While the stock market continues to remain volatile dampening investor sentiment, ace investor Vijay Kedia is unfazed, and says that there has not been a single day in the last 30 years where he was not fully invested.
While the stock market continues to remain volatile dampening investor sentiment, ace investor Vijay Kedia is unfazed, and says that there has not been a single day in the last 30 years where he was not fully invested. “There has not been a single day in last 30 years where I was not 100% invested. These politics, crude oil prices are not really risks, as we already know them,” he said. So what should investors do in the stock market? “I had quoted previously- Buy like a bull, sit like a bear and watch like an eagle,” Vijay Kedia told in an interview to CNBC TV18.
Sharing how he spotted multibagger stocks early on, Kedia explained that the most important factor in choosing a stock is the growth of that company. Taking stock of his stock picks such as Atul Auto, Cera Sanitaryware and Everest Industries, he noted that he entered these stocks when the stock markets were in a deep ‘coma’.
“When I bought Atul Auto, Cera Sanitaryware, the market was pretty bad at that time. It was the time of Ketan Parekh scam, so we were just coming out of coma. These stocks were available at throw away prices, at 5-6 times PE. The economy was soon turning around, and so were these companies. That’s how these turned out to be multi-baggers.”
He also spoke about his investment in Sudarshan Chemicals. “I bought Sudarshan Chemicals in 1992 or 93, in very small quantity. I held that till 2014. When I found that structural changes are happening in the pigment industry, so I bought more shares. I was lucky to get the desired quantity too,” he said.
Notably, the expert had also recently released a song on investing in the stock market, where he urges investors to forget their investments once they pick up a good quality stock. Sharing the attributes of a good quality company, Kedia says that the management must be honest and ambitious. Further, the firm must be willing to take on challenges. The firm must have products better than its peers, and should be focussed on improving its R&D capabilities.