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The rugged and revolutionary Olympus OM-D E-M1 No matter where life’s INTRODUCING A CAMERA adventures take you, the Olympus OM-D E-M1 can always be by your side Its AS RUGGED magnesium alloy body is dustproof, splashproof, and freezeproof, so it’ll survive AS YOU ARE the harshest of conditions And the super-fast and durable 1/8000s mechanical shutter and 10 fps sequential shooting will capture your entire journey exactly the way you experienced it www.getolympus.com/em1 Move into a New World ÒThe OM-D lets me get great shots because itÕs rugged and durable In this shot, I was shooting when the dust was the thickest because it enhanced the light I even changed lenses and IÕve yet to have a dust problem with my OM-D system.Ó -Jay Dickman, Olympus Visionary Shot with an OM-D, M.ZUIKO ED 75-300mm f4.8-6.7 II • One of the smallest and lightest bodies in its class at 17.5 ounces* • Built-in Wi-Fi • Full system of premium, interchangeable lenses *E-M1 body only contents — JAnUARY 20, 2014 VoLUMe 193 nUMBeR 30 30 FORBES UnDeR 88 | neXt-generation entrepreneurs Four hundred and ffty faces of the future 11 | FAct & cOmmENt by steve forbes The lies continue lEAdERBOARd 14 | ScOREcARd 2013: a very good year 16 | BEiNG REEd hAStiNGS The man running the show at Netflix has a story that any screenwriter would be proud of 18 | thE YEAR’S hOttESt StARtUpS A panel of VCs and entrepreneurs selected these businesses from more than 300 contenders Plus: FORBES makeover 20 | thE mOSt OvERpAid ActORS Adam Sandler tops the list Plus: Up-And-Comers 22 | ActivE cONvERSAtiON A CEO eggs on the haters thOUGht lEAdERS 24 | cURRENt EvENtS by paul johnson Dealing with Iran: impossible? 78 | the young and the reckless Is Snapchat more than Silicon Valley’s next vanishing act? cover photograph by michael grecco for forbes | FORBES JANUARY 20, 2014 26 | cApitAl FlOwS by george leef More college does not beget more economic prosperity IBM Cloud supports 24 of the top 25 Fortune 500 companies When you’re among the highest-performing businesses in the world, you can’t afford to roll the dice on underperforming alternatives That’s why more and more of the best companies are tapping into 100-plus Software as a Service (SaaS) business solutions in the IBM Cloud Start powering your cloud at ibm.com/getstarted This is Cloud on a Smarter Planet IBM, ibm.com, Let’s Build a Smarter Planet, Smarter Planet and their logos are trademarks of IBM Corp., registered in many jurisdictions worldwide See current list at ibm.com/trademark ©International Business Machines Corp 2013 contents — JAnUARY 20, 2014 28 | iNNOvAtiON RUlES by rich karlgaard Enduring success: soft-edge excellence StRAtEGiES 30 | thE BiGGESt BEt EvER George Soros, John Paulson and Leon Cooperman are facing of against Sheldon Adelson over the future of gambling in America by nathan vardi 34 | thE BiG EASY’S mOviE mONEY pit Louisiana politicians decided handouts would turn the state into a Tinseltown rival Now they’re stuck with them by dorothy pomerantz 34 | it’s a flop Louisiana’s Hollywood tax-break horror show 30 | high rollers, high stakes A bevy of billionaires battle over online gambling 43 | the forbidden coin China’s Bitcoin crackdown is dashing the dreams of a cryptocurrency entrepreneur tEchNOlOGY 38 | iNSidE A BEAtiNG SilicON hEARt Designers have used computers for years to build elaborate machines But what about modeling complex experiences? Dassault Systèmes is leading the charge by joann muller 43 | chiNA BitES iNtO BitcOiN A speculative frenzy turned BTC China into the world’s biggest Bitcoin exchange Then Beijing dropped the boom by kashmir hill ENtREpRENEURS 46 | SEcONd liFE Reggie Aggarwal almost lost his event platform to bad luck and overspending Here’s how he clawed his way past $1 billion by karsten strauss 50 | under the gun Profting from a futuristic frearm is a tricky shot 50 | REAdY, FiRE, Aim TrackingPoint makes a $27,500 rife so smart that it can’t miss So why has the company been misfring? by abram brown 46 | saving cvent In the event of emergency, reinvent iNvEStiNG 54 | tURN dOctOR BillS iNtO REtiREmENt iNcOmE Creating super-IRAs out of health savings accounts by william baldwin 56 | mONEY FROm NOthiNG Looking for high yields? Consider buying the funds that sell the call options on your stocks by john dobosz 57 | pORtFOliO StRAtEGY by ken fisher A big (bull) surprise for 2014 58 | iNvEStOR chEckUp by john buckingham Beating back the bubble babble | FORBES JANUARY 20, 2014 â2013 movado