If you are shopping for common stocks, choose them the way you would buy groceries… This is Benjamin Graham’s timeless advice for separating emotion from investing. It’s about focusing on value and price, not hype and branding. A principle that separates the amateurs from the pros.
Share Image Quote:Table of Contents
Meaning
At its core, this quote is a battle cry for value investing. It means you should buy stocks based on their fundamental value and price, not on their popularity or story.
Explanation
Let me break this down the way I’ve seen it play out in the markets for years. When you buy groceries, you’re practical. You look at the price, you compare brands, you check the weight, maybe you wait for a sale on something you know you’ll use. You’re looking for value.
Now, perfume? That’s different. You’re buying the bottle, the brand, the feeling, the story. The actual liquid inside is almost secondary. You’re paying for the sizzle, not the steak.
So many investors get this backwards. They fall in love with a “hot” stock, a exciting story, a charismatic CEO—the perfume. They ignore the boring stuff, the grocery list items: the Price-to-Earnings ratio, the company’s debt, its cash flow. Graham is telling us to be the shrewd shopper in the produce aisle, not the dazzled customer in the fragrance department. It’s a mindset shift that saves you from overpaying for hype.
Quote Summary
| Context | Attributes |
|---|---|
| Original Language | English (3668) |
| Category | Wealth (107) |
| Topics | selection (3), strategy (31) |
| Literary Style | metaphoric (105), witty (99) |
| Emotion / Mood | humorous (34), realistic (354) |
| Overall Quote Score | 82 (297) |
Origin & Factcheck
This wisdom comes straight from the 1949 first edition of Benjamin Graham’s masterpiece, The Intelligent Investor, published in the United States. It’s often, and correctly, attributed to him. You won’t find Warren Buffett saying this exact line, though he built his entire philosophy on this Graham foundation.
Attribution Summary
| Context | Attributes |
|---|---|
| Author | Benjamin Graham (48) |
| Source Type | Book (4032) |
| Source/Book Name | The Intelligent Investor (48) |
| Origin Timeperiod | Modern (530) |
| Original Language | English (3668) |
| Authenticity | Verified (4032) |
Author Bio
Benjamin Graham, well known for investing community has brought investing to masses by focussing on analysis and risk control. After graduating from Columbia University, co-founded the Graham Newman Corporation. Benjamin Graham book list covers Security Analysis and The Intelligent Investor which shaped many generations of professionals. He is regarded as a mentor to Warren Buffett as his ideas form the basis of value investing.
Where is this quotation located?
| Quotation | If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume |
| Book Details | Publication Year/Date: 1949; ISBN/Unique Identifier: 978-0060555665; Last edition: Revised Edition by Jason Zweig (2006), 640 pages. |
| Where is it? | Chapter 8, Approximate page 201 from 2006 edition |