Forbes USA 3-March 2014 (e-magazine full)

COMMODITIZING COLLEGE • WEARABLE TECH: BE WARY
MARCH 3 • 2014 EDITION
PAYPAL’S
DAVID MARCUS
ÒWE WANT TO
REDEFINE MONEYÓ
PAYPAL WANTS TO CONTROL EVERY TRANSACTION ON THE PLANET.
SO DO APPLE, GOOGLE, AMAZON
(AND CARL ICAHN).
THE
$
15 TRILLION
GOLD RUSH
RETIRE
RICH!
DODGE
TAXES
TAKE
(SMART)
RISKS
CASH IN
ON MUSIC
PLUS
SECOND-ACT
SECRETS
FROM
SPORTS
LEGENDS
JACK
NICKLAUS,
CHRIS EVERT

AND MORE
SPECIAL
ISSUE





4  FORBES MARCH 3, 2014
contents — MARcH 3, 2014 VoLUMe 193 nUMBeR 3
68 | classroom
capitalist
Randy Best’s Academic
Partnerships recruits
warm bodies for
virtual desks.
13  FACT & COMMENT
by steve forbes
President Obama: I’m the law.
LEADERBOARD
16
 THE $50 BILLION GAMES
Russia’s oligarchs clean up at Sochi.
18  NEW BILLIONAIRES
A startup founder, a Facebook executive and
a circus master.
Plus: Scorecard
20
 FORBES MAKEOVER
A new look for Craigslist’s Craig Newmark.

22  BIG BUCKS BOLLYWOOD
The top-earning celebs in India’s movie business.
24  WEATHER WATCH
The world’s fi rst mechanical meteorology station
worn on your wrist.
26  ACTIVE CONVERSATION
Patent trolls: heroes or villains?
THOUGHT LEADERS
28  CURRENT EVENTS
by paul johnson
In contests of strong, decisive policy,
Obama comes up short.
30  CAPITAL FLOWS
by avik roy
Refocus conservatism around economic mobility.
32  INNOVATION RULES
by rich karlgaard
John Chen speaks: saving BlackBerry.
STRATEGIES
34  THE INVENTION MACHINE
John Nottingham and John Spirk: the most
successful inventors you’ve never heard of.
by dan alexander
38  CREATING A BETTER DRUG
Medidata Solutions believes software can
revolutionize the way Big Pharma develops
new medicines.
by matthew herper
cover photograph by eric millette for forbes
60 | the mad dash to mobile money

PayPal made its mark as the Web’s wallet.
Now it must fi ght off Google and Apple for the
cash spent offl ine.
BrandVoice
by northwestern mutual
Women Need to Take an Active Role in
Retirement Planning. 15


6  FORBES MARCH 3, 2014
contents — MARcH 3, 2014
TECHNOLOGY
42
 THE CASE AGAINST
WEARABLES
Smartwatches and bracelets are all the rage
among the digital elite, but troubles lie ahead
with the mass market.
by connie guglielmo and parmy olson
47  MERCENARY HACKERS’
NEXT ACT
Endgame wants to rewrite its reputation as a
cyberwar arms dealer—without apologies.
by andy greenberg
INVESTING
50  LEGG MASON’S SLOW TURN
Joe Sullivan aims to overhaul Legg Mason
from top to bottom. Only patient investors
need apply.
by halah touryalai

ENTREPRENEURS
54  KING OF THE CRAFT BREWERS
Decades before the boutique beer boom
Ken Grossman tasted opportunity.
Sierra Nevada is now a juggernaut—and he
might be worth $800 million.
by brian solomon
58  FIXIT RICHES
Break your iPhone? Good news
for AJ Forsythe, who is scaling the
repairman model.
by j.j. colao
THE NEW RETIREMENT
MATH
76  GOOSING THE GOLDEN GOOSE
In the new retirement, sprinters finish last
while distance runners prevail. And risk is
not necessarily a four-letter word.
by daniel fisher
82  ROMNEY IRA SYNDROME
Challenge: Extract the money from an
oversize retirement account without getting
destroyed by the new higher tax rates.
by william baldwin
86  FREEBASING YOUR ESTATE
Time to stop worrying about death taxes and
start worrying about the capital gains tax.
by deborah l. jacobs
88  GENERATION ROTH
Millennials need flexibility and a hedge

against higher tax rates.
by ashlea ebeling
34 | the edisons of the
mundane
Nottingham Spirk has
brought you everything from
the Dirt Devil to a better
Pepto-Bismol bottle.
42 | what’s wrong with wearables
Do you really need a smart dog collar?
54 | stout strategy
Ken Grossman keeps Sierra Nevada fresh
by never running dry of new brews—
or new partners.
38 | software rx
Medidata Solutions has
the cure for runaway drug
R&D costs.
BrandVoice
by td ameritrade
Investors Look Ahead
(And Like What They See). 79

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8 | FORBES MARCH 3, 2014
contents — MARcH 3, 2014
SpECiAl gAtEFOld
91
| pOSt-SEASOn
How four sporting greats drew on a new play-
book to chart their life beyond the field.
by steve schaefer
97 | pORtFOliO StRAtEgy
by ken fisher
Big, fat, gross: my kinda stocks!
98 | FOllOw yOuR BliSS
Twenty-five top places to retire—based on your
passions.
by william p. barrett
100 | gOldEn OldiES
Music copyright: an investment that throws o
both cash and good vibrations.
by zack o’malley greenburg
103 | FixEd-inCOME wAtCH
by richard lehmann
The 6% solution.
104 | invEStOR CHECkup
by william baldwin
Zen investing.
FEAtuRES
60 | wAllEt wARS
PayPal is in the center of two battles: one for
control of every transaction on the planet, the
other for control of its own destiny.

