From legendary short seller to god of American capital

Chapter 369 The Gambling Kid Arrives in St. Louis

At 5 p.m., Larry returned to the hotel. He was immediately met by a young Italian man who approached him somewhat embarrassedly and said, "Boss! I've made contact with someone with a lot of connections. This guy's uncle works as a train dispatcher, and we can get a lot of railway information from him."

Larry narrowed his eyes and asked, "Really? If that's the case, we should do everything we can to get rid of him."

"—I can do it, but I need some money. You know, you need money to win him over, right?"

"Isn't $500 enough?" Larry asked. They had already received funding for the activity.

"That's not enough—" the other party said somewhat embarrassedly, "I'm afraid I'll need to add another $500!"

Larry nodded, smiled, took the last $1000 from his pocket, stuffed it into his hand, and whispered, "Go for it!" Larry smiled and affirmed him, "You get good intelligence by spending a lot of money! If you want intelligence, then go for it! Remember, don't be afraid to spend money. What I need is intelligence on key railway transportation."

The man took the money and left happily. But this scene made Matthew, who was standing next to him, shake his head helplessly.

"Larry, didn't you say that's all you have left? If you give away this $1000, how are you going to make money?" Matthew said, pulling two train tickets from his pocket. "Are we still going to St. Louis?"

"Go! Of course I'll go!" Larry said with a nonchalant smile. "Don't worry about me! I just need to borrow some money, and we can set off."

"Borrow money?" Matthew was taken aback, then pulled two hundred-dollar bills from his pocket. "This is still the activity fund you gave me. There's $200 left. Take it!"

"No, no!" Larry refused with a laugh. "I'm going to find Uncle Dunbar. Keep your money for us to stay at a hotel. Come on, let's go find Dunbar."

Matthew had no idea what Larry was up to, but seeing Larry's relaxed smile as if he was about to play a game with him, he could only follow Larry back to the suite on the third floor.

Dunbar was completely bewildered when he heard that Larry wanted to borrow money.

"What do you need the money for? Besides, what are you talking about borrowing from me? All the money I have right now comes from you—"

Larry waved his hand and said with a smile, "No! It's just a loan. $500 is enough for me, any more is useless. Matthew and I are going to St. Louis to get some money."

"Why are you going there? How are you planning to make money?" Dunbar knew Larry's temper; being too polite would only make him unhappy, so he simply counted out $500 and handed it to him.

Larry took the money, his face beaming with excitement. "Have you forgotten what I do? I'm a speculator. If I want to make money, I naturally go to the betting industry!"

"A betting shop? You're going there again—I'll go with you! I'm not afraid you'll lose money, I'm afraid you'll win too much—and get into trouble," Dunbar said immediately.

Matthew now understood Larry's confidence; he had heard that Larry had started his business in the gambling industry.

Matthew asked, "Why not go through a reputable commission brokerage? And trade right here in Chicago?"

Larry chuckled and replied, "Neither Paine Webber nor Reading has a branch here. Besides, the police have shut down quite a few betting companies here. I thought of that the other day when I was short of cash. Maybe I could use my paper tape reading skills to make some money from the betting companies as a quick fix—but there aren't any betting companies in Chicago. I asked the hotel staff, and they said there are two very big betting companies in St. Louis!"

As he spoke, Larry turned to Matthew and Dunbar, "Since you're willing, let's go there together! You can treat it as a trip with me."

As they were talking, Larry hurriedly packed his luggage. Matthew and Dunbar exchanged a glance and smiled helplessly.

The next morning, the three arrived in St. Louis.

St. Louis, located in Missouri, was the fourth largest city in the United States at the time. St. Louis's prosperity stemmed from its advantageous location; situated on the middle reaches of the Mississippi River, it is the geometric center of the United States and the confluence of the Mississippi and Missouri Rivers, naturally connecting the two major water systems.

In addition, St. Louis is also known as the "Gateway to the West," and those who ventured to the American West started their journeys from here.

Therefore, the city not only connected the north-south waterways but also had east-west railways, making it the largest and most prosperous city in the American interior at that time.

