Vijay Kedia’s Success Story:
“One must understand that stock market is a “high risk- high gain” business. It is a full-time business which has its own rules which need to be strictly followed. One has to fall in love with the market. The market rewards you as per your perception of it. If you treat it as a gambling den, it will prove a gamble for you.” -Vijay Kedia
Vijay Kedia is one of the most successful stock investors of the present time. His stock market journey is inspiring for many old and new investors.
Today, let’s re-visit his journey to learn how Vijay Kedia became one of the most triumphant stock investors of India.
Vijay Kedia is an ace Indian stock investor based in Mumbai. He is the managing director of ‘Kedia Securities Pvt Ltd’ and his net worth is over 1,000 crores.
Mr. Kedia is involved in the stock market since an age of 19. He is also described as ‘market master’ by economic times.
Vijay Kedia was born in a Marwari family of stockbrokers. His family has a background in the stock market for over decades.
He joined the family business of stock broking at an age of 19 after the death of his father. Since that early age, Vijay Kedia started working as a stockbroker. Nevertheless, just after few years of working in his family business, he left stockbroking to start his trading career.
During his initial days of trading, Vijay Kedia made a number of profitable trades from the market. However, he soon realized that even after making frequent profits, few big losses easily destroyed all his profits. Overall, he wasn’t earning much from his trading.
Therefore he started learning fundamental investment to start investing in the stock market instead of just trading. In the meanwhile, he also moved to Mumbai from Kolkata.
While in Kolkata, Vijay Kedia identified ‘Punjab Tractor’ at Rs 50 which multiplied 10 times in next 3 years. But his investment base was very low in that stock.
In 1992-93, he picked ACC at Rs 300 and sold at around Rs 3,000 within a year and a half. He bought his first house in Mumbai using that money. That gave a lot of encouragement to Vijay Kedia.
During 2004-05, he picked a number of multi-bagger stocks which gave him a return of over 1,000% in the next 10-12 years. Few of the stocks were Atul Auto, Aegis Logistics, and Cera sanitary ware.
For Aegis Logistics, he picked that stock at Rs 20 and bought 5% stake in the company for the very first time in his career. The share did not move much for next one year. However, the market realized the stock’s potential later and the share moved to Rs 300 in no time, giving Vijay Kedia a return of 15x.
In 2012, Vijay Kedia rightly predicted the beginning of the structural bull run in India when the others were bearish. (Source ‘Indian equities in the first phase of a bull market’: Kedia Securities (Economic times)).
Recent Investments: Few of the recent investments of Vijay Kedia in 2017 are Everest Industries, Caplin ltd (Indian stationary company) and Vaibhav global.
He purchased Vaibhav global at an average price of Rs 350 in 2017. Currently, the stock is trading at Rs 714.
Vijay believes that an investor must have three qualities: Knowledge, Courage, and Patience.
After his initial losses in trading, Vijay Kedia shifted to investing with an ideology to hold the stocks for long term. Here’s a quote regarding his investment strategy.
“Invest only for long term. Minimum time frame is five years: Rome was not built in a day. It takes time for a story to mature. I always invest in small caps that go on to become mid to large caps.Whenever I bought a small cap, people discouraged me. No one liked the stock. For two years the company went nowhere; after that it gave multi-bagger returns.”
Apart, Vijay Kedia also gives a lot of importance to the management of the company while selecting a stock to invest. Here’s a quote by Vijay Kedia regarding the role of management in a company:
“Management, business growth and understanding the downside risk are the most important things that I look for before buying any shares in any company. I believe that best businesses can be ruined by bad management and bad businesses can be revived by the best management. If management is experienced, aggressive, transparent and dedicated to their business, they will protect your investment in order to protect their own wealth and reputation.”
(Source: IIMB PGPEM Vijay Kedia 2016)
Vijay Kedia’s success story is motivating for all those investors in the Indian stock market who want to make a huge fortune from stocks. Here’s a quote by Vijay Kedia to end this post:
“Be balanced in your approach. Don’t be very optimistic in an uptrend and very pessimistic in a downtrend. Also, never have regrets;”- Vijay Kedia