Dr Vijay Kishanlal Kedia is a popular Indian investor & trader, Economic Times describes him as a “market master”. He lost his father when he was young, he started with trading in the stock market and failed many times losing money. At one time to pay his dues, he was about to sell his mother’s jewels, at other time he could not buy milk for his son. Now he is one of the top Indian investors with a net worth of over Rs. 394.3 Cr. His story manifests the love of stock market, importance of perseverance, diligence and endeavour. In this article, we talk about Vijay Kedia, his struggles, his investing philosophy, his portfolio.
Market is in my blood, sweat, tears, and laugh.
When we are right, we earn. When we are wrong, we learn
Invest like a bull, sit like a bear and watch like an eagle.
Chase the story behind the stock, not the money on the table. The money will make you rich, but the story will make you wealthy.
Table of Contents
Journey of Vijay Kedia in stock market
My Vijay Kedia is a director at Kedia Securities and currently runs his proprietary portfolio and holds a stake in some of the companies as Agis Logistics, Godrej Properties, Cera Sanitaryware and Atul Auto among others. His Twitter handle is @VijayKedia1
Vijay Kedia was born in a Marwari family in Kolkata, a family of stockbrokers for generations(he was a fifth-generation). He started trading with his grandfather at the age of 14. In 1978 when Vijay was 19 years old, his father passed away and he was forced to enter stockbroking business to support his family.
His masi told him “beta share bazaar mein mat ja, shadi nahi hogi, share bazaar satte walo ka hota hai.” (Son, don’t go to the stock market. No one will marry you. It is meant for gamblers.)
The 1st year he earned a decent profit-making him believe that he will never lose in the stock market.
There was a time when his mother gave him the jewellery to sell it but luckily he recovered his losses. He felt very bad after that and decided not to trade in the stock market. At that time he started to supply materials for the tea garden in Kolkata. Unfortunately, this business did not work for him and ultimately it failed. Vijay Kedia again started trading in the stock market, but after 10-11 years of trading, he realized no huge profit has been earned by him in this tenure. The profit he earned mostly gone into the losses.
Like many people, Vijay Kedia traded with small amounts and when he gained he invests big amount to get more and more profit. As in the stock market, a bad day can take all your money, the same thing happened with Mr Vijay Kedia. When he lost in the stock market he realised that the profit he earned was sheer luck.
Vijay also started a side business of supplying tea but was not successful.
He came to Mumbai multiple times but was not successful.
In 1990, with the help of his friend Sameer Kedia, he came to Mumbai, with Rs 1 lakh in his savings to try my luck. The first two years were hard and troublesome. He stayed as paying guest, changing places. Finally, in 1992-93 during the 1992 scam, he identified ACC at Rs 300 which he sold at Rs 3,000 within a year. He bought his first house in Mumbai,1 BHK and called his family.
In the same year, he invested his Rs.35000 to Punjab tractors. Next 3 years Punjab tractors shares moved to 4 to 5 times giving Vijay Kedia a good profit.
After selling Punjab tractors he decided to invest in ACC stock, which ultimately came as a jackpot for him. The Harshad Mehta stock market scam moved ACC stock price from Rs. 300 to Rs.3000, Vijay Kedia quickly realized that the stock price of ACC is overvalued and sold all his shares.
In Mumbai, he befriended Rakesh Jhunjhunwala. He said “He favoured me and made me invest in a few of his stocks. I was very lucky that he used to share, not only his stocks, but his knowledge with me. I wanted to imitate Rakesh and buy 5% in any company identified by me but I had no courage. Finally with the secondary education pick up from him, during 2004-05 I identified Aegis Logistics at Rs 20 and bought 5% stake for the very first time in my life. The share did not move much for next one year and I was disappointed and fearful. But he was my source of courage. Luckily, the market realised the potential and the share moved to Rs 300 in no time. I then exited. But my wrongs are still more than my rights”
Video of Vijay Kedia in TEDxDSBInternationalSchool
Mr Vijay Kedia discusses the life failures that led him to his success. The journey of the money in his own words.
Investment strategy of Vijay Kedia
Vijay Kedia adheres to SMILE as a principle in investing; which translates into Small in size, Medium in experience, Large in aspiration and Extra-large in market potential.
On his investment strategy, Kedia said: “One should scout for companies which have good management… Find very good management, a very honest management and see the product in which the management is going to grow, going to outperform its peers and the economy… invest in those companies for the next 10-15 years, and you cannot go wrong.” Bet big and ride through tough times”
While luck plays a big part in stock market investments, knowledge, courage and patience are the cornerstones according to him
Portfolio of Vijay Kedia
Trading or Investing
I started as a compelled trader in Kolkata because I had no money to invest. Stock market rewarded me as it rewards everyone as beginner’s luck. But later on, I experienced more downs than ups and finally learnt that stock market trading is the hardest way of making the easiest money. Here no one is right forever. It is a business of strict discipline and total concentration. After being unsuccessful many times in trading I learnt the art of cutting losses. After this, things in trading changed for me. Even after losing 7 times out of 10 times in trading, I would not be in a net loss as my losses were shorter than my profits. The one and only precondition for trading in stocks is to cut losses.
Then one of my friends S P Modi in Kolkata inspired me to invest. He identified many multi-baggers in those days when very few in Kolkata Exchange were even discussing investments. There I started to allocate a part of my money made from trading into investment. I used to invest in stocks recommended by Modi and got my money multiplied based on my small investment size. Eventually, my passion for investments kept rising. Now the fire to identify a multi-bagger on my own was on the radar. With the primary education that I had picked up from Modi, luck and passion, it finally happened. While I was in Kolkata, I identified Punjab Tractor at Rs 50 which multiplied 10 times in the next 3 years. But my investment base was very low.
Who is your investment guru?
