Forbes june 16, 2014 USA

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contents — June 16, 2014

VoLuMe 193 nuMBeR 8

11 | Fact & cOmmEnt
by steve forbes

Sino-Russian gas pact! Yawn.

lEadERBOaRd
14 | michaEl’S immORtal
mOnEy machinE

The King of Pop can’t be stopped. A third of his
$2.8 billion career earnings have come in the fve
years since his death.

16 | SummER REadS

Too persnickety for Thomas Piketty?

Brave enough to read The Confdence Code?

20 | tEll uS EvERything:
JESSica SimpSOn
22 | BiZ QuiZ

Can you ace our plutocrat photo puzzle?

24 | EyE-pOpping pOpEyES

Steve Wynn’s $28 million Popeye isn’t the most
expensive art world Gazookus.

24 | thE $4.8 BilliOn BREakup

Elena Rybolovleva was just awarded the largest
divorce settlement in history. But can she collect?

26 | activE cOnvERSatiOn:
can nOvaRtiS kill cancER?

thOught lEadERS
28 | thE apOthEcaRy
by jonathan bush

Health care reform: Disruptors need not apply.

30 | innOvatiOn RulES
by rich karlgaard

Buys and sells: if colleges were stocks.

64 | ms. fix-it
Mary Barra just became
the most powerful woman
in corporate America.
First order of business:
Refurbish General Motors.

StRatEgiES
32 | cOal caSE

Share prices have plunged as draconian
regulations and falling natural gas prices cripple
miners. Sounds like a good time to buy.
by christopher helman

cover photograph by jamel toppin for forbes
2 | FORBES JunE 16, 2014


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contents — June 16, 2014
38 | mat in amERica

By wrapping $150 car foor liners in the fag,
WeatherTech’s David MacNeil is creating one
of the world’s more unlikely luxury brands.
by dale buss

tEchnOlOgy
42 | FiRE-BREathing catS
FOR SalE

Young Asians spend millions on cute images
they text one another. Entrepreneurs are
betting the craze won’t get lost in translation
to the West.
by parmy olson

14 | earnings
from the crypt
Death becomes him.

42 | cute attacks!
Jeanie Han hopes your kids
will start blowing their cash on
imported digital doodads.

38 | heartland hero
David MacNeil believes

in clean car foors and
homegrown jobs.

48 | hwang’S wORld

Tim Hwang plants ideas all over the
Internet, even if he has to scam a little
bit to make them stick.
by kashmir hill

EntREpREnEuRS
50 | BRing yOuR Own dEvicE
Sunny Bajaj turned the mundane job
of managing a mobile workforce into
a raucous success.
by alexander konrad

invESting
54 | thE laSt lOng BullS

Are Van Hoisington and Lacy Hunt just
stubborn? Or do they know something all
the other fxed-income pros don’t about
30-year Treasurys?
by daniel fisher

58 | FixEd-incOmE watch
by richard lehmann

Income without growth.

60 | intRinSic valuE
by john buckingham

Priced for imperfection.

62 | thE cOntRaRian
by david dreman

50 | dmi’s sunny bajaj
“I’ve drunk tequila
with Samsung, with
Good Technology.
You can be serious
but have a little fun.”

Double your money in an index fund.

thE wORld’S mOSt
pOwERFul wOmEn
64 | pOwER ShiFt

Mary Barra made history by working her way
into Detroit’s car-guy club and becoming the
frst female CEO of General Motors. Now can
she fx the company?
Plus: The World’s Most Powerful Women
by joann muller

76 | gEEk chic

These six e-tailer entrepreneurs ofer
a stylish retort to the oft-heard lament:
“Where are all the women in tech?”
by caroline howard

4 | FORBES JunE 16, 2014


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contents — June 16, 2014

84 | next-gen cigarette
PMI’s André Calantzopoulos
has a new smoke to sell.

96 | slim chance
Fitness franchise Curves
needs all the help it can get.

FEatuRES
84 | thE FutuRE OF SmOking

Philip Morris International is quietly
developing a new cigarette that could replicate
the traditional smoking experience, while
killing fewer customers.
by daniel fisher

100 | utility playER

Other than cutting costs and strengthening
capital, Brian Moynihan has no grand plans for
Bank of America. Amen to that.
by halah touryalai

FRanchiSE
ScOREcaRd
100 | banking for

dummies
Brian Moynihan’s strategy
for Bank of America: Keep
it simple.

