Mr. Vijay Kedia built a net worth of over Rs. 800 crores.
But you probably never read past that headline.
So I binged hours of interviews to learn his investing principles and strategies.
Here are 20 lessons on investing from @VijayKedia1 Sir:
Collaborated with @AdityaTodmal
But you probably never read past that headline.
So I binged hours of interviews to learn his investing principles and strategies.
Here are 20 lessons on investing from @VijayKedia1 Sir:
Collaborated with @AdityaTodmal
Before I start, a quick disclaimer, please don't ape his portfolio.
As the entry price, horizon and risk appetite would be far different than yours.
Rather lets draw inspiration and try to learn his stock picking skills.
Now let's DIVE INπ
As the entry price, horizon and risk appetite would be far different than yours.
Rather lets draw inspiration and try to learn his stock picking skills.
Now let's DIVE INπ
1/ Started off as a trader:
- Soon, beginnerβs luck started to fade out and loses started to mount, to an extent where his mother was about to sell her ornaments.
- Although he was able to dodge the situation.
- This incident taught him the biggest lesson to have a stop-loss.
- Soon, beginnerβs luck started to fade out and loses started to mount, to an extent where his mother was about to sell her ornaments.
- Although he was able to dodge the situation.
- This incident taught him the biggest lesson to have a stop-loss.
2/ Punjab Tractors:
- In 1990, he made his first investment by putting in his 10-years savings of Rs 35,000 in this stock, based on a news trigger that tractor industry will witness a turnaround.
- It worked and fetched him 4-5 times which he calls it as a fluke.
- In 1990, he made his first investment by putting in his 10-years savings of Rs 35,000 in this stock, based on a news trigger that tractor industry will witness a turnaround.
- It worked and fetched him 4-5 times which he calls it as a fluke.
3/ He believes that an investor must possess three qualities:
i. Knowledge,
ii. Courage, and
iii. Patience.
i. Knowledge,
ii. Courage, and
iii. Patience.
4/ Patience is a virtue:
- He picked 5% stake in Aegis Logistics at Rs.20.
- The stock didn't move the next year.
- Finding a gem isnβt enough, finding the courage to stick through without fear & disappointment is.
- Eventually, the stock rallied to Rs. 300.
- He picked 5% stake in Aegis Logistics at Rs.20.
- The stock didn't move the next year.
- Finding a gem isnβt enough, finding the courage to stick through without fear & disappointment is.
- Eventually, the stock rallied to Rs. 300.
5/ Stock investing should be simple:
- One cannot get a small company that is cheap and has prime return ratios too.
- Focus on the core qualities of the business model.
- Look at the underlying story of the stock and the industry.
- Management should be transparent.
- One cannot get a small company that is cheap and has prime return ratios too.
- Focus on the core qualities of the business model.
- Look at the underlying story of the stock and the industry.
- Management should be transparent.
6/ Framework for picking stocks: SMILE principle:
He chooses a small cap & mid cap companies which has the following ingredients:
β’ S: Small in size
β’ Mi: Management with medium experience
β’ L : Large in aspirations
β’ E: Extra large market potential
He chooses a small cap & mid cap companies which has the following ingredients:
β’ S: Small in size
β’ Mi: Management with medium experience
β’ L : Large in aspirations
β’ E: Extra large market potential
7/ S: Small in Size
-Small in size refers to the companyβs market share to the total market size of the industry.
-Don't be under the wrong notion that small in size means with reference to market capitalization.
-Small in size refers to the companyβs market share to the total market size of the industry.
-Don't be under the wrong notion that small in size means with reference to market capitalization.
8/ Mi β Management with medium experience
- Management must be aggressive, transparent, and dedicated.
- He looks for management who would have gone through about 2-3 up & down cycles.
- Management should be motivated to grow the company and add value for all stakeholders.
- Management must be aggressive, transparent, and dedicated.
- He looks for management who would have gone through about 2-3 up & down cycles.
- Management should be motivated to grow the company and add value for all stakeholders.
9/ L β Large in aspirations
- For a company to grow from small to medium size, the management should have large aspirations.
- If management aims to become a billionaire only then the shareholder will become a millionaire.
- For a company to grow from small to medium size, the management should have large aspirations.
- If management aims to become a billionaire only then the shareholder will become a millionaire.
10/ E: Extra large market potential
- For a company to grow from small size to medium or from medium to large, the market and the underlying asset should have that potential.
- For a company to grow from small size to medium or from medium to large, the market and the underlying asset should have that potential.
11/ Stay in a Sunrise industry at any cost, stay out of a Sunset industry at any cost:
12/ Prefer no debt / low debt companies:
13/ When does aspirations of a company take a hit: Part 1
Acronym CHANGE:
β’ C: Chamchas
β’ Ha: Health
Acronym CHANGE:
β’ C: Chamchas
β’ Ha: Health
14/ When does aspirations of a company take a hit: Part 2
Acronym CHANGE:
β’ NG: Next Generation
β’ E: Ego
Acronym CHANGE:
β’ NG: Next Generation
β’ E: Ego
15/ Don't get carried away with the market mood:
Neither be an optimistic during an uptrend nor be a pessimistic in a downtrend.
His investment mantra is to β βBuy like a bull, sit like a bear and watch like an eagle.
Neither be an optimistic during an uptrend nor be a pessimistic in a downtrend.
His investment mantra is to β βBuy like a bull, sit like a bear and watch like an eagle.
16/ Sizing makes you earn serious wealth.
- Finding the right companies is not enough if you don't own a substantial piece of it.
- He doesn't fear the quantity because his aspiration in future is to allocate is even bigger than what it is today.
- Finding the right companies is not enough if you don't own a substantial piece of it.
- He doesn't fear the quantity because his aspiration in future is to allocate is even bigger than what it is today.
18/ Market is a sea of opportunities
- Presents various types of risk rewards.
- Know your type and act accordingly.
- Presents various types of risk rewards.
- Know your type and act accordingly.
19/ People who are living far below their means enjoy a freedom that people busy upgrading their lifestyles just canβt fathom. - NAVAL
- Don't fall in the trap of upgrading your lifestyle.
- Cut down your expenses on depreciating assets.
- Don't fall in the trap of upgrading your lifestyle.
- Cut down your expenses on depreciating assets.
20/ Investing is a blessed business:
-One should be prepared to get immersed into this business of investing to reap the fruits out of it.
-One should be prepared to get immersed into this business of investing to reap the fruits out of it.
Apart from learning investing from @VijayKedia1 Sir, one can also enjoy his melodious songs on markets!
Do check out on youtube!
Do check out on youtube!
If you enjoyed this thread, here's another one which might be helpful:
Source: Various articles and videos on youtube
Link for the videos which are used here as snippets:
youtube.com
youtube.com
youtube.com
singjupost.com
stockbasket.com
Link for the videos which are used here as snippets:
youtube.com
youtube.com
youtube.com
singjupost.com
stockbasket.com
Hope you discovered something new (because that's the point!)
If you did, share it with a friend
Hop back up to retweet the first tweet
See past threads here:
@AdityaTodmal
&
@niki_poojary
If you did, share it with a friend
Hop back up to retweet the first tweet
See past threads here:
@AdityaTodmal
&
@niki_poojary
Loading suggestions...