These conditions being true, it should be clear that the earlier an investment is made in the industry, the greater will be the profits. Spectacular profits will be made before the saturation point is reached, and to get all the tremendous accretive values that accrue in this industry the investment must be made at the beginning. The further removed from the beginning the investment is made, the more the investment will cost and the lesser will be the accretive value as well as the income on the investment.

This is a fundamental principle in the science of investment.

When the saturation point is reached manufacturing automobiles will settle into an industry to supply a daily necessity. There will be keener competition, the price of cars will be lowered, and the profit on each will be correspondingly less. The industry will be similar to those of making hats, plows and shoes. It will carry a substantial profit, but not a spectacular one as now and for many years to come.

It seems, then, that, large as it already is, the automobile industry is still in its comparative infancy—that it has before it a reasonable possibility of more than doubling its present proportions.

While there are several large companies that will continue to produce large numbers of cars each year, it is not reasonable to expect that these companies will grow from this time forward as they have in the past.

The expansion of the industry may rather be looked for in younger and smaller companies that will put out cars to meet some particular demand.

The investor in the industry could scarcely be said to be using good judgment if he undertook to help to build a company to put out a car to compete with the Ford car, for illustration; that is, to put out a car at the same price and that he would expect the public to buy in preference to the Ford. It may be possible that the thing can be done, but off hand it would seem like taking an undue chance.

Nor is a Ford proposition necessary to make money in the automobile industry. This has been demonstrated sufficiently.

The Ford car fills a particular want of many people, but in the main it is a builder of the industry as applied to more elaborate and higher priced cars. It prepares a market for others.

The investor should seek to get into the business of supplying the demand in that market.