in theory, “the stockholders as a class are king. Acting as a majority they can hire and fire managements and bend them completely to their will”.
But, in practice, says Graham,
“the shareholders are a complete washout. As a class, they show neither intelligence nor alertness. They vote in sheeplike fashion for whatever the management’s record of accomplishment may be…The only way to inspire the average American shareholder to take an independently intelligent action would be by exploding a firecracker under him (her)…”