Cash is my enemy, I put everything in stocks: Ace investor Vijay Kedia

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Published: April 3, 2018 11:26:47 AM

While the recent stock market correction may have spooked some investors and led them to cut their holdings in the stock market, ace stock picker Vijay Kedia advises investors to remain fully invested in the stock markets.

Vijay Kedia says that he expects FY19 to be a volatile year for the stock markets.“In my 30 years in the stock market, I don’t remember a single day where I held cash,” ace investor Vijay Kedia said. (Image: PTI)

While the recent stock market correction may have spooked some investors and led them to cut their holdings in the stock market, ace stock picker Vijay Kedia advises investors to remain fully invested in the stock markets. In an interview to ET Now, Vijay Kedia said that in the last three decades as an investor in the stock markets, he has always remained fully invested into the markets, and seldom held significant cash.

“In my 30 years in the stock market, I don’t remember a single day where I held cash. Even if I sell stocks, I cannot hold it in my bank for more than 10 days. Cash is my enemy, as it reflects in my spending habits too. Given Rs 5,000 in my pocket, and I go for shopping that entire amount would be spent,” Vijay Kedia said.

Further, Vijay Kedia pointed out that as he invests mostly into illiquid stocks, he cannot exit the holdings if the stock markets are not favourable. Speaking about the valuations in the stock market, Vijay Kedia said that while he’s happy with his current holdings, the valuations are not cheap. In the same interview, Vijay Kedia said that while he is fully invested in the stock market, he is not comfortable with borrowing and investing currently.

Sharing his stock market outlook, Vijay Kedia said that he expects FY19 to remain volatile due to headwinds such as the Donald Trump induced trade war which has caused vicious sell-offs. Kedia said that he holds Karnataka Bank in his portfolio, and had bought the shares given cheap valuations. He reiterated that he expects strong performance from the bank, and believes that the worst is over for it.

With an experience topping three decades in the Indian stock market, Vijay Kedia is known for his mutli-bagger stock picks such as ABC Bearings, Punjab Tractors, Cera Sanitaryware and Atul Auto which have multiplied many times over since he first spotted them.

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