Jesse Livermore - Boy Plunger: The Man Who Sold America Short in 1929

Jesse Livermore - Boy Plunger: The Man Who Sold America Short in 1929

Hardcover(1st Edition)

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Overview

Livermore went bankrupt for at least the fourth time in 1934. Despite having amassed a fortune of $100 million by1929, Livermore was back where he started at 16. He did not seem to learn from his mistakes."—Victor Niederhoffer

"That was the call of a lifetime, everyone was blind and deep into the crisis and Jesse Livermore made $100 million going short when almost everyone else was bullish and then almost everyone else lost their shirts."—John Paulson

"His stories of making millions, were the financial equivalent of “sex, drugs and rock ‘n roll” to a young man at the advent of his financial career."—Paul Tudor Jones

"It was an amazing day on 24th October 1929 when Jesse came home and his wife thought they were ruined and instead he had the second best trading day of anyone in history."—John Templeton


Who was Jesse Livermore?
Jesse Livermore, was the most successful stock and commodities trader that ever operated on the stock markets. He was both the man who made the most money in a single day and the man who lost the most money in a single day. In fact he made and lost three great fortunes between 1900 and 1940.

Singlehandedly he caused the two great Wall Street crashes of
1907 and 1929, making millions from both. When he speculated he speculated big and was known on Wall Street as the Boy Plunger.
For a brief period in the early 1930s he was one of the world’s richest men with a personal fortune believed to be worth over
$150 million, $100 million of that earned in just a few days from the Wall Street crash of 1929. In the end it was too extreme a change of fortunes for any man to cope with and Livermore shot himself in a New York hotel lobby in 1940 aged just 63. His legacy continued and his son, Jesse jr later also committed suicide as did his grandson, Jesse III.

In the summer of 1929 most people believed that the stock market would continue to rise forever. Wall Street was enjoying a eight-year winning run that had seen the Dow Jones increase 1,000 per cent from the start of the decade - an unprecedented rise. The Dow peaked at 381 on 3rd
September and later that day the most respected economist of the day,
Irving Fisher, declared that the rise was “permanent”. One man vigorously disagreed and sold $300 million worth of shares short. Two weeks later the market began falling and rising again on successive days for no apparent reason. This situation endured for a month until what became famously known as the three ‘black’ days: On Black Thursday 24th October the Dow fell 11% at the opening bell, prompting absolute chaos. The fall was stalled when leading financiers of the day clubbed together to buy huge quantities of shares. But it was short-lived succor and over that weekend blanket negative newspaper commentary caused the second of the ‘black’ days on Black Monday 26th October when the market dropped another 13%.
The third ‘black’ day, Black Tuesday 29th October saw the market drop a further 12%. When the dust had settled, between the 24th and 29th October,
Wall Street had lost $30 billion. Only much later did it became known that the man who had sold short $300 million worth of shares was Jesse
Livermore. Livermore had made $100 million and overnight became one of the richest men in the world. It remains, adjusted for inflation, the most money ever made by any individual in a period of seven days. This is the story of that man.

Product Details

ISBN-13: 9780990619918
Publisher: The Myrtle Press
Publication date: 05/07/2015
Edition description: 1st Edition
Pages: 400
Sales rank: 441,517
Product dimensions: 5.90(w) x 9.30(h) x 1.60(d)

About the Author

Tom Rubython is best known as the author of Life of Senna, the definitive biography of Brazilian race driver Ayrton Senna. Life of Senna has become the biggest-selling third party biography of a racing driver, with 100,000 copies sold. Six years after its publication, it still sells over 8,000 copies a year. Before beginning as a biographer, Rubython was well known in the world of magazine publishing, spanning the worlds of sport and business. Aside from his work in Formula One, he has been a specialist business writer for thirty years. In business, he is the former editor of BusinessAge, EuroBusiness and Spectator Business. In sport, he has edited F1 Magazine, BusinessF1 and SportsPro. Rubython now specializes in non-fiction storytelling. He is passionate and methodical about the process of writing and researching the definitive biography. Starting out with a determination to tell the full story of a person’s life, he emphasizes what is important and de-emphasizes what is not; the crucial tools of any biographer.

