Trader Boone Pickens. Oil and gas raider
As he accumulates capital, any self-respecting trader begins to buy blocks of shares in large companies in order to provide himself with a safe way out of risky trading.
However, in order to gain leverage and the ability to influence companies, many have to resort to so-called financial raiding.
When having a certain block of shares and the support of the company’s personnel, the processes of merger and takeover of companies begin.
It is very important to understand that raiding in the stock exchange world has nothing to do with the forceful seizure of factories and companies, which we can observe in real life, since all events take place within the framework of the law.
One of the most famous raiders in the oil and gas industry is trader Boone Pickens, whose net worth today exceeds $1.2 billion.
From his childhood, Boone Pickens sought financial independence from his own parents. When Boone was in high school, he had a good part-time job delivering newspapers on several streets.
One day, the mother, while cleaning the room of the future tycoon, discovered $258, which he was debugging for himself under the bed. The parents were very surprised by the young worker’s funds and, despite Boone’s reluctance, they forced him to take the money to the bank and put it in a savings cell.
Actually, Pickens repeatedly noted in his interviews that he almost never needed money, since from childhood he knew how to earn money.
Education. First job
Having successfully graduated from high school, the choice fell on the local university, so he successfully entered Oklahoma State University.
The field of study concerned geology, and it was the university that trained excellent prospectors to search for oil and gas, without whom it would be difficult to imagine the development of the oil industry.
Having received a diploma in geology, wide opportunities opened up for him, because Texas has long been famous for its huge deposits of black gold.
In 1951, a very young specialist was employed by Philips Petroleum as an exploration geologist. The work experience gained will be a huge help in the future for developing your own business.
After working for several years at the company, Boone Pickens repeatedly encountered the company's bureaucratic machine, which did not allow him to realize himself.
That is why, having saved a small amount of money, he buys an inexpensive car and says goodbye to the company forever.
Thanks to the wheels, Boone travels around many states, exploring all kinds of oil companies, oil and gas fields and in his mind coordinating the future concept of his business.
Own business
Upon arrival after the trip, Boone had an excellent plan in hand for creating his own oil production business, and the deposits he found made it possible to quickly get started.
At the age of 26, he finds two business partners and founds the Mesa Petroleum company and begins to actively mine black gold.
1983 became one of the most difficult years for all oil producing companies. The crisis and the strong drop in oil prices depreciated the value of shares of oil producing and processing companies.
Instead of being driven into a corner, Boone Pickens begins to actively take over companies.
Thus, having bought 13 percent of the shares of Cities Service as a result of a takeover fight with Gulf and Occidental Petroleum, he managed to earn a profit of $32 million.
A year later, Boone Pickens began an active takeover of Gulf and was able to earn over $200 million.
In 2004, Boone Pickens became interested in the gas market and created a company called Clean Energy Fuels.
Boone clearly understood that gas would soon begin to replace gasoline, since its price was much lower, while cars drove no worse on it.
That is why the company began to build gas stations throughout the country at a tremendous pace, which allowed it to occupy almost 60 percent of this market.
Boone Pickens made his first billion when he was over seventy, but he has not stopped to this day, expanding his business.
It is also worth noting that Boone Pickens very easily says goodbye to his money, distributing it to various charitable organizations, primarily aimed at the health care and education systems.