Larry's idea to "make money" at a betting bank wasn't a spur-of-the-moment decision. Betting banks offer real-time trading, and with a margin of just $1, they're the perfect place for someone like Larry, who's familiar with stocks, to turn his fortunes around.

Besides, it's much easier for them to make money, and Larry wouldn't feel uneasy if he could get some money from them.

The three of them checked into a hotel. Larry washed his face and led the other two to the street to look for a gambling den.

From the locals, Larry knew the Chicago hotel waiter was right. There were two gambling dens operating very well, throughout the Midwest, making huge profits and daring to operate in broad daylight.

The most respectable people in the area do business with them without the slightest hesitation.

These two betting companies are called Dolan and Taylor.

Larry randomly picked a casino, carrying $500, and left Matthew and Dunbar outside while he pushed open the door and went inside.

This is the headquarters of Dolan Corporation.

Larry went inside. The room was very large, with at least several hundred people staring at the price list.

The ticking of the price quotation machine, the clamor of the crowd, the loud negotiations between traders and customers, the smell of cheap cigarettes mixed with the stench of sweat—the air was thick with anxiety.

Larry let out a long sigh of relief—

I'm finally back on the exchange! More than any damn equity investment or trading, Larry really misses the days trading at betting firms or exchanges!

These places that get your heart racing and your adrenaline pumping have a truly addictive magic.

Larry had long wanted to return to trading on the exchange; making money in the stock market was truly exhilarating and fulfilling.

Besides, with so many people around, Larry felt he wouldn't easily stand out and could earn more money before they noticed him.

Larry first stood in front of the price list and examined it from beginning to end until he picked out the stock he felt was the most suitable.

Then, Larry pretended to be a newbie and timidly walked to the trading counter. He stared at the clerk at the counter without saying a word, but waited until the clerk noticed him before giving him a shy smile.

"Welcome, sir! Would you like to make a transaction?" the teller asked on behalf of the trader.

Larry took two steps forward and asked, "Can you trade cotton and wheat here?"

"Yes, sir!" the other person replied.

"Can I buy and sell stocks too?"

"As long as you have money!" The trader stared at Larry, a smile on his face, his tone laced with sarcasm.

Larry feigned displeasure and asked loudly, "How many shares can I buy with $100?"

"100 shares! As long as you can come up with $100!" the trader said to Larry with a smile, leaning against the counter.

"I have $100, in fact, I have $200! Buy me 200 shares!" Larry said, pretending to be sulky.

"200 shares? What?" Hearing that Larry was going to place an order, the trader at the counter also became serious. After all, business is business!

Larry glanced back at the price chart, as if guessing which stock would bring him good luck. After a moment, he turned back, slammed $200 on the counter, and shouted, "I want 200 shares of Omaha! Long!"

The trader pocketed the $200 and issued a trade order to Larry.

"What's your name?" the trader asked.

"My name is Hollos Kent!" Larry made up a name.

The trader carefully filled out the order and handed it to Larry.

Larry walked to the side, sat down among the customers, fumbled for the transaction slip in his hand, and stared at the fluctuations on the price chart.

It's been a long time since I've traded at a betting company. The biggest advantage here is that the deposit is only $1 and the leverage ratio is extremely high! In addition, betting companies do real-time trading, because they can close positions based on the latest available price, which is something that even floor traders cannot do.

Trading here doesn't require capturing the entire trade from beginning to end; a few points of fluctuation are sufficient.

Half an hour later, Omaha Railroad's stock price rose by $1.5, and Larry went to the counter to cash in a $300 profit. Immediately afterward, Larry sold another 500 shares of New York Fire Insurance.

Larry made a profit of $500 from 500 shares of New York fire insurance in the afternoon.

Larry intervened halfway through the morning, but in less than two hours, he made a profit of $800 from the betting company without touching his initial investment.

The next day, Larry made four more trades. Except for one where he lost 25 cents and had to cut his losses, he made a substantial profit on the others.

In just two days, Larry made $2800 from the Dolan betting shop.

When Larry told Dunbar and Matthew all this, they both gave a wry smile.

"Larry! There's no business that makes money faster than watching stock trends—I'd rather you do stocks for the rest of your life!" Matthew patted Larry on the shoulder and exclaimed with a smile.

