In an interesting session as a part of the highly popular Face2Face series, conducted by Elearnmarkets, Mr Vivek Bajaj, Co-founder of Elearnmarkets, invited Mr Vijay Kedia, a successful stock market investor with many years of experience, to decode how to invest in the stock market.
Dr Vijay Kishanlal Kedia is an Indian investor & trader based out of Mumbai. His company, Kedia Securities Pvt. Ltd., is the largest shareholder (after the promoter) in several listed companies. Kedia was a keynote speaker at IIM Ahmedabad & IIM Bangalore.
He has also delivered a speech at the Bombay Stock Exchange. He has also spoken at TEDx Amritsar. He was invited to talk at London Business School.
So in today’s blog, we will discuss his journey as an investor and how he managed to become a hero from zero.
Discussing his tricks as an investor and the pros and cons of trading, we will proceed with the proper learning for our learners.
- 1. Should we trade or invest in the stock market?
- 2. What is meant by full-time investing in the stock market?
- 3. How did he analyze the stocks when he started his investment journey?
- 4. Do you think it is still possible to read newspapers, the internet and other things to understand trading in today's time?
- 5. How did he get the confidence of investing in large volumes in a stock?
- 6. What are 2-3 things he has learnt from his investment journey?
- 7. How to build courage?
- 8. How to select stocks for investing among many stocks?
- You can watch the entire video from here
1. Should we trade or invest in the stock market?
According to Dr Vijay Kedia, there is no guarantee that 1 lac can turn 50 lacs.
But this is the wrong way of thinking about trading in the stock market. The capital of 1 lac can turn into 0 if not traded properly in the stock market.
However, long-term investment in the stock market can help us benefit from compounding. So rather than trading, one should put his mind in identifying multibagger stocks that can generate multiple digits returns in the future.
2. What is meant by full-time investing in the stock market?
When traders trade in the market, they keep seeing the stock’s price movements in which they trade.
So, investing in the stock market doesn’t mean that one should not regularly check the price movement changes in the stock market. One should keep checking what is happening in the world or different sectors and how it will impact those stocks that they are holding.
“I always keep on thinking about how that news will impact my stocks that I am holding ” – Dr Vijay Kedia.
3. How did he analyze the stocks when he started his investment journey?
The first two stocks in which Dr Vijay Kedia had invested were ACC and Punjab Tractors. The thought process behind investing in that stock was the cyclical change he read in an article.
Cyclical change among sectors happened 2-3 years earlier, but now it has become longer. He read in an article that there is a rebound happening in the tractor industry. So just by reading that article and analyzing whether the stock is cheap or not, he invested in Punjab Tractors.
“Investing is very simple; we just try to make it complex”- Dr Vijay Kedia
4. Do you think it is still possible to read newspapers, the internet and other things to understand trading in today’s time?
Dr Vijay Kedia has a simple way of finding stocks for investment by connecting the data i.e. news and information. According to him, that is the only way of finding stocks for investment.
He doesn’t buy stocks that are recommended by others. By just seeing somebody else’s failures or successes, or by tips given by others, he doesn’t invest in that way.
The main reason behind this is that the person giving him information or tips may also be wrong.
“Sometimes even the managements of small-cap companies don’t know how big their companies can become”- Dr Vijay Kedia
According to him, the three most important things in investing in the stock market are knowledge, courage, and patience.
You can also take our course on ONLINE NSE ACADEMY CERTIFIED CAPITAL MARKET PROFESSIONAL (E-NCCMP)to learn more about investing in the stock market
5. How did he get the confidence of investing in large volumes in a stock?
He believes investing a large chunk of money comes from conviction and the amount varies from person to person and also according to their risk appetite. When he looks at his portfolio, it doesn’t seem big to him, as it may look big to others. In simple terms, he said that his destination is still far, so there is no stopping in-between.
“We are all work in progress in life.” – Dr Vijay Kedia
6. What are 2-3 things he has learnt from his investment journey?
He says he has learnt 3 things from his investment journey till now:
- He cannot earn from trading in the stock market
- He started investing but he couldn’t stop trading 100%
- He is trying to be disciplined, but still he is not 100% disciplined.
“Courage is the most important thing when it comes to investing in the stock market”- Dr Vijay Kedia
You can read more about Basics of Investing from ELM School
7. How to build courage?
Courage is God-given, according to him. Courage can cut your throats also or make a fortune for you but for that, destiny is also important.
If you get an opportunity, then utilising it, depends on your destiny.
8. How to select stocks for investing among many stocks?
He goes by his gut feeling, even if he just likes the name of the stock or like the company’s management. But, according to him, he is reasonably observant and can understand people through their body language.
“Investment is a blessed business, but it is 24*7 business”- Dr Vijay Kedia
He concluded that if management doesn’t become a billionaire, how will you become a billionaire?
You can watch the entire video from here
As we discussed above, Dr Vijay Kedia believes in long term investment rather than trading in the market. His learnings from his investment journey can help us to be successful in the trading world. We hope you found this blog informative and use it to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy.