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There was a time when one of the biggest investors of India, Mr. Vijay Kidiya, did not have even ₹1 to buy milk for his child and then a day came when he bought a major block of a milk company and gifted it to his wife and today his net worth is ₹1400 crores. There was one incident where I did not have even ₹1 to buy a box of milk Lactodex to feed my son.
In between, I was offered bulk of shares of a dairy company which was into milk products. Milk and milk products were offered to my wife and so this is your reward for that. The best thing about Vijay Kidiya sir is that he openly shares his strategy and formula on public platforms. So today we will know about two secret formulas of Mr.
Vijay Kidiya, using which he created such huge wealth and about which he also talks many times in his interviews, as I said To stay invested in sunrise industry at any cost and stay out of sunset industry at any cost when I see and when I feel that the sun is setting in the sector that is the time that I would exit the stock and if I find some management is doing something, something fishy and something which they should not do then also if their focus changes then also I would sell the shares and the shares become so expensive that it is irresistible then also I could sell and I find some other story you know that my stock has already gone up 10 times 20 times or what ever it is timing times are not the criteria but if I find some better story then then the assisting stock then also I may exit sunrise and sunset industry Vijay Kedia sir says if you want to create huge wealth in share market then you One should always invest in sunrise industries, meaning the industry that is currently operating or has a chance of doing well in the future.
Because all industries operate in cycles, and you should exit industries that are not operating now and have no chance of doing well in the near future. Their trend has changed. Second, the Smile formula. Vijay Kadia Sir has made all his investments so far using the Smile formula and has created wealth worth ₹1,400 crore.
So, Smile, of course, is my formula. I did not know earlier that I was working in Smile. I learned about it late. Understand, about 10 years ago or seven years ago, I realized that whatever pattern I am following or the pattern I am doing falls under the Smile formula. Smile formula means that S stands for small in size.
So, I generally invest in small caps and mid caps, and that is, in particular within that sector. I generally choose the smallest company in the sector, or the third or fourth. There's no hard and fast way to choose the third or fourth. But I choose the smallest company because I think that if an elephant moves or runs, it takes some time, but if it's a smaller sized cheetah, it can run faster.
So, I feel that the chances of multiplication are higher in mid-cap companies, which can be 50 times or 100 times. So, I choose small in size. This stands for small in size. Mr. Vijay Kadia invests in companies that are very small in terms of market capitalization. He first finds out the industry in which he wants to invest and then invests in one of the three to four smallest companies in that industry.
I'm always looking out for changes in the sector as I've already described it. That is, you can call it a bottom up approach, but first I should like the sector, then I should find the smallest company in the sector. You know, like usually all these companies are having only four to five companies in every sector, so I should find the company which is smaller in size and then I if I like the company, if I like the management, then management is the first criteria, if I like the management, then I will buy in a big way, big way in the sense, what ever money I have at that point of time, I will buy.
If you look at TCS, its market capital is approximately Rs 15 lakh crore, and it will have to grow 100000 times. Now, it is difficult to be equal to TCS, but if the company is good, then it will easily become 10 to 20 times. You can understand it like this, if the market cap of company A is Rs 1000000 and that of company B is Rs 1 lakh, then company A can easily be Rs 1000000 It can reach up to 000 and your money will become 10x and the company whose market cap was 1 lakh can go up to max 1 lakh to 2 lakh 3 lakh and it will be very difficult for your money to become 2x 3x a company whose market cap is small has a lot of space to grow and the company whose market cap is big has less space and its business is also very spread out and it is very difficult to expand further from it medium in experience because the responsibility of all things depends on the management whether you are avoiding or he should have at least 15 years of experience in the stock market of running his company because in 15 years it must have fallen two-three times, must have seen recession two-three times, must have seen slow down, must have seen various kinds of tragedies in it, it must have fallen so much in it that a person learns only by falling, so I also have a quote that when you when you when you are right you earn when you are If you learn, we learn only when we are talented, otherwise we do not learn, we think that I am a king, so in 15 years he must have seen two-three such cycles, he must have understood how to run his company properly, so in a way, a big and full proof company is a restoration proof company, by saying this it is called medium in experience, now I stand for medium in experience, Vijay Kedia Sir invests in those companies whose management has at least 12 to 15 years of experience because during this period the management has seen everything like boom, recession, recession, crisis and has also dealt with all these and if even after this its performance is good then it means that the management can easily tackle every problem that may come in the future, whereas if the management is not good then no matter how good the industry is or how good the company is, the money will definitely be lost there, so large in aspiration, large in aspiration means there should be so much fire inside the management, in the stomach That brother, he should feel that today I have reached 500 crores from 100 crores, I want to reach 2000 crores from 500 crores, I want to reach 2000 crores from 2000 crores, he should have this desire inside him to move ahead, so that large in aspiration is very important because if the management does not become a billionaire, then we the shareholders will not become millionaires.
There should be a desire for becoming big in his company. The last stand for large in aspiration is the management. If the company is worth 100 crores, then its M should be 1000 crores, from 1000 to 50000, 1 lakh crore. Vijay Kedia Sir says that you will be able to become a millionaire only if the management is able to become a billionaire.
The last stand for extra large in market potential. No matter how good the management is, but if there is no potential in that sector and the market size is very small, if the market cap of the company is 500 crores and the size of the entire sector is 10000 crores, then the company is a It will be able to increase its market share only up to a limit and after that nothing can happen.
At least if the company is worth Rs 100 crore, then the market size of that industry should be at least Rs 50,000 to Rs 1 lakh crore. In such a situation, that company will have a lot of opportunity to multiply the money. And the ' E' that comes at the end means extra large market potential. No matter how much fire the management has, how honest it is and how well it runs the company, but the potential of that sector is very less.
For example, if its turnover is 500 times and the market size of its product is Rs 1000 crore, then what will it achieve, there is not much ocean for it to swim in. So at least it should be such that its market size is Rs 5000 crore or Rs 200 thousand crore and it is sitting at Rs 500 thousand crore today, then there is a whole ocean for it to measure.
So by saying this, I mean extra large market. It is also important to have potential, so this is the formula of smile and this is what I have been following in my life, if you have reached this far in this video, then I have a request from you, please like, share and comment on the video, this will only help the retail investors, people like you and me and those people who keep losing their hard earned money just by watching buy, sell and f end videos youtube2 in spreading financial awareness and financial knowledge
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