Need to learn from others’ mistakes to succeed in investing: Vijay Kedia

Mumbai-based investor Vijay Kedia says no academic degree can guarantee success in the stock market.

“Education is an important factor in anyone’s life and it is a lifelong asset that grows with an individual. But investing is a different thing altogether,” says Kedia, who confesses that he failed in Class X, but later went on to complete his graduation.

“You need to study the concept of investing separately to become a successful investor,” Kedia said, adding that one has to learn to invest, practise investing and do the same in the market in order to become a successful investor.

Kedia says the more you fail in the market, the more you will learn. “That’s why failure is important in the equity market. It is important to stay on the pitch and play,” he says and admits that he too has a long list of failures in the stock market.

The Dalal Street veteran says one who invests early and falls early learns more in the stock market. “In equities, a wise person learns from his own mistakes while smart people learn from the others’ mistakes. If you want learn everything from your own mistakes, then one life will not be enough,” says he.

Kedia also says luck has played a crucial role in his life. In the recent past, the value investor has spotted many multibaggers such as Vaibhav Global, Sudarshan Chemicals, Ramco Systems.

In an earlier interaction with ETMarkets.com, Kedia said he follows the SMILE principle in investing; Small in size, Medium in experience, Large in aspiration and Extra-large in market potential.

“But luck too plays a crucial role in dealing with risky assets. In the stock market, 2+2 can be zero, 2+2 can be 4 and the same can be 22. For multibagger return, you need luck,” Kedia told the India Investor Show 2020.