"Most of the time common stocks are subject to irrational and excessive price fluctuations in both directions as the consequence of the ingrained tendency of most people to speculate or gamble... to give way to hope, fear and greed."
"Both a priori reasoning and experience teach us that as as these funds grow larger the geometrical rate of growth by compound interest ultimately defeats itself."
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Source: Storage and Stability. Book by Benjamin Graham. Part II, Chapter VIII,Ultimate Uses of the Stored Units, p. 103, 1937.
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