92 | hOuSE callS

As more of the population ages and tries to
avoid nursing homes and hospitals,
fast-growing Right at Home ofers help
with basic chores or medical care.
Plus: America’s best and worst franchises.
by carol tice

96 | cRaSh diEt

108 | hot mukul
Nicaragua’s frst ultraluxury
resort boasts a private beach club, a
walk-in humidor and a David McLay
Kidd golf course.

Once the largest ftness franchise,
Curves has been shedding thousands of units
and enraging many franchisees.
Can the new owners turn it around?
by karsten strauss

liFE
108 | nExt StOp, nicaRagua

Will sophisticated travelers make it the next
elite destination?
by ann abel

112 | thOughtS
On women.

6 | FORBES JunE 16, 2014


Achieve financial security
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Create your financial plan with a Northwestern Mutual
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balanced approach to protecting, accumulating and managing
your wealth, so you can take advantage of life’s opportunities.
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aRT & DEsIgn DIRECTOR
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sEnIOR vP, PRODUCT DEvElOPMEnT anD vIDEO
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assIsTanT ManagIng EDITORs
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ExECUTIvE PRODUCER
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Tim W. Ferguson FORbEs asIa
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FOUnDED In 1917
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juNE 16, 2014 — volumE 193 NumBER 8
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8 | FORBES JUNE 16, 2014

IN BRIEF

Smart Moves
On Smartphones
by lEWIs D’vORkIn

I got a digital wake-up call a few weeks ago when my
obsession with data turned to mobile trafc. In April we
had the same number of readers visit our home page via
smartphone as we did the desktop. The same was pretty
much true for our popular Billionaires list. Briefy, we even
crossed the newest digital divide. During the frst weekend
of May 51% of visits were mobile—39% smartphone, 11.5%
tablet. What’s it all mean? Making money in the media
business increasingly means fnding ways to tap consumer
interest in online streams.
I’ve been focused on the fow of content for some time,
at my startup and now FORBES. I’ve watched readers

move across our magazine, its app and Forbes.com via
desktop, tablet and now smartphones. I see the fow—
mainly on phones—as a new opportunity to serve both
consumers and marketers. If done right, editorial, native
ads, marketing messages and promotions can live together,
even serve one another, all within the fow.
In some ways Facebook and Twitter paved the way.
They buried the adage ad agencies recited like lemmings:
Readers don’t scroll. The trick for news outlets is to construct a mobile fow that appeals to visitors but also supports video, sponsorships, interstitials, galleries and more.
It takes the right publishing tools, collaboration with the
sales and marketing teams, and integration with an ad
server. Maybe most challenging: getting editors to think
like marketers of content, not simply creators.
The task fts nicely with the newest trend. Text-based
social feeds, a popular kind of fow, are becoming more
visual (think Facebook’s Paper app and TwitPics). We laid
the groundwork with headline text modules within mobile
streams. In the last months we’ve supplemented these
headlines with visual modules promoting our ebooks.
Smartphones present news organizations with interlocking challenges. On computer ad exchanges, mobile rates go
for less than $1 CPM. Desktop rates are $3. Each is a far cry
from premium digital ads sold by humans—$15 to $30 on
desktops—and $40 to $50 for print ads. That means the cost
of quality content in the fow must come down.
Print to digital. Narrowband to broadband. Desktop
to mobile. Journalists need to pay attention to the smartphone fow. It might help save their jobs—maybe even jolt
their metastasized culture into change. F


Follow financial principles, not fads or trends.

Create your financial 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 financial future?

northwesternmutual.com

Northwestern Mutual is the marketing name for The Northwestern Mutual Life Insurance Company, Milwaukee, WI (NM) and its subsidiaries. Securities ofered 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.


Together, we’ll create a
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Get the guidance you need to navigate the financial world.
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northwesternmutual.com

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.