by steven bertoni
68 | nO COllEgE lEFt BEHind
The easy money in higher education: digitizing
a school’s professional programs. Now an entre-
preneurial Texan named Randy Best is rapidly
commoditizing it.
by caroline howard
liFE
106 | A SplASH in tHE gREnAdinES
Irish billionaire Dermot Desmond made Sandy
Lane a Caribbean legend. Now he’s trying to
turn a cursed piece of paradise into something
even more luxurious.
by laurie werner
112 | tHOugHtS
On aging.
76 | stop playing it safe
The old retirement numbers no longer
add up. Time to bet bigger.
98 | live where you love
Find the perfect city for
your post-career pursuits.
100 | buy a ballad
Music to your ears
and for your wallet.
special gatefold
91 | keep moving
your feet
Best retirement advice?
Never stop playing. Just ask

Chris Evert.

Achieve fi nancial security
with a plan that addresses risk fi rst.
Create your fi nancial plan with a Northwestern Mutual
Financial Advisor. Together, we’ll design a disciplined and
balanced approach to protecting, accumulating and managing
your wealth, so you can take advantage of life’s opportunities.
Who’s helping you build your fi nancial future?
northwesternmutual.com
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) and its subsidiaries. Securities o ered through Northwestern Mutual Investment Services,
LLC, broker-dealer, registered investment adviser, subsidiary of NM, member FINRA and SIPC. NCAA is a trademark of the National Collegiate Athletic Association.

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1

1
CHIEF PRODUCT OFFICER
Lewis D’Vorkin
FORBES MAGAZINE
EDITOR
Randall Lane
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Michael Noer
ART & DESIGN DIRECTOR
Robert Manseld
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VP, INVESTING EDITOR
Matt Schifrin
MANAGING EDITORS
Dan Bigman – Business, Tom Post – Entrepreneurs, Bruce Upbin – Technology
SENIOR VP, PRODUCT DEVELOPMENT AND VIDEO
Andrea Spiegel
EXECUTIVE DIRECTOR, DIGITAL PROGRAMMING STRATEGY
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ASSISTANT MANAGING EDITORS
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EXECUTIVE PRODUCER
Frederick E. Allen – Leadership
Tim W. Ferguson FORBES ASIA
Connie Guglielmo, Kashmir Hill SILICON VALLEY
Janet Novack WASHINGTON
Michael K. Ozanian SPORTSMONEY
Mark Decker, John Dobosz, Deborah Markson-Katz DEPARTMENT HEADS
Avik Roy OPINIONS
Kai Falkenberg EDITORIAL COUNSEL

BUSINESS
Mark Howard CHIEF REVENUE OFFICER
Tom Davis CHIEF MARKETING OFFICER
Charles Yardley PUBLISHER & MANAGING DIRECTOR FORBES EUROPE
Nina La France SENIOR VP, CONSUMER MARKETING & BUSINESS DEVELOPMENT
Miguel Forbes PRESIDENT, WORLDWIDE DEVELOPMENT
Jack Laschever PRESIDENT, FORBES CONFERENCES
Michael Dugan CHIEF TECHNOLOGY OFFICER
Elaine Fry SENIOR VP, M&D, CONTINUUM
FORBES MEDIA
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CHIEF OPERATING OFFICER
Tom Callahan CHIEF FINANCIAL OFFICER
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PRESIDENT & PUBLISHER FORBES ASIA
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Margy Loftus SENIOR VP, HUMAN RESOURCES
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FOUNDED IN 1917
B.C. Forbes, Editor-in-Chief (191754)
Malcolm S. Forbes, Editor-in-Chief (195490)
James W. Michaels, Editor (196199)
William Baldwin, Editor (19992010)
10  FORBES MARCH 3, 2014
FORBES
IN BRIEF
EDITOR-IN-CHIEF

Steve Forbes
FORBES (ISSN 0015 6914) is published semi-monthly, except monthly in January, February, April, July, August and October, by Forbes
LLC, 60 Fifth Ave., New York, NY 10011. Periodicals postage paid at New York, NY and at additional mailing oces. Canadian Agreement
No. 40036469. Return undeliverable Canadian addresses to APC Postal Logistics, LLC, 140 E. Union Ave., East Rutherford, NJ 07073.
Canada GST# 12576 9513 RT. POSTMASTER: Send address changes to Forbes Subscriber Service, P.O. Box 5471, Harlan, IA 51593-0971.
CONTACT INFORMATION
For Subscriptions: visit www.forbesmagazine.com; write Forbes Subscriber Service, P.O. Box 5471, Harlan, IA 51593-0971;
or call 1-515-284-0693. Prices: U.S.A., one year $59.95. Canada, one year C$89.95 (includes GST). We may make a portion of
our mailing list available to reputable firms. If you prefer that we not include your name, please write Forbes Subscriber Service.
For Back Issues: visit www.forbesmagazine.com; e-mail ; or call 1-212-367-4141.
For Article Reprints or Permission to use Forbes content including text, photos, illustrations, logos, and video:
visit www.forbesreprints.com; call PARS International at 1-212-221-9595; e-mail or e-mail
Permission to copy or republish articles can also be obtained through the Copyright Clearance Center at
www.copyright.com. Use of Forbes content without the express permission of Forbes or the copyright owner is expressly prohibited.

