So, what will keep you busy this Samvat year?
vijay kedia: This Samvat is also the same. What worked in the past should work in the future.
But the story has conviction, right?
vijay kedia: yes of course.
Tell your audience a little bit about the stocks that aren’t performing at all. But you believe the story.
vijay kedia: Yes, many stocks like Repro India are among my biggest holdings, but they have not performed well in the last five years. Just imagine. Five years ago, the price was the same at Rs 500. The price is still the same. Similarly, like Vaibhav Global, this is also one of the big parts of my portfolio, but it has not performed at all for the last 3 years. I mean, that’s apart from three years ago when Vaibhav already had 10x or something like that, but that doesn’t matter. We are still in the race. So I have to compare myself not with my past performance, but with the athletes I’m running with. This is how you evaluate yourself. So, like this, we have a few more in stock. A meaningful hold I have on Repro and Vaibhav where there was no performance.
So what was done? What was done is what we want you to know. What has been done? I think Atul auto has done a good job. IndiGo has done a great job.
vijay kedia: Atul Auto did a decent job. Tejas Networks has not done very well. Increased by 100% in the past year. There are a lot of stocks that are up 200%, 300%. Therefore, I am still behind. that’s ok.
But people get a lot of FOMO as well, so when you’re making 100% returns, does it matter if you lag behind others?
vijay kedia: Let me tell you, the race isn’t over yet. So, I’m running a marathon. So you’ll probably be faster and ahead of me in the 5k. However, the cricket match is not stopped until the race is over or the last player has played. I mean, I’m still in the game. So, I still have hope. So, I might cover it next year.
No, what I’m asking is: Are there any interesting areas you’d like to explore further?
vijay kedia: No, it’s an interesting sector, similar to the one I own. Even if they didn’t perform in the past, we expect them to perform in the future. Personally, I will tell you that I am bullish on Chinese stocks. I think China is a new story. China is the new theme and I think this Chinese stock should continue to do well.
Is it because of the evaluation?
vijay kedia: Of course it’s an evaluation. They haven’t done anything for 15 years. Imagine even Hong Kong’s index in 2008 was 32,000 or 34,000. 14 years later, it’s still hovering around 22,000 or 20,000, and I don’t know if it’s 8 or 9 times higher.
Would you allocate 5% of your capital to China? Are you that bullish on China?
vijay kedia: yes i will. Do you mean my portfolio?
This is a big decision to allocate 5% of your overall portfolio to foreign markets, meaning you are making a big bet.
vijay kedia: I really want to take it. I would like to invest.
In other words, there are two types of ETFs in China. One is a country ETF that also includes financial stocks, and the other is a specific ETF that manufactures batteries.
vijay kedia: Yes, it’s definitely a mixture listed in Hong Kong or somewhere.
In other words, buying China means selling India. You always prefer to invest the entire amount. That’s what you’ve been doing for all the years I’ve known you. This means that to invest in China, you either need to raise money somewhere or sell your shares. So where do you sell it?
vijay kedia: So, I sold some stocks. We’ve tweaked some stocks. We withdrew this quarter.
Let me ask you a straight question: you still have your original quantity of IndiGo.
vijay kedia: yes. Yes, I have IndiGo. yes.
This means your portfolio will be in the public domain. Now, in any portfolio, a stock company does not follow a straight line. Some may go through a maturity curve. Some companies may experience a downward curve in both price and earnings. Which 2-3 companies are currently in an exciting stage of earnings growth and where you think the next 2-3 years will be better than the last 2-3 years for your portfolio companies? Where do you think profits will grow over time? ?I just want to point this out to my viewers, the reason I ask about profits and not price is because price is a function of market flow, technicals, and momentum. is. It’s one thing to talk about profits, but whether prices go up or down is another story. Are you confident that your revenues will recover or be revalued in the next 2-3 years? Where does transformational change occur rather than incremental change?
vijay kedia:I will tell you that I have coined the abbreviation SHIFTT. Smile is a general term. SHIFTT is relevant in this field. So S stands for stock market. Because if the subject is related to stock markets, SIPs, etc., whether it’s exchanges, depositories or whatever, this is the beginning of stock worship. I have said this on various platforms like roti, kapda, makaan, data, SIP, etc. In other words, SIP is a new trend that will grow by leaps and bounds.
