Archive · 11 Dec 2025
Vijay Kedia Advocates Tortoise Stocks Over Multibaggers
Vijay Kedia, a famous investor, says that instead of chasing stocks that can give very high returns (like cheetahs), investors should focus on safer, more stable stocks (like tortoises).
These tortoise stocks are companies with strong finances, reasonable prices, and a history of steady growth.
Kedia believes that in the current market, where many stocks are overpriced, investing in these safer stocks can protect your money and still give good returns over time.
He suggests that investors should build a portfolio of such stocks, rebalance it every year, and be patient.
This way, when the market corrects and prices become reasonable again, investors can switch back to high-growth stocks from a stronger position.
Vijay Kedia advises shifting from high-risk 'Cheetah stocks' to safer 'Tortoise stocks' due to stretched valuations in small- and mid-cap segments.
Tortoise stocks are characterized by strong fundamentals, reasonable valuations, and defensive strength, such as PSU banks.
A portfolio of 20 Tortoise stocks, selected based on reasonable PE, consistent dividends, and balance sheet strength, delivered a 6x return over 10 years.
This performance outperformed the broader BSE200 index, which returned approximately 3.2 times over the same period.
Kedia emphasizes the importance of patience, discipline, and annual rebalancing to maintain the intended risk profile and achieve steady capital appreciation.
- Who
- Vijay Kedia, a renowned investor
- What
- Advocates for investing in 'Tortoise stocks' over 'Cheetah stocks' (multibaggers)
- When
- Current market environment with stretched valuations
- Where
- Indian stock market, particularly small- and mid-cap segments
- Why
- To prioritize capital preservation and steady growth over high-risk, high-reward investments
- Investor
- Vijay Kedia
- Strategy
- Tortoise stocks
- Characteristics of Tortoise Stocks
- Strong fundamentals, reasonable valuations, defensive strength
- Example of Tortoise Stocks
- Public Sector Undertaking (PSU) banks
- Portfolio Performance
- 6x return over 10 years (2014-2024)
- Comparison Index
- BSE200 index (3.2x return over same period)
- Key Filters for Tortoise Stocks
- Reasonable valuation, financial resilience, shareholder discipline
- Rebalancing Frequency
- Annually