FORBES

FACT & COMMENT — STEVE FORBES
“With all thy getting, get understanding”

SiNO-RUSSiaN gaS pact!
yawN
BY STEVE FORBES, EDITOR-IN-CHIEF

After A decAde of negotiations Russia and China announced
a 30-year, $400 billion natural gas
deal. Vladimir Putin is portraying
the agreement as another brilliant
coup: Russia gets a large, long-term
customer and demonstrates that,
despite its aggression against Ukraine,
it’s not only not isolated diplomatically but also has a new and powerful
strategic ally, which has the secondlargest economy in the world.
Save all the breathless hype. Putin is naturally spinning the pact as an “epochal event,”
but in truth it’s really no big deal. Divide that
$400 billion by 30 years and you get an annual
average of $13 billion. The size of the global
economy today is almost $80 trillion. Seen in
that context the contract rates barely a footnote. AT&T’s proposed acquisition of DirecTV
merits more attention.
Strategic alliance? The deal with China underscores Russia’s core weakness. Despite its
immense resources and highly educated population, which includes a considerable number of capable scientists and mathematicians,
Russia has a shockingly small economy that is
amazingly dependent on the export of oil, gas
and a few other natural resources.
This state of afairs is testimony to bad governance. In our high-tech era Russia should be
a powerhouse instead of a cipher. The country
can cause considerable mischief, but if the EU
and the U.S. ever get their economic, military

and diplomatic acts together, they’ll easily be
able to checkmate Moscow. Russia’s neighbors
are all too aware that alignment with Putin
means stagnation and oppression.
The U.S. and Europe have gratuitously

weakened themselves with idiotic
economic policies of excessive
taxation, unstable money, stifing
regulations and bloated public sectors. The U.S. will deal with those
artifcial obstacles decisively after
the 2016 elections. The 2014 midterm elections will start the process
of regeneration. Europe, or at least
parts of it, will reluctantly follow
suit, just as it did in the 1980s, after
Ronald Reagan slashed taxes, conquered infation and pushed deregulation.
As for China’s obsession with securing natural resources, its ofcials should read Adam
Smith to understand that trade is the source of
wealth. A large, fast-growing economy, barring
times of war, guarantees that resource companies will beat a path to your door to sell their
wares. They want your money.

Good Man Gone
An unheralded hero in the fght against Soviet
communism during the Cold War, Ken Tomlinson
died on May 1, at age 69, from cancer. Ken played
critical roles in two underappreciated organizations, Voice of America and Radio Free Europe/
Radio Liberty, that were crucial in undermining
what Ronald Reagan rightly called the Evil Empire.
Totalitarian regimes like the Soviet Union and

Maoist China need to have a monopoly on information to maintain absolute control. If people
have no way of getting the truth and are denied
accurate news about the world and what’s happening in their own country, efective opposition becomes well nigh impossible.
That’s why Moscow regarded VOA and RFE/

JUNE 16, 2014 FORBES

| 11


FORBES

RL as lethal foes. They provided a
these attacks and, indeed, to going on
critical lifeline of information to the
the political ofense. He had superb
people of the Soviet Union and the
political instincts and a keen sense of
puppet regimes in Eastern Europe.
how to fght the endless bureaucratic
The Soviet government spent considbattles with State and other governerable resources jamming these radio
ment agencies. He also possessed
broadcasts and engaged in major pro- practiced insights in dealing with the
paganda eforts to undermine support eye-rolling challenges, especially perfor them in the West. It understood
sonnel issues, of managing the Radios
that the battle of ideas is fought each
themselves. He was fun to work with:
and every day and that communism
Like Reagan, he had an ample store of
couldn’t survive such a confrontation. good political stories and anecdotes.

Amazingly, most diplomats, forKen’s tireless eforts during these
eign policy gurus and politicians
years, along with those of others,
grossly underestimated the impact
were not for naught. In 1989 the Evil
the allegedly “soft power” of
radio broadcasting had in battling the U.S.S.R.
One notable exception was
a former radio broadcaster,
Ronald Reagan. When he became President, Reagan moved
to beef up and revitalize these
neglected, rundown and—in
the halls of Congress—politically unpopular institutions.
Ken and sF with Poland’s president lech Walesa.
To this end, he persuaded Ken
Tomlinson, a superb journalist rapEmpire collapsed, and in 1991 the
idly ascending the editorial ladder
Soviet Union itself broke up into 15
at Reader’s Digest, to head the VOA.
diferent countries (which Putin is
Ken did so for two years, achieving
now working to reunite). The unravgreat success in updating equipment
eling started in Poland, thanks to the
and improving programming. The
brave work of Solidarity, which was
Soviets were not pleased.
led by a shipyard worker named Lech
Not long after Ken returned to the
Walesa. When asked what role Radio
Digest, Reagan prevailed upon him to

