Why Herbalife Ltd. Shares Popped Today
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of embattled company Herbalife jumped 10% today as another big investor announced a stake in the company.
So what: There's been a big battle between hedge fund managers Bill Ackman and Carl Icahn over Herbalife, and now it appears that the legendary George Soros is joining the fray. CNBC reported that Soros has taken a position, although Soros wouldn't confirm a stake in the company.
Now what: This is a classic "hands-off" trade for retail investors, who would be wise staying away from the battle of hedge fund titans. Ackman, Icahn, and Soros all have billions of dollars to play with, and the battle between the three can leave the average investor with huge losses if they bet in the wrong direction. At this point, it looks like a coin flip between the shorts and the longs, and when huge hedge funds are involved, I won't be getting in their way.
The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
Interested in more info on Herbalife? Add it to your watchlist by clicking here.
The article Why Herbalife Ltd. Shares Popped Today originally appeared on Fool.com.
Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has the following options: long January 2014 $50 calls on Herbalife Ltd.. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.