Jesse Now~ Livermore Lessons, not Ventura Ventures

March 9th, 2010 by Rich

Recent strong earthquakes in Haiti, Chile and Turkey reminded us famed trader Jesse Lauriston Livermore shorted 5000 shares of Union Pacific on Tuesday 17 April 1906 in his hey day.

That was the day before the famous 5:12 AM San Francisco 8 magnitude 42 second Earthquake.

3000 people lost their lives. 300,000 people were homeless, camping out in parks including the Golden Gate. The earthquake caused $6.5 Billion in economic losses in 2009 dollars. At Pier 39 in San Francisco, where the Sea Lions came and went with the Earthquakes, there was an Earthquake Theatre Show, complete with the rumbling.

1907 was the second costliest natural disaster in US History ahead of the 1989 Loma Prieta 7 magnitude 14 second Earthquake Bay Bridge World Series 5 PM earthquake broadcast on international television that took 63 lives, behind Hurricane Katrina, which took 1836 lives in 2005.

The 1906 San Francisco earthquake paled in comparison to the 5 PM PST Christmas Day 2004, 9 magnitude, and 10-minute earthquake in Indonesia that became a Tsunami, killed 230,000 people and received $7 Billion from worldwide donations.

[Each whole magnitude number on the base10 logarithmic Richter scale has an amplitude of ten. The energy release and destructive power of the earthquake multiplies the base10 logarithmic number by a power of 1.5.

In effect, this means a magnitude 8 earthquake is 31.6 times as destructive as a magnitude 7, and a magnitude 9 earthquake is 1000 times as destructive. ]

Magnitude 8 earthquakes occur about once a year on earth.

Magnitude 9 earthquakes occur about once every 20 years.

There were at least five magnitude 9s in modern history -  Lisbon in 1755 on All Saints Day, 1960 and 2010 in Chile, 1960 at 9.5 the biggest earthquake in modern times, 9.2 Anchorage in 1964, and the 9.3 Indian Ocean Earthquake in 2004.

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This entry was posted on Tuesday, March 9th, 2010 at 7:08 pm and is filed under Market Psychology. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Jesse Now~ Livermore Lessons, not Ventura Ventures”

  1. Vahram Says:
    March 11th, 2010 at 9:34 pm

    rich write a book, i’ll be the first one to buy it.

  2. Rich Says:
    March 16th, 2010 at 7:43 pm

    Thanks Vahram.
    Wrote Four:
    A.Mind, Money, Market 1981
    (Syllabus for Stanford Investment courses taught by Five years of Academic Senate Appointment)
    B.The Politics of Prosperity 1994
    (Plan for renewing Constitutional Government)
    C. The Gift 2008
    (Predicted the Panic and what to do to protect capital and income)
    D. The Tortuga eManual 2009
    (Bottom line lessons from over 50 years in the market, starting with pulling weeds for silver dollars)
    Spring Portfolio of TopTen Closely Held Dividend Discounts comes out this weekend.
    Big4 Asset Allocation Portfolio comes out every Weekend.
    Regards*Rich

 

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