A trader who had to sell his mother’s jewelry because of losses in stocks—a trader who is the real example that no degree is required in the stock market.
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Yes, we are talking about Mr. Vijay Kedia, who later became an investor and amassed a wealth of 700 crores in the stock market.
Today, we will learn his tricks, strategies, and important life lessons.
About Vijay Kedia
Vijay Kedia was born into a Marwari family. His family business was trading and stockbroking.
He only completed his B.Com. from the University of Calcutta, but with huge success, he got the opportunity to speak at IIM Bangalore and IIM Ahmedabad.
He started trading with his grandfather at the age of 14. At that time, his aim was to join the Indian army.
At the age of 19, he lost his father and began handling his father’s trading business.
The initial trading days were good, but later he started experiencing losses.
At some point in Hindustan Motors, Vijay Kedia lost 70,000 Rs in trading within 2 days. As a result, his mother had to sell her golden jewelry to cover Vijay’s losses. This incident shook Vijay to his roots, and he left trading.
After 10 to 11 years of dealing with that incident, he again started trading with a new mentality. That is, he would trade on a no-profit, no-loss strategy. But still, he was unable to manage his losses, and finally, he decided to stop trading.
In 1989, he shifted to Mumbai from Calcutta and began investing. Vijay understood the cycle of business in the stock market and realized that some businesses have a cycle of ups and downs in their prices.
He bought shares of Punjab tractors for 50 rupees. After 3 years, this stock rose to 500 RS, and Vijay made a lot of money.
After profiting from Punjab tractors, he understood that investing in the stock market is very easy—it’s we people who make it complex.
The Harshad Mehta Era
In 1992–93, Harshad Mehta was the most popular name in the stock market. He used to manipulate the share prices of the companies. ACC was one of them.
Vijay Kedia invested in ACC at a price of 300 RS and sold that share at a price of 3000 RS. This was the 10X growth in that share.
The money that Vijay Kedia earned in ACC stock is used to buy his first home in Mumbai.
From this Harshad Mehta era, Vijay learned to invest only for the long term. Buy small stock, wait to become its midcap, and then again wait to become its large cap.
Vijay Kedia started his journey with 35,000 rupees, and today, in 2024, his net worth is around 700 crore. Atul Auto and Sera were the multi-bagger stocks in Vijay’s portfolio.
He always says about management that management should be aggressive, loyal, experienced, and fully focused on the business. SMILE Strategy: S: small in size M: Medium Experience L: Large in Aspirations E: Extra Large in Market Potential.
He says that if you have solid conviction in your stock, then hold that stock in the bear run as well. The conviction came from a detailed study of the company.
He didn’t like to buy stock and forget about it. He wants to look at every stock after some time.
He believes that until and unless you invest a good amount of money in stocks, you will never generate a high return.
The Learnings From Vijay Kedia
Never rely on tips. Never use borrowed funds to invest in stocks. Never ever depend on the income of the stock market. Never repeat the same mistake.
Vijay Kedia Interview
Ace investor Vijay Kedia speaks to Mint in an exclusive conversation about his own portfolio, says that most of his portfolio consists of mid and small cap stocks. He also explained why he puts some money into real estate during every bull market – and has one piece of advice for investors.
Renowned investor Mr. Vijay Kedia, Founder, Kedia Securities sits down with Sanjay Abraham, Head – Research Desk, Dhanam Business Media and talks about his journey in the stock market, how he built up a stock portfolio worth over Rs 1,500 crore, the industries that could see a boom and be a good investment option.
