Wednesday, March 12, 2014

Herbalife hit by US ‘pyramid scheme’ probe

Just read that article at Financial Times

A pyramid scheme is a business where the majority of profits within the system accrue from recruitment, rather than genuine sales of a product to consumers. Like a Ponzi scheme, a pyramid scheme requires a steady stream of new recruits, almost of all of whom will lose money.

Another pyramid scheme requires a steady stream of new investors, who are dragging other investors to continue investing until they can sell shares and recover leveraged money, but the last holder of shares is going to lose. Perhaps like WhatsApp

or Samwer Brothers clone empire. Hope Journalists can investigate further.

AB Kinnevik paying the Samwer Brothers tech ventures fest?

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