Using the technique I had employed, giving me excellent commodity market returns with UNIVERSAL CONTROLS and THIOKOL, I made a pilot buy into all four of them on May 13, 1959:
500 shares ZENITH RADIO at 104 ($52,247)
500 shares BECKMAN INSTRUMENTS at 66 ($3 3,228)
500 shares FAIRCHILD CAMERA at 128 ($64,259)
500 shares LITTON INDUSTRIES at 112 ($ 56,251)
On each of these stocks I put a stop-loss order of 10 per cent below buying price to ensure acceptable commodity market returns.
I was fully aware that these stop-losses were vague and too mechanical. It was a deliberate, if clumsy, method. I purposely used this system because I knew sooner or later it would eliminate those of the four that were weakest and give the poorest commodity market returns.
On May 18th I was stopped out of BECKMAN INSTRUMENTS at 60, and on May 19th I decided to sell LITTON INDUSTRIES, which was acting worse than the others, at 106 & a quarter. Now I adjusted my stop-losses on the remaining stocks to ensure commodity market returns.
It was the fourth week of May when I proceeded to switch more than $1,000,000 from my commodity market returns into the two stronger stocks. These were my total purchases:
Discounting my short-term tradings, my funds were switched from commodity to commodity in the following way:
At that time I had six brokers. I closed my account with three of them. Then I sat back and watched the stocks I held bring in commodity market returns. There was nothing else for me to do while TEXAS INSTRUMENTS, ZENITH RADIO and FAIRCHILD CAMERA went to work for me.
During June the telegrams continued to flash between Wall Street and the Plaza Hotel. They were meaningless to the Western Union operators but they were full of commodity market returns for me. For instance, on June 9th I received the following telegram:
The following day's telegram read:
They were boring, meaningless hieroglyphics to the operator but they meant a lot to me. They told me that my commodity market returns had given me $100,000 in that one single day!