"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 Reservoir plan is an engineering mechanism applied to the field of economics, and in its essence it has nothing to do with democracy or any other political philosophy."
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Source: Storage and Stability. Book by Benjamin Graham, Part V, Chapter XIX, The Reservoir Plan and Tradition, p. 232, 1937.
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