Ricardo's finances and Waterloo: legends by Samuelson and others lack historical evidence.

This article critically examines the widely circulated legends about David Ricardo’s financial success, particularly the claim that he made a life-changing fortune on the London Stock Exchange immediately after the Battle of Waterloo in 1815. Archival evidence and detailed stock price statistics reveal that Ricardo accumulated his wealth gradually through numerous transactions as a stock jobber and as a contractor for seven British government Loans between 1807 and 1815, rather than through a single “big coup.” The article refutes Paul Samuelson’s allegations that Ricardo engaged in unethical market manipulation or insider trading, showing instead that Ricardo’s investment strategy focused on small profit margins on large volumes and that he often sold shares quickly, including before official news of Waterloo reached London. Furthermore, it highlights the greater profitability of the two British Loans issued in 1813, which preceded Ricardo’s purchase of Gatcombe Park and his retirement plans, thereby challenging the emphasis on 1815 in popular narratives. The study also contextualizes Ricardo’s role relative to more dominant financiers like the Baring-Angerstein consortium and critiques similar unsubstantiated legends about Nathan Mayer Rothschild’s Waterloo profits.