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MARCH 3, 2014 — voluME 193 NuMBER 3
Mobile and Social:
The Future of News
BY LEWIS D’VORKIN
Very little catches me o guard in the digital space.
Then Richard Sherman, the Seattle Seahawks’ defen-
sive back, mouthed o in a postgame victory interview.
Overnight a story about him on Forbes.com achieved
blockbuster status. Millions read it, nearly 80% arriving
from social networks. More than half our total trac
that day was via mobile devices, predominantly smart-
phones. I witnessed the future: social and mobile unit-
ing to drive the news business.

I shouldn’t have been surprised. Check out these
graphics. Our mobile visits (all visits, not just unique
visits) hit 25 million in December (one-third of all site
trac), moving in
lockstep with social
trac, at 10 mil-
lion visits. The exact
social split between
mobile and desktop is
hard to break down.
We do know that
two-thirds of Twitter
trac often comes
from mobile devices.
Social media is the
new portal—friends
relying on friends
to tell them what
matters. A report
from eMarketer, an
industry publication,
sheds some light on
the social/mobile
connection. Nearly 70% of females and 56% of males
ages 25 to 49 engage with social media via smartphones
(both groups spend far less time on tablets). Over the
past three years both groups played a significant role in
driving our digital audience sharply higher.
The second chart, from a new comScore multi-
platform report, also points to the mobile juggernaut.

The light blue bars represent mobile domestic unique
monthly visitors (for Forbes.com 9 million were exclu-
sively mobile) and the darker blue bars desktop users.
No surprise what’s next: the coming mobile ad rush.
F
Fast
Company
Wired
Atlantic
Media
CNNMoney
Bloomberg
WSJ
Forbes 11.0
7.4
7.3
5.3
6.0
2.7
1.7
26.0
20.3
19.8
1
14.6
13.4
8.9
4.5
Million Visitors
Millions of Unique Visitors in December

25
20
15
10
5
0
Jan-2013 Jun-2013 Dec-2013
Mobile Total
Social Visitors
Mobile Visitors
The Forbes Audience
Source: GooGle AnAlyticS.
1
BloomBerg.com and Businessweek.com.
Source: comScore.

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) and its subsidiaries. Securities o ered through Northwestern Mutual
Investment Services, LLC, broker-dealer, registered investment adviser, subsidiary of NM, member FINRA and SIPC. NCAA is a trademark of the National Collegiate Athletic Association.
Follow fi nancial principles, not fads or trends.
Create your fi nancial plan with a Northwestern Mutual
Financial Advisor. Together, we’ll design a disciplined and
balanced approach to protecting, accumulating and managing
your wealth, so you can take advantage of life’s opportunities.
Who’s helping you build your fi nancial future?
northwesternmutual.com

Together, we’ll create a
blueprint to guide your fi nancial life.
Get the guidance you need to navigate the fi nancial world.
At Northwestern Mutual, we take a disciplined and balanced

approach to fi nancial planning. Together, we’ll help build your
fi nancial future on time-tested principles, not market trends.
Who’s helping you build your fi nancial future?
Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) and its subsidiaries. NCAA is a trademark of the National
Collegiate Athletic Association.
northwesternmutual.com

tration’s Big Government agenda.
To add insult to injury, the new
IRS commissioner has decreed that
the agency will pay $62 million in
bonuses, declaring, “I firmly believe
that this investment in our employ-
ees will directly benefit taxpayers
and the tax system.”
The unending changes the White
House has unilaterally made to Obama-
Care have been well documented.
The ways in which the EPA has
waged its jihad against the eastern coal indus-
try has also been well documented—and sci-
ence be damned. Forbes.com columnist Larry
Bell cites a flagrant example of the EPA’s ignor-
ing inconvenient science: “A group within EPA’s
own Science Advisory Board (SAB) determined
that the studies upon which that regulation
[setting CO
2
-emission limits for new power
plants] was based had never been responsibly

peer reviewed and that there was no evidence
that those limits can be accomplished using
available technology.”
The EPA is also set to ban production and
sale of 80% of current wood-burning stoves.
Who knows what aroused its ire against these
innocuous devices? But this will impose a real
hardship on people who live in remote areas,
such as much of Alaska. The EPA has arbitrarily
decided that stoves cannot emit more than 12
micrograms of fine particulate emissions per
cubic meter of air. To put that silly limit in per-
spective, Bell notes that “secondhand tobacco
smoke in a closed car can expose a person to
3,000–4,000 micrograms” per cubic meter.
By what authority did President Obama
decree an increase in the minimum wage for
workers on federal contracts? A clause in a 1931
MARCH 3, 2014 FORBES | 13
FACT & COMMENT — STEVE FORBES
FORBES
pRESidEnt OBAMA
i’M tHE lAw
BY STEVE FORBES, EDITOR-IN-CHIEF
“With all thy getting, get understanding”
One questiOn congressional
and presidential candidates should
be asked is how we should go about
restoring the rule of law to our fed-
eral government. Not even during

