Vijay Kedia, the self-made millionaire, can be trusted to put things in perspective. He rubbished the present nervousness in the market over the China slowdown. “I have seen several such crises in my career of 25 years” he said dismissively. He pointed out that just six months ago, everyone was gung-ho that China was growing at a surging pace of 7% and was merrily buying Chinese stocks. Just six months later, the same investors are dumping Chinese stocks in the fear that China will undergo a severe slowdown.
Kedia also pointed out that the market keeps worrying about some issue or the other – Whether it be the FED taper, or Greece’s insolvency, or Spain’s disintegration, or China’s slowdown or whatever. The China issue would soon be forgotten and the markets would find something new to obsess about, he said.
Vijay Kedia advised investors not to worry about what is happening to the entire market. Instead, they should focus only on the handful of stocks in their portfolio and ask whether these companies are growing at 15-20% CAGR and will continue to do so for the foreseeable future.
“An idea can change your life” Vijay Kedia said, emphasizing that just one stock can change an investor’s life. He cited the example of Cera Sanitaryware which he bought several years ago at the throw-away price of Rs. 30.
“Investors should look for the next Cera Sanitaryware” he added.
On his favourite stocks, Vijay Kedia made the surprising revelation that he has lost confidence in NBCC and sold it. Kedia explained that the reason for NBCC’s success, namely, the Government’s contracts, can also be the cause for its downfall, if the Government stops awarding contracts to it.
However, Kedia is still gung-ho about his other favourite stocks, Cera Sanitaryware, Sudarshan Chemicals, BEL, Repro and Apar Industries. He emphasized that each of these stocks has excellent quality of management and a long growth path ahead of it. Their valuations are also not unreasonable, he said.
Vijay Kedia’s other important bit of advice is that investors should have patience. “Rome was not built in a day” he emphasized. So, investors should buy top-quality stocks at reasonable valuations and hold them for a life-time without worrying about day-to-day fluctuations, he said.
Well said Vijay. His story is a good feel story. Here’s a story to watch. Buy suven, dai ichi karkaria, and suprajit. Wait for a while. Then smile. You’re welcome.
I am a big fan of kedia, I agree with his simple non complicated approach of investing.
Vijay kedia logic is simple and apreciable and has lot of respect .But it was easy to implement in older times when stocks like cera were available at 30 rupees.At that time private sector Banks with face value of 10 were available at 30 to 60 rupees.So was ITC.But now it is different time.In earlier times there were lot of ideas available,but now with so much information available in public domain and lot of experts and investers after research,underpriced qualty stocks are far less.I don’t find any new recommendation of qualty growth stocks at cheap valuations.So till you don’t find your idea, it is better to stick to good qualty blue chip stocks with leadership position with qualty managements and scope for profitable growth.No doubt you will have to pay higher price.But to pay higher price for some level of certainty is not bad.So keep on accumulating qualty blue chips like private sector banks,Lupin ,sun Pharma,Infosys, Asian paints,HUL,ITC,L&T,Vardhman textiles,Housing finance compnies,pidlite etc on every decline till you find your cera type idea at 30 rupees type level.If any one find your idea ,pl do write .Till then I am after blue chip qualty stocks.More they will fall,more I shall buy,as I know ,when ever stock market will turn,these will be first to go up.For mid and small cap I would prefer small mid cap funds till I dont find my cera so that I that I don’t loose my sleep and let the whole time experts do the mind grinding ..
same time will come again brother. just have patience. sit in cash.
I agree wholly with kharb.
I am a big fan of Vijay kedia, well said ,”ROME WAS BUILT IN A DAY “…
investors should have patience……
I am doing the same.. Let’s see where it will take me..
Friends,i too feel the interview was motivational,one striking feature was the usage of Great One Liners by Mr. Vijay Kedia as he always does 🙂
Following are some of them:-
1. Rome was not built in a day but Japan was destroyed in a day.
2. An idea can change ur life.
3. Stock Market is a place of regrets.
4. India is the knight in shining armor
5. To me stock market is about 500 stocks only.
6. if u r smoking you may die in 30 years but in futures you mau die the next day
7. Don’t time the market..Don’t trade the market
8. Economical data is very complex,keep things simple
9. If FIIs are catching cold in Greece,they are sneezing in India and we are getting the flu.
10.Markets rewards you as per your perceptions about the market. (earlier interview)
11. No academic degree can get you success in stock markets. (used earlier)
12. When a sector does not reward in good times how can they reward in worst times.
13. Jo mil gaya usi ko muqaddar samajh liya jo kho gaya main usko bhulata chala gaya.