Ackman’s Massive Hypocrisy

Months ago we watched Bill Ackman’s teary eyed soliloquy on his passion for seeing Herbalife at zero. It was a ponzi scheme in his words, one of the greatest ones ever.  This accusation has never been proven, even after a Justice Dept. investigation.  As a matter of fact, the stock is very near all time highs.  This was his big short.

Ackman’s heart bled for the little guy. You know, the guy in the Congo who was trying to sell protein shakes so he could get off his own larvae and grass diet.  Tears poured down his face as he described this atrocity.  The atrocity of making money, many times in places where a buck is impossible to earn.  Saving people from themselves….what a guy.

Anyhoo, Ackman doesn’t seem to have any problem being really long a company that routinely hikes drug prices on sick people. That’s one of the reasons he and Valeant finds themselves in another Ackman stock jihad in front of Congress.  In just one example, Valeant, (this isn’t breaking news), is charging $800 for a $400 drug. Ackman knew this before he got long. By his own words he conducts exhausting due diligence on all his portfolio companies.

Buffet just called Valeant “a sewer and immoral”.

This was his big long and the stock went from 260 to 30 bucks.

Can this guy buy a stock without it becoming a root canal?  Does every position he enters have to be shrouded in controversy and pain?

Does investing really need to be that hard?  Every…..freaking…….time?

So he’s short a stock that like it or not employs people and helps them improve their lot in life, but gets too long a stock that gouges the sick (among many other things).

Whatta’ guy.  Crocodile tears.


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