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Interview with Time Magazine

I 133 H O T I MADE $2 ,000, 000 IN THE STOCK. MARKE T my cables. He examined them carefully and left saying that he was very impressed with my story. A day later he came back and told me the business experts on the staff were highly skeptical. They said the story could not be true. This really did not surprise me, so again I took him over the facts and figures. He studied them for several hours, and when he finally went away he seemed to be convinced that they were accurate. But this, I was to discover, was only the preliminary skirmish. The next morning he called to ask if we could meet for lunch. Half an hour before lunch, he telephoned again and said he was bringing along a senior editor, who wanted to check on the story himself. They arrived for lunch at one o’clock. Once again I went through all the financial details. The senior editor was so interested that he left his food untouched on the table. At four o’clock, after he had heard the whole story, he ate a sandwich. At ...
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Two Million Dollars

W. hen I came back to New York in the third week of February 1959, 1 had completely recovered from the shock of my mad period, and I began to invest in the market again. I could still feel the bruises of my own foolishness but I was like a man who feels stronger and better after a bad experience. I had learned my last lesson. I knew now that I had to keep rigidly to the system I had carved out for myself. I had learned that if I deviated from it even once, I would be in trouble. My whole financial structure was immediately in danger—it could crash like a house of cards. My first move in New York was to erect an iron fence around myself to ensure that I did not repeat any of my previous errors. I first decided to spread out my deals among six brokers. 119 H O T r MADE $ 2 , 0 0 0 , 0 0 0 IN THE STOCK MARKE T This way my operations would not be followed. To guard myself against any possible interference from them, I put up my barrier. It is a way of protection I am still using tod...
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My Second Crisis

T -M-he half-million-dollar news gave me enormous confidence. I had a very clear conception of how I had done it and I was also convinced I could repeat the feat again. I had no doubt that I had mastered my art. Working with my cables, I had developed a sort of sixth sense. I could “feel” my stocks. This was no different from the feeling that a musical expert develops. His ear will detect a flat note which is inaudible to the ordinary listener. I could almost tell what stocks would do. If after an eight point advance a stock dropped back four points, I did not become alarmed. I expected it to do just that. If a stock started to firm up, I could often predict the day its advance would start. It was a mysterious, unexplainable instinct, but there was 109 HOW I MADE $ 2 , 0 0 0 , 0 0 0 IN THE STOCK MA R K E T no question in my mind that I possessed it. This filled me with a tremendous sense of power. It is therefore not the slightest bit surprising that I slowly started to imagine I...
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My First Half-Million

My First Half-Million T JLhe overwhelming success of my handling of E. L. bruce should have made me more eager and less cautious. Yet, somehow it made me more cautious. I had made over $325,000 in nine months’ investment, and I was determined not to lose it by a wrong move. So many operators have made big money in nine months and lost it in nine weeks. I decided this would not happen to me. The first step I took was to withdraw half of my profits from the market. With my remaining capital I eyed the market warily, watching for possible new well-behaved stocks. As so often after a coup, I had very little success for a month or two immediately afterwards. I cautiously bought 500 shares of molybdenum. I bought it at 27, paying $13,606.25. Almost immediately, I was stopped out at 26^2, so that I got back $13,123.78. 99 r HOW I MADE $ 2 , 0 0 0 , 0 0 0 IN THE STOCK MARKE T I had a go at haveg industries. I bought 500 shares at 31%, paying $15,860.95. It turned around and looked as if...
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The Theory Starts to Work

The Theory Starts to Work hile most Wall Street stocks drifted or dropped, I continued my dancing tour of the world. In November 1957 I was appearing at the "Arc En Ciel” in Saigon when I noticed in Barron’s a stock unknown to me called LORILLARD. I did not know then that they were the manufacturers of a particular brand of filter-tip cigarettes and the filter-tip craze was about to sweep America, causing their production to leap up astronomically. Out in Saigon, all I knew was that loruxard began to emerge from the swamp of sinking stocks like a beacon. In spite of the bad market, it rose from 17 until, in the first week of October, it established itself in the narrow box | 24/27 |. Its volume for that week was 126,700 shares, which sharply contrasted with its usual 10,000 shares earlier in the year. 8 6 t h e t e c h n o - f u n d a m e n t a l i s t : T h e T h eo ry Starts to W o rk The steady rise in price and the high volume indicated to me that there was a tremendous...
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During the Baby-Bear Market

JL JLfter a few weeks of being without a single share I decided to take a closer clinical look at the situation. To understand it clearly I made a comparison between the two markets. The bull market I saw as a sunny summer camp filled with powerful athletes. But I had to remember that some stocks were stronger than others. The bear market? The summer camp had changed to a hospital. The great majority of stocks were sick— but some were more sick than others. When the break came almost all of the stocks had been hurt or fractured. It was now a question of estimating how sick the stocks were and how long their sickness would last. I reasoned that if a stock has fallen from 100 to 40, it will almost certainly not climb up to the same high again for a long, 77 H O T I MADE $2,000, 000 IN THE STOCK MARKE T long time. It was like an athlete with a badly injured leg who Would need a long period of recuperation before he could run and jump again as before. There was no doubt in my mind no...
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Cables Round the World

JL Almost at the same time that I started to operate with my new principles in mind, I signed up to make a two-year tour of the world with my dancing act. Immediately, I was faced with many problems. How, for instance, could I continue to trade while I was at the other side of the world? And instantly and very vividly there came before my mind the occasion when my broker missed me on the telephone. If this could happen in New York, how was I to overcome such a difficulty when I was thousands of miles away? I discussed the matter with him and we decided that we could remain in touch with each other through cables. We also decided upon one tool—this was Barron’s, a weekly financial publication, which we arranged to have airmailed to me as soon as it was published. This would show me any stocks 6 0 THE t e c h n i c i a n : Cables Round the World which might be moving up. At the same time a daily telegram would quote the stocks I owned. Even in such remote places as Kashmir and Nepal,...
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