Free Europe had played in these exjoin the Board for International Broad- traordinary events, Walesa answered
casting (BIB), the oversight agency for
with a question: “What is the Earth
RFE/RL. Moscow hated these entities
without the Sun?”
even more than it did the VOA because
Ken left the BIB in 1994, but Presithey were “surrogate” broadcasters,
dent Bill Clinton brought him back
i.e., the programs were tailored to
into public service in 2000, naming
each country, as if they were broadhim to the board of the Corporation
cast from inside the borders.
for Public Broadcasting.
I was privileged to chair the BIB
All of the U.S. government’s overseas
at this time, which is how I came to
broadcasting eforts had been united
know Ken well. RFE/RL were under
into a single agency, the Broadcasting
constant attack from the American
Board of Governors. In 2002 President
and European left, as well as from
George W. Bush named Ken chairman, a
the U.S. State Department, which
position he held into 2007. Despite scant
continuously tried to sabotage our
political help, Ken started a TV broadbudgets and our mission. Ken was
casting station aimed at the Middle East.
absolutely critical to fending of
He also managed to add more broad12 |

FORBES

JUNE 16, 2014

casting to Iran and other trouble spots in
the region. But Washington’s obtuseness
over the importance of these eforts was
pervasive, as it always has been. If Ken
had had czar-like powers he would have
accomplished much more—and civilization today would be a lot safer. As it
is, the Iranian popular uprising in 2009,
which could have grown into a Solidarity-like movement had Obama not made
clear he didn’t want that to happen, had
some of its roots in the work Ken did.
In 2003 Ken was elected chairman
of the board of the Corporation for
Public Broadcasting, which oversees
the money Washington spends
on public television and radio.
Ken courageously attempted to
introduce some political balance
into the programming and ran
into vicious opposition. He was
hit with numerous—and baseless—attacks on his policies and
his integrity. Shamefully, neither
the White House nor congressional Republicans efectively
covered his back politically during these fghts.
Ken was a constant friend. When
I sought the presidency in 1996, he

and his beautiful and gracious wife,
Rebecca, were unstinting in their efforts to help out.
Ken’s life is an inspiring model for
young people. He was hardworking
and ambitious (his father died at a
young age, and Ken knew he’d have to
make it on his own), courageous (he
never shirked a battle because of the
odds), principled (his love of country
and the values that make it great were
unshakably deep), tenacious (when
hit with a setback, he never stayed
down), shrewd (he had good tactical
sense when pursuing a goal or fghting a political battle, knowing when
to be indirect and when to make a
frontal assault), religious (his moral
compass never wavered), devoted
to family (Will and Lucas refect the
superparenting skills of Ken and
Rebecca) and, best of all—well, not
quite—a lover of baseball. F

glen davis

FACT & COMMENT — STEVE FORBES


NoRTHWEsTERN MuTuAL pREsENTs InSPIRIng LEaDERS

Promotion

Inspire Change
By Thinking
Like an Entrepreneur
By Joann M. EISEnhaRT, Ph.D.

“Don’t be afraid to
use power—and to
empower others—
to make your world
a better place.”
Joann M. EisEnhart, Ph.D.
Senior Vice President, Human
Resources, Facilities and
Philanthropy, Northwestern Mutual

Photo credit © Lyn Graft

Ingrid Vanderveldt, Entrepreneurin-Residence, Dell Inc., winner of
the Northwestern Mutual Excellence
in Entrepreneurship Award

A

fter attending the Forbes Women’s
Summit: Power Redefned in
New York, I’ve returned to my
offce energized and inspired. It was an
honor to share ideas with some of the
most savvy, forward-thinking women

in leadership today.
During the summit, it was my pleasure
to present the frst Northwestern Mutual
Excellence in Entrepreneurship award to
Ingrid Vanderveldt. A lifelong entrepreneur,
Ingrid is the frst ever Entrepreneurin-Residence at Dell Inc., where she
oversees Dell’s entrepreneurial initiatives
globally, including the Dell Center for
Entrepreneurs and the $130 million Dell
Innovators Credit Fund, which she created.
Her vision is to empower a billion women
by 2020. That effort includes giving them
tools; she envisions a world where every
woman has a mobile device. It also
includes giving them knowledge. Ingrid
works to facilitate opportunities for
girls and women for learning, growth
and entrepreneurship.
I believe that each of us—in our own
way and in our own world—can effect
positive change by embracing the kind
of entrepreneurial spirit Ingrid demonstrates. At Northwestern Mutual, we
encourage employees to act like owners.
We embrace change, celebrate our
successes and promote experimentation. Whether you own a small business
or work for a large company, a key
component of success is to think like
an entrepreneur by applying new and
creative thinking to solve problems.

