Confusion de Confusiones [1688]: Portions Descriptive of the Amsterdam Stock Exchange

by José de la Vega, Hermann Kellenbenz (Translator)

2013 Reprint of 1957 Edition. Full facsimile of the original edition, not reproduced with Optical Recognition Software. Joseph Penso de la Vega, best known as Joseph de la Vega (ca.1650-1692), was a successful Jewish merchant, poet, and philanthropist residing in 17th century Amsterdam. He became famous for his masterpiece "Confusion of Confusions" the oldest book ever written on the stock exchange business. Although not a descriptive account of the process of stock trading, Penso presented the history of speculation in stocks and acquainted the reader with the sophisticated financial instruments used. The dialogue format allowed the reader to understand the respective perspectives of the various market participants and the intricacies of speculation and trading. Penso also came up with four basic rules of the share market that are still of the greatest relevance today: The first rule in speculation is: Never advise anyone to buy or sell shares. Where guessing correctly is a form of witchcraft, counsel cannot be put on airs. The second rule: Accept both your profits and regrets. It is best to seize what comes to hand when it comes, and not expect that your good fortune and the favorable circumstances will last. The third rule: Profit in the share market is goblin treasure: at one moment, it is carbuncles, the next it is coal; one moment diamonds, and the next pebbles. Sometimes, they are the tears that Aurora leaves on the sweet morning's grass, at other times, they are just tears. The fourth rule: He who wishes to become rich from this game must have both money and patience. Includes Foreword by Hermann Kellenbenz.

Genres: Finance, History, Economics, Nonfiction

66 pages, Paperback

First published January 1, 1688

Reviews

[Rick Sam · Rating 3 out of 5]

Joseph Penso de la Vegas was a well known Jewish merchant, poet, writer near Antwerp. He writes about things happening inside Amsterdam Stock Market. He gives little snippets of stories happening in everyday life.

He says people are driven with greed, they make up stories, deceit, switch sides just to make profits. I am sure that some of them still happen today in Modern Stock Market. There are four types of people who buy stocks:

i) Wealthy
ii) Occasional Speculators
iii) Bankers
iv) Merchants

Anyway, I came across Shepard Jew and Ashkenazim Jew in this book. It is sad to hear that some of the Jews did not have place to stay in Europe. Some pretended to be new Christians in order to take refuge.



Deus Vult
--Gottfried--

[Andy · Rating 4 out of 5]

A brief and interesting dialogue-style read about the workings of the Dutch stock exchange in the 17th century. I enjoyed comparing and contrasting how the stock market is described back then, to how I think it works today. More than anything, I think the principles explicitly highlighted are extremely important for anyone who wants to invest:

1. Never give anyone the advice to buy or sell shares
2. Take every gain without showing remorse about missed profits
3. Profits on the exchange on the exchange are the treasures of goblins (This is elaborated on a little, but I take it to mean, exercise caution even when recognizing profits because they can quickly turn to losses)
4. Whoever wishes to win in this game must have patience and money

[Ramón Martínez · Rating 1 out of 5]

Interesante como documento histórico. pero muy, muy pesado.

Lo que más me ha gustado del libro, es comprobar que ya en aquella época tenían una visión muy actual de los mercados financieros, de la especulación y de los sesgos e irracionalidad de los inversores.

El problema es que está escrito de una forma que lo hace un martirio. No fui capaz de acabarlo.

[Hunter Radecki · Rating 4 out of 5]

For a 17th century discourse on the budding stock market… I kinda liked this?

Vega presents an honest, outside perspective of the beginnings of the market as we know it today. A screaming sphere void of ethics, gamification of gambling with incredible consequences, not so different from the market of today. Had his perspective glazed and pedestaled the market, I’m sure my opinion would be much different.

[Ricardo Hernández · Rating 4 out of 5]

Beautiful book that recounts the beginning of the Exchange in Amsterdam. The precepts (or principles) of speculation are still relevant today and is amusing to read the description of the tactics (stratagems in the book) used by bulls and bears, as well as the description of options and short selling.

[Antonio · Rating 4 out of 5]

I thought it was good, talks about the history of the stock market and gives since context of how it used to work. It's interesting, short and sweet.

[Bill Webber · Rating 3 out of 5]

Market hijinks take place no matter what the year...human nature hasn't changed in eons...

[Thomas · Rating 3 out of 5]

From the introduction: "Here is a book written in Spanish by a Portuguese Jew, published in Amsterdam, cast in dialogue form, embellished from start to finish with biblical, historical, and mythological allusions, and yet concerned primarily with the business of the stock exchange and issued as early as 1688."
- An entertaining and surprisingly modern account of the Dutch East Indian Company and the Amsterdam stock exchange in their heyday.

[Bonnie H · Rating 5 out of 5]

Nothing has changed in 330 years... a primer for trading and for machiavellians.