Gordon Gekko is right: Greed is good
Michael Douglas‘ masterful portrayal of the role of the swashbuckling trader ‘Gordon Gekko‘ in the timeless classic “Wall Street” has legions of fans.
Vijay Kedia is one of them.
“You have to be greedy. Michael Douglas has said that ‘greed is good’,” he exclaimed.
He explained that the only way to make it big in the stock market is to be “greedy” and want more and more.
“My vision was big. Suppose I invested Rs 10 lakh and it is giving me return of Rs 50 lakh, then I think what I will get with this mere amount?” he said.
“Your vision has to be so big that you even doubt yourself, and then only you can make it big,” he added.
What happens if the goals are achieved?
“If the vision is in sight then you have to increase the target,” he said, implying that it is an ever-moving target and we cannot afford to rest on our laurels.
The mother of all evil is speculation: Gordon Gekko
In the sequel to ‘Wall Street’, Gordon Gekko delivers yet another masterful speech in which he laments that “speculation is the mother of all evil“.
Vijay Kedia endorsed the same stream of thought.
“Trading is the only business where you don’t need any intelligence, capital and information. It is like gambling,” he said.
“What is the difference between high-risk and high-gain business and gambling?,” he asked.
“Like when you are in gambling, you don’t have strategy and fundamental backing and no strategy for risk,” he replied.
Vijay Kedia equated gambling or speculation to crossing the road without looking at the signal, implying that it is a definite recipe for disaster.
“If you have affection for your money, then you can’t trade. You need to be ruthless with your money,” he warned.
Read about his investment secrets here: https://t.co/P8Ie32xSrI
— BloombergQuint (@BloombergQuint) April 8, 2019
Don’t make Rakesh Jhunjhunwala and Radhakrishnan Damani role models for trading
It is a fact that Rakesh Jhunjhunwala and Radhakrishnan Damani made billions from the stock market by speculation and trading in stocks.
However, what works for these Billionaires will not work for us.
“Don’t look at Rakesh Jhunjhunwala or Radhakrishnan Damani and enter in trading business because it is not that easy as they perceived it to be. They are legends,” Vijay Kedia stated.
“Certainly, it is a difficult game,” he emphasized and pointed out that the “mindset” makes all the difference between success and failure.
I got 30 100-baggers which turned Rs. 35,000 into a massive fortune
Vijay Kedia gracefully credited his spectacular success in the stock market to “luck“.
“By the grace of God, the investment cycle at that time was good,” he said with his characteristic modesty.
“The new bull market started after 2003. I was lucky I was in that market and that I had capital,” he added.
However, it is quite obvious that “luck” had nothing to do with it and that it was “skill” all the way.
In fact, out of the 50-100 stocks which Vijay Kedia bought, as many as 30 stocks grew 100 times.
This is an incredible track record by any standard and exhibits Vijay Kedia’s incredible stock-picking skills.
However, he characteristically downplayed it.
“When I bought the shares, I didn’t know that they will become 100-baggers,” he said.
Radhakishan Damani is a mere SSC Pass … and a 9x Billionaire
Warren Buffett made it popular that IQ has nothing to do with investing and even raw novices have a good chance at success if they have the proper temperament and frame of mind.
“Investing is not a game where the guy with the 160 IQ beats the guy with a 130 IQ. Rationality is essential,” he said.
Rakesh Jhunjhunwala took this one step further by asking that “If SSC Pass Like Radhakishan Damani Can Make Billions From Stocks, Why Can You Not?”
— RJ Stocks (@RakJhun) July 28, 2018
Vijay Kedia elaborated further on the theme.
“Every CA cannot become Rakesh Jhunjhunwala,” he stated, implying that fancy qualifications and degrees are worthless in the stock market.
“What is the qualification of Radhakrishnan? But he is the biggest investor, trader and entrepreneur because their senses have worked out for them,” he added.
“If you want to be successful in any work, you need to be passionate. Passion is more important,” he advised.
— Mayank Patel (@marketwizard21) April 9, 2019
Top stocks to buy
No discussion on the stock market is complete unless if we get our quota of stock recommendations.
In the present discussion, Vijay Kedia opined that the banking sector is safe and that banks are poised to give handsome gains.
Sabka time aayega.? https://t.co/Ax3WhWryZc
— Vijay Kedia (@VijayKedia1) March 13, 2019