The South Sea Bubble, the History of Corporations and the Cryptocraze
People who have read my blog for some time know that besides value investing, I am a big fan of historic (and current) asset bubbles.
The South Sea bubble – recap
One of the most interesting historical stock bubbles was clearly the famous “South Sea Bubble” which peaked and collapsed around 1720. Besides the fact that Sir Isaac Newton lost a ton of money in this bubble, there is another interesting aspect of this bubble which is often overlooked:
The underlying construct which enabled this bubble was the invention of the “Business Corporation” which were initially created to gather enough capital for exploiting the colonies in the Netherlands and England.