This is absolutely correct. The algorithm is meant to quickly drop posts from the top. Such that even if a post has a record vote score, it still will only remain at the top for a few days.
The amix link above didn't load for me today, but I like this scienceblogs post on the algorithm.[1]
edit
It should also be noted that since reddit is open source, you can always dig right in! [2]
[1] http://scienceblogs.com/builtonfacts/2013/01/16/the-mathemat...
[2] https://github.com/reddit/reddit/blob/master/r2/r2/lib/db/_s...