VOObyM

Reminiscences of a Stock Operator
thousand shares. The price on this line averaged me almost exactly 85. That meant a
profit of fifteen points on it; but, of course, my entire profit, still on paper, was much
more. It was a safe enough profit, for I had a market for all I wanted to sell. The stock
would sell higher on judicious manipulation and I had graduated calls on one hundred
thousand shares beginning at 70 and ending at 100.
Circumstances prevented me from carrying out certain plans of mine for converting my
paper profits into good hard cash. It had been, if I do say so myself, a beautiful piece of
manipulation, strictly legitimate and deservedly successful. The property of the company
was valuable and the stock was not dear at the higher price. One of the members of the
original syndicate developed a desire to secure the control of the property a prominent
banking house with ample resources. The control of a prosperous and growing concern
like the Imperial Steel Corporation is possibly more valuable to a banking firm than to
individual investors. At all events, this firm made me an offer for all my options on the
stock. It meant an enormous profit for me, and I instantly took it. I am always willing to
sell out when I can do so in a lump at a good profit. I was quite content with what I
made out of it.
Before I disposed of my calls on the hundred thousand shares I learned that these
bankers had employed more experts to make a still more thorough examination of the
property. Their reports showed enough to bring me in the offer I got. I kept several
thousand shares of the stock for investment. I believe in it.
There wasn't anything about my manipulation of Imperial Steel that wasn't normal and
sound. As long as the price went up on my buying I knew I was O.K. The stock never
got waterlogged, as a stock sometimes does. When you find that it fails to respond
adequately to your buying you don't need any better tip to sell. You know that if there is
any value to a stock and general market conditions are right you can always nurse it
back after a decline, no matter if it's twenty points. But I never had to do anything like
that in Imperial Steel.
In my manipulation of stocks I never lose sight of basic trading principles. Perhaps you
wonder why I repeat this or why I keep on harping on the fact that I never argue with the
tape or lose my temper at the market because of its behaviour. You would think wouldn't
you? that shrewd men who have made millions in their own business and in addition
have successfully operated in Wall Street at times would realise the wisdom of playing
- 220 -