Mr. Vijay Kedia is a successful Investor in stock marketing. He is an ordinary person with unique skills and intelligence. He has been an inspiration and role model to many investors who follow his fantastic investing strategy for better growth.
Success Story Of Vijay Kedia
Vijay Kedia was born in a stockbroking family. He has been interested in the stock market since childhood. He started engaging himself in trading with his grandfather when he was 14. After his father's death, he wanted to start his own business but couldn’t do it due to lack of money. Then He joined his family’s stockbroking business. But, he was not fascinated towards stockbroking; That’s why at the age of 19, he started trading in the stock market. After jumping into the trading field, he received great profit in the very first year and became confident about it. But, after leading for one and a half years, he started losing. Then, he realised that one-year success was just a bit of luck. He faced significant losses while running for profit.
Vijay Kedia's failures
- He began trading with a small amount, and after a little profit he would go for big amount trading due to this sometimes, he used to lose his all gained amount because of one big loss.
-Once, He faced a loss of Rs. 70,000 in Hindustan Motors within 2-3 days. That time his mother offered her pieces of jewellery to help him in recovering his losses, but luckily somehow it got recovered after a few days without selling that jewellery. He felt disappointed because of that incident and dropped the trading job.
-After that, he started the business of supplying materials to the tea gardens in Kolkata, but unfortunately, he failed in that too. Then again, he began trading in the stock market. Even after being in the trading market for 10-11 years, he didn’t get the desired profit. He realised that he is just playing no profit- no loss game that’s why in 1989, he decided to drop the idea of trading and moved towards investing.
When Vijay Kedia planned to do investing, that time, there were no sources to learn about investing, and no investors would be willing to share their knowledge and mantras of investing.
His Two Strategies as a beginner:
(1) Trial and error- He believed to try something and if you fail, then learn from it. Then do the best next time.
(2) Observation- He used to observe the success and failures of other investors and used to learn from their mistakes.
E.g. Once, his friend had a big loss, and then he told Vijay Kedia that mistakenly investing in high P/E ratio stock, I had to face the loss. After that, Vijay Kedia analysed the whole situation and concluded that investing in high P/E ratio could be dangerous.
Vijay Kedia’s Career as an Investor
While starting the career of investing, he has been updating himself by reading newspapers, business magazines and company’s annual reports. He still does these activities and has adopted a hobby of watching interviews of managers or CEOs of different companies. He was aware that stock related financing generally happens in Mumbai that’s why in 1989 he shifted from Kolkata to Mumbai. He had been living there as a paying guest for two years. His first stock in investing career was Punjab Tractors. He had only Rs. 35,000 in the beginning of this journey and invested all in Punjab Tractors. Then, within the next three years, Punjab Tractors expanded to 4-5 times. After selling all shares of Punjab tractors, he invested in ACC LTD. That time the price of ACC LTD. was only Rs. 300. Gradually, the ACC stock increased with great tendency, and Harshad Mehta reached to Rs. 3000 with the bull run. Vijay Kedia found it more valued at that price that’s why he sold all its shares and bought an apartment in Mumbai & took over other stocks with the rest of the money.
A Failure in Investing: He was again at a loss and broken after the market crash in the Harshad Mehta scam. He clarified this and said, “I invested without analysing the management and quality of the company due to which those stocks dropped in the market crash and had to pay for my mistakes”.
After that failure, he never took his investment philosophy for granted and decided not to compromise in those strategies. He purchased AEGIS LOGISTICS @14 rupees and sold later @500 rupees in which he received 4000% returns. He has earned a lot of returns just like this. He bought ATUL AUTO LTD. at Rs.5-10. There was no movement in the first 4-5 years, but Vijay Kedia believed in his strategies and management of Atul Auto Ltd. After a few years, their stock expanded above Rs. 500. This shows Vijay Kedia’s excellent patience.
Vijay Kedia's Investing Qualities
He always says that to become a good investor, you should have three qualities:
- Knowledge- To search the best stocks.
- Courage- To purchase those stocks at sufficient cost.
- Patience- To hold that stock with great patience because sometimes the market takes time to know the real value of the stock.
Priorities for choosing a stock:
Management of Company- He gives a heavy weightage to the fact of management and invests his time to analyse it thoroughly. Once he gave an example to explain why the management of the company is important:
E.g. Company's Growth is like Highway, and Car is Company, Shareholders are the passengers in that car, and Management is the car's driver. Then he says- No matter if the Car is Alto or Mercedes and Highway is good or not, But the Driver (Management) who is driving the car or running the company should be useful and skilled because the company and passengers both of their destinations are in the hands of the driver. That’s why management plays a critical role in the company and stock investing.
His Suggestion To Investors:
- Analyze the Management of the company: Any investor should look for the management of the company and how the management has been running during a lousy time of the company. According to him, if the management can deal with the company's performance in bad times and lead towards good conditions, then the management is considered best for the company's growth.
- Analyze the future state of the company:
Investors should analyse the future projection of the company and view whether management is ambitious towards the future growth of the company or not.
- Fix Income Source: Investors should make a fixed income source for them because the stock market is kind of volatile in nature, and you can’t depend on it.
- Stay Updated: Investors should always read about the businesses newspapers, magazines because knowledge leads you to search for good stocks.
- View for the stock market: Investors should see the stock market as the investment and not as something you become a millionaire in one day.
- Required traits: Investors should have patience, skill and experience to become successful.
- Learn from failure: He makes his investing strategy with high research and analysis. Then executes according to that. He has failed so many times but always takes lessons from them and still makes a huge profit from them.
He says that “I had paid a lot of prices to become a successful investor. I faced losses and invested my years in understanding the mechanism. Today I’m at this position because of my mistakes after facing so many ups-and-downs. I have followed my passion for perseverance and succeeded in this game.”
He usually seems active on Twitter and shares his experiences.
Twitter Id link:
https://twitter.com/VijayKedia1
Happy Reading!!
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