The Gist
Women have been active investors throughout history, often managing family finances and making strategic investment decisions long before the modern feminist movement or financial education resources emerged. Notably, figures like Abigail Adams showcased their prowess in the financial realm, achieving remarkable returns on investments.
How It Worked
Many women were responsible for managing household finances, learning investment strategies from one another. Abigail Adams, for example, began buying government bonds during a time of skepticism about the U.S. government’s financial future. She capitalized on low prices and sold when values increased, generating over 400% returns on her best investments. Women from various backgrounds—housewives, businesswomen, and even working-class individuals—actively participated in the financial markets, accounting for a significant percentage of stock and bond ownership.
Results
Historically, women accounted for at least 10% of all financial deals in early America, peaking at around 16% of the total stock and bond market in the early republic. By the post-World War I era, they controlled about 40% of securities. Abigail Adams alone achieved a lifetime annualized return of about 18%, comparable to modern investment legends. Publications like Ladies’ Home Journal and Good Housekeeping routinely provided investment advice, further encouraging female participation in finance.
Why It Matters for You
Understanding this rich history of female investment can reshape current narratives about women in finance. It encourages today’s investors to recognize the long-standing presence of women in financial markets and to learn from their pioneering strategies. By revisiting these lessons, current and future investors can harness the knowledge and insights that women have been cultivating for centuries.
