MODULE 6

Full Simulation: Recreating a 1970s–80s Investment Experience

Investing in the U.S. stock market during the 1970s and 1980s was a vastly different experience compared to the high-speed, app-driven methods of today. Back then, everything was manual, slower, and demanded a deeper level of personal involvement. In this simulation, students will step into the shoes of an average investor from that era. They will experience the full process of acquiring market information, placing orders, and maintaining their own transaction records, just as someone would have done in the pre-digital age.

To begin with, students will receive stock quotes by phone in a role-playing setup. During those decades, investors would typically call their stockbroker for real-time prices. There were no apps or websites to refresh. The broker would either have direct access to a trading floor or use data terminals (such as Quotron machines) to access prices, which were delayed by several minutes. Students will practice calling a simulated broker and asking for the latest price of a company like IBM, General Electric, or Coca-Cola. They’ll need to note bid and ask prices, volumes, and any relevant market news the “broker” shares.

Once the student receives the quote, they must decide whether to place a buy or sell order. Orders were handwritten or communicated verbally to the broker, who would then execute the trade manually. The investor had to specify the type of order—market or limit—the number of shares, and the stock symbol. Students will simulate this by filling out a trade order slip, including all relevant details, just as a real investor would have done. Clarity and precision were essential, as mistakes could be costly and hard to reverse.

After placing the order, students will record the transaction in a paper ledger. This ledger serves as their personal record-keeping tool, replacing today’s digital dashboards. Each transaction entry must include the date, stock name and symbol, quantity of shares, price per share, total cost (or proceeds), and associated fees or commissions. Maintaining this ledger accurately is critical—not just for tracking performance, but also for tax reporting and dividend accounting, which will be covered in later exercises.

This immersive experience helps students appreciate the discipline required to invest before the internet era. Decisions had to be more deliberate, and investors couldn’t rely on instant updates or algorithmic alerts. Instead, they had to cultivate patience, maintain thorough records, and build relationships with trustworthy brokers.

By the end of this simulation, students will better understand the roots of modern investing—and how valuable these foundational practices remain, even today.

How Taxes, Dividends, and Holdings Were Tracked (1970s–80s Method)

How Taxes, Dividends, and Holdings Were Tracked (1970s–80s Method)

In the 1970s and 1980s, managing your investments involved far more personal responsibility and manual tracking than today. There were no portfolio apps or real-time dashboards. Investors had to understand how to keep track of their holdings, calculate dividends, and prepare for taxes using only paper records, mailed statements, and a calculator. In this part of the simulation, students will learn how to track these key aspects of their investments using the same methods used decades ago.

First, let’s look at dividends. Back then, when a company issued a dividend, shareholders would receive a physical check in the mail, along with a short statement called a "dividend advice." This notice stated how many shares you owned, the dividend per share, and the total amount paid. Many investors kept these stubs and entered them manually in a notebook or ledger. Students will practice this by creating simulated dividend entries based on mock company data, noting the income and its date of receipt. They’ll also learn how to distinguish between qualified and non-qualified dividends, something relevant for tax purposes—even in the past.

Tracking holdings was another hands-on task. Investors typically stored their stock certificates at home or with their brokerage firm. Portfolio summaries were not real-time—they came via mail, often monthly or quarterly. To know how many shares you owned and at what cost, you had to manually update your personal ledger every time you bought or sold. Students will recreate this using example trade data, calculating their average cost basis and current total holdings using only a calculator and a handwritten log.

Taxes were even more complex. Investors needed to track capital gains and losses manually. That meant keeping detailed notes about the purchase price, sale price, and date of every transaction. At the end of the year, they had to calculate short-term versus long-term gains, total dividends received, and any reinvested dividends. Tax software didn’t exist, so most people either did the math themselves or took organized paper records to an accountant. In this simulation, students will complete a basic capital gains worksheet and dividend report based on their simulated trades and income.

Understanding this process is key to appreciating how much attention and organization investing required before modern tools existed. Investors had to be meticulous and aware of every aspect of their portfolios—not just for performance but for compliance with tax regulations. Mistakes or lost records could mean overpaying taxes or facing penalties.

By replicating this old-school system, students will develop a deeper respect for the diligence and discipline that long-term investing demanded in the past. This foundation not only gives context to today’s technology-driven investing but also strengthens the students’ ability to operate with precision in any environment.

Reflection: What Have We Lost and Gained with Technology?

Reflection: What Have We Lost and Gained with Technology?

As we reach the conclusion of this module, it’s important to reflect on the profound shift that has taken place in the world of investing with the rise of technology. While the 1970s and 1980s demanded a slower, more deliberate approach, today’s environment offers instant access, automation, and global reach. But with every gain, there are also things we’ve lost.

Let’s begin with what we’ve gained.

Technology has democratized investing. In the past, you needed a broker, a minimum investment amount, and access to paper records. Today, anyone with a smartphone can open an account and buy fractional shares of major companies within minutes. Commissions have disappeared, and data that once cost thousands of dollars is now freely available in real time.

We’ve also gained speed and efficiency. Back in the 70s and 80s, getting a quote could take a phone call and waiting several minutes. Placing an order meant verbal confirmation and manual record-keeping. Now, trades are executed in milliseconds, and your portfolio is updated instantly. Tax reporting is automated, and you can analyze your performance with a few clicks.

Technology has also opened doors for education and research. Instead of relying solely on a broker’s opinion or printed newsletters, investors today have access to endless resources—videos, courses, expert analysis, and even AI-powered insights. The barrier to entry is lower than ever.

However, these advancements have come at a cost. So, what have we lost?

We’ve lost the depth of personal involvement. In the analog era, every trade was intentional. You knew the company, the price you paid, and why you were investing. Today, it's easy to become a passive or emotional investor—buying on impulse or following social media hype, without truly understanding what you're investing in.

We've also lost patience. Long-term investing was once the norm. Holding a stock for years—even decades—was expected. Now, the culture of instant gratification, fueled by apps and notifications, has encouraged day-trading and speculation, often at the expense of long-term gains.

Another thing we’ve lost is the relationship with the process. Before, keeping a ledger, receiving dividend checks by mail, and calculating gains by hand connected investors to their money in a tangible way. Today, with everything automated, it’s easy to become detached, treating your portfolio like just another number on a screen.

Finally, we’ve lost some human connection. Investors once had personal relationships with brokers and advisors, who often acted as mentors or guides. Now, algorithms and robo-advisors dominate the landscape. While efficient, they lack the nuance, trust, and mentorship that came from human interaction.

Technology has made investing faster, easier, and more accessible—but at the price of intentionality, discipline, and human connection. The challenge for modern investors is to enjoy the benefits of technology without losing the timeless principles that made investing successful in the past.