A
few days ago, I was working in my office at home and I overheard
the comments from a news program coming from the TV in an adjoining
room. Two commentators were talking about a company they said
was operating a "Ponzi scheme." The other agreed and
added the accusation that this firm had been running a "pyramid
scheme." When I heard the terms "Ponzi scheme"
and "pyramid scheme" I hurried to the other room to
learn more. I assumed that some multi-level company had been
discovered and wondered if it was an MLM company that I was
aware of, or if it was something brand new.
As I sat down in front of the television the name "ENRON"
flashed on the screen. It soon became apparent that the "pyramid
scheme" they were referring to was "Enron."
For a minute, I could not believe what I was hearing. For
my entire life I had heard the term "pyramid scheme"
only associated with multilevel companies - never a corporate
giant held in high esteem by the financial marketplace. Yet
here it was - Enron being called a pyramid scheme.
And I thought to myself, "How appropriate." Indeed,
Enron appears to have been exactly that - a pyramid scheme!
A company based on "smoke and mirrors." Enron promised
its investors huge profits. It fooled everyone! No one could
figure out exactly what it did or how it did it. But the analysts
were creating a frenzy advising their clients to buy more
Enron! Even the employees lost big-time! Everyone was caught
up in the frenzy. Over a period of several years the stock
went higher and higher until this facade of a company finally
hit the end of the road and it fell apart.
Now we learn that really it was all a hoax. There was nothing
there! No real profits, no legitimate business plan - even
no real products. It was all a hoax! But in truth it was not
the first time that Wall Street has been fooled. Eighty percent
of the "dot. com" internet companies were also hoaxes.
The term "pyramid scheme" would have fit very well
describing them, also. They too were "shells of nothingness."
They never produced a real product either, nor did they ever
produce any real profits. But in their case, they were open
about it. They reported losses year after year. Yet the Wall
Street analysts were very hot on almost every dot.com company
that had a presence on the Internet They told their clients
these companies were great investments. They advised their
clients not to worry that there were no profits - and not
to worry that they could not really understand the product
or business plan. These companies were so "high tech,"
so "future oriented," so "cutting edge"
that normal people should not even try to understand them.
But they were "great investments." Of course the
truth is they too were built on "smoke and mirrors."
The reason people could not understand the product and the
business plan is that none ever really existed. Yet billions
of dollars were invested into those companies - people felt
comfortable investing into these high tech industry leaders
because everyone else was investing in those same companies.
And of course, eventually they too came crashing down. They
too were nothing more than "Ponzi schemes" or "pyramid
schemes." And as a result, thousands of lives have been
destroyed, financial empires have been crushed, and as the
dust clears, people are wondering, "What happened?"
"How could I be so foolish?" "How could I have
been fooled so badly?"
I believe it is about time that the financial gurus and the
news media realize that fraud and deceits are prevalent in
all kinds of companies - not just multilevel It is time that
people learn the basics of how to determine a real company
from a fake, and determine real long-term potential rather
than a short-term fad. It all boils down to a very simple
and easy-to-understand concept. Does the company you are investing
with have real product, bought by real customers, who really
want it? That almost seems too simple, doesn't it? It surely
is not a profound concept. But it is as solid as a rock! The
fact that you can understand it does not make it any less
valid. Real customers, buying real product because they really
want it! That is what makes a real company! It should be obvious
that companies that have products that the public is anxious
to buy have a great future!
For those who want to invest in something solid, a company
with a bright future, a company you can understand and that
makes a lot of sense, we invite them to invest in Melaleuca.
But they do not have to invest their money - just their time.
And if they do that consistently, they will reap an amazing
return on their investment. It is as solid as a rock - because
we have superior products that people need everyday! There
are no smoke and mirrors. Just real people, buying really
great products because they really want them. Go ask your
financial analysts about that concept. It will blow their
minds!
Sincerely,
Frank
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