Who is "Vijay Kedia" ?
What is the secret sauce he uses to identify such multibagger stocks?
How does one spot such opportunities before the crowd jumps in and valuations go through the roof ?
In a cricket match, if you want to hit a sixer, you don’t wait for the ball to drop in front of you and then take a call whether you want to go for a six or a single. You look at the bowler’s action and then decide if you can hit a six to this ball.
The issue is, an investor's journey is not as exciting as a fast-paced T20 game; it’s way too longer than a Test match.
Kedia says that in many cases he waited patiently for 5-6 years observing all the news, announcements, product developments and financial statements of a company without even buying a single share.
In an interview he explained that if the product is good and the management is good then he quietly waits for a turnaround. When you are buying during a turnaround, you might think it is expensive but you will have to buy the stock keeping in mind the future value. Buy when you can see the trailer of a ‘Hit’ product. The product should have been accepted in the market and reached the growth stage.
In market parlance, that means buying companies when they are at an "Inflection point". If everything can be seen on the balance sheet then you won't be able to multiply money because the news is already out.
Look at the factors like whether the company's market share is growing or not and whether it is able to maintain its market share or not. If a company is in a turnaround phase, you can't look at its PE ratio. Some of them may even be making losses because they are busy developing their products.
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