group, inc SEđ PILOT STAINLESS STEEL CHRONOGRAPH WITH 42MM CASE, BI-LEVEL BLACK DIAL, SIGNATURE DOT MOTIF BRACELET MOVADO.COM BLOOMINGDALE’S SELECT LOCATIONS contents — JAnUARY 20, 2014 60 | iNtRiNSic vAlUE by david pearl Cap ex comes out of the closet FEAtURES 72 | REiNvENtiNG wAll StREEt Troubled UBS has been transformed into a wealth management juggernaut by halah touryalai 30 UNdER 30 72 | the new ubs Winning the war for the wallets of the world’s wealthiest 54 | it’s what the doctor didn’t order How to use an HSA to play the stock market triple tax free 78 | NOw YOU SEE thEm Will Snapchat cofounders Evan Spiegel and Bobby Murphy become the youngest self-made billionaires ever—or will Snapchat fade into business infamy? by j.j colao 88 | 30 UNdER 30 liSt Introducing the brightest stars under the age of 30 in 15 diferent felds edited by caroline howard and michael noer liFE 104 | pARAdiSE 2.0 104 | ellison’s eden Is economic viability a forbidden fruit for the tech honcho’s Hawaiian hideaway? Can Larry Ellison model the future on the Hawaiian Island of Lana’i? by laurie werner 112 | thOUGhtS On New Year’s diets ExclUSivE! BRUNO mARS’ 30 UNdER 30 plAYliSt If you really want to be a billionaire, start with these 22 songs, handpicked by our guest DJ, Grammy-winner (and 30 Under 30 nominee) Bruno Mars, to enjoy while reading this issue to listen along, go to forbes.com/under30 “Move On Up” - Curtis Mayfeld “Mirror in The Bathroom” - The English Beat “More Than a Woman” - Bee Gees “Devil’s Pie” - D’Angelo “Waters of Nazareth” - Justice “God Only Knows” - The Beach Boys “Shake a Lil’ Somethin’ ” - Live Crew “Little Red Rooster” - Luther Allison “Am I High” - N.E.R.D “Butter” - A Tribe Called Quest “Da’ Dip” - Freak Nasty “Me Name Jr Gong” - Damian Marley “Kung Fu Fighting” - Carl Douglas “All Me” - (feat Chainz & Big Sean) “Get On the Floor” - Michael Jackson “Animal” - Miike Snow “Somebody to Love Me” - Mark Ronson & The Business Intl “Won’t Fade Away” - Lewis Taylor “Salute To Kareem” - Red Hot Chili Peppers “Midnight Rider” - The Allman Brothers Band “Sweat (A La La La La Long)” - Inner Circle “Young Girls” - Bruno Mars | FORBES JANUARY 20, 2014 95 | super bowl mvp Bruno Mars’ halftime performance could be an even bigger hit than his latest album—if the weather cooperates SM INTRODUCING FEDEX ONE RATE Simple, flat rate shipping with the reliability of FedEx Now you can fill a box and ship for a flat rate Find a location at fedex.com/onerate #onerate Terms, conditions and weight limits apply Proper packing required © 2013 FedEx All rights reserved FORBES EDITOR-In-CHIEF Steve Forbes CHIEF PRODUCT OFFICER Lewis D’Vorkin FORbEs MagazInE EDITOR Randall Lane ExECUTIvE EDITOR Michael Noer aRT & DEsIgn DIRECTOR Robert Mansfeld FORbEs DIgITal 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 Coates Bateman ExECUTIvE PRODUCER Frederick E Allen – Leadership Tim W Ferguson FORbEs asIa Kerry A Dolan, Connie Guglielmo, Kashmir Hill sIlICOn vallEy Janet Novack WasHIngTOn Michael K Ozanian sPORTsMOnEy Mark Decker, John Dobosz, Luisa Kroll, Deborah Markson-Katz DEPaRTMEnT HEaDs John Tamny 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 Michael S Perlis PREsIDEnT & CEO Michael Federle CHIEF OPERaTIng OFFICER Tom Callahan CHIEF FInanCIal OFFICER Will Adamopoulos CEO/asIa FORbEs MEDIa PREsIDEnT & PUblIsHER FORbEs asIa Rich Karlgaard PUblIsHER Moira Forbes PREsIDEnT, FORbEsWOMan MariaRosa Cartolano gEnERal COUnsEl Margy Loftus sEnIOR vP, HUMan REsOURCEs Mia Carbonell sEnIOR vP, CORPORaTE COMMUnICaTIOns 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) jaNuaRy 20, 2014 — volumE 193 NumBER FORbEs (ISSN 0015 6914) is published biweekly, except monthly in February, April, June, July, September and December by Forbes LLC, 60 Fifth Ave., New York, NY 10011 Periodicals postage paid at New York, NY and at additional mailing ofces 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 frms If you prefer that we not include your name, please write Forbes Subscriber Service For back Issues: visit www.forbesmagazine.com; e-mail getbackissues@forbes.com; 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 http://www.forbes.com/reprints; or e-mail permissions@forbes.com 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 Copyright © 2014 Forbes LLC All rights reserved Title is protected through a trademark registered with the U.S Patent & Trademark Ofce Printed in the U.S.A | FORBES JANUARY 20, 2014 IN BRIEF The Social Network On Our New App by lEWIs D’vORkIn What’s a magazine? At FORBES we think it’s an