"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."
"The existence of such a war chest might go far to strengthen our prestige and frighten off any would be assailant."
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Source: Storage and Stability. Book by Benjamin Graham, Part II, Chapter VIII, Ultimate Uses of the Stored Units, p. 97, 1937.
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