the world wars of the last century
was the executive branch as brazen
in assuming sweeping and unlegis-
lated powers, changing laws without
the consent of the legislative branch
and ignoring laws it didn’t like.
Lawsuits are certainly one pos-
sible avenue to take, but a slow one—which is
what the White House is counting on. It will do
what it wants, and by the time an unfavorable
decision is handed down, it will have done many
other things. It will also find ways to circumvent
such a decision or just ignore it altogether.
How will the Administration act when, as is
likely, the Supreme Court delivers an adverse
ruling concerning the President’s appointment
of members to the National Labor Relations
Board when the Senate wasn’t technically in
recess? Obama’s appointees went on to make
rulings that were harmful to business. Of course,
the Administration will promise to comply and
will then pull who knows what cards it has up its
sleeve to make an end-run around the decision.
The IRS got caught singling out conservative
groups for harassment—and nothing was done.
The President, with a straight face, told Fox
News’ Bill O’Reilly that there wasn’t a “smidgen”
of evidence of any corruption, and the Justice
Department has made clear it’s deep-sixing any
serious probe. But even worse is the fact that

the IRS is readying regulation that will make it
legal to deny tax exemptions to predominantly
conservative groups, while it turns a blind eye
to organizations more friendly to the Adminis-

14  FORBES MARCH 3, 2014
FORBES
FACT & COMMENT — STEVE FORBES
Is George Orwell At
The White House?
Is Dolan A Doyle?
The Last Dead Girl
by Harry Dolan
(AMY EINHORN BOOKS/PUTNAM, $26.95)
Restaurants: Go,
Consider, Stop
Edible enlightenment from our eatery experts and colleagues Richard Nalley, Monie Begley, Randall Lane and Chef Je Lamperti,
as well as brothers Bob, Kip and Tim.
l The Seare Grill
158 East 48th St. (Tel.: 212-935-3785)
This deservedly popular, handsome Midtown
seafood restaurant also oers a full range of
meats. The atmosphere and ecient service
make dining here a delight. Favorites: lobster
bisque, fresh oysters, tuna niçoise, giant prawns
in romaine, endive salad with curry vinaigrette,
the key lime tart and the tiramisu.
l Arte
21 East 9th St. (Tel.: 212-473-0077)
Two working fireplaces add to the ambience

of this romantic Italian spot. For a treat try the
grilled baby octopus on a bed of greens. The Dover
sole and the branzino, both deboned at table side,
are cooked to perfection, and the pastas are deli-
cious. Do save room for the tartuo (enough for
two) or the wonderfully rich ganache cheesecake.
l Rôtisserie Georgette
14 East 60th St. (Tel.: 212-390-8060)
This stylish new bistro is packed. The consommé
de volaille is the perfect starter on wintery days.
The poulet rôti is juicy, flavorsome and perfectly
roasted, and the frites are as good as any
found in Belgium. For dessert, if you want
refreshing go for the chilled citrus and mint; for
decadence order the chocolate pot de crème.
piece of legislation that innocuously
stated that the President should
ensure that federal contracts are ad-
ministered eciently!
While we can take heart from the
upcoming NLRB case, the courts are
going to have to be more aggressive
in going after executive branch abus-
es. Since the late 1930s federal courts
have been very solicitous regarding
acts of the federal government. An
egregious example was the court’s
acquiescence to the raw, politics-lad-
en way the Administration unilater-
ally handled the bankruptcy of GM

and Chrysler, shafting bondholders
and giving sweetheart deals to the
United Auto Workers union.
Federal judges should also con-
sider throwing out such laws as
Dodd-Frank, in which the language
is so vague and ambiguous that it
puts immense power in the hands of
imperious regulators who are the ones
deciding what the rules really mean. A
healthy start would be to rule uncon-
stitutional the new Consumer Finan-
cial Protection Bureau, which has no
accountability to Congress and can
throw out regulatory thunderbolts,
with very restricted opportunity for
any judicial review. The agency gets
its money not from Congress but from
the Federal Reserve’s printing press.
Following the 2014 elections the
Senate, which will then be Republi-
can-controlled, can hold serious hear-
ings on what this White House has
been doing and can slash the budgets
of recalcitrant departments and agen-
cies (the GOP will also increase its
majority in the House).
The election losses the Democrats
will suer will chasten a good part of
the party, and many will work with

Republicans to punish these breach-
es of trust by the White House. After
all, wise Democrats will know that
Republicans may well win the presi-
dency in 2016, and they won’t want
the new Chief Executive bending the
rule of law the way President Obama
has done out of habit.
The late, famed English author of
1984
and Animal Farm would be as-
tonished that the 1984 phenomenon
of Newspeak—freedom is slavery;
ignorance is strength—is thriving
today, not only in authoritarian/
totalitarian regimes, which is what
he expected, but also in the world’s
leading democracy, the U.S.
Politicians are always trying to
put the best face on unpleasant oc-
currences—what we call spin. But
nothing comes close to the White
House response to a study from the
Congressional Budget Oce that by
2024 ObamaCare will cost the econ-
omy the equivalent of 2.5 million jobs.
Hallelujah!, proclaimed White
House mouthpiece Jay Carney. This
is great news because it means peo-
ple won’t be in jobs they don’t really