experience, not sheets of paper Increasingly, consumers do, too It’s about turning, clicking, tapping or fipping to discover, read, learn or be entertained These actions seem natural The magazine we’ve produced for 96 years has nearly million subscribers On Flipboard, only a few years old, our stories attracted 1.8 million readers in October and racked up 44.5 million fips Still, magazine experiences must evolve for new behaviors In the age of social media they need to be far more social Most magazines remain solitary experiences A reader’s relationship is with the brand, the editors who pick the stories and the authors who write them There’s never been a way for readers to easily share, connect or be part of a community We’re changing all that Last January we launched an iPad app that made it easy to clip and share text, photos, charts or whatever Pinch the screen with two fngers Select and frame the content Tap a Twitter or LinkedIn or Facebook button to share With this issue we’re taking a big leap forward Now FORBES enthusiasts can be part of a frst-of-its-kind mini social network Clippings are included in an image stream for all app subscribers to see Tap any clip in the stream and go directly to the content— or share it again Editors select stories for each issue The community curates them for others “Stream,” as it’s called, was developed by MAZ, our app partner A startup founded by ex-Apple and ex-Adobe designers and engineers, MAZ understands the challenges of building new experiences with economic efciency Most media companies hire large, expensive stafs to re-create their magazines for tablets and smartphones The MAZ solution repurposes PDFs used in print magazine production by layering on actionable buttons Last March our Billionaires issue contained 2,000 links to Forbes.com posts “If you think about it,” says MAZ founder Paul Canetti, “we’ve been sharing content the same way for 20 years Copy text, paste text, get text—words or links ‘Stream’ is part of the online world’s massive shift from text-based media to visual-based media.” For this 30 Under 30 issue on iPads and iPhones, there’s audio, too Bruno Mars has curated a 22-song playlist to accompany this special issue Clip, share, join the stream— and listen in It’s a special experience F 30 30 FORBEs under social EntrEprEnEurs Chase Adam | 27 Founder | Watsi Kamel Al-Asmar | 29 Founder | Nakhweh Esra’a Al Shafei | 27 Founder | MidEast Youth Mark Arnoldy | 27 Cofounder | Nyaya Health Christopher Ategeka | 29 Founder | CA Bikes Seth Bannon, Ben Lamothe | 29, 29 Cofounders | Amicus Bryan Baum | 24 Cofounder | Prizeo Clara Brenner | 28 Cofounder | Tumml Khalida Brohi | 25 Founder | Sughar Julie Carney | 27 Cofounder | Gardens for Health Karan Chopra | 29 Cofounder | Gadco Dan Friedman | 22 Cofounder | Thinkful Khalil Fuller | 21 CEO | Learn Fresh Eric Glustrom, Boris Bulayev, Angelica Towne | 29, 28, 27 Cofounders | Educate! Isaac Holman, Josh Nesbit, Nadim Mahmud | 27, 26, 28 Cofounders | Medic Mobile Tevis Howard | 29 Founder | Komaza Joel Jackson | 28 Founder | Mobius Motors Lauren Bush Lauren | 29 Founder | Feed Talia Leman | 18 Founder | RandomKid Daniel Maree | 26 Founder | Million Hoodies Seth Maxwell | 25 Founder | Thirst Project Kennedy Odede | 29 Founder | Shining Hope for Communities Krishna Ramkumar | 28 Cofounder | Avanti David Schwartz | 27 Cofounder | The Real Food Challenge Ajaita Shah | 29 Founder | Frontier Markets Kavita Shukla | 29 Founder | Fenugreen Yannick Sonnenberg | 25 Cofounder | elefunds Malala Yousafzai | 16 Cofounder | Malala Fund Mohamed Zaazoue | 26 Founder | Healthy Egyptians 100 | FORBES JANUARY 20, 2014 shiza shahid Cofounder, Malala fund 24 When Malala Yousafzai, the young pakistani daring to advocate for girls’ education, was shot by the taliban in 2012, shahid, who had met Malala in 2009, got on a plane she helped oversee Malala’s medical care in london “While i was there by her side,” says shahid, “she woke up and said, ‘i want to continue my campaign.’ ” the stanford grad and McKinsey consultant became the 16-year-old’s chief strategist on the spot “How we leverage her voice in a way that drives all this energy around Malala into meaningful action?” Her answer is the Malala Fund, founded to turn her vision for girls’ education into reality Grants to date: $400,000, half from the World Bank and half from angelina Jolie and Brad pitt a documentary on Malala’s work by Davis Guggenheim is expected for release in 2014 JuDGES: RANDALL LANE Editor | FORBES magazine CHERYL DORSEY President | Echoing Green JEFF SKOLL Founder | Skoll Foundation SHIZA SHAHID WEARS: DrEss ($1,466) BY EKatErina KuKHarEva; KuKHarEva.coM JacKEt ($1,235) BY MonclEr; MonclEr.coM Shahid (b 1989) carries on the spirit of 1985’s all-star Live Aid concert to aid the hungry and homeless in Africa 30 30 FORBeS under law & policy Josh Blackman | 29 Assistant professor of law | South Texas College of Law Amanda Brown | 28 National political director | Rock the Vote Adam Chandler | 29 Attorney | Department of Justice Leif Dautch | 28 Deputy attorney general | California Department of Justice David Demirbilek | 28 Minority counsel | Senate Homeland Security & Governmental Afairs Committee Audrey Gelman | 26 Vice president | SKDKnickerbocker Jake Heller | 29 Cofounder | Casetext Solomon Hsiang | 29 Assistant professor of public policy | University of California, Berkeley Tim Hwang | 27 Partner | Robot Robot & Hwang Cristina Jimenez | 29 Managing director | United We Dream Noorain Khan | 29 Associate | Wachtell, Lipton, Rosen & Katz Derek Khanna | 25 Tech-policy scholar, activist Eric King | 24 Head of research | Privacy International Aaron Letzeiser | 24 Founder | Medical Amnesty Initiative Yihong “Julie” Mao | 27 Attorney | New Orleans Workers’ Center for Racial Justice Blake Masters | 27 Cofounder | Judicata Jonathan Mayer | 26 Cybersecurity fellow | Center for International Security & Cooperation Teryn Norris | 25 Commercialization and manufacturing specialist | Department of Energy Corey Owens | 29 Head of public policy | Uber Jonathan Fantini Porter | 29 Chief of staf | Department of Homeland Security Jessica Schumer | 29 Chief of staf | Council of Economic Advisers, Executive Ofce of the President Amie Stepanovich | 28 Director, domestic surveillance project | Electronic Privacy Information Center Nabiha Syed | 28 Attorney | Levine Sullivan Koch & Schulz nate levine founder, opengov 22 as a Stanford sophomore Nate levine saw opportunity where governments have historically been fat-footed “Governments struggle to access [their own] data, because there aren’t good tools out there,” levine says with that in mind he cofounded openGov in 2012 at age 20 openGov’s software platform helps governments make intelligent, data-driven decisions and exchange fnancial information with their constituents The startup has raised over $7 million— $4 million in 2013 alone—and works with more than 50 municipalities, school districts and other local government organizations, involving over million people nationwide as openGov expands— possibly into the for-proft sector— levine is focused on building new tools to revolutionize how cities share data with one another and how they approach the budgeting process Says levine, “Better access to information allows ofcials to focus on the hard problems of governing it’s especially important now that governments are being asked to more with less.” JuDGES: RONAN FARROW 30 Under 30 alum and news anchor | MSNBC GRETA VAN SuSTEREN Host, On the Record | Fox News Channel WiLLiAM ESKRiDGE JR John A Garver Professor of Jurisprudence | Yale Law School NATE LEViNE WEARS: JackeT ($129) By Tommy HilfiGer; availaBle aT Tommy HilfiGer fifTH aveNue STore SweaTer ($395), SHirT ($295) aNd paNTS ($295) By BurBerry; BurBerry.com loaferS ($130) By calviN kleiN; calviNkleiN.com The Internet has transformed old-school campaigning: This 1984 Reagan-Bush pin predates Levine (b 1991) by nearly two elections Trevor Timm | 29 Executive director | Freedom of the Press Foundation Rebecca Vallas | 29 Deputy director of government afairs | National Organization of Social Security Claimants’ Representatives Heather West | 29 Policy analyst | Google Cody R Wilson | 25 Founder | Defense Distributed Lauren Wilson | 26 Policy counsel | Free Press Daniel Zolnikov | 26 State representative | Montana House District 47 january 20, 2014 FOrBES | 101 30 30 FOrBeS under art & style Ahmed Abdelrahman | 29 Fashion designer | Thamanyah Jensen Adoni | 24 Shoemaker | Modern Vice Rosie Assoulin | 28 Fashion designer Michelle Campbell | 28 Jewelry designer Ian Collings | 28 Industrial designer | Fort Standard Asher Dunn | 27 Furniture designer | Studio Dunn Alan Eckstein | 28 Design director | Timo Weiland Crystal Ellis, Stephanie Beamer | 29, 29 Furniture designers | Egg Collective Sarah Flint | 25 Shoe designer Alex Gartenfeld | 27 Interim director | MOCA North Miami Wes Gordon | 27 Fashion designer Nikolai “Niki” Haas, Simon Haas | 29, 29 Furniture designers | Haas Brothers Colin P Kelly | 29 Industrial designer | Redscout Aimee