Paul Tudor Jones’ connection with Jesse Livermore began when he started his career in finance at Livermore’s first broker, E.F. Hutton at the age of 26. Shortly afterwards he founded his own investment firm, the Tudor Investment Corporation. He became a student of Livermore and resolved that every new employee be handed a copy of Reminiscences of a Stock Operator, the fictional biography of Livermore, on their first day at work. His study of Livermore’s methods paid off in 1987 when he was able to predict Black Monday on 19th October 1987. Employing exactly the same short strategies as Livermore did in 1907 and 1929 he is said to have tripled his net worth that day. He never looked back and by 2014 his firm had over $14 billion under management. He has consistently made money for himself and his clients so much so that Forbes magazine rated him the 345th richest man in the world in its 2014 wealth rankings. Nowadays he devotes as much of his time to philanthropy as making money for himself running the highly successful Robin Hood Foundation. He started it to give money away himself and encourage other successful fund managers to do so as well. The Foundation is unique in that 100% of donations are spent on good causes. Fortune magazine called it: “one of the most innovative and influential philanthropic organizations of our time.”

Table of Contents

Acknowledgements Tom Rubython xi

Preface Tom Rubython xiii

Foreword Paul Tudor Jones xv

Prologue Jesse Livermore xvii

Chapter 1 Death by His Own Hand: The final meltdown 1

Chapter 2 The Story Begins: An unpromising childhood 9

Chapter 3 The First Trade: Paine Webber in Boston 15

Chapter 4 Bucket Shop Heaven: Makes first fortune 29

Chapter 5 The Bucket Shop Phenomenon: Gambling on shares transfixes America 39

Chapter 6 Marriage and Move to New York: The boy becomes a man 47

Chapter 7 Down and Out: Back to the bucket shops 57

Chapter 8 Do or Die: Back to Wall Street: A re-learning process 67

Chapter 9 San Francisco Earthquake: $250,000 profit in a few days 77

Chapter 10 A Period of Self Analysis: Fundamental change in outlook 83

Chapter 11 Prelude to a Profit: A bearish state of mind 89

Chapter 12 Stock Market Meltdown: Credit crisis threatens America 103

Chapter 13 Enter Morgan: Livermore makes $1 million in a day 109

Chapter 14 The Corn Trade Experiment: First serious trades in commodities 131

Chapter 15 The Life of Riley: Buys yacht - luxury lifestyle begins 137

Chapter 16 Newspaper Notoriety: Lady Luck rescues 'Cotton King' 143

Chapter 17 Under the Influence: Cotton Fiasco: Seduced by Teddy Price 149

Chapter 18 Ultimate Betrayal: The treachery of Teddy Price 159

Chapter 19 Six Lean Years: Going slowly nowhere - We lost period 165

Chapter 20 Official Bankruptcy: The ultimate humiliation 173

Chapter 21 Dramatic Return to Form: Makes $5 million, pays off debts 181

Chapter 22 War and a Coffee Scam Roasters outwit Livermore 193

Chapter 23 The Great Escape Margin and short selling under threat 201

Chapter 24 Divorce, Marriage, Family Dottie steals his heart 207

Chapter 25 The Effortless Millions: Deals galore as he makes $15 million 215

Chapter 26 Respectability is Bought: Great Neck house purchase 229

Chapter 27 The Piggly Wiggly Affair: Another day, another controversy 235

Chapter 28 Legendary Status is Conferred: Publication of fictional biography 245

Chapter 29 Big Offices, Big Staff & Big Money: Move into the big time of Wall Street 251

Chapter 30 Ups and Downs: Battle for supremacy with Arthur Cutten 265

Chapter 31 Manipulating a Profit: A fortune from Freeport Texas 271

Chapter 32 Good Times at Great Neck: The halcyon years 277

Chapter 33 Shenanigans at Great Neck: The bad times start 285

Chapter 34 Prelude to a National Disaster: America binges on shares 295

Chapter 35 Seven Incredible Days: Livermore makes $100 million in a week 307

Chapter 36 Personal Disaster: Home life falls apart 321

Chapter 37 Official Bankruptcy No.2: $100 million seemingly disappears 333

Chapter 38 Personal Tragedy: Ex-wife shoots eldest son 339

Chapter 39 Partial Recovery: The good times are over 347

Chapter 40 Reflections in a Book: Understanding the good times 351

Chapter 41 Reflections on a Life: Jesse Livermore's final reckoning 357

Chapter 42 Postscript: Chaos is left behind 365

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