Dunbar warned, "You've made a lot of money, be careful the betting houses kick you out—"

Larry laughed. "If Dolan kicks me out, I'll go to Taylor's and make another fortune. The two companies can probably give me $7000 in profit, which will be enough for us in Chicago until the remittance arrives."

On the third day, when Larry walked into the betting shop again, looking embarrassed, a clerk at the counter saw him and hurriedly called out, "Hi! Mr. Kent, our boss wants to see you!"

Larry was taken aback, then immediately realized he'd been seen through—gambling houses, like casinos, are always on the lookout for rumors about gambling experts. If the boss offered him coffee, it was highly likely he'd been identified.

However, in broad daylight, and at his betting shop, Larry wasn't afraid of the other party playing tricks.

Larry followed the teller to the boss's office.

The teller opened the door, and Larry went inside.

Dolan was sitting at his desk when he saw Larry. He immediately stood up, pointed to the chair opposite his desk, and said, "Please sit down, Gambler."

Larry raised an eyebrow; the last shred of hope in his heart vanished. Because the other person had already recognized him—

"What brings you here?" Larry asked with a smile.

Dolan smiled and said, "Listen, young man! I have no ill intentions towards you, do you understand? Not at all!"

""

"Yes, I noticed that too!" Larry nodded.

Dolan stood up from his swivel chair. He was a large, imposing man. He walked to the blinds and beckoned to Larry, "Could you come this way?"

Larry did as he was told and walked to the glass window. Dolan reached out and parted the blinds, pointing to the bustling crowd in the trading hall, and said, "Do you see these people?"

"What do you see?"

"These are the guys!" Dolan pointed to a group of people outside, sneered, and said, "Young man, there are 300 fat sheep here who only know how to gamble. I rely on them to support myself and my family, do you understand? These 300 fat sheep—"

As he spoke, Dolan turned to Larry and raised his voice, "—But here you are! You made so much money in just two days, more than I made in two weeks from these 300 fat sheep!"

Dolan's face showed a mixture of self-deprecation and helplessness. He continued, "This isn't my business! You've made me spend too much—young man, I mean you no harm. Just take the money you've already earned and leave—but don't do any more transactions here. You're not going to make another coin here."

The day before yesterday, when I saw you walk in, I disliked the way you looked at first glance. To be honest, I didn't like it at all.

I can tell at a glance that you're a master at playing dumb.

I called that trader in and said I didn't like him. I thought he was a master—someone who came to our betting house to make money.

But what did he say? That stupid donkey said, "I don't believe he's an expert, boss. His name is Kent, he's just a greenhorn. He's fine!"

Oh well, I'll just let him be! But that damn guy cost me $2800! I don't blame you, sir. But my money box is locked up for you now—"

Dolan launched into a long speech, and Larry had already figured out what he meant: the other man said he was "kind enough," but what he really meant was "please let me go!"

"Mr. Dolan————"

Larry was about to say something when Dolan suddenly interrupted him.

"Listen up, I know you're a top trader in the East. Your reputation is known throughout the betting industry! I'm a loyal guy, so the money you took from here is yours. Take it!"

But you can't do business here anymore, or I'll become easy prey! You go your own way, young man.

Dolan was very agitated, and Larry knew there was no point in saying anything more. Since the other party had so "tactfully" begged for mercy, there was no point in him staying any longer.

Larry left Dolan with the money.

Dunbar and Matthew, who were waiting outside, were getting anxious. They breathed a sigh of relief when they saw Larry come out of the office.

"What? Did they see through you?" Matthew asked with a smile.

Larry nodded and said with a smile, "—It seems my name is already well-known in the betting industry."

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"Shall we go back to Chicago?" Dunbar looked at Larry and said with a smile, "—We've earned $2800, that's enough!"

""

Larry waved his hand and said, "No—the money isn't enough. I'd rather try my luck at another betting company, Taylor Company."

"

Dunbar said nonchalantly, "Larry, don't get your hopes up. The local betting companies all keep in touch. Since Dolan knows you're an expert and doesn't let you trade stocks—then Taylor will do the same."

Larry laughed and said, "I know—but we're already here! Let's try our luck!"