Tuesday, May 6, 2014
Just how weak are Bill Ackman's examples?
Ackman's websites however are truly strained. Here is a section from his profile of distributor Michael Burton. I am quoting verbatim:
The Burtons’ businesses do considerable damage to consumers. Consumer complaints regarding Global Home Business Systems, for example, are particularly revealing:
Please read these links. In the first one the person has been ripped off for $9.95 - and not $9.95 he paid to Herbalife. The $9.95 was paid to Burton.
In the second link it was $50 - but there is considerably less documentation.
This constitutes, and I am quoting Ackman's site again: "considerable damage to consumers".
Seriously - this is the strength of material on which he has bet his reputation and the existence of Pershing Square. I have a staff member who I recruited from America and whom Verizon Wireless charged $15 for data consumed after he had left the country. On this basis I encourage a billion dollar bet against Verizon...
By contrast, every distributor in Ackman's documentary lost serious amounts of money - but the money lost was not lost to Herbalife. It was lost to distributors Herbalife has now sacked. It seems -- that at least with respect to the material in the documentary Ackman is fighting yesteryear's battles.
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