As Hayek begins:
The true individualism which I shall try to defend began its modern development with John Locke, and particularly with Bernard Mandeville and David Hume, and achieved full stature for the first time in the work of Josiah Tucker, Adam Ferguson, and Adam Smith and in that of their great contemporary, Edmund Burke-the man whom Smith described as the only person he ever knew who thought on economic subjects exactly as he did without any previous communication having passed between them. In the nineteenth century I find it represented most perfectly in the work of two of its greatest historians and political philosophers: Alexis de Tocqueville and Lord Acton. These two men seem to me to have more successfully developed what was best in the political philosophy of the Scottish philosophers, Burke, and the English Whigs than any other writers I know; while the classical economists of the nineteenth century, or at least the Benthamites or philosophical radicals among them, came increasingly under the influence of another kind of individualism of different origin.
He continues:
I can give no better illustration of the prevailing confusion about the meaning of individualism than the fact that the man who to me seems to be one of the greatest representatives of true individualism,Edmund Burke, is commonly (and rightly) represented as the main opponent of the so-called "individualism" of Rousseau, whose theories he feared would rapidly dissolve the commonwealth "into the dust and powder of individuality,"4 and that the term "individualism" itself was first introduced into the English language through the translation of one of the works of another of the great representatives of true individualism, De Tocqueville, who uses it in his Democracy in America to describe an attitude which he deplores and rejects.
Now there are times that one finds Burke to be anything but an individualist, since he is so tightly bound to the English class structure. Then Hayek states:
What, then, are the essential characteristics of true individualism? The first thing that should be said is that it is primarily a theory of society, an attempt to understand the forces which determine the social life of man, and only in the second instance a set of political maxims derived from this view of society. This fact should by itself be sufficient to refute the silliest of the common misunderstandings: the belief that individualism postulates (or bases its arguments on the assumption of) the existence of isolated or self-contained individuals, instead of starting from men whose whole nature and character is determined by their existence in society
He then continues:
I cannot better illustrate the contrast in which Cartesian or rationalistic "individualism" stands to this view than by quoting a famous passage from Part II of the Discourse on Method. Descartes argues that "there is seldom so much perfection in works composed of many separate parts, upon which different hands had been employed, as in those completed by a single master." He then goes on to suggest (after, significantly, quoting the instance of the engineer drawing up his plans) that "those nations which, starting from a semi-barbarous state and advancing to civilization by slow degrees, have had their laws successively determined, and, as it were, forced upon them simply by experience of the hurtfulness of particular crimes and disputes, would by this process come to be possessed of less perfect institutions than those which, from the commencement of their association as communities, have followed the appointment of some wise legislator."
Needless to say this is Hayek, never quite clear and direct, always bringing to the fore issue which are tangential at best. Understanding his individualism can be painful.