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TMFEditorsDesk (< 20)

Zweig Takes Down Siegel; Wal-Mart Opens in India

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July 13, 2009 – Comments (6) | RELATED TICKERS: WMT

Two stories worthy of a few minutes:

First, Jason Zweig, author of Your Money & Your Brain and Weekend WSJ columnist, debunks the research of Jeremy Siegel. In his book Stocks for the Long Run, Siegel traced stock market returns back to 1802 and found that stocks returned 7% (plus inflation) over long periods of time. Much of Dr. Siegel's work has become gospel (we often cite his work here at TMF), but Zweig does not obfuscate his point:

The 1802-to-1870 stock indexes are rotten with methodological flaws.

Read it in the article titled "Does Stock Market Data Really Go Back 200 Years?"

http://online.wsj.com/article/SB124725925791924871.html

Next up is a story from The Washington Post about Wal-Mart's international expansion. The company's first store in India is being met excitement ... although there were negotiations with WMT that will protect local merchants.

Read it in the article titled "India's First Wal-Mart Draws Excitement, Not Protest."

http://www.washingtonpost.com/wp-dyn/content/article/2009/07/12/AR2009071202176.html?hpid=artslot

-Brian Richards (no stake in WMT)

6 Comments – Post Your Own

#1) On July 13, 2009 at 10:35 AM, TMFBrich (84.76) wrote:

Here are the hyperlinks, too.

The Zweig WSJ article is here.

The Washington Post's WMT-in-India article is here.

-Brian

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#2) On July 13, 2009 at 10:38 AM, portefeuille (99.66) wrote:

Well, also not that good for Siegel's reputation was his famous WSJ article earlier this year (see comment #5 here!).

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#3) On July 13, 2009 at 10:59 AM, russiangambit (29.34) wrote:

> Next up is a story from The Washington Post about Wal-Mart's international expansion. The company's first store in India is being met excitement ... although there were negotiations with WMT that will protect local merchants.

I heard  why they are finally opening in Russia too. That is where they are badly needed. But IKEA is leaving. I don't really know why  (too much taxes ??? ) because people loved shopping there.

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#4) On July 13, 2009 at 11:31 AM, TMFBrich (84.76) wrote:

We covered the Ikea-leaving-Russia story on Fool.com a couple weeks back. As recently as June, Wal-Mart said it was "confident" about entering Russia ... Maybe they'll both be right.

-Brian

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#5) On July 13, 2009 at 1:40 PM, russiangambit (29.34) wrote:

> Citing the "unpredictability of administrative processes" in Russia, Swedish retail behemoth Ikea has iced all its future Russian investments. The company's founder has spoken about being gouged on electricity prices there in supposed retaliation for an unwillingness to grease some palms. In a statement very reminiscent of that Bill Mann quote, Ikea's country director conveyed the feeling to an interviewer that "someone somewhere does not like us."

Corruption, it figures.  Wal-Mart's ruthless management style will give russian bearaucrats a run for their money, I hope.

As for India, I am not sure. Things seem to be cheap in Indai already as it is. But Wal-mart still might do well because  they at least can guarantee the relaitive quality for the same price.

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#6) On July 13, 2009 at 4:04 PM, TMFEditorsDesk (< 20) wrote:

Very interested to see how Wal-Mart in India plays out...since the mom and pop stands on every corner in India eke out subsistence livings (as best as I can tell) and since labor is exceedingly cheap in an overpopulated India, it would seem the Wal-Mart uproar there would make the small town Wal-Mart uproar in America seem minor. We will see.

-Anand

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