People first met with investment in prehistory, during the agricultural revolution. The agricultural revolution refers to the period when people transitioned from hunting and gathering activities to settled agricultural societies. This period dates back to about 10,000 to 5,000 years ago.
With the agricultural revolution, people started to turn to activities such as plant breeding and animal husbandry. This has increased people’s ability to produce and store their food and has led to an increase in population. It also allowed people to begin bartering and trading in overproduced products.
With the emergence of trade, the concept of investment was also born. People have started to store and use the surplus products they have obtained to meet their future needs. This process formed the basis of investing.
Initial investments were usually made in tangible assets such as agricultural products, animals and movable goods. People have kept these assets, bartered and held for future value increase or use.
Over time, the diversity of investment has increased and more complex financial instruments have emerged. Precious metals such as money, gold and other precious metals have also been used as investment vehicles. Later, more sophisticated investment instruments such as stocks, bonds, commodity markets and other financial instruments were developed.
Investing today is a broad activity with the aim of investing in different asset classes and raising capital. People invest in a variety of investment vehicles such as stocks, bonds, commodities, real estate, foreign exchange and cryptocurrencies. Also, intermediaries such as stock markets, banks, mutual funds and other financial institutions make it easy for people to invest.
Investing is used for many, many purposes, such as achieving personal financial goals, creating pension funds, increasing income and protecting assets. By investing, people can grow their capital, earn passive income, and provide financial security.