Forbes USA 28 October 2013 (e-magazine full)

AMERICA’S BEST BUSINESS SCHOOLS • SILICON ALLEY’S FIRST BILLIONAIRE

OCTOBER 28 • 2013 EDITION

TWITTER CEO

DICK COSTOLO

“BROADCASTERS HAVE

COME TO UNDERSTAND

THAT WE ARE A

FORCE MULTIPLIER.”

TWITTER — THE 50 BEST SMALL COMPANIES FORBES.COM / OCTOBER 28, 2013

HOW TWITTER

WILL SAVE TV

(AND TV WILL SAVE TWITTER)

THE HYPED IPO LACKS A REAL BUSINESS MODEL.

THE TELEVISION NETWORKS BLEED VIEWERS.

INSIDE THEIR PLAN TO MAKE BILLIONS TOGETHER.

STARTUP

SECRETS

SMALL CAPS

TO BUY NOW

REVENGE OF

WEB 1.0

SUPER-PRENEURS

THE

5O BEST SMALL COMPANIES

What are you

thinking about?

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6 | FORBES OCTOBER 28, 2013

contents — octoBeR 28, 2013 VoLUMe 192 nUMBeR 6

70 | king of The Second Screen

It’s prime time for Twitter CEO Dick Costolo.

cover PhoTograPh by eric MilleTTe for forbeS

15 | FACT & COmmEnT

by STeve forbeS

Senators: Don’t be easy on the next Fed head.

LEADERBOARD

20 | THE STATE OF BAnkinG

Pay is the only thing that grows in

good times and bad.

23 | SCORECARD

Zuckerberg wins again; Hayne unravels.

26 | CASH AnD CARRIE

Less blood is better for Stephen King movies.

Plus: FORBES Makeover

28 | EvERyTHinG’S JUST FinE

Banks rationalize their bad behavior.

Plus: Up-and-Comers

32 | ACTivE COnvERSATiOn

Bad-boy billionaire Stewart Rahr and the 399 other

members of The Forbes 400.

108 | STarTuP School

An M.B.A. program for budding entrepreneurs, not I-bankers.

See how we can help

your cash work harder for

your Personal Economy.

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8 | FORBES OCTOBER 28, 2013

82 | SurvivorS—and ThriverS

Three distant memories from the

1990s bubble light up our list of

America’s Best Small Companies.

contents — octoBeR 28, 2013

92 | Say cheeSe

Annie’s has the right ingredients

for organic growth.

98 | Who needS The iPhone?

Even without Apple, InvenSense’s

gyroscope business is pointing

straight up.

26 | Murder

doeSn’T Pay

The Stephen King

Rule: fewer bodies,

more money.

42 | deMoliTion

Man

A home builder

turns to the

wrecking ball.

THOUGHT LEADERS

34 | CURREnT EvEnTS

by Paul johnSon

Obama versus Putin:

Can Obama muster the right stuf?

36 | CApiTAL FLOwS

by naThan leWiS

A stable dollar delivers economic stimulus.

40 | innOvATiOn RULES

by rich karlgaard

Tara’s lesson: Smart leaders copy.

STRATEGiES

42 | DETROiT’S HAppy

HOmE wRECkER

The Pulte family made billions building homes.

Now Bill Pulte is tearing them down.

by joann Muller

46 | THE ApOTHECARy

Three key questions for ObamaCare’s rollout.

by avik roy

TECHnOLOGy

48 | A piCTURE’S wORTH

A BiLLiOn DOLLARS

Jon Oringer turned a side project

into a $2.5 billion photo phenomenon.

by STeven berToni

54 | CHinA’S BLACk BOx

The Chinese answer to Apple TV

is full of pirated content.

by SiMon MonTlake

56 | OnE ADDRESS BOOk

TO RULE THEm ALL

Privacy experts are a little freaked out

about a startup’s self-updating

contact book.

by adaM Tanner

invESTinG

60 | DAy TRADinG GABELLi

ETFs may soon be emerging from

their index fund ghetto.

by ari i. Weinberg

64 | pORTFOLiO STRATEGy

by ken fiSher

Betting against Bernanke.

66 | SmALL STOCkS

by jiM oberWeiS

America’s best small stocks.

68 | yEAR-EnD CHECkUp

by WilliaM baldWin

A Roth conversion formula.

10 | FORBES OCTOBER 28, 2013

contents — octoBeR 28, 2013

48 | caMera Man

Oh, snap! Shutterstock’s

Jon Oringer is Gotham’s

frst tech billionaire.

60 | deSigner fundS

ETFs from your favorite

mutual fund stars.

122 | The good

earTh

Kistler Vineyards stars

in a private equity

prince’s second act.

BEST SmALL COmpAniES

82 | DARwin’S DiGiTAL DARLinGS

Some Web dinosaurs have surged back onto our list

of America’s Best Small Companies.

by naTalie robehMed

92 | miLD inDiGESTiOn

Annie’s has discovered the double-edged

phenom of innovation: new products fuel growth

and nasty competition.

by Meghan caSSerly

98 | THE CHipS ARE Up

A year after a management shakeup InvenSense is

out for a piece of Apple’s business.

by karSTen STrauSS

FEATURES

70 | CAn TwiTTER SAvE Tv? (AnD CAn

Tv SAvE TwiTTER?)

On the eve of its fervently hyped IPO, the

micromessaging service has a radical plan to nab

the ad dollars it needs to thrive: help TV networks

survive the digital media revolution.

by jeff bercovici

102 | THAT SinkinG FEELinG

Carnival has brought a new CEO on board, but

investors are headed for the lifeboats.

by caleb Melby

BEST BUSinESS SCHOOLS

108 | EnTREpREnEUR BOOT CAmp

Austin’s tiny Acton School has one goal: turning

battle-ready graduates into startup successes.

by Michael noer

Plus: The 25 Best Business Schools

116 | TAkEOvER UnivERSiTy

A wildly popular Stanford class encourages M.B.A.s

to take control of a real business.

by george anderS

LiFE

122 | THE vinEyARD COLLECTOR

TPG cofounder Bill Price has a plan:

produce wine you can’t buy.

by richard nalley

128 | THOUGHTS

On entrepreneurs.

102 | S.o.S.

Carnival’s new skipper may be on a

cruise to nowhere.

BrandVoice

by SaMSung elecTronicS aMerica

Transforming STEm Education One

Community at a Time. 111

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