And he’s not simply talking in idea—his personal funding journey serves as proof. Kedia recounted a outstanding funding in a Gujarat-based firm again in 2006-07, which become a 16,400x return over 16 years earlier than he lastly exited in 2023.
This unbelievable progress wasn’t with out its challenges—the inventory skilled declines of over 50% throughout market downturns, together with the 2008 monetary disaster. Nevertheless, his steadfast long-term holding and perception in compounding made all of the distinction.
1) The Energy of Holding for the Lengthy Time period
Kedia emphasised that the very best funding concepts typically take 5-10 years to unfold. But, many buyers are inclined to chase momentum in bull markets and panic in bear markets, lacking out on the true potential of compounding.“Bear markets are the largest lecturers. For those who keep invested, the market will reward you.”
2) Don’t Comply with Blindly: Know Your self Earlier than You Make investments
Regardless of his phenomenal success, Kedia warns towards blindly following well-known buyers.
He shared a candid instance—he invested 5-7% of his portfolio in an organization that hasn’t made cash for the previous 4 years. The inventory’s value is presently decrease than its 2019 stage, failing to carry out even throughout the 2021-23 bull run. However since this was a calculated danger inside his portfolio, he may deal with the autumn.“Even my spouse doesn’t know what I’m shopping for or promoting,” Kedia joked, emphasizing the significance of impartial considering in investing.Many buyers, nonetheless, blindly replicate profitable buyers’ portfolios, allocating 50% or extra to a single inventory with out understanding the dangers.
“KYS (Know Your self) is extra essential than KYC,” Kedia advises, stressing that one’s danger urge for food and psychological energy ought to dictate funding selections.
3) The Key to Success: Development & Conviction
For these seeking to construct wealth by the markets, Kedia suggests specializing in growth-oriented firms with the potential to ship returns over the following 10-15 years.
Conclusion: The Market Rewards Endurance
Vijay Kedia’s 16,400x success story is a testomony to the facility of persistence, analysis, and conviction. He firmly believes that the inventory market will not be a on line casino, however a spot the place constant, disciplined investing can create life-changing wealth.
For buyers navigating the ups and downs of the market, Kedia’s recommendation is obvious: “Keep the course, embrace market volatility, and make investments with a long-term imaginative and prescient.”
(Disclaimer: Suggestions, solutions, views, and opinions given by consultants are their very own. These don’t symbolize the views of the Financial Occasions)
