I first became interested in the epic battle over the future of Herbalife by watching a documentary. Bill Ackman had bet enormous sums of money that Herbalife was nothing but a huge pyramid scheme (the more pleasant term with less baggage is "multi-layered marketing" - one is illegal, the other legal. Personally, I find but little difference between them.)
What was astonishing was the amount of money thrown around in pursuit of even larger amounts of money and how each of the titans, Icahn and Ackman (one going long the other short respectively, used huge sums and PR in attempts to manipulate the market to their advantage; small investor and company employees matter for little. The market would move in substantial gains or losses simply by one or the other buying or selling large blocks of stock or by making comments in the press.
Scott Wapner, the author, is a business reporter for CNBC, and one couldn't help but wonder if he wasn't being manipulated by the parties as well. He was eager for the scoop by having "breaking news" on his show and they were eager to use his platform for their own financial gain. It was on his show that the famous verbal brawl occurred between Ackman and Icahn. Lasting almost the entire show they hurled insults at each other. "Apparently, if you have enough cash to spend, it doesn’t seem terribly difficult to weaponize social justice in the cause of your portfolio," said one observer.
Troubling, too, is the outsize influence these billionaires have with federal regulators like the FTC. Their money gives them instant access. Moreover, their decisions, we learn, may be influenced as much by personal animosities as good business, although none of them would ever admit it. Unfortunately those decisions have disproportionate impact on smaller investors.
Fascinating book.
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