Robin Wigglesworth

I was recommended this book via Adam Tooze's Substack.

In my teenage years, I read "The Four Pillars of Investing" by William Bernstein, per the recommendation of an uncle. Modern Portfolio Theory and index investing have been common sense to me. Wigglesworth articulates the history: this has not always been the case!

This book is a history index funds. That said, it is not a history of financial indices, and I wish the book had gone more in-depth on exactly how financial indices emerged and developed. Maybe I'll need to find a book on ratings agencies next?

Anyways, it is an excellent history of index funds, going back to 19th century France, and the math and philosophy that underlies them.

The narrative tracks all the benefits of index funds, but also looks at new instabilities they might be introducing towards the end. One disadvantage of index funds is that they make the economy as a whole more correlated and less competitive.

All in all, if you're interested in finance, this is a fascinating read.… (más)