Good investing reading – 6 February 2013

Today, in Good Investing reading, I have collected articles that talk of ULIP mis-selling, Bill Gross (PIMCO’s) investment outlook – Feb 2013 and DMart’s success story.

It is no secret that ULIPs have been a bad product for investors. Here is a systematic study of the money that investors have lost. And if they lost, someone gained. The insurance agents and the insurance companies. Shameful really.

Investors lost Rs.1.5 trillion due to insurance mis-selling – Live Mint

Bill Gross heads PIMCO an investment management firm. As per the Wikipedia article on PIMCO, they managed $1.92 trillion as of September 30, 2012. That is a huge Rs. 105 lakh crore. That incidentally is higher than India’s 2011 GDP! He talks about the unbridled growth of credit in the world economy and how it affects investments across asset classes.

You will understand this article better if you have a look at this video that explains credit and fractional reserve banking beautifully.

We Are All Going To Die From Inflation Says Bill Gross – Feb 2013, Investment Outlook

You know the problems that the retail business has faced in India. Spinach, More, and Subhiksha are a few of the names that faced challenges in making money and taking off. Some like More have survived but probably burnt cash in the process.

Read this article on D-Mart which is a profitable retailer. In the Smart Stock Investor Workshop I always tell participants that the first thing you should focus is on understand the company’s business.

Will The Real Sam Walton Stand Up? – Outlook

This is the kind of analysis we need to do when we study any stock.

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