So I think the S stands for things like stock market and SIP, and the H stands for hospitals and hospitality. I watched an interview with Puneet Chatwal, the Minister of Tourism, and Ayesha.
What is the abbreviation of SHIFTT? What does S stand for?
vijay kedia: S stands for stock market or SIP, whatever you want to call it. H stands for Hospital and Hospitality Industry and IF stands for Infrastructure. I sold one company, but I own another and may grow or buy another. I don’t have anything in mind at the moment, but as I always say, I can’t imagine India’s 10, 15, 30 trillion economy without infrastructure. We are still in the early stages and double T. T stands for tourism and one T stands for telecommunications.
So what would you buy in Telekom? Tejas?
vijay kedia: I’m interested in that. So I’ll just stick there.
Going back to the point that Avanne was making, a lot of the investors that we talked to today, energy transition is a big theme, and not just real estate, but of course the whole pharmaceutical industry, which is doing well, and renewable energy. I’m talking about. , energy transition. Digital and energy transition should be the theme of the next decade, not months or years, so aren’t you curious?
vijay kedia: There are no stocks in particular that I’m thinking about in that field. Secondly, as you’re talking about, I don’t invest in sectors that are fashionable, trends that have become very famous in the market, or sectors like data centers. Everyone is talking about data centers and hydrogen and solar power. And that. I don’t usually invest in stories like that. Because by the time I got interested in the story, it had become very expensive and now everyone has some involvement in these stocks and everything else.
Therefore, I have no thoughts or intentions to invest in this sector. Because I believe that whatever companies or sectors I currently own, they should also perform well. The story in these areas is far from over. This is how I feel. I may take a wrong turn, but in the end I will stick to what I believe.
So, are you involved in activities that go beyond the boundaries of the hotel and tourism industry in India?
vijay kedia: No, there is no Indian Hotel. We have Mahindra Holiday. Unfortunately, I don’t have an Indian hotel and certainly not an Indigo.
Mahindra, you have half ownership.
vijay kedia: Mahindra, yes, 1%.
Do you still own it?
vijay kedia: Yes, I own it. Mahindra Holidays, yes. The stock price performance has been poor and is sluggish.
So, just to come back to the whole thing, over the last one year, we’ve been talking about equities, and we’ve seen a huge wave of wealth creation in India. Property prices across India have increased by more than 20% on average, and by 50% in the last three years. The real estate sector now has a combined market capitalization of $8 trillion to $9 trillion. Stock market, market capitalization is $5 trillion, 80% owned by investors who are Indian promoters and DII investors, wealth ownership is about $4 trillion, and gold, about $2 trillion. I don’t know if it’s $3 trillion. But there’s definitely a 40% increase there.
Therefore, India experienced a huge wealth effect wave that it had never seen before. Gold, real estate, and now stocks. Woh ka rahe na buffet hoo raka hai abhi to, buffet table, you can choose. We were having a conversation at home and my mom was talking about how much the price of silver had gone up. My wife says she doesn’t know how much diamond prices have fallen.
Now you can see it on Titan. But where would you place your bets in asset class allocation? Are there any other big changes you would like to make in terms of wealth distribution, similar to what you did with China? It’s not just stocks. For example, you can buy gold, buy Bitcoin, buy real estate, etc. Do you have any big thoughts that you can share with our audience that aren’t fair?
vijay kedia: No, not in any meaningful sense. I might have about 2% of my portfolio in gold and maybe 1-2% in silver. And real estate makes up 5% or 7% of my portfolio. So that’s the only thing I want to focus on. I’m also bullish on gold and silver. And Bitcoin cannot be traded or invested.
But dil jo hai, wala din far bhi hai, Hindustani wo equity ke saas main hai hai, wo gold aur silver chahe wo equal return. De, as everyone has been talking about over the last 20 years, Gold has given returns similar to Nifty, but what’s the fun? You live for the climax.
What is the point of living until and without taking risks? Is it necessary? So the kick is in the fairness. So I’m not one to just sit around and invest 100% in gold, even if I could get a better return or a similar return. If you do so, it will become inactive. Then you won’t be able to enjoy that money.
