Forbes the Time Has Come: Defund the IRS
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“ THERE’S NO REASON WE CAN’T MANUFACTURE IN THE U.S.” TONY MENEGHETTI COO, TIMBUK2 © 2014 Citibank Inc. Citi and Citi with Arc Design are registered service marks of Citigroup Inc. The World’s Citi is a service mark of Citigroup Inc. mark of Citigroup Citi is a service Inc. The World’s service marks of Citigroup registered Design are © 2014 Citibank Inc. Citi and with Arc Timbuk2 is helping to revive American manufacturing by making San Francisco the home of their custom messenger bag factory, countering a trend which has seen U.S. manufacturing lose over 65,000 facilities since 2000. But to grow, Timbuk2 needed global fi nancial capabilities and expertise. With Citi’s support, they opened stores overseas, expanded their factory and doubled in size. They are proof that manufacturing can thrive in America. For over 200 years, Citi’s job has been to believe in people and help make their ideas a reality. #progressmakers contents — JuLY 21, 2014 VOLUME 194 NUMBER 1 62 | THE MELLONS ”You never touch the principal.” 11 | FACT & COMMENT AMERICA’S RICHEST FAMILIES BY STEVE FORBES The time has come: Defund the IRS. 78 | THE WALTONS Sam’s most exclusive club is LEADERBOARD worth $152 billion. 14 | CELEBRITY 100 The most powerful stars. 16 | BLOODY AMAZING Elizabeth Holmes reaches billionaire status— four times over—at age 30. 18 | HELPFUL HANDICAPS Maybe your CEO should play more golf. 20 | PROVENANCE The colorful history of the 1956 Ferrari 410 Superamerica Series 1 Coupe. 22 | THAT SINKING FEELING Think fnding a chest full of sunken treasure is a good way to get rich? Think again. 26 | ACTIVE CONVERSATION The 2014 Investment Guide. COVER PHOTOGRAPH BY JAMEL TOPPIN FOR FORBES 2 | FORBES JULY 21, 2014 THE NEXT BIG THING IS HERE™ © 2014 Samsung Telecommunications America, LLC. Samsung, Galaxy Tab and The Next Big Thing Is Here are all trademarks of Samsung Electronics Co., Ltd. Appearance of devices may vary. Device screen images simulated. contents — JulY 21, 2014 14 | QUEEN B A huge world tour makes Mrs. Carter the world’s THOUGHT LEADERS most powerful celebrity. 28 | CURRENT EVENTS BY DAVID MALPASS Peace through weakness: The U.S. and Japan sputter. 30 | INNOVATION RULES BY RICH KARLGAARD VC view: investable trends. STRATEGIES 32 | GRABBING FOR GREEN NRG Energy is one of the nation’s biggest operators of carbon-belching power plants. No wonder CEO David Crane is so keen to become the emperor of alternative energy. BY CHRISTOPHER HELMAN 32 | CHASING THE SUN “Think how shockingly stupid it is to TECHNOLOGY build a 21st-century electric system 36 | TWITTER’S CLEANUP PATROL based on 120 million wooden poles.” Del Harvey wades through the darkest content on Twitter to decide what’s legitimate free expression and what’s abuse that gets the ax. BY KASHMIR HILL ENTREPRENEURS 40 | CROWD PLEASERS Applause relies on a network of 140,000 geeks worldwide to stress-test new apps. 42 | WHEN WORLDS How do you grow rapidly—and still COLLIDE maintain quality control? “What’s the intersection BY KARSTEN STRAUSS of mobile and the physical 42 | CALLING ALL WINDOW SHOPPERS world? The answer was easy: It’s called shopping.” Why reward people only for buying? Cyriac Roeding’s ultrasound-powered app makes millions encouraging people just to look. BY HOLLIE SLADE INVESTING 46 | FAMILY SECRETS As the government closes in, the owners of ofshore accounts, and their heirs, face legal perils and tricky choices. BY DEBORAH L. JACOBS AND JANET NOVACK 48 | PORTFOLIO STRATEGY BY KEN FISHER 389 lessons and counting. 52 | SMALL STOCKS BY JIM OBERWEIS Small stocks with simple plans for big growth. 36 | SCANNING FOR 53 | FINANCIAL STRATEGY SCUMBAGS BY A. GARY SHILLING “Your one-in-a-million Woe to the euro. chance of something going horribly wrong happens 500 times a day.” 4 | FORBES JULY 21, 2014 BOUTIQUES NEW YORK • BEVERLY HILLS BAL HARBOUR • BOCA RATON • LAS VEGAS PALM BEACH • ST THOMAS • ATLANTA DALLAS • ORLANDO • HOUSTON Tel: 1 800 536 0636 contents — JuLY 21, 2014 54 | BE FRUITFUL AND MULTIPLEX “This nation was built FEATURES under the Bible and 54 | JESUS CHRIST SUPERHERO free enterprise.” Mark Burnett earned a quarter-billion dollars in the past four years producing shows like Survivor. Now he’s found the next batch of superheroes in an unlikely place: the Bible. BY ZACk o’malleY GReenBuRG 90 | MCHEALTHCARE The gold rush is on to reinvent the doctor’s ofce, and fast food is the model. BY BRIAN SOLOMON AMERICA’S WEALTHIEST FAMILIES 62 | MANOR-BORN ENTREPRENEURS Most of America’s Gilded Age fortunes have dissipated over time. Yet two centuries after Thomas Mellon arrived in America his family, worth $12 billion, has never been richer. How did they do it? BY ABRAM BROWN AND ALEX MORRELL 68 | SKY SCRAPPERS The tallest, most meaningful building of this American