Celebrated investor Vijay Kedia offers his timeless wisdom on stock markets-and wealth protection, and financial independence-in this episode of HT Prosperity Tales, presented by BSE India and Hindustan Times.
With his decades of experience, Kedia explains how much harder it is to make money as compared to keeping it and shares his views on discipline, patience, and long-term commitment. His words will resonate with anyone who wishes to know the meaning of true financial freedom.
What is the true definition of financial freedom, in your opinion?
Vijay Kedia:
Finance is freedom. In my opinion, financial independence is not the accumulation of wealth, but having the freedom to make decisions that reflect my values. It is being able to choose my companions, manage my time, and plan my daily schedule. I would say that planning for an early retirement is a wrong way of living because I think one should keep the body and mind engaged for longevity and fulfillment.
Reflecting on my initial experiences in the market, I’ve seen many succumb to the trap of inadequate preparation. Making money is very difficult, but preserving money is even more difficult. I compare uninformed investing to driving without proper driving lessons—if you don’t know how to drive, you’re bound to crash. My approach is to treat every investment with the seriousness of setting up a business. I constantly remind myself: your DEMAT statement belongs to the market, while your bank statement reflects your personal worth. Without proper homework and a disciplined strategy, jumping into futures and options is no different from gambling.
Looking back, what guidance would you offer your younger self with respect to investing in the stock market?
Vijay Kedia:
Advice to my younger self: stay clear from trading futures. What I have learned is that the attraction of short-term trading which carries high risk only ends up in unnecessary losses. Investment should be long-term. I always tell myself, “Think only for long-term investing.” Staying invested in quality stocks, no matter the market’s fluctuations, tests your patience and conviction—but it is the only reliable way to succeed over time. This approach has taught me that the power of compounding can only work when you remain steadfast.
How has your risk management strategy evolved over the years?
Vijay Kedia:
Throughout my investment journey, my risk management strategy has remained consistent. I invest only what I am prepared to lose, which helps me stay mentally calm during market downturns. I often remind myself that when I invest in a company, I am mentally prepared for the possibility that the stock may not perform for six months or even a year. Hence, I only ever put money in stock, which I’m fine with losing. This approach allows me to invest confidently, knowing that even if the worst happens, my lifestyle won’t be adversely affected.
What advice would you give someone who is looking to compound their wealth?
Vijay Kedia:
Long-term compounding is what I have learned and practiced. The market is influenced by various short-term factors—from inflation to global economic shifts, but these are temporary. My mantra is simple: “Play the long term, only the long term game.”
As I stayed invested over extended periods, I discovered firsthand compounding the exponential growth that compounding can offer. In spite of the inevitable ups and downs of the market, I’ve been able to create lasting wealth with long-term investment.
Final Takeaways
Vijay Kedia’s insights serve as a powerful reminder for investors of all experience levels: success in the stock market is less about chasing quick gains and more about cultivating patience, discipline, and a long-term vision. His candid reflections on financial freedom, risk management, and the power of compounding provide invaluable lessons that resonate well beyond the confines of the trading floor.
To delve deeper into these expert insights and learn more about building lasting wealth, watch the full episode of HT Prosperity Tales, presented by BSE India.