When you know how to listen, everybody is your guru. Having said that, I follow my friend Rakesh Jhunjhunwala. Although, our investments are totally different. We never discuss stocks when we meet. I get motivated by his aura.
Unfortunately, so far, I have not read any books in my life. I am a little impatient so I cannot read a 300 pages books. . But I used to watch investors, I would read their interviews and read magazines.
On Success in Stock Market
No academic degree in the world can guarantee you success in the stock market. In my view it is ultimately the experience which you learn either from your own mistakes or from other’s mistakes, that counts. Early investing does help in the market as one learns from one’s mistakes with a smaller risk at stake. It’s a continuous learning process. It is good to lose money with smaller risk and learn then to make money with a bigger risk and earn.
How many companies to invest? When to exit?
I realized that investing in 200 companies is not a thrill. One will never be happy. One should neither put all eggs in the same basket nor should he put an egg in each basket. So there I learned to concentrate on the whole market, identify say 50 scrips and select one. Keep a long term vision of minimum of 5 years as it takes this much time for a small company to become a medium company. I don’t decide when to exit when I enter. I exit when I need money to invest somewhere else, or I feel that the price is unrealistic. As long as I am invested in the stocks, its profit does not lure me. I feel this money is not mine till I sell the stocks.
Video of Vijay Kedia on the Basics of Investing
Quotes by Vijay Kedia
Kedia says liquidity is as essential for markets as blood pressure to the human body, but it is not good either on the higher or lower side. It should be balanced.
Market rewards you as per your perception about it. If you treat it as a gambling den, it will prove a gamble for you.
A rising economy is like a super express highway. Investors are like passengers, and the company is like a car. And, management is like a driver. In this whole story who is more important? Of course, the ‘driver’. A smart driver can take you safely home even in an Alto, rather than an immature and incompetent driver in a Mercedes.
Only two people can buy at the bottom and sell at the top- One is God and the other is a liar.
Investing is like Yoga. Body, mind and soul have to be aligned.
Read not only between the lines but also what is not written
Rome was not built in a day, but Hiroshima and Nagasaki were destroyed in a day.
Better to lose money in a good company rather than making money in a bad one.
Don’t always trust what you see. In a bull market, even a duck looks like a swan.
In markets, stupid action does not have an equal but severe opposite reaction.
Investment is somewhat like cricket, where you change your game plan as per the format
If you keep trying to hit a four but you keep on getting only one run. Then chances are when you will hit a six you will get caught.
Investing is a business, investment is a project and investor is a promoter.
Don’t learn literature from a history teacher
If the management has not performed well in their bad times in the past, chances are they will not perform well in their good times in the future too.
There is large-cap, mid-cap, small-cap. There is also a “BHANGAAR CAP”. More than 4000 out of 6000 companies fit in that category. They show up only in the good times. Be careful
Trading is injurious to your wealth. If you are smoking you may die in 20-30 years whereas by trading, this may happen the very next day
A bull market is very much like being in love. You don’t realize its value till it’s gone.
The whole purpose of choosing to invest as a career is to let the management be constantly worried about his company and let yourself sip your wine; But the opposite happens
Always have a fixed income source as the stock market is so volatile, investors never depend on it for fixed income.
Vijay Kedia sings about the Stock market on popular Bollywood old tunes
Vijay Kedia believes in 3M ” Market is in my blood, sweat, tears, and laugh. Music is my breath. Meditation is my life”
He has sung songs on the Stock Market on Popular Bollywood old tunes.
Tu Bada Hi Ajeeb Hai from the movie Aashiqui (1990) music by Nadeem Shravan
Hai Market Usi Ka Munafa Usi Ka – from Kashmir Ki Kali By O.P. Nayyar about Buy the shares of a good company & hold it for an extremely long time
Mere Share Bazaar on the tune of Mere Rashk-e-Qamar, From the movie Baadshaho, Music By Nusrat Fateh Ali Khan is about how one invests randomly, makes losses in Penny stocks & Future and Options. How one takes advice from very random sources, don’t try to study or understand the behaviour of the market, listen to the herd and invest in penny stocks, And in the process lost so much money Investors’ tendency of confidence, overconfidence, greed, fear, panic, picking penny stocks on random tips, buying high and selling low, how gullible investors enter into futures and options and make huge losses.
Ai Dil Hai Simple Kamana Yahan, on the tune of Hai Dil hai Mushkil, from the movie: C.I.D.(1956), By O.P. Nayyar. Listen on YouTube here Sometimes it’s D I, Sometimes it’s F I, its inflation or oil, Problems have many names here, Be cautious, of trading my love.
Jane Kahan Gaye Woh Din, From the movie: Mera Naam Joker (1970), Shankar Jaikishan: Don’t know where have those days gone when we used to say I will be Warren uncle in 2 years. No matter what share I purchased I always said they will grow & I won’t sell even in 100 years. God told me in my dream Don’t be scared Maintain your confidence there is a sunrise after this dawn.
YEH DAULAT BHI RUTHI , on ghazal by Jagjit Singh & Chitra Singh , The good days will come back again. Those days of laughter and those beautiful nights
Mein bear badnaam, Kishore Kumar from the movie Namak Haraam, I am a Bear. And people hate me. I am going home. I will come again sometime in the future. But don’t be frightened by me. As I give you an opportunity to buy. Because of me only, You get the same stock at a cheaper price. I am going back.
Kehna Hai, Kishore Kumar for the movie Padosan, Why do you Madam, charge tax on dividend from recipient since tax is already paid at the company’s end? I want to tell the FM today for the first time, Since the time long term tax has been implemented, The market has fallen
Index At All Time High , From the movie: Mehbooba (1976), Music By R.D.Burman, Your Nifty is at an all-time high, but still my shares are half the price