Should You Buy Herbalife Due To Icahn Rumors?
The Story. In the past month, shares of Herbalife Ltd (NYSE: HLF) lost more than 10 percent. Shares price recently dropped due to the rumor that Carl Icahn is selling. The hedge fund investor activist Icahn tends to attract investors who invest along with the Tycoon. With the selling abated, the market's appetite for the personal health and wellness company caused shares to spike up +9.65 percent during the September 23 trading session.
Sources: Google Finance
More Insight. Following the right gurus like Buffett or Icahn can lead to market outperforming results. Nevertheless, the problem is when do you know they would buy or sell? Funds are required to file their transaction within 40 days. In essence, when the news hit the market, they would have sold more at least a month already.
Even More. The gurus themselves do not want investors to follow their lead, especially the Oracle of Omaha, Warren Buffett. Investing is not that hard, according to legendary investor Peter Lynch.
Bottom Line. Investors can learn to analyze and appraise whether a stock would make a good investment by doing some homework. The problem is that many investors rather listen to what others tell them what to do; and more often than not, the market broadcasters have their own agendas, which do not align with investors'. So the bottom line is that if you are willing to do a little bit of homework, you will not be nervous or stress out when Icahn or whoever sell or buy Herbalife.
Read more on Retail Investor 360.
Disclosure: We are neither long nor short on HLF.
Certainly not. Even with the recovery it's down from 80 before and is under considerable bad publicity for its behavior regardless of whether or not it is not legitimate. Only buy Herbalife if you're willing to be a salesperson for it, because that's pretty much your only hope of making decent money if you start today (the people on top of the pyramid already made plenty off suckers below). And even then, that's just a gamble.