Love My Stocks, But No Strings Attached: Dr. Vijay Kedia

At the age of 18. Although i wanted to join early but legally it was not allowed to enter into the exchange. I joined market because of my passion and compulsion. Passion, because my father was a trader so it is in my DNA. And compulsion because he died when he was 40 and I was 14. We had no savings to run the family and no capital to do any business. This was the only business available which needed no capital to do satta or trading at that point of time.

After being a failure in having any savings in spite of trading for 10 years, I switched to investing and started reading all the business magazines like Dalal Street Investment Journal, etc. and started interacting with investors. I made a new set of friends who were interested in investment only. After 2 years, I identified Punjab Tractor (PT) as I read tractor industry was coming out of the prolonged recession. There were only 4 or 5 tractor companies listed. I found PT the cheapest one among the whole lot and therefore invested in it.  The company did exceedingly well YoY for next three-four years. The market also realised and stock went up four to five times in 3 years.

 
Are you largely a self-taught investor, or did other investors teach you lessons that were worthwhile? 

I learn from everybody, but I choose my own way and my own stocks. We all need to be like Eklavya. 

In all the years you have investing, have there been any really bad years? Was there a particular phase where you thought this is not the right place to be?

After the struggle of first 10 years in futures trading, I realised trading cannot create wealth, so I switched to investing. I still feel trading is injurious to wealth. In my view, if you are smoking, you may die in 20-30-40 years, but in F&O trading, you may die next day.

That the stock market is a place to become a crorepati overnight.

A lot. It's a mind game. In my view, your luck plays an Important role when you take decisions.

First, because they cannot discriminate between a good cap and a "Bhangaar Cap".

Second, because they don’t realise that market is of course a place to make easy money, but in the hardest way. 

Third, because when they drive a car they learn driving. When they chose a profession like CA or advocate or a dentist, they do proper courses, internships and take training. How many investors follow the same principle before becoming an investor? 

I look for management, product, growth and competitive advantage. On a future valuation, the stock should be cheaper than its peers and sector.

What advice would you give to other investors on how to stay emotionally calm during periods of pain?

Be courageous. If you are a long term investor, detach yourself from the price movement of your investment in the short term. Behave as if you don't need that money. When market falls, I don't look at the price of my stocks and I assume they would be in lower circuit. 

I love all my stocks, but do not have any emotions for them. I can sell them anytime without any bondage. My love towards my stock is like that of a maid who loves every child she is taking care of at that point of time.