NEW DELHI: Value investor Vijay Kedia says he churned his portfolio quite a bit in the recent past. He says he had many sleepless nights in April and May, and liquidated 4-5 per cent of his portfolio to raise cash.
In an interview with ETNow, the renowned investor said he is currently focusing on spotting disruption in the marketplace. “For now, the focus is on new-age technology and digital-technology focused companies,” he said.
He has invested in Oracle Financial, as he feels cloud is the new FMCG. Vaibhav Global and Repro India are two other tech-focused stocks Kedia has in his portfolio.
“A bull market is like sunshine, always there, somewhere in the market. But one needs to have an unbiased mind when it comes to stock selection,” he said.
The seasoned Dalal Street hand said the overnight crash in US stocks could be the beginning of a prolonged correction, but he was in no position to anticipate the scale. He said his investments are neither based on rally in US stocks, nor on the euphoric rise of domestic indices Nifty or Sensex.
Kedia said his idea is to identify smallcaps that can become midcaps and largecaps on a later date. In recent weeks, he bought Ramco Systems and Tejas Networks and continues to remain invested in ZEE Entertainment. “If anything, I have only bought additional shares in the media firm,” he said.
The value investor sold shares of Bajaj Auto despite strong fundamentals, as he does not expect the two-wheeler maker to multiply wealth. He says stocks such as Asian Paints and Nestle India are ’24-carat gold’ selling at the price of diamond.
“When I buy stocks, I don’t set price targets and stop losses,” he said, adding that he does not intend to sell any of his midcap holdings at present. He, however, warned that all midcaps and smallcaps would not move in the same direction.
Kedia said he continued to hold Cera Sanitary and revealed that he sold some of his stocks after ‘grand masti’.
“I made many mistakes in the past, which I have tried to rectify now. JMC Project is one such stock. Everest Industries is another. I also bought some smallcaps such as Kokuyo Camlin at 100 PE and I got punished. So, I sold such shares after Grand Masti,” he said.
Kedia, who has in the past invested in old-economy stocks, says he won’t bet on steel companies again as he did in the past. He also said the time to buy gold at the price of ‘silver’ was passed in May.