Why did I love this book?
Peter Bernstein’s Against the Gods – a history of how humans used mathematics to tame risk – is arguably his best work, but Capital Ideas is the deep-cut that deserves much broader appreciation.
It vividly explores the intellectual underpinnings of modern finance formed by the work of the titans of financial economics: Louis Bachelier, Harry Markowitz, William Sharpe, Fischer Black, Myron Scholes, Robert Merton, Franco Modigliani, and Merton Miller.
2 authors picked Capital Ideas as one of their favorite books, and they share why you should read it.
Capital Ideas traces the origins of modern Wall Street, from the pioneering work of early scholars and the development of new theories in risk, valuation, and investment returns, to the actual implementation of these theories in the real world of investment management. Bernstein brings to life a variety of brilliant academics who have contributed to modern investment theory over the years: Louis Bachelier, Harry Markowitz, William Sharpe, Fischer Black, Myron Scholes, Robert Merton, Franco Modigliani, and Merton Miller. Filled with in-depth insights and timeless advice, Capital Ideas reveals how the unique contributions of these talented individuals profoundly changed the practice…