Kestenberg | 27 Handbag designer Jemima Kirke | 28 Painter-actress Becca McCharen | 29 Fashion designer | Chromat Leandra Medine | 25 Fashion blogger | The Man Repeller Shauna Miller | 27 Fashion blogger | Penny Chic Oscar Murillo | 27 Artist Victo Ngai | 25 Illustrator Lotta Nieminen | 27 Graphic designer Aaron Poritz | 29 Furniture designer carter cleveland founder, artsy 27 When Carter Cleveland was a Princeton computer science student back in 2008, he went online searching for a picture to decorate his dorm room “I assumed there would be a website with all the world’s art on it,” he recalls there wasn’t so he set out to build one, with a Pandora-like feature that recommends artists to users His company, artsy, displays more than 85,000 pieces of art from 400 foundations and museums (including the National Gallery of art and the Getty) and 1,400 galleries though his frst impulse was simply to create a repository of images, he quickly realized the site could make a lot of money from commissions (60% of the art on the site is for sale) Investors such as twitter’s Jack Dorsey, Google’s eric schmidt and mega-art dealer larry Gagosian have pumped $14.5 million into the company Cleveland says Jef Bezos is his inspiration: “We’re going to become amazon for the art world.” JuDGES: JEFFREy DEITCH Art advisor PETER BRANT Art collector ISAAC MIzRAHI Fashion designer CARTER CLEVELAND WEARS: suIt ($2,150) By DuNHIll; DuNHIll.Com sHIrt ($195) By tHomas PINk; us.tHomasPINk.Com Belt ($130) By torINo leatHer; torINoleatHer Com sHoes ($350) By Paul evaNs; PaulevaNs.Com PRODuCTION ASSISTANT: aNastasIIa mIsHyNa GROOMING: suzaNa HallIlI for make uP for ever Eric Singer | 27 Eyewear designer | Shwood Travess Smalley | 27 Digital artist Lucien Smith | 24 Artist Danielle Snyder | 28 Jewelry designer | Dannijo Tanya Taylor | 28 Fashion designer Torey Thornton | 23 Artist Jacob Willis | 27 Fashion designer | Second/Layer 102 | FORBES JANUARY 20, 2014 Cleveland (b 1986) hearts Keith Haring, the iconic 1980s grafti artist and social activist who died of AIDS in 1990 30 30 ForbES under brian wong Cofounder, Kiip 22 imagine you just posted a 5-mile run to the runkeeper app when an ad on your iPhone pops up ofering you a free liter of Propel Water Or you just fnished a particularly fendish level of Candy Crush and you are ofered free sour Patch kids as a reward these “moments of achievement” and “serendipitous rewards” are a big part of the future of advertising, at least according to Wong, who cofounded kiip in 2010, a year after graduating from the University of British Columbia at age 17 “We track almost half a billion of these achievement moments every month,” he says “these are moments that brands can be a part of and own.” in three years kiip has raised $15.4 million and is now used by more than 500 major brands to reach 70 million users through 1,500 games and apps Procter & gamble, Pepsi and disney are clients He expects to be proftable next year JuDGES: ADAM BAin President of global revenue | Twitter JAMES D FARLEY JR Executive VP of global marketing, sales and service | Lincoln, Ford Motor Co HELAYnE SPiVAK Director | VCU Brandcenter BRiAn WOnG WEARS: JaCket ($295) By miCHael kOrs; availaBle at dillard’s; dillards.COm sWeater ($75) By Pv PatriCk assaraf; availaBle at Wilkes BasHfOrd; WilkesBasHfOrd.COm sHirt ($79) By vinCe CamUtO; vinCeCamUtO COm trOUsers ($348) By BrOOks BrOtHers; BrOOksBrOtHers.COm Wong (b 1991) sees the light behind Apple’s 1984 Super Bowl commercial, advertising’s frst full-on cultural phenom marketing & advertising Katrina Bekessy | 29 Director of technology & design | R/GA Mallory Blair | 25 Cofounder | Small Girls PR Derek Blais | 29 Senior art director | BBDO Canada Raymond Braun | 23 LGBT marketing lead | Google/YouTube Victor Cheng, Roger Lee | 27, 27 Cofounders | PaperG Katrina Craigwell | 28 Global manager of digital marketing | GE David Dinetz, Dylan Trussell, Colt Seman | 26, 26, 28 Founders | Culprit Creative Andrew Dumont | 26 Director of business development | Moz Whitney Fishman | 29 Tech and consumer insights director | MEC Teddy Gof | 28 Cofounder | Precision Strategies Rich Greco | 28 Head of design | Droga5 Jack Hanlon | 29 Cofounder | Kinetic Social Amy Karr | 26 Experience designer | Starcom MediaVest Group Joanna Kennedy | 24 Senior social media specialist | RPA Greg Kimball | 26 Manager of digital strategy and communications | L’Oréal Jack Krawczyk | 29 Director of product management | Pandora Media Michael Kuzmich | 28 Associate director of motion graphics | Firstborn