century, the new World Trade Center, is about to open. Risks abound for everyone involved, except the billionaire Durst family. BY ERIN CARLYLE 74 | HOW TO BLOW $9 BILLION It took the Stroh family over a century to 68 | THE DURSTS build the largest private beer fortune in “It’s an amazing family. America. And it took just a few bad Are they controversial? decisions to lose the entire thing. I think if you’re not BY KERRY A. DOLAN controversial, you’re not 78 | DOMINANT DYNASTIES g ood at what you do.” The Waltons. The Kennedys. The Rockefellers. Our defnitive list of the richest families in America: 185 clans with fortunes of at least $1 billion. EDITED BY LUISA KROLL AND KERRY A. DOLAN LIFE 98 | THE ADVENTURES OF MR. TEA Like an epicurean Indiana Jones, Rodrick Markus searches for high-end teas and other exotic ingredients for the best chefs in the world, eating danger for breakfast— with freshly shaved trufes. BY HUNTER ATKINS 90 | JUST WHAT 106 | THOUGHTS THE DOCTOR ORDERED 98 | TEA MASTER On renown. “Why can’t you “You have things that are real get good health approachable, and then you have care as easily as things so outrageous they may be you get fast food?” too refned for certain palates.” 6 | FORBES JULY 21, 2014 FORBES EDITOR-IN-CHIEF IN BRIEF Steve Forbes CHIEF PRODUCT OFFICER Lewis D’Vorkin FORBES MAGAZINE Moving In EDITOR Randall Lane Fast-Forward EXECUTIVE EDITOR Michael Noer By lEWIs D’vORKIN ART & DESIGN DIRECTOR Robert Mansfeld I’m known for a few sayings at FORBES. “Get stuf done” is FORBES DIGITAL at the top of the list. Actually, I use a saltier version, which is VP, INVESTING EDITOR Matt Schifrin emblazoned on a T-shirt draped on a sofa in my ofce. Over MANAGING EDITORS the last four years that motto produced the most aggressive Dan Bigman – Business, Tom Post – Entrepreneurs, Bruce Upbin – Technology product road map in the news business. In January came SENIOR VP, PRODUCT DEVELOPMENT AND VIDEO Andrea Spiegel my new mantra: “Faster, faster, faster.” Competitive forces EXECUTIVE DIRECTOR, DIGITAL PROGRAMMING STRATEGY demanded we launch new “stuf” even more quickly. Here’s Coates Bateman ASSISTANT MANAGING EDITORS what’s in store for our readers this summer. Kerry A. Dolan, Luisa Kroll – Wealth Newsletters: We’ve provided FORBES readers with premi- EXECUTIVE PRODUCER Frederick E. Allen – Leadership um investing advice ($19.99 to $800 annually) for decades. Tim W. Ferguson FORBES ASIA Soon 40 newsletter writers will use the same Web publish- Kashmir Hill SILICON VALLEY ing tools as our reporters and expert contributors. That Janet Novack WASHINGTON means subscribers can easily access their newsletters on Michael K. Ozanian SPORTSMONEY Mark Decker, John Dobosz, Deborah Markson-Katz DEPARTMENT HEADS Forbes.com. It also makes it easy for interested digital read- Avik Roy OPINIONS ers to sign up for premium newsletter content promoted Kai Falkenberg EDITORIAL COUNSEL alongside free content. BUSINESS Mark Howard CHIEF REVENUE OFFICER Thoughts on the Business of Life: They were frst intro- Tom Davis CHIEF MARKETING OFFICER duced by our founder, B.C. Forbes, in his newspaper column. Charles Yardley PUBLISHER & MANAGING DIRECTOR FORBES EUROPE His son Malcolm devoted the back page of FORBES to Nina La France SENIOR VP, CONSUMER MARKETING & BUSINESS DEVELOPMENT Jack Laschever PRESIDENT, FORBES CONFERENCES quotes. Now this beloved feature—13,000 quotes from 3,000 Michael Dugan CHIEF TECHNOLOGY OFFICER people—will be enhanced online, with a focus on mobile Elaine Fry SENIOR VP, M&D, CONTINUUM viewing, sharing and searching. FORBES MEDIA Photo Gallery: FORBES is well known for photo galleries, Michael S. Perlis PRESIDENT & CEO many of them associated with our popular wealth lists and Michael Federle CHIEF OPERATING OFFICER Tom Callahan CHIEF FINANCIAL OFFICER rankings. A new mobile gallery with swiping and full-screen Will Adamopoulos CEO/ASIA FORBES MEDIA images will ofer a far better experience for the 10 million PRESIDENT & PUBLISHER FORBES ASIA Rich Karlgaard PUBLISHER people who use phones to access Forbes.com. Moira Forbes PRESIDENT, FORBESWOMAN The Magazine: Total redesigns are fast giving way to itera- MariaRosa Cartolano GENERAL COUNSEL Margy Loftus SENIOR VP, HUMAN RESOURCES tive updates. Our front-of-the-book pages (see p. 14) will now Mia Carbonell SENIOR VP, CORPORATE COMMUNICATIONS include features that integrate a digital and social sensibility. FOUNDED IN 1917 Photography across the magazine will be bigger and bolder. B.C. Forbes, Editor-in-Chief (1917-54) Navigational devices will also be added to improve browsing. Malcolm S. Forbes, Editor-in-Chief (1954-90) James W. Michaels, Editor (1961-99) And there’s more to come this fall, including the digital William Baldwin, Editor (1999-2010) launch of ForbesLife, a luxury vertical that makes use of our highly successful Forbes.com contributor model.