Hedge Fund Calls Herbalife a Pyramid Scheme.
A reader commented about a presentation made by Bill Ackman from Pershing Square Capital Management, on Herbalife. Ackman bluntly declares that Herbalife is a pyramid scheme. Check out his lengthy and detailed PDF presentation here:
Because Herbalife is a public company, there are many more details that are available to analysts, journalists, and investigators. I would imagine if private companies like MonaVie, Amway, and LIFE were so forthcoming with their financial records, similar presentations could be created to support claims that these companies are illegal, recruiting-based pyramid schemes where only a small percentage of people (those at the top) make the majority of the money.
Herbalife has taken to attacking Ackman, saying he’s trying to manipulate the markets to his own advantage. Once again, it’s an example of a company that is attacking the messenger, not the message. Forbes magazine has chimed in with their analysis of Avkerman’s claims. Read it for an eye-opener.
Whatever happens with Herbalife with regards to Ackman’s claims, my hope is that more light will be shed on other companies that are engaging in deceptive practices while posing as incredible “business opportunities.”
[Editor’s note: Fixed misspelling on Ackman’s last name]