Douglas Lusted | 21 Cofounder | WestonExpressions Jef MacDonald | 26 Creative technologist | The Martin Agency Charles Merritt | 28 Partner | 80amps Mitch Orkis | 27 Director of client development | Vizeum US Khoa Phan | 23 Freelance Vine animator Matthew Rubinger | 25 Director of luxury accessories | Heritage Auctions Maude Standish | 29 Cofounder | Tarot Rachel Tipograph | 26 Global director of digital and social media | Gap Elliott Wiener | 28 Director of consumer insights | Razorfsh Farryn Weiner | 28 Global director of digital and social communications | Michael Kors Worldwide Elyse Winer | 28 Marketing and communications manager | MC10 Inc Pranav Yadav | 28 CEO | Neuro-Insight JANUARY 20, 2014 FORBES | 103 FOrBeS lIFe Travel Paradise 2.0 Can Larry Ellison model the future on the Hawaiian Island of Lana’i? by Laurie Werner W hen Oracle CEO Larry Ellison bought 98% of the Hawaiian island of Lana’i in June 2012 (for a price estimated at $300 million to $500 million), shock waves rippled through the sleepy, picturesque backwater The island’s 3,100 residents were long inured to the semifeudal ownership structure—since the 1860s there had been a succession of lords of the manor, including pineapple king James Dole and, in 1985, after taking over Dole’s then foundering parent company, billionaire David Murdock But Ellison came in with even deeper pockets and bigger plans, guaranteed to change the face of the island, a place that proudly has no traffc lights, very few paved roads in 141 square miles and, as one resident describes it, “not just a slow pace—no pace at all.” What a visitor will see now on Lana’i, miles of the coast of Maui, is an old Hawaii that exists today only in patches on the larger islands Locals still gather in the small, unassuming cafes such as Blue Ginger that ring Dole Park in the main town, Lana’i City, to gossip or “talk story” in the mornings The scenery is so lush that golfers often take breaks between shots to simply soak in the views The powdery beaches, bordering waters dotted with sea turtles, are often completely deserted That will undoubtedly change if the projects now in discussion go forward Ellison has researchers working on a desalination plant intended to increase the pumping capacity of fresh water to 10 million gallons a day from its present 2.5 million, and there are ongoing renovations at the two Four Seasonsmanaged hotels, the Resort Lana’i at Manele 104 | FORBES JanuaRy 20, 2014 Bay and The Lodge at Koele, with a third luxury hotel under consideration And that’s just the beginning Also on the to-do list: Expand compact, 1930s-era Lana’i City with its brightly colored, plantationstyle cottages and develop a university campus Following Ellison’s purchase of Lana’i’s main air carrier, Island Air, a new runway and airport facilities are in the works to allow the frst direct fights from the mainland Oh, yes—and plans call for developing industrial areas, expanding solar power facilities, introducing electric cars and ultimately doubling the population to around 6,000 Not surprisingly, residents regard the planned rollouts warily Many worry about preserving the character of the island Says one resident, “A friend recently told me that whenever she goes to the sacred places her family showed her, she wonders how will she feel when there are signs pointing them out The branding people have already been here asking how they should ‘sell’ the island That’s a very uncomfortable feeling for us.” Still, the islanders knew something had to change In the last few years of the Murdock regime the island’s economy was crumbling In the early 1990s Murdock had moved the pineapple plantations overseas and shifted CloCkwise from top: Jenna szerlag / newsCom; newsCom; ron Dahlquist / getty images Sea change: clifs at Lana’i’s Sweetheart rock; the island’s new landlord, Larry ellison; the swimming pool at Manele bay the economic focus to tourism, opening the beachfront Manele Bay and the English hunting-style The Lodge at Koele in the cooler, higher elevations of the island A modest third hotel, the 11-room Hotel Lana’i, had been built for Dole managers in 1923 But all of the properties were foundering and with them the livelihood of the island “In the beginning Murdock had incredible vision,” says Mary Charles, who leases the Hotel Lana’i “But in 2008 the world blew up; he was losing tons of money [reportedly $20 million to $30 million a year], and he lost interest The population was dwindling, businesses were closing, maintenance in the hotels and the community