Diary

3:45 Go put Gold Coin + Disk in Bank.

At home, put stuff away. Erase old disk.

4:00 Go to Microsoft.

Make list of price hi's, lo's, closes.

Call York. Could be scary environment.

Go see him tomorrow.

Wants me to think of near term, intermediate, and long term plans.

Do mail, email.

Think awhile.

6:00 Dinner at Wendy's.

Go home. See when Moneyline is on.

7:00 Tan at the Body.

Shower. Talk w/Todd.

8:00 Watch Moneyline very carefully.

Take notes.

8:30 Call Mom + Dad.

Dad points out all the skyscrapers being built in 1929, and Yakima Drought, most severe since 1929.

9:15 Misc.

Decide to sell 10000 shares to raise cash ASAP so I can at least live well after Microsoft.

Misc. Cut up WSJ.

10:30 To bed

Tues Oct 27 '87

6:00 Get up. Shower

6:30 Watch "Dry Wash" market opening.

Read WSJ + cut up.

8:00 Think about what to do that I do well.

Think seriously. Misc. Consider SF too seriously.

Think seriously about my willingness to accept stable future for MS even if its just around 40 or lower.

Wait for volatility to abate.

Get ready, dressed, to visit York.

Misc.

9:30 Head out to Pumphouse.

10:00 Workout, without music due to power failure, so I had lots of thinking to do (45 min)

12:45 Called Schwab for quotes on MS + DOW.

To Yankee Diner. Turkey

1:00 Think some more, writing little CHITS of paper to myself.

Put on tie.

Put in contacts

2:00 Head for York's office

2:15 He gives me a view of the market.

Interesting how pressure built up and was exaggereated by Program Trading

He tried to sell me on doing business which didn't take until I realized the necessity of having to do all the 144 sales through one broker.

Also some other interesting topics

Commission on 100 shares @ $40 $97 or 2.45%

1000 " " $40 $515 or 1.3%

10000 " " " $2500 or $0.62%

So it becomes much more palatable at higher levels, plus York said he'll give me 20% discount on 1000 or more shares traded. It still costs 4 times more tan Schwab at $543, but York claim they make 1/4 point off the trade, so it's not clear its cheaper. Plus its much easier to get access to York.

I feel in stronger hands than the impersonal touch at Schwab, at least for this sort of thing.

Then we went over forms so I can sell MS stock when I need to.

3:45 Go to MS

Mail, email, call Mom.

Email Jeff + Luther ~ Newsflashes.

Change time on computer

4:45 Go home

5:15 Put stuff away. Change clothes

Write up today. Do mail.

Change clothes.

Write note on possibility of using S&P100 options before MS fell.

Maybe work out real numbers later.

6:15 Go to Parents for dinner.

Good talks. Keep stock talk at about 50%

Watch Moneyline + take notes.

Call Bob, who says to call Gary V to convince him to be Tammy Faye. I do.

Watch Stand By Me. Good movie, great music.

Seems so Oregon in the summer.

Watch news a bit. Japan market down.

Go home.

Write up notes about wanting fair market price.

Also look for S&P100, seeing how expensive

1:30 To bed

Wed Oct 28 '87

6:30 Wake up but try to sleep, but cannot

7:00 Watch CNN a bit. Dow down.

Shower.

Breakfast more CNN

Read WSJ.

Start laundry.

Write up yesterday since 6:15.

9:00 Lok over notes in blue Notebook and arrange and annotate a bit.

11:00 Snack.

List of goals to tel York.

Call for quote. MS + DOW unchanged.

11:15 Dry Laundry.

Try calling Anna. See if she calls back, and if so, when.

Consider calling Ric Ulrich, but

my reasons are self-motivated;

awkward since we're not close;

would I be willing to go visit him;

even when we spent time, we weren't close;

what would I say to him about his ARC.

he probably doesn't want to tell me about his ARC

he doesn't have time even for his own costume

Start list of why I'll use ML for Rule 144 stuff, for blue notebook. Mostly, hard to get Anna.

11:15 Gather ML Rule 144 book + forms

12:15 Call Catherine Iles about Madrona Tudor.

