And he’s not just speaking in theory—his own investment journey serves as proof. Kedia recounted a remarkable investment in a Gujarat-based company back in 2006-07, which turned into a 16,400x return over 16 years before he finally exited in 2023.
This incredible growth wasn’t without its challenges—the stock experienced declines of over 50% during market downturns, including the 2008 financial crisis. However, his steadfast long-term holding and belief in compounding made all the difference.
1) The Power of Holding for the Long Term
Kedia emphasized that the best investment ideas often take 5-10 years to unfold. Yet, many investors tend to chase momentum in bull markets and panic in bear markets, missing out on the true potential of compounding.“Bear markets are the biggest teachers. If you stay invested, the market will reward you.”
2) Don’t Follow Blindly: Know Yourself Before You Invest
Despite his phenomenal success, Kedia warns against blindly following well-known investors.
He shared a candid example—he invested 5-7% of his portfolio in a company that hasn’t made money for the past four years. The stock’s price is currently lower than its 2019 level, failing to perform even during the 2021-23 bull run. But since this was a calculated risk within his portfolio, he could handle the fall.“Even my wife doesn’t know what I am buying or selling,” Kedia joked, emphasizing the importance of independent thinking in investing.Many investors, however, blindly replicate successful investors’ portfolios, allocating 50% or more to a single stock without understanding the risks.
“KYS (Know Yourself) is more important than KYC,” Kedia advises, stressing that one’s risk appetite and mental strength should dictate investment decisions.
3) The Key to Success: Growth & Conviction
For those looking to build wealth through the markets, Kedia suggests focusing on growth-oriented companies with the potential to deliver returns over the next 10-15 years.
Conclusion: The Market Rewards Patience
Vijay Kedia’s 16,400x success story is a testament to the power of patience, research, and conviction. He firmly believes that the stock market is not a casino, but a place where consistent, disciplined investing can create life-changing wealth.
For investors navigating the ups and downs of the market, Kedia’s advice is clear: “Stay the course, embrace market volatility, and invest with a long-term vision.”
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
