 Jesse
Lauriston Livermore |
| |
|
| Nickname: |
Boy Plunger and Great Bear
of Wallstreet. Called the greatest stock market speculator of
the 1920’s. |
| Background: |
Worked as a board marker in
Boston brokerage houses. Started trading at 16 years of age.
Barred from all of Wall Street bucket shops because of tape
reading skills. |
| Primary Markets: |
Stocks, Cotton and Wheat. |
| Birthplace: |
Shrewsbury, Mass |
| Original
Bank Roll: |
$3.12 (inflation adjusted:
$39) |
| Net Worth
at Age 21: |
$9,000 (inflation adjusted:
$164,931) |
| |
|
| 1907: |
Became prominent as a speculator
in the bear market in stocks. Turned $50,000 to $2,000,000 (inflation
adjusted $36,651,379) by shorting Union Pacific, Reading and
Copper & Smelters. Cornered cotton market. Estimated profit
made of over $1,000,000 (inflation adjusted $18,325,690). |
| 1908: |
Came close to cornering the
cotton market again. Increases net worth to over $3,000,000
(inflation adjusted $54,977,069). In August of 1908 estimated
net worth between $2,000,000 and $3,000,000. Caught long 300,000
bales of October cotton. Cotton breaks 67 points. Loses nearly
$1,000,000. |
| 1913: |
Disappears until 1913. |
| 1915: |
Files for Bankruptcy at the
age of 38. |
| 1917: |
Opens office at 11 Broadway
and is back trading. Announces having paid back over $2,000,000
in debts, even though he was not required to do so. Apparently
several million dollars to the good. |
| 1917: |
Based on idea of German peace,
thought industrial stocks would go down and cotton would go
up. Bought 40,000 bales of cotton. German Emperor sets a belligerent
tone which sends both industrial stocks and cotton down. Loses
5 cents per pound or $25 dollars per bale of cotton. This amounts
to a $1,000,000 loss. However, makes as much back on short positions
in the industrial stocks. |
| 1917: |
Working on the bull side of
May wheat with a group of eastern speculators, forces a wheat
market rally. It is widely feared that May wheat at $3.25 will
rally to over $10.00. Vast quantities of wheat bought that did
not exist. Chicago Board of Trade halts trading in wheat. The
first time such an action is taken by this particular Exchange.
Emergency intervention by Board of Directors of Exchange. Parties
agree on a fair price at which all contracts in May wheat will
be settled. Estimated profits of over $1,000,000. |
| 1920: |
Jan 2nd, Livermore elected
a member of the New York Curb Market. Trading takes place in
the open air on Broad Street below Exchange Place. |
| 1922: |
Livermore & his associates
lose over $8,500,000 (inflation adjusted - over $156,000,000)
on short side of Mexican Petroleum (stock advanced 75 points)
Denies settling with holders of the long positions. |
| 1924: |
Interview with Doheny, reveals
that Livermore and his associates floated rumors that Mexican
Petroleum wells were running saltwater. This helped drive the
stock down from $200 to $86 a share (off of a high of $265).
Doheny accuses Livermore of lobbying Congress to impose import
duties on oil. Doheny meets with President Harding who assures
him no duty will be levied; too many American people driving
Fords and flivvers. |
| 1925: |
Chicago Board of Trade investigates
Livermore in connection with wheat manipulation. |
| 1925: |
Livermore has stock tickers
ripped out of office and quits stock speculation; turns focus
on cotton and grain. Stock market is too large to manipulate;
too many listed stocks. |
| 1925: |
Harpoons a 32 foot White Ray
fishing out of Palm Beach |
| 1926: |
Downward pressure on stocks
in January attributed to aggressive bearish positions led by
Livermore. Industrial stocks had peaked in November of 1925. |
| 1926: |
Livermore sells his New York
Curb Membership for $25,000. Makes a profit of $20,000 |
| 1926: |
Livermore plans trip around
the world on his $55,000 (inflation adjusted $1,000,000) motor
yacht. |
| 1929: |
Reported to be heading group
of short stock sellers. Stocks decline in over all value more
than $1,000,000,000 (inflation adjusted $18.3 billion). |
| 1940: |
Commits suicide on November
28. |
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Profiled by: Andrew Gadzinski |
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