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View Diary: After losing $1 billion bet, Hedge Fund seeks federal government help to bring company down (151 comments)

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  •  As an investor .... (11+ / 0-)

    It is worth knowing if Herbalife is a scam ... Read what the really smart John Hempton had to say a few months back.

    It was striking how totally Bill Ackman's thesis fell apart from observing for just a few hours in a nutrition club.

    The best way of analysing Herbalife that I can find is as alcoholics anonymous for fat (and very often Hispanic) people. I joke: “my name is Jose and I am fat”.

    Herbalife works in the same way as alcoholics anonymous – by supplying (and in this case selling) a support group to help you kick the “fat addiction”.

    Like Alcoholics Anonymous it has millions of members and looks – at least externally – a bit like a cult.

    Herbalife like Alcoholics Anonymous has millions of members because it works. It does not work because one nutrition powder is better than another (indeed some nutritionists argue soy based powders are inferior). Herbalife works because of the support group.

    Read the whole thing ...
    •  I don't care if Herbalife is a scam, (11+ / 0-)

      As there are plenty of MLM marketing businesses and scams out there.  I would not invest in Herbalife, any more than I would invest in Amway or Mary Kay, or any other MLM group.  I know someone who swears by another MLM health / beauty / nutritional supplement company, and gave me her sales pitch to join (I did not).  I know of another MLM company that sells travel packages.  There will always be MLM businesses and scams out there.

      What I don't like is a hedge fund manager lobbying federal regulators to bring down a company in a brazen attempt to manipulate the market for his own profit.  To me, that is worst than a thousand Herbalife MLM companies

      •   Aren't the Mormons behind Amway? (1+ / 0-)
        Recommended by:
        Eric Hopp

        I'm not sure, but it is run like a religion and many Mormons are involved in it.  

        Some other well known cults own various MLM companies and Alternative Health companies, especially offbeat chiropractic practices like one where they shoot an unloaded spring gun at your neck claiming the vibration adjusts your spinal cord.  Called Atlas Orthoganol.

    •  The funny thing is from the research I've seen (1+ / 0-)
      Recommended by:
      Eric Hopp

      AA doesn't really work very well.

      When we stop putting leaders from the past up on pedestals and ignoring their flaws, we can start seeing our present leaders for what they really are.

      by PhillyJeff on Mon Mar 10, 2014 at 08:46:47 PM PDT

      [ Parent ]

    •  weight watchers is cheaper and healthier..... (1+ / 0-)
      Recommended by:
      Eric Hopp

      they teach you to lose weight by eating the healthier foods.  Supplements are pretty much crap.

      You shall know the truth, and the truth shall make you mad. Aldous Huxley

      by murrayewv on Tue Mar 11, 2014 at 03:20:50 AM PDT

      [ Parent ]

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