Vijay Kedia is a very inspiring figure because like us, he was also steeped in poverty and could barely make ends meet. How he overcame his handicap of poverty by mastering the fine art of picking multibagger stocks is a fascinating story which is covered in detail in the story “What We Can Learn From Vijay Kedia’s Strategy Of Finding Multibagger Stocks”.
In his latest talk, Vijay Kedia was at his charming best. His earthy wisdom and rustic wit thoroughly impressed the bright-eyed IIM students, who are otherwise known for being difficult to please.
Vijay Kedia candidly admitted that in his early days as an investor/ trader he was living a “hand-to-mouth” existence and that there were several occasions when he did not have money to even buy daily necessities. His total wealth in that period totalled a princely sum of Rs. 35,000.
However, a couple of stocks such as Punjab Tractors, ACC and Aegis Logistics turned the trajectory of Vijay Kedia’s life. These stocks turned into incredible multi-baggers, with one of them (Atul Auto) giving a mind-boggling 500x return.
The best part is that Vijay Kedia has distilled his learning and experience into ten actionable points. These are:
| VIJAY KEDIA’S 10-POINT FORMULA FOR SUCCESS IN STOCK MARKET |
| (i) Never be dependent on the stock market for your livelihood or day-to-day living. Have an alternative source of income. This will insulate you from the volatility of the market and give you holding power; |
| (ii) Never buy a stock except after thorough study into the stock’s fundamentals. The stock market is not a gamble. You must also be fully aware of news and developments that affect your stocks and learn to “connect the dots”; |
| (iii) Invest according to your risk profile. Ensure that other asset classes also have an allocation. This will again insulate you from the risk that equities carry and give you holding power; |
| (iv) Never trade in stocks. Never use borrowed funds to buy stocks. It is extremely risky and can lead to “instant death”. Less than 1% of the trading population makes money. Also, trading requires special aptitude which a normal person lacks; |
| (v) Invest for a minimum period of five years. “Rome was not built in a day”. It takes time for companies to mature and grow; |
| (vi) Invest only in the best managed companies and don’t worry about day-to-day volatility in stock prices; |
| (vii) Remember that the “Investment belongs to the market and only the profit belongs to you”. In other words, don’t get carried away by notional and paper profits; |
| (viii) Book profits periodically. When a stock looks overvalued, don’t hesitate to cash in the gains; |
| (ix) Be balanced in your approach. Don’t be very optimistic in an uptrend and very pessimistic in a downtrend. Also, never have regrets; |
| (x) Do good karma and be a good human being. Stock market is a mind game. Good deeds will ensure that your mind is calm and is able to think rationally. |
Vijay Kedia also pointed out that one must only buy stocks which have “good management, good product and a competitive advantage”. He also gave practical examples of Atul Auto and Cera Sanitaryware to explain how booking profit periodically, especially when the stock looks overpriced, is a sensible strategy to follow. He gave several other important pointers for us to follow to be able to become successful investors!
Let me tell you guys something very important. This article is probably the most Important I have read so far here. It is almost perfect. Vijay Kedia is highly distinguished by myself. To all novice investors, the ten rules are extremely crucial. Bookmark this page and revisit on a monthly basis. I can give no better recommendation than this interview.
Nothing special about his 10-point formula – we all know these, don’t we? What I would be interested in knowing about Vijay Kedia is the stocks that he is holding. What are his top holdings currently? Can someone list down his stocks?
I think his latest pick is Karnataka Bank which I also believe is a good stock to own.
This advice seems to be directed to a very select group or individual. I like points 6 to 10. I am not sure about the rest. After all this is a “market” where ups and downs will be there. I do not think being too conservative would help. When the market was at its low I suggested investment. The bounce back has been good. However its good that we get views of many successful investors in this forum.
I admire him to the hilt. He is unlike other self made billionaires who recommend stocks and have hidden agenda to take advantage of the situation. Kudos!
Exactly. And if anyone reading this article thinks it is nothing special, then they show both arogance and ignorance. The facts that his 10 points are so simple is because investing really is just that. It is fund managers and elite idiots who try and complicate the rules so they can look wise. Vijay is a humble spokesperson, and simple investor. I know this personally. And that is why he is what he is worth. As I have stated. Bookmark this page.
two of his latest picks have been GMDC and Heritage foods I believe. I like Heritage foods (and Kwality )
One of his pics : Astec life science
Co taken over by Godrej : long way to go ( i hope )
Dear Arjun,
Thanks for this excellent post and also for posting video.
Kedia mentions about a jute manufacturing company where he has taken a small stake. Please let the readers know the company name. In addition, please post your comments about Lykis Limited. Kedia is the chairman of Lykis. With regards, Venkatesh.
Beautiful points given by Vivek… Must follow 🙂
GLOSTER Ltd. might be the jute manufacturing company that he has invested. This only a guess by me, My assumption may be wrong too.
Thanks for sharing…
The company name is Cheviot company..It is a jute products making company with a very good book value and good eps.