like. Now they can dream of better
things and, possessing health insur-
ance that’s being paid for by working
taxpayers, can search for something
better without having to worry about
access to medical care.
Unemployment is liberating!
Employment is wage slavery!
It’s no surprise that the New York
Times
obediently parroted this piece
of Obamaspeak, declaring, “That
is mostly a good thing, a liberating
result of the law. Of course, Republi-
cans immediately tried to brand the
findings as ‘devastating’ and stark
evidence of President Obama’s health
care reform as a failure and a job kill-
er. It is no such thing. … The [CBO]
report is about the choices workers
can make when they are no longer
tethered to an employer because of
health benefits.”
Maybe the Times can mull these
possible Newspeak slogans: “The
Internet is good for newspapers!”
“No newspapers means liberation
for forests! More forests means less
global warming!”
I hadn’t read Harry Dolan before, for

which I’m thankful, as this is a pre-
quel to his previous two mysteries.
Now I can read about David Malone,
who apparently later changes his
name to David Loogan, in chronolog-
ical order. Dolan’s writing is excel-
lent, and readers can look forward
to his future eorts the way millions

F
of us look forward to the ever more
superb novels of Harlan Coben, Mi-
chael Connelly, Jonathan Kellerman
and Sue Grafton.
David Malone operates a home-
inspection business for prospective
buyers in Rome, N.Y. Engaged to a
med student whom he discovers has
two-timed him, Malone walks out
and soon chances upon an auto acci-
dent. Before you know it, he is living
with the driver, a beautiful law stu-
dent, at her spartan apartment. She
has a nasty bruise on her face and
won’t tell Malone how she got it.
Days later the law student is
brutally murdered, and Malone
becomes a suspect. He stays at the
dead woman’s place and finds himself
investigating the killing to the intense

annoyance of the lead detective.
Malone’s seeming meddling earns
him a savage blow to the kidneys from
a friend of the detective. Other kill-
ings soon occur, and suspects mul-
tiply. These
are a vividly
memorable
lot, among
them the de-
tective; two
cousins, who
reek of evil; a
professor, who
works to free
prisoners be-
lieved to have
been wrong-
fully convicted; the creepy, horny
grandson of the dead girl’s landlady;
and a stool pigeon, who won his get-
out-of-jail card by claiming to have
heard the confession of an arrested
schoolteacher suspected of murder-
ing his wife. Other characters are also
distinctly drawn.
The twists and turns flow eort-
lessly, including Malone’s ex-fiancée
trying to win him back. Most of the
book is Malone’s first-person nar-

rative, but interspersed are chilling
chapters from the killer’s perspective
as he goes about his bloody work.
FORBES
Women Need to Take an Active Role
In Retirement Planning
W
hen you envision retirement, what do
you see? If you’re a married woman,
you probably picture your life in
retirement as part of a couple, enjoying many
years together. However, in reality, most women
will spend a portion of their golden years
without their spouse.
“Even if women think they’ve done
a good job of planning for retire-
ment as part of a couple, their plan
may not be designed to financially
support them as a single person in
retirement,” says Rebekah Barsch,
Northwestern Mutual vice president
of market strategy. “And unfortu-
nately, that’s something most women
will have to face, since the vast majority of
women who remain married into retirement
are likely to outlive their spouse.”
Whether by choice, divorce or the death of a
spouse, Barsch says women can better prepare
themselves now for the financial challenge of
being single at some point in the future by

taking these steps:
Actively participate in planning: If you’re
currently married, don’t delegate retirement
income planning to your spouse. Establish a
relationship with your financial advisor and
become familiar with the details of your
retirement income plan.
Rebekah baRsch
VICE PRESIDENT OF MARKET STRATEGY
NORTHWESTERN MUTUAL
Understand your assets: According
to Barsch, women going through
divorce tend to underestimate the
future value of assets. A financial
advisor can help ensure your assets
are shared equitably. Married couples,
particularly those with life insurance
and defined contribution retirement
plans like 401(k)s, should carefully
consider their options for creating
income in retirement.
Plan realistically for expenses:
While it might seem like a retired
single woman’s expenses would
be less than those for a couple,
you may actually incur additional
expenses for things like health care
or professional services.
Make arrangements for long-term
care: Couples need to plan ahead

for long-term care to avoid becom-
ing dependent on their children
or other family members. “The
best present my parents ever gave
me was planning ahead for their
long-term care needs,” says Barsch.
“When their health began to decline,
I don’t know how I would have sup-
ported them emotionally, physically
and financially. But because their
financial and health care needs were
being met, it was possible for me to
concentrate on what I was uniquely
qualified to do—provide love and
support as a daughter.”
By becoming an active participant in
financial planning early, women can
free themselves to focus on what’s
really important: the people they care
about most.
BrandVoice
BY NorthwesterN Mutual
“The vast majority of
married women are likely
to outlive their spouse.”
Rebekah baRsch
VICE PRESIDENT OF MARKET STRATEGY
NORTHWESTERN MUTUAL

Photo courtesy of The Northwestern Mutual Life Insurance Company, Milwaukee, WI.