12:30 Make + eat lunch

Reduce my amount of MS to sell over next yr and increase the frequency, and it works out to 1000 sh semi mothly.

Get read + dressed to go.

1:45 Go to Merrill Lynch via

712 36th Ave E pseudo colonial

530 Hillside Lot (need house ready to go)

2:00 Discuss investment areas, and some of my goals.

York said no problem selling 1000 sh of Microsoft bimonthly. Move 1/2 proceeds into some Load Fund as long as load is deeply discounted to 3 1/2% or so.

Move other half into my reload funds.

Also discussed insurance + estates a bit.

4:45 Leave. Get snacks at grocery store

5:30 Stop at Microsoft. Look at Works in box.

Great. Sample Works, promo stuff, etc.

Jeff says "We need to get together to discuss life" as I pass him in the hallway.

6:15 Leave for home. Think.

6:45 Write up this afternoon + notes for blue notebook ~ York's advice

7:30 Make + eat dinner. Misc

Watch Moneyline

8:30 Think. Relax.

8:45 Go for walk thru V Park + back on 15th stopping at QFC. Put away.

Leave Msg for Catherine Iles ~ properties

9:45 Read ~ Windows 386 in MS Journal

10:30 Watch Audi video tape

11:00 To bed

Thu Oct 29 '87

7:30 Watch CNN a bit. Misc

Watch Feldstein, Sinai, Gailbraith on CNN talking to Senate Banking Comm.

Misc

9:00 Continue MS Tech Journal.

Get ready to go.

Go to Bank

10:00 Get stock certificate.

Go to Merrill Lynch.

Handle paperwork.

Haggle for price. Got 47 3/4. ~ April level.

Not much lower than most of the summer.

Snack. To work.

Read MS Tech Journal some more

Try to get Intermail documentation.

Respond to Natalie's request ~ $1800 charge

Lunch at Wang's Kitchen

Finish Sept Tech Journal.

Answer some of Luther's questions

Give Edr Infoworld First Look ~ Works

Tell Redheaded John to talk to Scott about changing COW to run on DEC (?!)

So it was useful to be in.

2:15 Leave for home. Misc.

3:00 Body Naut. Good looking crowd. Not too busy.

Go home. JO. Shower. Enzyme lenses. Snack

6:00 Look over my Microsoft stock notes of the past week.

7:00 Make + eat dinner

7:30 Vic cals for 15 minutes

7:45 Realize that P/E of 60 plus tax factor risk could've made me want to sell a lot of Microsoft.

Would I have withheld selling it due to excessive speculation?

8:00 Watch CNN Moneyline.

8:30 Look at Bluebook notes some more, and some key thoughts crystallize and I write up yet another page, and check its conceptual thoroughness against my previous writings.

10:30 Realize possibility of writing call options on Microsoft stock now that TAX FACTOR Leverage is realized.

Also, am I still peeved at all with regard to the fact that I could have sold all my MS stocks Oct 12-15, and been able to buy very low lately?

No more so than I realize that such opportunities pass by me daily in the stock market, but alas, are unpredictable.

11:15 Look at Microsoft option prices, calls.

About 7% per Month. Think about 'em.

11:45 You write a call if you expect stock will increase by less than the option price during the time period.

But of course you must still expect stock to increase somewhat or at least not decrease much since you are holding it. The 7% per month for Microsoft amounts to 84% per year, but remember the stock has tripled in the last year, so it has been much better just to hold the stock. I conclude that this sort of thing may best be left to funds who can handle the paperwork and hassle.

12:00 Get ready for bed

12:15 To bed

Fri Oct 30 '87

7:00 Listen to CNN. Dow up sharply, try to sleep more. Just rest.

7:45 Get up. Shower. Misc. Dow still up.

Look over last nights writing. FINE.

Read + cut up yesterdays + todays WSJ.

Start Laundry.

10:00 Dry Laundry.

Sell 300 Microsoft bought on Monday.

Sold them at 49 3/4. Dow up 60.

To cover cost of shares and get rid of margin.