A History of the Theory of Investments: My Annotated Bibliography

by Mark Rubinstein

"This exceptional book provides valuable insights into the evolution of financial economics from the perspective of a major player."
-- Robert Litzenberger, Hopkinson Professor Emeritus of Investment Banking, Univ. of Pennsylvania; and retired partner, Goldman Sachs A History of the Theory of Investments is about ideas -- where they come from, how they evolve, and why they are instrumental in preparing the future for new ideas. Author Mark Rubinstein writes history by rewriting history. In unearthing long-forgotten books and journals, he corrects past oversights to assign credit where credit is due and assembles a remarkable history that is unquestionable in its accuracy and unprecedented in its power. Exploring key turning points in the development of investment theory, through the critical prism of award-winning investment theory and asset pricing expert Mark Rubinstein, this groundbreaking resource follows the chronological development of investment theory over centuries, exploring the inner workings of great theoretical breakthroughs while pointing out contributions made by often unsung contributors to some of investment's most influential ideas and models.

Genres: Finance, Economics

384 pages, Hardcover

First published January 1, 2006

Reviews

[Jeff · Rating 3 out of 5]

This book is fine if you're looking for a review of the academic literature in financial economics. If you're looking for practical research that you can apply to your investments you won't find it here. Seriously, there is almost nothing of practical value in this book, and the return on time spent is not worth it if that's what you're looking for. The summaries of the academic papers discussed in the book are useful, but dry and often overly complicated.

[Keith · Rating 4 out of 5]

As a distinct and well-defined area of academic study, the field of Finance is a relatively young discipline. Once considered a fairly pedestrian backwater within the Economic Sciences, Finance started to come into its own in the early 1950s with the celebrated analyses by Roy and Markowitz of how investors should form optimal security portfolios by minimizing risk subject to a return goal. Of course, the questions addressed by that research were themselves not wholly original, but drew from the centuries-old work of people such as Bernoulli, Pascal, Fermat, and Halley. So, while Finance as its own field of study may indeed be a recent phenomenon, it is also one that rests on a long-standing historical foundation.

In A History of the Theory of Investments, Mark Rubinstein offers the reader an insightful synopsis of how many of the big ideas that define modern financial research—especially in the broad sub-area of investment management—developed over time. Subtitled “My Annotated Bibliography”, the book is just that: namely, it comprises Rubinstein’s summaries, opinions, and syntheses of scores of the most influential publications ever written on this wide-ranging topic. The author is particularly well-qualified to have undertaken such an endeavor; he is himself a very accomplished academic researcher who has contributed significantly to the intellectual development that he chronicles.

These research summaries are organized and presented in chronological order, grouped, in fact, into three eras: Ancient (pre-1950), Classical (1950-1980), and Modern (post-1980). This is an effective choice that makes it easy to appreciate how we have arrived—either by incremental steps or with great leaps in thought—at the main paradigms representing the theory of how to invest our financial capital. It is worth noting, however, that the discourse does have some shortcomings (e.g., several of the discussions are quite demanding from a technical standpoint, the author’s own work is perhaps overrepresented, he seems to be somewhat biased against the value of purely empirical research). Nevertheless, A History of the Theory of Investments is a valuable resource that any serious student of Finance will want to have on his or her shelf.

[Erik Goodge · Rating 4 out of 5]

Very detailed yet concise. A little light of a few explanations.

[Sara Edwards]

Rubinstein, M. (2006). A history of the theory of investments: My annotated bibliography. New York: John Wiley and Sons.

Review by Sara Edwards

Call Number: HG4515.R82 2006

Description: A study of long-forgotten books and journals used to piece together the true history of investments throughout the centuries.

Relevance and Relationship: Would be relevant to students in the new MBA program, or undergraduate business students, or anyone who is interested in investing in the stock market.

Purpose: A history of the turning points in investment history.

Validity: Reasonably priced at $100. Considered a ground-breaking new account about investing. Could expand upon the number of titles available for the new MBA program.

Format: Published in 2006, 370 pages.

Arrangement and Presentation: Set in chronological order, this book sets out to reverse oversights made in terms of investing and give credit to contributors who may not have been recognized previously.

Diversity: A specialized title, suitable for undergraduate business majors, or students of the MBA program. Could apply to other students concerned with the current state of the stock market.