The effect was among many found by Rabbi Dov Weismandel (originally from Prague) in the 1950s in New York. It was his discoveries that motivated all the Torah Code stuff, but he made no claims about finding meaning from these patterns; at least not beyond finding them an indication of Divine Authorship.
Anyway, start with the "ת" at the end of the word "בראשית", so the first letter of the pattern is the 6th letter of the Torah. Now, skip ahead 49 letters to get to the "ו" of "תהום", then another 49 -- the "ר" of "וירא", and finally the "ה" of "א-להים". Similarly in Shemos, start with the first "ת", ie one in the title word, count ahead 49, etc... (That's intervals of 49, ie the 50th letter.) Bamidbar spells "הרות" (Torah backwords) and Vayiqra only shows the effect on the 49th letter (invervals of 48) and only when starting from a later "ה", in verse 5. As for Vayiqra, R' Weismandel found Hashem's name starting from the first "י" and counting 8s. And so on...
So, if we change "every 50th letter of the first two books of the Torah, you'll end up with a repetition of the word 'Torah'" to doing it once from the first "ת" in each book, the emended claim would be true.