Our today’s TFP Profile Mr. Vijay Kedia is often described as a market master. He started as a trader and went on to become a well known Indian Investor. He is the Managing Director of Kedia Securities Pvt. Ltd and is famous for his witty lyrics, his love for quoting Bollywood dialogues, giving point-blank lessons on investing (and trading) which other investment veterans seldom share and has been key note speaker for various organisations.
Early Life and Career
Vijay Kedia was born and brought up in Kolkata to a Marwadi family. The family was in the business of stock broking. The fads and fancies of trading and investing in stock market started at the age of 14 but he eventually joined the stock markets at the age of 19 as a trader. This involvement was not only out of sheer passion but because of compulsion when his father passed away.
However, he never liked broking, thus left his family’s stock-broking business after three years and started doing his own trading. Beginner’s luck played its part and for the first six months, he flared at his work and learnt the trick of the trade. However, his beginner’s luck started fading out and his losing trades outpaced his winning trades. There was also a point where his mother was about to sell ornaments to do away his dues. This incident taught him his biggest lesson in trading i.e. to place a stop-loss while trading.
After his stint at trading, and trying his hand at various odd jobs, he left Kolkata and came to Mumbai to try his luck. It was at this very moment he turned into a fulltime investor from a trader. He started following successful investors and reading about different companies. During the Bull Run, he decided to sell off his entire portfolio worth of Rs. 35,000 and invest in only a single company. This investment shot up 10 times in a year and was the start of a series of multi-bagger lined up which made Mr. Kedia a market master and revered Indian investor of that time.
In 2004-2005, he identified and invested in three shares (Atul Auto, Aegis Logistics, Cera Sanitaryware) which appreciated more than 100 times in the next 10 to 12 years. And this accelerated his investments in various companies and he is largest individual shareholders in some of the companies where he is currently invested.
Investment Philosophy
He made his career by investing in mid-cap stocks. He has never invested in large-cap companies. He lived by an investment mantra which was coined as ‘SMILE’ approach to investing. SMILE stands for the following:
S stands for a company small in size. Small in size should be accentuated in terms of the Company’s market share vis-à-vis the total market size of the industry.
M stands for Management with medium in experience. Management should have a clean track record with fire in the belly to grow the company for the next 15-20 years.
L stands for management with large aspirations. This is the most important yardstick to be looked at in a management.
E stands for extra large in market potential. For a company to grow its size from small size to medium and so on, the market should have that potential to pan these out.
He believes in investing in companies for next 10-15 yrs and betting big and riding through tough times. While luck plays a big part in stock market investments, knowledge, courage and patience are the cornerstones according to Vijay Kedia.
Latest Portfolio
In his stock market career of 25 odd years, he has always remained 100% invested in the market. Details about his latest portfolio can be seen as below and two out of his three initial multi bagger stocks still form a part of his portfolio:
Other Facts:
He has been conferred with a Doctorate degree for Excellence in The Field of Management, has been featured in Business World list of Successful Investors In India, described by economic times as a market master and is a key note speaker at IIMs, Tedx and London Business School.
He is often seen quoting a special dialogue from the movie Om Shanti Om – “Kehte Hain Agar Kisi Cheez Ko Dil Se Chaho… To Puri Kainaat Usse Tumse Milane Ki Koshish Mein Lag Jaati Hai” and this is exactly how his passion for stock markets turned out to be his full time profession overcoming all the ups and downs in this journey of becoming a successful investor.
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