was deferred Many of us were ready to throw in the towel.” Murdock, who declined to be interviewed for this article, had a plan to generate income for the island: a windmill farm that could sell power to the main island of Oahu The resistance from many in the community was thunderous, evident in the “No Windmills on Lana’i” signs still lingering in some front yards But the resistance wasn’t unanimous, and the clash between the pro- and anti-windmill factions tore apart the once close-knit community “We had the signs, protesters—it got very ugly,” explains Alberta de Jetley, publisher of the monthly newspaper Lana’i Today “The argument was no longer rational People couldn’t get their minds around the fact that the power was going to Oahu but that we would still have benefted.” With that economic path blocked, Murdock decided to sell Rumors swirled about possible buyers Bill Gates, who had rented out all of Lana’i’s hotel rooms and booked all of its airline seats for his wedding in 1994, JanuaRy 20, 2014 FORBES | 105 FOrBeS lIFe Travel 106 | FORBES JanuaRy 20, 2014 neutral colors and more open architecture, giving on to views of the bay and its spinner dolphins and whales The restaurants were also upgraded, as Ellison lured a branch of Nobu to the island, which opened in December 2012 in time for his Christmas visit Those renovations at Manele Bay were the focus of a recent community meeting, one of the regular gatherings with company representatives instigated by Pulama Lana’i’s Matsumoto In this one, with chairs grouped in a circle and the afable Lynn McCrory, Matsumoto’s senior vice president of government afairs, leading the discussion, hugging community members and imploring them to eat or take home the prodigious supply of baked goods, the questions from the 40 attendees ranged from where the construction workers would be living to which new retailers would come into Manele Bay (among the names being bandied about were Burberry and Jimmy Choo) Most residents I talked with heartily approve of the meetings and the selection of Matsumoto to head the Ellison efort “Kurt knows how to communicate, how the local people solve problems,” says Butch Gima, president of community advocacy group Lana’ians for Sensible Growth “It was refreshing to know that a multinational corporation had the foresight to choose someone local.” But not everyone is mollifed by the backand-forth Joelle Aoki, executive director of the Coalition for a Drug Free Lana’i, says that she’s grateful for the positive changes “But every time I come out of those meetings, I feel anxious,” she says “I’m very concerned about the ability of the Lana’i community to keep their way of life Then what if midway through he decides to sell it?” Kurt Matsumoto insists that Ellison’s interest is long term, that the population growth would be an organic, gradual progression, explaining that just because they have access to signifcant funding doesn’t mean they would or could make all of these projects instantly appear So it will be years before it’s clear whether Lana’i will become the Pacifc Eden that Ellison envisions What is clear is that the community will be watching every step “I would say that the mood right now is cautious optimism,” states Robin Kaye “And that is 180 degrees from where it was Previously it was despair.” F TreNDING What the 53 million Forbes.com users are talking about For a deeper dive go to FOrbeS.COM/LiFeSTyLe IDEA DeLiVery DrOneS home-delivery copters pique fantasies of amazon shoppers, generate fresh nightmares for post office and law enforcement EXPENDITURE Green FOr Green Conservation and wildlife advocates dodge major proposed cuts in budget battle, but will the final version halt decades of funding reductions? APP aPPLe’S ibeaCOn your phone as tracking device: stores know when you walk in, stadiums electronically usher you to your seat sound appealing? turn on iBeacon—it’s already installed in some 200 million ios devices. amazon / ap was often mentioned So were groups of Chinese and Russian developers Given the jitters over the prospect of foreign developers, the announcement of Ellison as buyer was met with euphoria “Larry Ellison was a godsend,” says De Jetley “He has enough money to take us to another level and help us become sustainable.” The island’s introduction to Ellison has had some rocky moments, however The frst news of his plans came from an interview on CNBC “He was quoted as saying that he would use the island as a laboratory,” explains Robin Kaye of the community advocacy group Friends