"From Rags to Riches: The Journey of Vijay Kedia"
“Buy like a bull, sit like a bear and watch like an eagle” , says ace investor Vijay Kedia.
Dreams into Reality
If you can think of it, you can do it. If you can dream it, you can do it. Just keep working hard. It won't come easy, and it will seem impossible, but if you keep working hard, it will definitely happen. Today's topic is really intriguing because we will talk about a trader who lost so much money that his mother had to sell her jewelry. He is an example of how self-belief, perseverance, self-determination, and strong will; self-belief can propel someone from good to great. One of India's largest investors and a man who changed himself from rags to riches, Vijay Kedia was a merchant before turning to investing and amassing a fortune of Rs. 1500 crores till 2023.
Navigating Regret
“Regret is a lifestyle disease of investing. You sell, it goes up, and you regret.. You don't sell. It comes down, and you regret... In either case, you have to embrace one regret. Which regret is more painful to you? To me, the first one is more painful “ said Vijay Kedia. You have to live with it and enjoy this because it will happen most of the time.
Early Life and Aspirations
Born into a Marwadi family, Vijay Kishanlal Kedia was raised in Kolkata. His family is involved in broking and stock market trading. His desire to study keeps rising as time goes on, and he makes a constant effort to pick up new skills that will ultimately aid in his knowledge expansion. He then completed his BCOM in Kolkata.
"Biography/Journey of Investor Vijay Kedia : From Rags to Riches"
Entrance into Trading
He began trading with his grandpa at the age of 14 because his family was involved in the stock market, although at first he wasn't all that interested in it. He wanted to join the Indian army and serve his nation, but this is life. Several times, destiny has written a different chapter for us, and the same thing happened to him. His father passed when he was 19 years old, and he got charged with a lot of family responsibilities. Then, having no other option, he entered his traditional broking business. And he began to flourish and have a happy life.
Rise and Fall in Trading
He continued on with this brokerage company for three years, but he was not satisfied with what he was doing and wanted something better from his life. His aspirations were lofty, so he began trading. And those early days were his "golden days," as he began to turn a profit and start earning a respectable sum of money. This went on for a year, but after that, things started to go wrong. He began to lose money. He makes small profits at first, but his single trade wipes out all of his gains. One major setback came in his life when he lost over 70 thousand rupees in two to three days, a turning point in his life. For him, 70 thousand is a huge amount at that stage.
Family Sacrifices and Determination
His mother chose to sell her jewelry as a result of his losses. He realized that his first year's earnings were just the result of his early luck, so he made the tough decision to stop trading and started a business supplying materials to garden tea in Kolkata. Unfortunately, that business also failed. Because of this, he started trading in hopes of making some money again. However, he is now more cautious and takes fewer risks while trading, but he still loses, and he has realized that trading is not meant for him. In an interview, he said that at one point in his life, he was struggling to make money and didn't even have 14 rupees to buy a package of milk for his son.
Transition to Investing
He came to the realization that now was the moment to make firm decisions in life and to implement them effectively. It takes him 10 years to realize that trading is not for him, so in 1989, he quit all forms of trading altogether, started a new chapter in his life where transitions came from trader to investor. He moved to the City of Dreams in Mumbai in order to make some money, and he started working there. One day, he came across an article that explained when to buy and sell stocks. He read everything and conducted some research, and as a result, he noticed that the tractor industry, which is booming, has a lot of potential for growth in the auto sector.
Investing Strategy and Success
Therefore, after doing some fundamental analysis, he found that the Punjab tractor is unquestionably performing well and has a lot of potential to develop. He bought some shares with an initial investment of 35 thousand Punjab Tractors at 50 rupees, and after three years, the stock rose to 500, giving him ten times his investment back. Subsequently, via more investigation, he purchased ACC Cement shares at a price of Rs 300. This was the era of the market's bull run, the Hrashad Mehta Era. And the stock of ACC Cement began to rise at an exponential rate due to Harshad Mehta's manipulation. This stock hit 3000 rupees in a very short amount of time. Kedia Sir sold all shares of Punjab Tractor and made a significant profit.