ADLER
SOCHI

16 | FORBES MARCH 3, 2014
MONEY MEN
LEADERBOARD
KEEPING SCORE ON WEALTH & POWER
The Sochi Olympics are the most expensive ever,
and some of Russia’s oligarchs are cleaning up.
These nine billionaires have parlayed their links
to the Russian state into huge construction jobs—
and massive cost overruns.
THE $50 BILLION GAMES
BASED ON REPORTING BY FORBES RUSSIA. ALL DOLLAR AMOUNTS ARE FORBES ESTIMATES AS OF PRESS TIME.
●
●
●
●
ARKADY ROTENBERG
Chairman, SMP Bank
Net worth: $4 billion
Vladimir Putin’s
childhood judo partner
received $7.4 billion in
state contracts.
DZHUBGA-SOCHI
PIPELINE
Cost: $940 million
ADLER THERMAL

POWER PLANT
Cost: $855 million
FORMULA 1 TRACK
Cost: $365 million
VLADIMIR POTANIN
President, Interros
Net worth: $12.6 billion
Started the push for a
Sochi Olympics and has
invested $2.5 billion in it.
OLYMPIC UNIVERSITY
Cost: $420 million
ROSA KHUTOR ALPINE
CENTER
Cost: $2.5 billion
OLEG DERIPASKA
Chairman, Basic Element
Net worth: $6.5 billion
Received $1.7 billion in state
contracts but is suing the state
for poor planning and a lack of
port facilities.
SOCHI IMERETI FREIGHT PORT
Cost: $185 million
MAIN OLYMPIC VILLAGE
Cost: $700 million
SOCHI INTERNATIONAL
AIRPORT
Cost: $715 million
●

●
●

KRASNAYA
POLYANA
ESTO-SADOK
MARCH 3, 2014 FORBES | 17
Total in ation-adjusted cost for
the host country, in billions.
MOST EXPENSIVE OLYMPICS
●
●
VIKTOR
VEKSELBERG
Chairman, Renova
Group
Net worth:
$17.1 billion
He borrowed at least
70% of the $500
million he spent on
hotel development.
AZIMUT HOTEL
COMPLEX
Cost: $500 million
ISKANDER
MAKHMUDOV
President, Ural Mining &
Metallurgical Co.
Net worth: $6.1 billion

ANDREI BOKAREV
Board member, UMMC
Net worth: $1.5 billion
The pair originally said their
hockey arena would cost
$60 million.
SHAYBA ARENA
Cost: $105 million
VAGIT ALEKPEROV
President, Lukoil
Net worth: $13.3 billion
His company has spent just
$15 million, but it also has
avoided scandals and not
missed deadlines or infl ated
costs.
KRASNOPOLIANSKAYA
HYDROELECTRIC STATION
Cost: $15 million
ALISHER USMANOV
CEO, Gaz PromInvest
Holding; main
shareholder, MegaFon
Net worth: $18.5 billion
MegaFon is a
$130 million Olympics
sponsor as well as a
big investor in telecom
infrastructure.
MEGAFON TELECOM

CONSTRUCTION
Cost: $95 million
GENNADY TIMCHENKO
Board member, Novatek
Net worth: $15 billion
His company SK Most
Construction got a
$1.8 billion contract to
help build the Adler-Alpika
railroad.
ADLER-ALPIKA SERVICE
RAILROAD
Cost: $8.7 billion
$51
$47
$26
$25
$22
SOCHI, RUSSIA WINTER GAMES 2014
BEIJING, CHINA SUMMER GAMES 2008
NAGANO, JAPAN WINTER GAMES 1998
BARCELONA, SPAIN SUMMER GAMES 1992
ATHENS, GREECE SUMMER GAMES 2004

18 | FORBES MARCH 3, 2014
LEADERBOARD
Mark
Zuckerberg
+$2.1 billion
NET WORTH:

$27.6 BILLION
Facebook beats quarterly
expectations on the
strength of its surging
mobile ad business,
pushing shares to an
alltime high.
Mark
Pincus
+$110 million
NET WORTH:
$1.1 BILLION
Zynga posts its biggest
one-day stock jump
after announcing the
successful acquisition
of NaturalMotion and
likelihood of profitability.
Kevin
Plank
+$480 million
NET WORTH:
$2.4 BILLION
Under Armour’s shares
jump 23% after it posts
strong full-year earnings
and its 15th consecutive
quarter of at least 20%
sales growth.
Jef

Bezos
–$3.5 billion
NET WORTH:
$32.8 BILLION
Shares of Amazon.com
tank after both
revenue and earnings
growth fail to meet
Wall Street’s
expectations.
Evan
Williams
–$600 million
NET WORTH:
$3.1 BILLION
Despite strong financial
results, Twitter’s high-flying
stock dives after the social
media platform reports a
sharp slowdown in user
growth.
Leonard
Lauder
–$510 million
NET WORTH:
$7.4 BILLION
Estée Lauder, known
for its Clinique and MAC
cosmetics brands, posts
narrower margins, citing

a slowdown in sales
in Asia.
WINNERS
LOSERS
SCoRECARD
scorecard by scoTT decarLo; new biLLionaires by ryan mac
TOP: PETER FOLEY/BLOOMBERG; HOUSTON: DAVID PAUL MORRIS/BLOOMBERG; ZUCKERBERG: ANDREW HARRER/BLOOMBERG; PLANK: JOHN MCDONNELL/THE WASHINGTON POST;
PINCUS: KARSTEN LEMM/ABACAPRESS/NEWSCOM; BEZOS: T.J. KIRKPATRICK/BLOOMBERG; WILLIAMS: BRAD BARKET/GETTY IMAGES; LAUDER: CHARLES ESHELMAN/GETTY IMAGES
FIGURES REFLECT THE CHANGE IN VALUE OF PUBLICLY TRADED HOLDINGS FROM JAN. 16 TO FEB. 6.
SOURCES: INTERACTIVE DATA VIA FACTSET RESEARCH SYSTEMS; FORBES.
1.5 MILLION
Worldwide sales of Sheryl Sandberg’s book,
Lean In, since it was published a year ago.
nEW billionAiRES
DROPBOX’S
DREW HOUSTON
In January Dropbox closed a round of funding
that valued the cloud storage company at just
under $10 billion, and FORBES estimates that its
cofounder and chief executive, 30, owns more
than a 10% stake in the company, which makes
him a billionaire. He told us in 2011 that he started
Dropbox when “I wanted to live the dream and felt
stuck eating Hot Pockets.”
FACEBOOK’S SHERYL SANDBERG
She became Facebook’s chief operating ocer six
years ago after turning down Mark Zuckerberg’s
first job oer because a relative told her any man
would hold out for a better deal. Now, at 44, she is
one of the youngest female billionaires in the world

