Malcomson’s job was to peddle the stock. He asked his attorneys, John Anderson and Horace Rackham, to invest.
Anderson jumped at the chance. Rackham sought the advice of his banker, one of the most respected bankers in Detroit. Rackham explained the opportunity to the banker.
The banker pointed out the window of his office and said, ‘You see all those people on their bicycles riding along the boulevard? There is not as many as there were a year ago. The novelty is wearing off; they are losing interest. That’s just the way it will be with automobiles. People will get the fever; and later they will throw them away. My advice to you is not to buy the stock. You might make money for a year or two, but in the end you will lose everything you put in. The horse is here to stay, but the automobile is only a novelty – a fad.’
Rackham was convinced until he ran into Malcomson a few days later. Malcomson convinced him to take a flyer on the fledgling company. Rackham invested $5,000.
How did it turn out? Rackham eventually sold his stake for $12,500,000.
BIGG success comes to those who listen to the right advice.
Source: The Truth about Henry Ford by Sarah T. Bushnell
Image in this post from Wikipedia