Prominent investor and trader Vijay Kedia, often considered a leading figure in the Indian stock market, was in the city for a discussion on turning risk into reward, organised by the Young Leaders Forum, which took place at Taj Bengal on November 13. Kedia spoke in a session entitled ‘Rise above Risks’ and elaborated on the story of his life, what got him trading on the stock market in the first place, the strategies he resorts to to invest effectively, and shared tips and opinions with the audience as to where he thinks India’s economy is headed in the near and long-term future.
Known for what he calls his SMILE philosophy in the stock market, Kedia is a strong advocate for investing in companies with good management and long-term growth potential. The SMILE philosophy breaks down the conditions required for investors to build wealth, wherein S stands for ‘small in size’, M for ‘medium in experience’, L for ‘large in aspiration’, and E for ‘extra-large in market potential’. This philosophy, Kedia says, is the path to succeeding financially. By focusing on companies that meet the SMILE criteria, Kedia believes investors can align themselves with businesses poised for growth, ultimately creating substantial wealth over time.
(L) Rul Kyal, chairperson, Young Leaders Forum; Balkrishan Kyal, and Vijay Kedia
The session was highly enriching and touched upon topics not only limited to risk and reward but also failure, greed, and that all of us essentially always remain works in progress in this ‘giant investment game called life’. “The trick is to have no Plan B. There should only be Plan A,” Kedia said, highlighting the need to be open to adverse circumstances as well as favourable ones. “We must burn our old bridges and look to the future simultaneously. It’s important not to go back to where we were before, and put our heart, mind, and soul into where we are and where we want to go eventually. It’s easy to get swayed by thoughts of failure and not start at all, but failure is part of life. There’s no life without failure; one cannot pass or move forward without it. So I always recommend not thinking about failure at all. If you focus on what it is that you want, success will chase after you automatically eventually.”
Kedia also shared some investment tips with the audience. “The SMILE policy is something I have adhered to for many years now. I started trading on the stock market when I was very young and I figured out eventually that one needs to work smart, not just work hard. Money in itself is a by-product of doing any kind of work. But doing justice to that work so that it is executed well is more important than making a whole lot of wealth.”
The session wrapped up with the audience asking Kedia questions related to the current socio-economic-political conditions in the country, unemployment, PSUs, and small-cap funds, among others. Kedia responded with optimism and practical wisdom, encouraging investors to focus on long-term trends rather than short-term market fluctuations and stressing the importance of understanding the broader economic landscape and identifying opportunities within any challenges that may exist.