and one of only a handful—like Tory Burch, Oprah
Winfrey and Spanx’s Sara Blakely—who made it
themselves rather than inheriting it. It’s her equity,
not her $300,000-a-year salary, that has made
her so rich. At the time of Facebook’s May 2012
public oering she owned more than 38 million
restricted stock units, about half of which have
been converted to stock. To date she’s sold o
more than 9 million of those shares.
RINGLING BROS.’ KENNETH FELD
He grew up under the big top and took over his
family’s company, which owns Barnum & Bailey
Circus, in the mid-1980s. Since then he has
transformed it into a juggernaut that presents
Disney on Ice
and monster truck rallies; it had an
estimated $1 billion in revenue last year. At 65
he becomes the world’s second circus-industry
billionaire, after Cirque du Soleil’s Guy Laliberté.

The LS F SPORT.
You open the door and the show begins as soon as you see the
hand-stitched, leather-trimmed interior; front sport seats; and aluminum accents. Then the
spotlight turns to performance, and the 19-inch forged alloy wheels,
1
Brembo
®
front brakes,
2

driver-adjustable sport-tuned air suspension, and eight-speed transmission with race-
inspired paddle shifters begin to shine. The LS F SPORT. All of it together demands an encore.
THE WORLD IS YOUR STAGE. MAKE IT A
#LexusLS
1. 19-in performance tires are expected to experience greater tire wear than conventional tires. Tire life may be substantially less than 15,000 miles, depending upon driving conditions. 2. High-friction brakes
require periodic inspection and measurement as outlined in the Warranty and Services Guide. The pads and rotors are expected to experience greater wear than conventional brakes. Pad life may be less than
20,000 miles, and brake rotor life may be less than 50,000 miles depending on driving conditions. ©2013 Lexus.
Options shown.

LEADERBOARD
20 | FORBES maRch 3, 2014
713 
Total number of Craigslist sites
worldwide—from Ashtabula, Ohio,
to Zamboanga, the Philippines.
PAUL STUART BEAD STRIPE WOOL SUIT ($1,984); PAUL STUART PLAID COTTON DRESS SHIRT ($228), WWW.PAULSTUART.COM
MAKEOVER IMAGE (LEFT): NEWSCOM
CEO MAKEOVER: PhOtOgRAPhER: CAMEROn R. nEilsOn; stylE DiRECtOR: JOsEPh DEACEtis; FAshiOn AssistAnt: tiM ARMitAgE
forbes makeover
craigslist’s craig NEWMarK
Our experts give the father of online classied ads a classy new look.
JOsEPh AbbOuD: The award-winning designer and
entrepreneur got his start at Louis Boston before serving
as director of menswear design for Ralph Lauren.
He launched his namesake brand in 1987 and is currently
the chief creative director for Men’s Wearhouse.
KAthy iRElAnD: The supermodel turned supermogul
is the chief executive and chief designer of kathy ireland
Worldwide, a design and marketing firm she launched
in 1993. Women’s Wear Daily has named her one of the

50 most influential people in fashion.
thE VERDiCt
Ki:
He now exudes sophistication
and style befitting a man of his
accomplishments.
JA: Even his face looks better,
and his glasses, too, though it’s
the same picture. Amazing what
clothes can do for you.
Before
After
suit
Ki: Its length is too long, its sleeves are too short,
its shoulders are too wide. It makes his arms
seem short.
JA: It’s very ill-fitting. Even though he has a
certain body type it doesn’t mean he can’t wear a
slightly trimmer garment.
JACKEt
Ki:
The narrow fit on his shoulders looks
custom, and it accentuates his physique.
JA: There’s shape to the jacket, and it’s
shorter than before, with a very graceful
peak lapel and a nice detail in the sarto-
rial pocket.
EnsEMblE
JA: The color makes him look younger.
Fashion tip: A man can never go wrong

wearing blue on blue.
Ki: The rich blue striped jacket with asym-
metrical pockets and the plaid shirt are an
excellent combo for a casual dress look.
THE “AFTER” IMAGE IS A SIMULATED IMAGE OF WHAT CRAIG NEWMARK WOULD LOOK LIKE IF HE HAD ACTUALLY PARTICIPATED IN THE FORBES MAKEOVER, WHICH HE DID NOT. NOR DOES HE ENDORSE ANY PRODUCTS PICTURED HERE.
shiRt
JA: Everyone thinks
an ecru or eggshell
shirt is great, but if
you don’t pick the
right colors with it,
it tends to be very
washed out.