Investment Philosophy and Multibaggers
Vijay Kedia also made several stock investments around this time in Bull Run, but he suffered serious losses when Harshad Mehta's scam came to light. Then he realized that he should invest solely for the long term—at least five years—and not be greedy. Give some time for stock to mature because many times the market understands the potential of stock late. Usually, he invests in small-cap stocks. Frequently, people make fun of him for following this strategy because hardly any small caps turn into large caps. However, he does a thorough fundamental analysis before purchasing any stocks. Despite the fact that several of the stocks in his portfolio gave a single rupee return in two to three years, he has never sold a single share because he has faith in his analysis.
Investing Mantra and Principles
But as soon as the market realizes the company's true worth, this stock turns into a multibeggar. His initial investment capital was just 35,000 rupees, but today he has a net worth of over 1500 crore rupees. This is the power of investing. He bought numerous stocks that eventually turned into multibaggers, such as Atul Auto, in which his average buying price for stock was between 5 and 10 rupees, and today it is trading at rupees 700. Aegis Logistic, which he initially purchased for Rs 14 and is currently trading at Rs 500, yielding a 4,000% return, Tejas Networks, which gives around 1100% return on his investment, Cera Sanitary Wear, and many more. He invested in every sector’s top growing companies, and as a result, his portfolio is diversified.
Investment Criteria: Trust in Management and SMILE Principle
In one interview he told that he buys such stocks by seeing management of company. If management is experienced, transparent, and dedicated to business, then they will protect your investment in order to protect their own wealth and reputation. He gave a very beautiful example of strong management, If a particular Sector/Industry is Highway, Company is Car, Shareholders are passengers, and management is driver, then if the industry is booming, the company is also good, but if management is not strong then the company will not reach destiny, but if management is strong, then it will pull the company from all odds and make it aprofitable company. His mantra is very simple, as he follows SMILE principal where
S means find companies which have Small in Size
M means those companies are medium in experience
L means have Large in Aspiration
E means Extra Large in Market Potential
Investing Insights and Lessons Learned
From his experience, he provided the finest advice, starting with the biggest lesson: Don't rely on tips. If you're investing, you can't hold stocks for longer period of time without an inside gut feeling in you. You take an exit from stock even in a small correction because of fear. Only after you do your own analysis, will you be able to have faith in this stock. Second, have additional sources of income and don't rely just on stock market profits. The third rule is to never take out a loan and put it into the market since doing so; it will be instant death for you because, while trading, it adds additional burdens to your mental state. The fourth rule is to never make the same error twice and to always have a learning mindset. Learn from every mistake. He would always advise keeping things simple and not changing them just because of trading. He would also advise to keep expenses as low as you can.
Recognition and Influence
Since he was 19 years old, he has been active in the market. In addition to being the largest stakeholder in a number of listed businesses, Kedia and his company, Kedia Securities Pvt. Ltd., have spoken at London Business School and served as keynote speakers at IIM Ahmedabad, IIM Bangalore, and MDI Murshidabad. "Market master" is how the Economic Times has characterized him. He was right when he said, early in 2012, that India was about to enter a structural bull run. Kedia was ranked #13 on the Business World list of Indian investors who have achieved success in 2016. The "Ask Vijay Kedia microsite" was introduced by "MoneyLife Advisory" in 2017. The equities in Vijay Kedia's portfolio increased by 170% in 2017.
Conclusion: Vijay Kedia's Inspirational Journey
Vijay Kedia's journey exemplifies the transformative power of perseverance, self-belief, and lifelong learning. From his early struggles as a trader to his current status as one of India's most respected investors, Vijay's story serves as an inspiration to all those who dare to dream big and persevere in the face of adversity. Today, he stands tall as a beacon of success, having amassed a fortune of over 1500 crores through his disciplined approach to investing. His wisdom, humility, and willingness to share his knowledge continue to earn him the respect and admiration of investors worldwide. Vijay Kedia's story is a testament to the fact that with hard work, determination, and unwavering faith in oneself, anything is possible.
"Biography/Journey of Investor Vijay Kedia : From Rags to Riches"
