The Middle East war was in full swing, and Israel's survival was at stake. Hardy had ventured into the arms trade, and his company's edge lay in its substantial stockpile and competitive pricing—exactly what Israel needed in its dire situation.
Despite the recent end of World War II, Hardy's inventory was current and crucial for Israel. Faced with shortages, Israel placed a significant order worth $35.87 million. Beech, eager with the news, reported to Hardy.
"Boss, they've ordered $35.87 million in goods," Beech said excitedly.
Hardy knew this order would barely scratch the surface of Israel's needs. "Beech, keep this line open. They'll need more weapons soon. This is just the beginning of a long-term partnership."
"I understand, Mr. Hardy," Beech confirmed.
The Security Council's mediation efforts had yet to make a real impact, and the war continued unabated.
By early June, most major Israeli cities had fallen to the Arab coalition forces. As Israel seemed on the brink of collapse, the U.S. and the United Nations intervened, enforcing a four-week ceasefire. The Arab coalition, confident in their victory, agreed to the ceasefire. This pause gave Israel a crucial opportunity to transport large quantities of weapons and unify its scattered guerrilla forces into a cohesive national defense. Additionally, Jewish American World War II veterans arrived in Israel, bringing with them valuable training and experience.
When the ceasefire ended on July 9, Israel launched a bold offensive, using its newfound strength to reclaim over 1,000 square kilometers in just ten days.
Hardy, reviewing the reports, understood that Israel's turnaround was no accident. He suspected key figures in Israeli command were involved and recognized the crucial role of U.S. support in the shift. He wondered whether the U.S.'s backing of Israel was genuinely altruistic or part of a larger, more complex strategy. The endless conflict in the region suggested deeper motives.
For Hardy, the Middle East conflict was a profitable venture. Sales of freighters and weapons were beneficial, but his investment in Johnson & Johnson promised significant returns, fueled by the unwavering support from Jewish communities and their role in the war.
The Hardy Group's think tank had recently analyzed the potential benefits of President Johnson's re-election. Their detailed report showcased their extensive knowledge and strategic foresight, aligning perfectly with Hardy's vision for future investments.
Wells Fargo Bank's investment banking department was now operational. Unlike others who relied on traditional methods, Hardy used his foresight to identify promising sectors. Post-war, industries like petroleum, military, medicine, daily necessities, and food were poised for growth. Hardy compiled a list of target companies, confident in their future success.
Among his targets were:
- Mersey Pharmaceuticals : A promising player in the pharmaceutical industry.
- Pfizer Pharmaceuticals: A future giant in medicine with revolutionary products.
- Johnson & Johnson: A leader in medical and consumer health products.
- Procter & Gamble: Dominant in daily necessities.
- Colgate: A key player in oral care products.
- Coca-Cola: Despite recent setbacks, a strong investment with high returns.
- IBM: A computing powerhouse with significant market presence.
- Motorola: An emerging leader in communications technology.
- Lockheed and Northrop Grumman: Potential investments in the military sector.
- Exxon Mobil and Chevron: Major players in the oil industry, though harder to penetrate.
Finally, Hardy considered "Occidental Petroleum", a small company based in Los Angeles. He recalled Armand Hammer, the man who would later turn Occidental into a major player. Despite the company's current struggles, Hardy saw potential in its assets, including valuable land. He instructed Henry to investigate Occidental and Hammer.
Henry's findings revealed Occidental Petroleum as a struggling small company with a valuation under $1 million. Armand Hammer, now a cattle rancher, had not yet made his mark on the oil industry.
Determined to seize this opportunity, Hardy instructed Andy to acquire Occidental Petroleum and arrange a meeting with Hammer, intrigued by his business acumen and potential.
Hardy envisioned transforming Occidental's land into a valuable asset, whether for oil or real estate. Even if the investment didn't pan out, the potential for profit was substantial, and Hardy was prepared for any outcome.