FIND OUT WHAT CORNERS WE DO NOT CUT, EVER / 877 JET 2806 / NETJETS.COM
Trust cannot be bought,
BUT IT CAN BE EARNED.
NETJETS INC. IS A BERKSHIRE HATHAWAY COMPANY. ALL AIRCRAFT OFFERED BY NETJETS¨ IN THE UNITED STATES FOR FRACTIONAL SALE, LEASE, OR USE UNDER THE MARQUIS JET CARD¨ AND PRIVATE JET TRAVEL CARDª PROGRAMS ARE
MANAGED AND OPERATED BY NETJETS AVIATION, INC., A WHOLLY OWNED SUBSIDIARY OF NETJETS INC. NETJETS, EXECUTIVEJET AND THE MARQUIS JET CARD ARE REGISTERED SERVICE MARKS. ©2013 NETJETS IP, LLC. ALL RIGHTS RESERVED.
Relying on the integrity of
another is something that evolves
over time – when there’s a good
reason to in the first place. That’s
what only the highest investment
in safety and the reputable
backing of Berkshire Hathaway
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for business, for family, for life

LEADERBOARD

$5,000
Nightly price of the Grand Del Mar’s
Grand Villa, a 4,500-square-foot,
three-bedroom suite (Wi-Fi included).
22 | FORBES MARCH 3, 2014
Shah Rukh khan so dominates the Bollywood
box oce, they call him King Khan. In 2013 his
movie Chennai Express became India’s highest-
grossing film ever. He also has 19 brand endorse-
ment deals, and all his activities together brought
him earnings of $35.5 million last year. That’s about
what Tom Cruise made but still far less than Amer-
ica’s top-earning celebrities. Only one of India’s top
five is not a Bollywood star.
indian celebrities by deepak ajwani; perfect resorts by hayley bosch
KHAN: WASEEM GASHROO / HINDUSTAN TIMES VIA GETTY IMAGES
The Broadmoor
colorado springs
The Broadmoor has maintained
its five-star rating unbroken since
1960. Founded in 1918, it sits on
3,000 acres at the foot of the
Rocky Mountains and has seven
restaurants and three golf courses.
Mandarin Oriental
MiaMi
Set on Brickell Key at the top of
Biscayne Bay, the Oriental oers
quiet and a private beach but also
easy access to downtown and South

Beach. Every one of its rooms has a
balcony with a view over the bay.
The Grand Del Mar
san diego
Although it’s in southern California, it
feels Mediterranean, and attractions
range from horseback riding to a
Tom Fazio-designed golf course to
chef William Bradley’s ten-course
contemporary French dinners.
Mandarin Oriental
las Vegas
Its 23rd-floor restaurant, Twist,
is Michelin-three-star-chef Pierre
Gagnaire’s only American outpost,
and its 1930s Hong Kong-inspired
spa has hammam and rhassoul
baths and a laconium hot room.
Montage
Laguna Beach
laguna beach
The Craftsman-style hotel sits atop a
rugged cli above four white beaches.
At its Studio restaurant the doors and
windows are often thrown open to let
in the southern California breezes.
The Cloister
sea island
Chef Daniel Zeal serves his Southern
cuisine on hand-painted Bernardaud

china, and the 65,000-square-foot
spa has a stream running through its
atrium for when you tire of the
5 miles of pristine Georgia beaches.
celebrity 100
forbes travel guide
BIG BUCKS
Bollywood
amerICa’S SIx perfeCt reSortS
North, south, east and west, meet the only destinations in the U.S. that received ve stars across the
board from the 2014 Forbes Travel Guide. For more on them, visit forbes.com/5stars.
1.
Shah Rukh Khan
ACTOR, 48
EARNINGS: $35.5 MILLION
2. Salman Khan
ACTOR, 48
EARNINGS: $25.4
MILLION
He has appeared in more than 80 Hindi films
as well as the long-running reality TV show
Bigg Boss (spelling correct).
3.
Mahendra Singh Dhoni
CRICKET PLAYER, 32
EARNINGS: $25
MILLION
With 23 endorsement contracts, the Chennai
Super Kings star is the most marketable
person in India.

4.
Amitabh Bachchan
ACTOR, 71
EARNINGS: $23.8 MILLION
India’s Who Wants to Be a Millionaire star
has the country’s largest Twitter following,
8 million.
5. Akshay Kumar
ACTOR, 46
EARNINGS: $19.1 MILLION
He starred in three movies in 2013, including
Special 26 and Boss.

1 2
Call your local agent and visit
afl ac.com/business
Your employees may.
It’s called voluntary insurance, and almost
60 percent of employees wish their employer
offered it
1
.
In this changing insurance landscape, Afl ac has
offered voluntary coverage and nothing else for
nearly 60 years. And it shows. With a one-day
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2
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Best of all, Afl ac comes at no direct cost to
employers like you. Just add a payroll deduction,
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Do you see a solution to the
growing gaps in your benefi ts?
Let your
health plan go
to the birds.
1
2013 Afl ac WorkForces Report, a study conducted by Research Now on behalf of Afl ac, January 7 – 24, 2013.
2
Afl ac Company Statistics, October 2013, One day processing turnaround based on business
days after required documents are received. Online claims available for Accident, Sickness, Cancer & Wellness claims. Coverage is underwritten by American Family Life Assurance Company
of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York. Worldwide Headquarters | 1932 Wynnton Road | Columbus, GA 31999
Z131176 11/13