of Lana’i “Many people were ofended by that We live here We’re not animals in a study I understand what he meant But still … There was some sensitivity.” What Ellison meant, apparently, was that he wanted to create a world-class model of sustainability on the island “He saw Lana’i as an opportunity to engage in conversations that are happening around the world—food security, sustainable energy—rather than sit on the sidelines and create a fund,” explains Kurt Matsumoto, a Lana’i native who managed the hotels here for Murdock and was brought in as COO for Ellison’s management company, called Pulama (meaning “cherish”) Lana’i, a canny message to locals that he hopes to enhance the island and not destroy it “He appreciates the natural beauty of the island,” says Matsumoto “But I think his main motivation is the opportunity to come in and make a diference.” (The notoriously press-shy Ellison declined to comment for this article, but in the past he has described his attachment to Lana’i, dating back to his 20s: He few a Cessna over Lana’i’s pineapple felds, admiring the area’s beauty, and even then expressed a desire to buy the island.) After the purchase Ellison immediately made goodwill gestures to the community: reopening and improving the community pool that Murdock had closed to save money, introducing youth recreational and educational programs, refurbishing buildings in town and expanding one of the few grocery stores, Richard’s Market Renovation work also began immediately on the hotels Murdock’s Chinese furniture and antiques in the Resort Lana’i at Manele Bay’s public areas were jettisoned in favor of a sleeker, more cosmopolitan style with FORBES // MARKETPLACE TECHNOLOGY HEALTH & FITNESS Total Fitness In Only Four Minutes a Day? Preposterous, Right? 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Eat less —mALcOLm FOrbes ON New yeAr’s dIeTs The two biggest sellers in any bookstore are the cookbooks and the diet books The cookbooks tell you how to prepare the food and the diet books tell you how not to eat any of it —andy roonEy Seeing is deceiving It’s eating that’s believing —JamEs thurBEr The diet book is one of those fool-and-money separation devices that seems, like roulette or slot machines, never to lose its power —christophEr hitchEns The one way to get thin is to reestablish a purpose in life “The gap between what we would like to be and what we are is widening American advertising and the mass media portray a relentless urge for ftness But the truth is that we are not a nation of joggers, iron-pumpers and whisper-thin fashion models Rather, we are, increasingly, a nation of broad bottoms and bulging middles.” —from thE nov 17, 1986 issuE of forBEs OTHer THOUGHTs FrOm THAT IssUe: bOONe bLAsTs “Boone Pickens is mad After forcing Phillips Petro- leum and Unocal to load up on debilitating debt, the self-proclaimed champion of shareholder rights is now blasting Enron Corp., the natural gas pipeline company, for buying back 16% of its shares from Irwin Jacobs and Leucadia National, the greenmail specialists.” THe FrIeNdLy sKIes OF UsAIr? “Rumor is going around that dealster Carl Icahn has made merger overtures to USAir on behalf of his TWA Yet another rumor has it that Icahn wouldn’t mind in the least if USAir were to make a counterofer to take TWA of his hands.” —cyril connolly Think of weight gain as merely a rounding error —richard hyflEr Gluttony is an emotional escape, a sign that something is eating us Before long it will be the animals who the dieting so that the ultimate consumer does not have to —pEtEr dE vriEs —mimi shEraton And be not drunk with wine, wherein is excess; but be flled with the Spirit —EphEsians 5:18 SOURCES: THE COLUMBIA DICTIONARY OF QUOTATIONS; THE INTERNATIONAL THESAURUS OF QUOTATIONS; THE 2,548 BEST THINGS ANYBODY EVER SAID; THE QUOTABLE HITCHENS: FROM ALCOHOL TO ZIONISM; SIMPSON’S CONTEMPORARY QUOTATIONS 112 | FORBES JANUARY 20, 2014 ... gas company, OGX, plummets 10 /201 3 11 /201 3 12 /201 3 SOURCES: INTERACTIVE DATA VIA FACTSET RESEARCH SYSTEMS; FORBES NET WORTH DATA THROUGH DEC 10, 201 3 JANUARY 20, 201 4 FORBES | 15 LEADERBOARD 655... hope to model each individual patient’s heart before surgery JanuaRy 20, 201 4 FORBES | 39 TECHNOLOGY sOfTwarE 40 | FORBES JanuaRy 20, 201 4 patient’s own heart as detected by an MRI or echocardiogram... expansion in Canada Could you forward him this article, please?” FORBES, DECEMBER 16, 201 3 22 | FORBES januaRy 20, 201 4 FORBES, DECEMBER 16, 201 3 @AMOURCOLETTE It’s about the art, not investment Whatever