Vijay Kedia’s Success Story: Vijay Kedia comes from a family of stockbrokers. The stock market interests in him since he was a child. His grandfather introduced him to trading when he was 14. A lack of money kept him from starting his own business after his father died. In the following years, he worked for his family’s stockbroking firm. However, he did not find stockbroking fascinating.
In order to make money, he began to trade stocks at the age of 19. A great profit was earned in his first year as a trader and he became confident in it after that. He started losing at the end of an and a half years lead. A year of success had just been luck for him. While running for profit, he suffered significant losses.
Failed attempts by Vijay Kedia
– After making a little profit in the beginning, he would eventually engage in big-amount trading; as a consequence, sometimes he would lose his entire earned amount when he suffered one big loss in a row.
Once, he lost Rs. 70,000 in just 2-3 days in Hindustan Motors. His mother offered him pieces of jewellery to help him get back to normal. Fortunately, he was able to get the jewelry back without having to sell it. He was disappointed by the incident and quit his trading job as a result.
-After that, he tried to supply tea gardens in Kolkata with materials, but was also unsuccessful there. He also became a stock market trader. His trading experience of 10-11 years did not provide the profit he desired. After realizing he wasn’t making any money, he decided to drop the idea of trading and switch to investing in 1989.
Vijay Kedia’s plan to do investment at that time was stymied by the lack of investment sources, and investors were reluctant to share their investment knowledge.
As a beginner, he used these two strategies:
(1) Trial and error- He was passionate about trying something and learning from your failure. Don’t let it happen again.
(2) He learned from other investors’ mistakes by watching the success and failure of others.
One time, Vijay Kedia’s friend lost money, and because he had mistakenly invested in high P/E ratio stocks, he had to face the loss. He concluded that investing in high P/E ratios is risky, after taking the time to analyze the whole situation.
As an investor, Vijay Kedia has made a successful career
In his early years as an investor, he read newspapers, business magazines and annual reports about companies. This is still a hobby for him, but he has become fascinated by watching interviews with different CEOs or managers. In 1989, he relocated from Kolkata to Mumbai because of the general tendency for stock-related financing to occur in Mumbai.
Two years had passed since he had been living there as a guest. He began investing in Punjab Tractors as his first stock.
Punjab Tractors, which he invested all of his money in, began as a venture with only Rs. 35,000 in his pocket. Following that, Punjab Tractors grew to four to five times within three years. ACC LTD was only worth Rs. 300 that time, so he sold all his Punjab tractors shares and bought the company. Harshad Mehta reached Rs. 3000 with the bull run as the ACC stock increased with great tendency. The shares were more valuable at that price, so Vijay Kedia sold all his shares, bought an apartment in Mumbai, and took over other companies with the rest of the money.
An investment failure:
Harshad Mehta’s fraud left him broken and at a loss. As a result, those stocks fell during the market crash because he invested without analysing the management or quality of the company.
His investment philosophy was never taken for granted after that failure, and he avoided compromising his investment strategy. AEGIS LOGISTICS was purchased for 14 rupees and sold for 500 rupees, generating 4000% returns. Similar returns have been earned by him many times. Five to ten rupees were purchased by him for ATUL AUTO LTD. In the first 4-5 years, there was little movement, but Vijay Kedia believed in his strategies and management of Atul Auto Ltd. The company’s stock rose to more than Rs. 500 after a few years. Vijay Kedia’s patience is admirable.
Qualities that make Vijay Kedia an excellent investor
Whenever he talks about investing, he tells you that you need to have the following three qualities:
– Knowledge – To find the best stocks to invest in.
Courage – To purchase those stocks at a reasonable price.
– Patience- The stock must be held with great patience because sometimes the market takes time to figure out its actual value.
Stocks should be chosen based on the following factors:
Company Management- He places a great deal of importance on the fact of company management and also spends a great deal of time seriously analyzing it. He once used the following example to explain the need for effective management:
If Management controls the driving of a car, Growth is Like the Highway, Shareholders are like the passengers, and Shareholders are like the drivers. His reply was that regardless of whether the car was Alto or Mercedes and whether the highway was good or not, what matters most is the driver of the car (management) because in the end, the company and passengers are both in the driver’s hands, and the driver is responsible for both destinations. Investing in stocks and managing a company are critical to success.
Investors: Here are his suggestions:
A company’s management should be scrutinized in order to ascertain how well the management has run the company during difficult times.
He believes that a management’s best position for success is if he can deal with negative situations and lead the company to a better place.
– Analyze how the company will evolve in the future:
In determining whether a company is ambitious towards future growth, investors should look at the future projections and the future projections of the management.
The stock market is very volatile, and so an investor should make a dependable source of fixed income.
The best way to find good stocks is to read about the companies in magazines, newspapers, as knowledge provides insight.
– View of the stock market: Investors should view stocks as investments rather than something that could make them millionaires in a matter of seconds.
– Success in investing requires patience, skill, and experience.
The investment strategy he develops is based on high research and analysis. Based on that, the procedure is executed. The most important thing for him is to learn from those failures and keep making money from them.
According to him, becoming a successful investor cost him a lot of money. The mechanism caused me losses and I spent years trying to understand it. My ups and downs have led me to this position because of my own mistakes. Having persevered in this game, I have succeeded.”
A lot of his experiences seem to be shared on Twitter.
The successful investor Vijay Kedia invests in stocks. His skills and intelligence make him a unique individual. The fantastic investing strategy he uses has been an inspiration and role model for many investors who wish to increase their wealth.
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