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 f 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 fnish 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 fexibility 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 feld.

by steve schaefer

97 | pORtFOliO StRAtEgy

by ken fisher

Big, fat, gross: my kinda stocks!

98 | FOllOw yOuR BliSS

Twenty-fve top places to retire—based on your

passions.

by william p. barrett

100 | gOldEn OldiES

Music copyright: an investment that throws of

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 of 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.