Chapter 2: Turning Knowledge into Power (January – April 1973)
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Cashing in on the Oil Crisis
The oil market was about to explode, and I was sitting at the edge of my seat, waiting for the inevitable. The world didn't know it yet, but OPEC was about to tighten its grip on oil exports, driving prices to unprecedented levels.
By March 1973, the effects were already being felt. Prices started creeping up, and within a few weeks, our $10 million oil investment had tripled in value. My father, always a shrewd businessman, was keeping a close eye on the numbers.
One evening, he called me into his study. The room smelled of aged leather and expensive cigars, a sign of wealth and power. He looked at me with curiosity and a hint of admiration.
"James, our oil futures have hit $30 million. You were right."
I stayed calm, though inside, I was thrilled.
"It's only the beginning, Dad. If we hold for a little longer, we can maximize our gains before the real panic sets in."
He leaned back, tapping his fingers on his desk. "How high do you think it will go?"
"It will double again before stabilizing. We should start selling in increments, not all at once."
He studied me carefully before nodding. "Alright, we'll follow your plan. You've earned that trust."
That was a monumental moment. I wasn't just a kid with strange business instincts anymore—I was proving myself as someone who could predict the markets and deliver results.
By April 1973, our oil futures investment had peaked at $60 million. We sold off in phases, locking in a clean $50 million profit.
But I didn't want to just cash out and sit on the money—I wanted to reinvest it strategically.
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Investing in Plastics – The Future of Manufacturing
With the surge in oil prices, industries that relied on petroleum byproducts—like plastics—were facing major cost increases. I knew that despite the crisis, plastic production was about to become a key global industry. Everything from packaging to electronics would soon be dominated by plastic-based materials.
I convinced my father to allocate $20 million into plastic manufacturing plants, focusing on companies that produced resins and polymers.
The plan was simple:
1. Buy shares in existing plastic manufacturers.
2. Invest in research to develop cost-effective production methods.
3. Use our control over the supply chain to manufacture our own plastic-based products.
This move would position us ahead of competitors, ensuring that our production costs remained low while the world struggled with price hikes.
With that in place, I turned my attention back to my personal empire—the publishing industry, arcade machines, and my newest venture: toy manufacturing.
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First Novel – Breaking into Publishing
By now, my first novel was gaining traction. While it wasn't a runaway bestseller, it sold well enough to establish me as an upcoming author.
Sales Figures (April 1973):
Total Copies Sold: 250,000
Revenue: $1.2 million
Profit Margin: 60%
Total Profit: $720,000
The publishing house I had acquired was now profitable, allowing me to expand its operations. I hired more editors and writers and started acquiring copyrights of novels that would be successful in the future.
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Expanding into Arcade Machines – Entering the Gaming Market
Arcade machines were still in their infancy, but I knew that the golden age of gaming was just around the corner. I had already designed several game concepts, and my engineers were working tirelessly on prototypes.
By April 1973, my first arcade machine, "Galaxy Raiders", was ready for production.
Early Market Response:
Arcade Machines Sold: 3,000 units
Revenue: $4.5 million
Profit: $2.2 million
It was a modest start, but I was playing the long game. Within the next few years, as video games became mainstream, my company would be perfectly positioned to dominate the market.
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The Birth of a Toy Empire – Creating Transformers Before Transformers
I had an idea—one that would revolutionize the toy industry.
Using my knowledge of future trends, I designed a toy line that resembled what the world would one day know as "Transformers."
Concept:
Robots that transformed into vehicles, weapons, and futuristic designs.
A compelling backstory that tied into a comic book series.
Interactive features that would appeal to both kids and collectors.
I set up a toy manufacturing division under my existing company and began prototyping. With the rise of plastic production, manufacturing costs would remain low, and our access to retail channels (thanks to my father's business connections) would ensure massive distribution.
Target Launch Date: Late 1973.
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Summary of the Chapter
Cashed out $50 million from the oil crisis, reinvested in plastics.
Novel Sales: 250,000 copies ($720,000 profit).
Arcade Machine Sales: 3,000 units ($2.2 million profit).
Launched toy manufacturing division, preparing a Transformers-style toy line.
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Financial Update (April 1973):
Company Holdings & Investments:
Publishing House: Profitable, $720,000 in net earnings.
Arcade Machines: $4.5 million revenue, $2.2 million profit.
Plastic Manufacturing Investment: $20 million.
Toy Manufacturing Startup: Still in development.
Total Liquid Funds: $50 million (post-oil cash-out)
Total Assets Controlled: $150 million (including family wealth)
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Next Steps (May – June 1973)
Expand arcade machine production to increase market share.
Release the first batch of transforming robot toys.
Use growing capital to start acquiring shares in a film distribution company.
Continue increasing stake in United Artists to secure a distribution network for future movies.