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Herbalife is regularly criticized for selling the "business opportunity" rather than nutrition products. Indeed Bill Ackman (Herbalife's loudest critic) has used the next statements every bit show that what Herbalife sells is a "business opportunity" [which is a pyramid scheme] rather than products for terminate consumption. Herbalife is - inward these statements:
"An incomparable concern chance allowing men in addition to women to laid upwards a habitation based concern of their own", 
"An approach that has a lot to instruct anyone who is reaching for the American dream", 
"Truly loved past times its customers because it has flora a remove in addition to filled it exceptionally",
"When yous read profiles of the consultants [sales people] yous may wonder what yous are doing inward your nine-to-five cubicles whilst [the consultants] are on their agency to fame in addition to fortune".
These statements of class are ample show that Herbalife is non actually selling production only selling a fraudulent "business opportunity" in addition to is inward fact a pyramid.

Except that I am playing a game of misdirection here. These statements are non almost Herbalife in addition to they accept non been criticized past times Bill Ackman.

They are the statements almost roughly other multi-layer-marketing system - "The Pampered Chef" in addition to they are made by none other than Warren Buffett. Warren Buffett (through Berkshire Hathaway) owns The Pampered Chef in addition to its threescore one m addition "consultants".

In a hereafter post service I innovation to speak almost why The Pampered Chef is a concern worthy of existence owned past times Berkshire - why it meets Warren Buffett's (very high) concern lineament hurdle - in addition to how Herbalife has some, only non all of the properties of The Pampered Chef.

But for the 2nd I desire to regime notation a few things.

(a). Herbalife in addition to The Pampered Chef were both founded inward 1980. Bill Ackman criticized Herbalife for existence a recent fellowship founded inward 1980 - see this hide shot from Bill Ackman's presentation.




(b). Herbalife is much bigger than The Pampered Chef in addition to to a greater extent than deeply embedded over the world, and

(c). Herbalife is growing at a high charge per unit of measurement both relative to its past times in addition to relative to The Pampered Chef. Indeed if yous aspect at Google Trends data Pampered Chef is inward a slight spend upwards only Herbalife has to a greater extent than involvement than at whatsoever fourth dimension inward its history. In the next nautical chart (courtesy Google) Blue is Herbalife searches, Red is "Pampered Chef".


(d). Herbalife is taking off inward roughly large of import markets. This for illustration is the UK:



This is the (potentially vast) marketplace of India:


And fifty-fifty inward markets that were i time declining is re-emerging strong. (This is Australia...)




Pyramid schemes are expected to collapse nether their ain weight - in addition to thence if Bill Ackman is correct it shouldn't thing what I say. But if Google Trends information is correct thence Herbalife is probable to rhythm out estimates mayhap laid about a picayune chip past times the strong the U.S.A. Dollar.





John

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