I love Ingrid’s story because it shows
the signifcant impact we can have when
we embrace our power and help those
around us do the same. Women in leadership roles can be uncomfortable with
power, and may resist using the power
of their position for fear that others
will view them as autocratic or bossy.
I studied this topic for my doctoral dissertation, and came to realize that the
appropriate use of power—including the
power afforded by leadership positions
like mine and Ingrid’s—is essential for
success. Ideally, people will follow your
lead not only because of your position,
but also because they respect you and
feel empowered to carry out your vision.
There’s much we can learn from Ingrid
Vanderveldt, whether we’re leading a
team of thousands or a household of
four. To be successful, you have to think
like an entrepreneur. Decide what’s
important and fnd a way to make it happen. Lift the limitations you may have
imposed on yourself. Welcome new
approaches and ideas. And, perhaps
most important, don’t be afraid to use
power—and to empower others—to
make your world a better place.

Learn more about leadership development and thinking like an entrepreneur
at northwesternmutual.com/inspire360

LEADERBOARD

Keeping Score on Wealth & poWer

1988 earnings

AnnuAl eArnings ($mil)1

$300

250

Michael’s
iMMortal
Money
Machine

200 The King of Pop’s posthumous

150

$247,000,0001

DeaD Celebrities

album Xscape sold 157,000
U.S. copies in its opening week.
Not bad, but it’s barely a blip
in his $2.8 billion infationadjusted career earnings, onethird of which has come in the

fve years since his death.

1989 The Bad Tour grosses $125 Million on sales of
4.4 Million tickets. If he had gotten the $220 per head

1983 There were

9.1 million cars sold in
America in 1983—and
more than 10 Million
copies of Thriller.
The album has sold an
estimated 100 Million
copies worldwide since
its release.

Jay Z and Beyoncé are charging for their upcoming
summer concerts, Jackson would have grossed
$942 Million, more than any tour in history.

1988 Jackson purchases Neverland
ranch for $17.5 Million; insiders
say it could now fetch $100
Million on the open market, nearly

Career earnings adjusted for infation;
other fgures in nominal dollars.

1

twice what David Gefen paid for his
new Hamptons mansion.

100

1979 Jackson’s frst solo

50

efort, Of the Wall, sells
7 million copies in the U.S. by
1982—at the time, the most
ever by an African-American
artist.

1984 After his hair catches fre during a Pepsi commercial
shoot, he parlays the cola company’s lawsuit fears into a

$5.2 Million endorsement deal plus $1.5 Million to

establish the Michael Jackson Burn Unit in Los Angeles.

1985 Jackson buys the Beatles’ publishing catalog for
$47.5 Million. His investment is now worth about
$1 billion—more than twice what he would have made if

0

he’d bought General Electric stock instead.

1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995
14 | FORBES JUNE 16, 2014


2010 Jackson’s estate

releases posthumous album
Michael after signing a new,
ten-year $250 Million deal
with Sony— the biggest pact
in music history.

1990 LA Gear signs Jackson
to a sneaker deal worth

$20 Million—$2 million

2009 Jackson dies on June 25, dramatically boosting his
popularity. By the end of the year 8.3 Million of his albums

more than Nike’s initial
payment to Michael Jordan.

are sold in the U.S., more than any artist and nearly twice as
many as runner-up Taylor Swift.

2014 Five years after his

death Jackson dances to life
as a hologram at the Billboard

Music Awards, boosting his
“new” album, Xscape, to
number two on the charts.

2001 Jackson’s last studio

album, Invincible, costs as
much as $40 Million to
record, more than the current
GDP of island nation Tuvalu.

showman stands still for
72 seconds at the start
of his Super Bowl XXVII
halftime gig. That’s more
than $8 Million of silence,
judging by recent ad rates.

outearns Madonna, the world’s
highest-paid living musician,
thanks in part to Cirque du
Soleil’s shows One and Immortal.

total earnings over career

1994 Jackson marries Lisa

Marie Presley in a secret
ceremony; the duo divorce
two years later. Jackson

consistently outearns her
father from beyond the grave.

