Darvas's Trades
This
sidebar was published in the November 19, 2006 issue of the Break Out
Report.
Here is the progression of
Darvas’s trades to $2 million. Remember, he used margin and so invested
more than he actually had in cash. First trade noted below was in
November 1957.
- bought 200 Lorillard at 28 ¾, 200 at 35, 200 at 36 ½ and 400 at 38
5/8. Invested $35,827.50
- bought 500 Diner’s Club at 24 ½ , 500 at 26 1/8. Invested $25,520.80
- sold Diner’s Club for $35,848.85
- sold Lorillard for $56,880.45
- bought E.L. Bruce in 5 increments between 50 ¾ and 53 5/8 for
$130,687.55
- sold E.L. Bruce for $425,993
- lost small amounts on Molybdenum and Haveg Industries. Lost about
$6500 trying Lorillard again after which he had a total profit of
$318,686.45
- bought 300 Universal Controls at 35 ¼ , 1200 at 36 ½ , 1500 at 40.
Total $115,313.49
- bought 200 Thiokol at 47 ¼ , 1300 at 49 ½. Total invested:
$74,943.98
- a
rights offer came from Thiokol which enabled him to convert to a
highly leveraged position of 6000 shares for a cost of
$350,820
- combined holdings of Thiokol and Universal Controls climbs to over
half million
- got
over-confident, ignored his rules and lost $96,588.66 trading 14
different stocks (he calls it his mad period). Still held Thiokol
and Universal Controls through this period.
- traded a variety of stocks for a profit of $25,000 (he lists 11
stocks)
- sold Universal Controls for $524,669.97
- bought 2000 Texas Instruments at 94 3/8, 1500 at 97 7/8, 200 at 101
7/8. Total $541,996.95
- sold Thiokol for $1,212,851.52
- after probing four stocks, bought $574,842.25 of Zenith, $567,820.60
of Fairchild Camera
- 3
positions - Zenith, Fairchild and Texas Instruments – valued over
$2,250,000 in July 1959
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