C Miller J found that the taxpayer, an engineer by profession, was engaged in a business of stock trading and that his deduction of losses should be allowed. His time investment (25 hours per week) on investment reading and trading, and the nature of his trading activities, were consistent with an adventure in the nature of trade. The taxpayer engaged in 160 trades in a single year, representing a value of $3,237,279, which was approximately four times his total investment capital.
C Miller J stated (para 21) "I agree that there is no magic formula, no bright line test, that if you engage in say over 50 transactions it must be an adventure." He found that the evidence at hand tended to show a businesslike approach to the taxpayer's trading.