1993 Thirteen-year-old Jordan Chandler

accuses Jackson of molestation and
eventually settles out of court for $20
Million; the collateral damage to the
Dangerous Tour proves equally costly.

$2,800,000,0001
Based on research
from senior editor
Zack O’Malley
Greenburg’s Michael
Jackson, Inc., which
was published by
Simon & Schuster/
Atria on June 3.

1995 Receives a $115 Million advance payment for

merging his ATV publishing catalog, which contains the
bulk of the Beatles’ biggest hits, with Sony’s catalog.
The deal represents a fvefold increase in value over
Jackson’s purchase price a decade earlier.

996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

by zack o’malley greenbUrg

neverlAnd rAnch: JAson mitchell / getty imAges;
lA geAr shoes: michAel ochs Archives / getty imAges;
mAdonnA: JAson merritt / getty imAges;
hologrAm: Kevin Winter / getty imAges; lisA mArie Presley: neWscom

1993 The ultimate

2013 The King of Pop easily

JUNE 16, 2014 FORBES | 15


1

LEADERBOARD

Sales rank of Thomas Piketty’s
Capital in the Twenty-First Century among all books
ever published by Harvard University Press. 

FLOW CHART

WHICH BUSINESS BOOK
SHOULD YOU READ THIS SUMMER?
Too persnickety for Thomas
Piketty? Brave enough to read The
Confdence Code? Or should you
just chill out with Stress Test?

Are you a

capitalist?

May we suggest
Mother Jones?

Hell
no!

Obviously

Yes

No
Likable ones?

Yes

Do you like
books by
former traders?

Are you
reasonable?

Sure

The Divide
by Matt Taibbi

No

Nah
What else do
you have?

Flash Boys
by Michael Lewis

The Wolf of
Wall Street
by Jordan
Belfort

Female
Big Thinkers

Which way do
you lean?

Left

In

I’m not sure.

Thrive
by Arianna
Hufngton

Lean In

by Sheryl
Sandberg

The Confidence
Code
by Katty Kay
and Claire
Shipman

Male

Economists

Is financial
inequality a
good thing?

With big
hair?

Totally!

Oui!

Hmm
Stress Test
by Timothy
Geithner

Not so much

Yes
Are you
a freak?

Non

Not
really

Capital in the TwentyFirst Century
by Thomas Piketty

David and Goliath
by Malcolm Gladwell

Yes

Creativity, Inc.
by Ed Catmull
If by “freak” you
mean that I’m
obsessed with Karl
Marx, then yes.

16 | FORBES JUNE 16, 2014

Think Like a Freak
by Steven D. Levitt and
Stephen J. Dubner

BY MICHAEL SOLOMON
TOP: FRED DUFOUR/AFP/GETTY IMAGES

Do you like the
French?



LEADERBOARD

$50

SCoRECARD

follow-thRough

WINNERS

ON thE mat

Mukesh
Ambani

Rupert
Murdoch

Jimmy
Iovine

+$3.2 billion

+$600 million

+$170 million

NET WORTH:
$25.5 billiON

NET WORTH:
$13.9 billiON

NET WORTH:
$970 MilliON

No one makes more from
the election of businessfriendly Prime Minister
Narendra Modi than oil
tycoon Mukesh Ambani,
india’s richest man.

The NFl charges Fox
about $1 billion annually
to broadcast games, but
Murdoch’s Fox Network’s
quarterly revenue is up 12%
thanks to the Super bowl.

Apple’s likely $3.2 billion
buyout of beats looks
certain to boost the value

of the stakes of record
executive iovine and his
rapper cofounder, Dr. Dre.

since our feature
story on the WWE’s
Vince McMahon
came out he has lost
more than $750
million, including a
pile-driving
$350 million in one day as shares in his
WWE took a beating in the wake of a TV
deal WWE had signed with NBCUniversal.
That brutal day in May knocked McMahon
out of the billionaire ranks. WWE’s shares
were up 89% in the frst three months of
2014, and McMahon’s net worth peaked in
mid-March at $1.6 billion.

ASk 50 billionAiRES

pOckEt chaNgE
How much cash is usually
in your wallet?

LOSERS

More than $5,000 4.4%
Around $5,000 4.4%

Around $1,000 26.7%

Elon
Musk

Evan
Williams

–$460 million –$400 million

Darrell
Cavens

–$170 million

NET WORTH:
$7.9 billiON

NET WORTH:
$2.1 billiON

NET WORTH:
$750 MilliON

Tesla is burning cash
building a $5 billion
battery factory, expanding
production to China and
designing a minivan that

goes sports-car speed.

