety of different applications and have the ability to trade in the marketplace through them. The days of going to a bank or financial institution to purchase a share of stock and receive a piece of paper or stock certificate are long in the past. It’s given people an incredible amount of independence and freedom to invest, while we’ve seen a lot of investing and finance companies be run out of the business.

There has been an incredible amount of consolidation in the world of finance and investing.

A lot of the brokers or dealers or smaller companies who were around in the past, have been run out of the business. A lot of this has to do with the amount of technological advancement the bigger companies have been able to create and develop which has made it more economical and financially efficient for the consumer. The older brokers, dealers, and smaller firms were built and predicated on fees which a lot of the bigger companies have cut out, while offering the same functionality. This has empowered the consumer and investor to go to the larger corporations for an easier and more efficient process both technologically and financially.

Conclusion

Investing has evolved over the course of history from something that was done by tradesman and merchants, to professionals, analysts, or advisors, to the normal consumer. Technology has evolved over time, and so has investing. The world of investing has come a long way and has seen an incredible explosion of technology and platforms within the last 20 years.

The digital revolution has had an impact exponentially across all businesses. Investing and finance has been one of the ones that have been significantly impacted and has resulted in a consolidation among companies. Whether its finance vs accounting or finance vs investing, the effects of consolidation have seen a massive effect during the digital revolution.

Going forward, investing will continue to evolve and change with the times. The foundational fundamentals it was built upon, making money, finding new and unique strategies to grow capital, and connecting people who have money to people who need it will always be an important part of the investing culture.