Betting on Zero
“By the sweat of your brow you will eat your food until you return to the ground, since from it you were taken; for dust you are and to dust you will return.”
I am thankful for the wisdom of this bible verse.
Without it, life would be a lot harder and more complicated. There have been hundreds of Sunday nights during my adult life where I lost sleep. I was dreading the long, daunting work week ahead.
But no matter how much I’m dreading it, I always go to work on Monday. That’s because I don’t view it as a choice. Genesis makes it sparklingly clear: if I want to earn the right to live and eat, I must labor.
I will work until my boss gives me a gold watch or until I expire at my desk. Either way is cool. I never feel sorry for myself. I feel sorry for the unfortunate people who haven’t internalized Genesis 3:19.
Life will always be harder for the chumps who think that there is a realistic path to wealth that doesn’t involve a 9 to 5 job. There will always be a Scammer trying to lure them away from their money. It could be the lottery. It could be the casino. It could be Herbalife.
Herbalife, I learned from “Betting on Zero,” produces health products. The company sells shakes, pills, and stuff that supposedly helps you lose weight.
Documentarian Ted Braun doesn’t tell us whether he thinks the shakes actually make you healthier and thinner. It hardly matters. Herbalife doesn’t make money selling health products; Herbalife is a Pyramid Scheme.
“Betting on Zero” is a half hour too long, but it is totally convincing. Herbalife doesn’t market its shakes to consumers; it markets them to its independent distributors.
The heart and soul of Herbalife are its shameless salesmen who are able to convince dozens of patsies to invest their life savings into Herbalife products and convince other people to do the same. That top salesman gets a cash bonus and an Alpha Romeo. The middle distributors break even at best. All the dupes on the bottom of the Pyramid get are products they can’t sell and bills they can’t pay.
The hero of this story is Hedge Fund manager Bill Ackman (seriously). Ackman saw what Herbalife is doing to its workers and set out to destroy the company and make money in the process. In 2012, he shorted $1 billion in Herbalife stock. Shorting a stock means that you sell shares that you don’t have. When the stock drops as planned, you buy them back for less and make a profit.
The victims of this story are the undocumented immigrants who fell for the scam by the tens of thousands. Herbalife used Spanish-language advertisements to target illegals because they are less likely to go public with complaints about being ripped off.
I don’t feel quite as sorry for Herbalife salespeople as Ted Braun wants me to. If somebody says: “I have a job for you! Now give me some money,” you should know that it is a rip-off, not a job. If you give that guy your money, you are not a victim – you are a fool.
To be clear: I’m definitely not defending Herbalife. The company is awful and I hope that its stock price does go to zero. However, we don’t need government probes or Bill Ackman to make it happen.
Herbalife would shut its doors tomorrow if everyone just woke up and realized there are no shortcuts to success in this life. All you have to do is read Genesis 3:19, get up bright and early on Monday morning, and then go to your soul-sucking dead-end job like the rest of us.