Twitter announces it is still
not turning a proft, and
the free fall continues for
cofounder Evan Williams,
who has lost $1.8 billion this
year, nearly half his fortune.

Shares of online retailer
Zulily soared in February,
but the CEO’s 40-day stint
as a billionaire ended after
the company announced a
quarterly loss.

FiGuRES REFlECT THE CHANGE iN vAluE OF PubliCly TRADED HOlDiNGS FROM APR. 30 TO MAy 20.
SourceS: InteractIve Data vIa FactSet reSearch SyStemS; ForbeS.

18 | FORBES junE 16, 2014

Around $500 40%

Around $100 13.3%
Less than $100 8.9%
Less than $20 2.2%

scorecard by dan alexander; mcmahon by dan alexander
TOP: GETTy iMAGES; AMbANi: CHRiS JACkSON / GETTy iMAGES; MuRDOCH: JASON kEMPiN / GETTy iMAGES; iOviNE: JASON MERRiTT / GETTy iMAGES; WilliAMS: bRAD bARkET / GETTy iMAGES; CAvENS: NO CREDiT; MuSk: EvAN AGOSTiNi / iNviSiON / AP; MCMAHON: DAviD yEllEN

Maximum amount of cash most Americans regularly
carry in their wallet, according to Bankrate.com. 


We couldn’t have
done it without you.
Our customers are at the heart of everything we
do, and it feels good to be recognized for just
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World’s Most Ethical Companies, Ethisphere Magazine, Quarter 1, 2014. From FORTUNE Magazine, February 3, 2014 & February 27, 2014 © 2014 Time Inc. FORTUNE 100
Best Companies to Work For and World’s Most Admired Companies are registered trademarks of Time Inc. and are used under license. FORTUNE and Time Inc. are not
affiliated with, and do not endorse products or services of, Aflac. Aflac’s family of insurers includes American Family Life Assurance Company of Columbus, American Family Life
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Z140349
4/14


$188

LEADERBOARD

The most expensive item of clothing in
Macy’s Jessica Simpson Collection—a
sleeveless Sequin Panel Sheath dress. 

real estate

Home equity
BomB sHelters
HigH-end Housing didn’t
crash as hard as the low-end stuf,
and now it’s roaring back—at least
on the gold coasts of California and
Florida. Less zippy: luxe homes in
the Northeast and Northwest. The
map at right shows the increase in
sales prices for the top third of the
residential real estate market from
the bottom in November 2011 to
March of this year for America’s
500 largest metros.

● increased more than 15%
● increased 0%–14.9%
●
●●
●● ● WA ●
●
● ●
●●
●
● ● ●
●●
●

●●
●
●
● ●
●
ID
● ●
OR
●●
●
●● ●
●
●
●
● ● ●
●●
NV
●●
● ● ●●●
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●
● ●●
● ●
●
●
● CA●
●●
●●
● ●

●
●● ●
●
● ●●
AK
●
●●

source: ZilloW.

●

●
ND
●

● Fallen 0.1%–17.7%

● MN
●
●
●
● ● ● WI
SD
● ●●●● ● ME
● ●●
●MI
● ●
●
●

● NY VT
●●
●NH
●
●
●
●
●
●
●●●
●
●
WY ●
● ● ●●
●●●
●
●●
●●● ●● ● ●●
●
● ●IA ● ● ●●● ●
● ●●●●●
●●● ●
● ●● ●●●● ●●MA
● ●
●
●
●
●
●
●

