Hii friends !! Welcome to RandomTeachings. Today’s video is based on the success story
of the ever smiling and the humblest person you will ever know
Mr.Vijay Kedia. Vijay Kedia started investing at the age of
14.He finds himself lucky to be born in a family with a stock
market background.He preaches the saying in stock market, “The earlier you start,the better
it is”.He says its good to lose money with smaller risks
and learn then to make money with bigger risk and earn.According
to him stock market is a high risk,high gain business. He started his journey as a trader.He says
“Trading is the hardest way of making easiest money”.Trading requires
strict discipline and total concentration.You must learn to cut your losses quickly. Kedia was influenced by his friend S P Modi
who had identified many multibaggers.He then started investing in
stocks recommended by Modi and eventually it turned into his passion.Now his manin motive
was to find mulibaggers on his own. His first big hit as an investment was Punjab
Tractors which he bought at Rs.50 which later multiplied 10
times in 3 years. Later in 1990,with the help of his friend
Sameer Kedia he came to Mumbai with Rs.1 Lakh to try his luck in
BSE ring.His first 2 years in Mumbai were hard and troublesome.Finally in 1992-93,he
got lucky to identify ACC at Rs.300 which he sold at Rs.3000 within
a year and bought his first house in Mumbai.That gave him a
lot of encouragement. He is famous for buying mid-size companies.He
gives utmost priority to management and business growth.
His famous quotes are,”Good managers in bad business are better than bad managers in good
business”.An investor should chase the story behind a business. He advises to be prepared for a 20-25% fall
in the stock price even if one is 100% sure of its fair price.
If a small management has fire in its belly and cares for its reputation,it will make
the investor big along with the company.All big companies were once
small. Later he befriended Rakesh Jhunjhunwala,I
have a video related to him in my channel you can check that out.
Kedia wanted to buy huge stakes in companies just like Rakesh but had no courage.Finally
from the education picked up from Rakesh Ji,he bought 5% stake
in Aegis Logistics at Rs.20.The stock didn’t move for a year
and Vijay got very disappointed.Luckily market realized its potential and it moved to Rs.300
in no time. According to him investing in 200 companies
is not a thrill.Neither should you invest everything in one
company.He advises to have a 10-15 stocks portfolio and have a time horizon of about
5 years as this is a time every small company takes to become a
medium company.He never has any exit plans,but decides to exit
when he thinks the valuation is unrealistic or he finds some other better investment. According to him dividend is not the only
criteria to invest.Growth and scalability is the top most criteria.
He uses a bottom up approach which means he focusses more on the comapny rather than the
industry.Although he keeps a track on the sector and quotes,”Growth
is faster if the ship and wind sail in the same direction”. He likes companies which are not very famous
thus available at cheap valuations.Some of his multibaggers
are Atul Auto and Cera Sanitaryware.Lets discuss about them in detail. He bought Atul Auto a Gujarat based company
at a very low valuation since the management was unkown.But he saw the
zeal in Mr.Jayanti Chandra to grow.In 2006,the company launched ‘Rear Engine’ 3 wheelers.The
product became a great hit and the stock grew 7 times in 5
years. He bought Cera at 6-7 PE valuation.The company
was alreay growing at 10-12% annually and paying a modest
dividend.He sensed that the middle class would have greater demand for Cera’s products.He
was right and the stock went up more than 7 times in 5 years.He
advises that the keys to assess quality of managemnt is their past
record and current practices. You should always check if the management
is ambitious to grow and the capability of its team to deliver.
His current portfolio holdings include : Sudarshan Chemical
Karnataka Bank Cera Sanitaryware
Repro India Lykis
TCL Packing etc His total portfolio is now worth Rs.403 Cr. Thank You for watching the video!
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