●
● ●
CT
NE ●
●● ●
●●
●
●
●
●
●
●
RI
●
●
●
●
●
●
●
● ●
● PA
● ●
●●
●●●
● ●●
●●
●● ● ●●
●
●

●● ●●
●
●●
OH ● ● ●
IN
●
●
● ●
●●●●●
●● ● ● ●●●●●●
NJ
●●●●
●●●
●●
●
●
●
●
UT
●
●
●
●
CO
●
●
●
IL
●
●

KS ● ●
●
● ● ●●●WV
● ● ●●●
●
DE
● MD
●●
●
●
●
●
● ●
MO
VA
● ● ●KY●
●
●
●
●
●●
●
● ●
●
●
●
●
●
●● ● ● ● ● ● ● ● ●●
●

OK
●
●●
●●
●●●● ●●
●●●●●●●
●
●●
● ●TN
●●
NC
●
● ●
●
● ●
●● ● ●
AR ● ●
● ●●
●
●
●
●
●●●
● ●● ●
●●
● ●●
● ●
●
●
●●

●
●
●
●
●● ●
NM
●
●
●
●
AZ
● ●●●● SC●●● ● ●
● ●
● ●●
● ●●● ● ●
● ● ●
●
●
●
●
MS
● ● ●
● ●
●
GA ● ●●
●
AL ● ●
●●
●
●

● ● ● ● ●●●●
TX
LA
●
●
●●
●
●
●
●●
● ●
●
●●
●
●
●● ●●
●
● ●● ●
●
● ●●●● ●●● ●● ●
HI
●●●
●
● ●●
●●
●
●●
●
●
●●

●●
●● ●
FL●●
● ●
●
●
●●
●●
●●
● ●
●●
MT
●

●

tell us everything

jessica simpson

She sold $1 billion worth of Jessica Simpson Collection
shoes, sunglasses and dresses last year. We polled our
followers on social media for questions to ask the pop star
turned retail mogul.

twitter / @treystaFFordypr:
what drove you toward entrepreneurship?
My business is the heart of who i am. i want to make every woman
feel confdent in what she’s wearing and in her shoes. and, i mean, i
have been every size on the planet. i understand women and i know

how to dress them.
tUmblr / @bravegirl18
is your celebrity your biggest selling point?
My brand has surpassed my name and my celebrity. i want every
woman to feel comfortable and trust what she’s buying. she knows
when she buys a Jessica simpson shoe that she’s going to be able
to dance all night long. We try to stick with trends that we think will
last throughout the years. We don’t want to be too fashion-forward.
if we’re relatable, accessible and afordable, who needs a trend?

20 | FORBES junE 16, 2014

real estate by erin carlyle; jessica simpson by caroline howard
david yellen for forbes

FacebooK / Kristi marcy
how do you handle bad business decisions?
being in the public eye for so long, i’ve made a ton of mistakes. and
everybody knows about them. but i don’t look at my mistakes as any
sort of failure but as a lesson to be learned.


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30

LEADERBOARD
30 UNDER 30

BURNING
BRIGHT
Electric innovations from
young disruptors, in 30
words or less.
Miles Barr, 30

A
Invented
invisible solar
coating for

screens that
uses the sun to
charge devices.
In the long run
coated windows
could generate
half your home’s
energy. Raised
$7.2 million.

THE WAY THEY WERE

BIZ QUIZ

C

In honor of Mark Zuckerberg’s 30th
birthday we’ve scoured the archives for
images of other billionaires near that
age. Match the plutocrat with the photo.

Daniel Maren, Andrew
Ponec, Darren Hau, 20, 21, 20
DRAGONFLY SYSTEMS

Their revamped
junction boxes,
which prevent
waste after the
sun sets, make

solar panels
cheaper to
install and more
efcient. Potential industrywide
savings? $3.2
billion a year.

Jessica Matthews, 26
UNCHARTED PLAY

22 | FORBES JUNE 16, 2014

Kicking around
her $99 Soccket
soccer ball for
30 minutes
creates enough
kinetic energy
to power an
LED lamp for
hours: the
perfect game
for the less developed world.

B

D

1. Steven Spielberg
2. David Gefen

3. Ralph Lauren
4. Rupert Murdoch

5. Oprah Winfrey
6. Warren Bufett
7. Ross Perot

E
F

G
A6; B4; C7; D2; E3; F1; G5

UBIQUITOUS ENERGY

30 UNDER 30 BY KATHRYN DILL; 30-YEAR-OLD BILLIONAIRES BY LUISA KROLL
TOP: GETTY IMAGES; MURDOCH: JOHN F. KENNEDY PRESIDENTIAL LIBRARY; PEROT: FERD KAUFMAN / AP; GEFFEN:MICHAEL OCHS ARCHIVE / GETTY IMAGES; LAUREN: JACK ROBINSON / GETTY IMAGES; SPIELBERG: COLUMBIA TRISTAR / GETTY IMAGES; WINFREY: CHICAGO TRIBUNE / MCT / NEWSCOM

Age of Alexander the Great at the peak of his empire’s
size and influence. (He was, however, dead by 32.) 


NETWORK.

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