Forbes April 14, 2014 the Visa® Black Card
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Our commitment to providing the solutions our retirement investors need is just one reason 100% of our Retirement Funds beat their Lipper average for the 5-year period ended 12/31/13*. Past performance cannot guarantee future results. Results will vary for other time periods. Visit our website or contact a T. Rowe Price Specialist to see if our Retirement Funds are right for your IRA. Or call your advisor to learn more about investing with T. Rowe Price. T. Rowe Price funds are low cost, so your investment goes further. troweprice.com/openira 1.866.575.9647 on supporting an income stream over a long-term postretirement withdrawal horizon. The funds are not designed for a lump-sum redemption at the target date and do not guarantee a particular level of income. The funds maintain a substantial allocation to equities both prior to and after the target date, which can result in greater volatility over shorter time horizons. *Based on cumulative total return, 12 of 12, 12 of 12, 12 of 12, 5 of 5, and 6 of 7 (86%) of the Retirement Funds for individual investors outperformed their Lipper average for the 1-, 3-, 5-, and 10-year and since-inception periods ended 12/31/13, respectively. The Retirement 2010, 2020, 2030, 2040, and Income Funds began operations on 9/30/02; the 2005, 2015, 2025, and 2035 Funds began operations on 2/29/04; the 2045 Fund began operations on 5/31/05; and the 2050 and 2055 Funds began operations on 12/31/06. (Source for data: Lipper Inc.) T. Rowe Price Investment Services, Inc., Distributor. IRA082148 THE MOST PLANES IN THE CLOUD. MORE WI-FI THAN ANY OTHER AIRLINE. DELTA.COM/WIFI contents — APRIL 14, 2014 40 | GENE THERAPY GURUS Firms like Nick Leschly’s Bluebird Bio are tackling rare diseases with next-gen treatments—and attracting big investor interest. 44 | TODAY BOSTON, TOMORROW THE WORLD Major League Baseball was just the start of the Fenway Sports Group’s ambitions. 50 | M&A MISCHIEF How to dress up a loser as a winner. STRATEGIES 40 | BIOTECH’S NEXT BIG THING After decades of experimentation and failure is gene therapy fnally ready for prime time? Investors certainly think so. BY MATTHEW HERPER 44 | THE GREEN MONSTER Winning the World Series was nice, but John Henry and his Fenway Sports Group have plans to build a global sports juggernaut. BY KURT BADENHAUSEN TECHNOLOGY 46 | HOW MUCH DID YOU PAY FOR THAT LIPSTICK? 66 | BOBAMACARE 46 | PERSONAL Big data is helping customers price goods Pet insurance: PRICING according to a customer’s willingness to pay. marginal product, FreshPlum’s BY ADAM TANNER great business. dierential- pricing INVESTING algorithm turns reluctant 50 | MERGER MIRAGE shoppers into Acquisitions are on the rise and winning eager buyers. investors’ favor. But loose accounting rules can make even a bad deal look good. BY DANIEL FISHER 54 | BETTING ON BILLIONAIRES, NOT BUBBLES Kinetics Internet Fund crashed when the dot-com bubble burst. Now it’s killing it by avoiding future dot-bombs. BY BRIAN SOLOMON 57 | GET YOUR MONEY MANAGED FOR FREE Some ETFs have negative expenses. The trick: securities lending. 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Harry Stine has revolutionized BY KARSTEN STRAUSS American agriculture. Twice. His corn could do it again. FEATURES 70 | THE INNOVATION FACTORY Sequoia Capital is Silicon Valley’s search engine 82 | CABLE for disruption—and billionaires. CUTTER BY GEORGE ANDERS WITH ALEX KONRAD Pro wrestling’s Plus: The Midas List billionaire is streaming his act 82 | MONSTER MOVE directly to his fans. Vince McMahon sucker punched his traditional TV partners when he launched the WWE Network earlier this year. The unorthodox maneuver could transform his business—or he could fall fat on his face. BY MICHAEL SOLOMON AND DANIEL FISHER 90 | HIGH TIMES! Meet the shady band of ex-cons, ganja-preneurs and multilevel marketers behind the great pot penny stock boom of 2014. Don’t say we didn’t warn you. BY NATHAN VARDI 90 | MARIJUANA MADNESS Michael Mona’s high-fying 96 | CAN THIS MAN FEED investors could see everything THE WORLD? go up in smoke. Harry Stine built an obscure $3 billion empire by breeding a better soybean seed. Now the richest man in Iowa thinks he has revolution- ized corn, the Earth’s most popular crop. BY ALEX MORRELL BrandVoice BY SAMSUNG Launching Students Into Science: How a Middle School Touched Outer Space 99 LIFE 106 | THE BALLAD OF BALCONES Want to fnd the best single malt whiskey in the world? Look under a bridge in Waco. 106 | THE WHISKEY FROM WACO BY ABRAM BROWN The fnest brown liquor comes not from a glen in Scotland but from an 112 | THOUGHTS underpass in Texas. On taxes. 10 | FORBES APRIL 14, 2014 PITCH. BUSINESS, MEET PLEASURE. BOOK NOW AT FOURPOINTS.COM Best rates guaranteed at 200+ hotels around the globe. ©2014 Starwood Hotels & Resorts Worldwide, Inc. All Rights Reserved. Preferred Guest, SPG, Four Points and their logos are the trademarks of Starwood Hotels & Resorts Worldwide, Inc., or its affi liates. FORBES EDITOR-IN-CHIEF IN BRIEF Steve Forbes CHIEF PRODUCT OFFICER Lewis D’Vorkin FORBES MAGAZINE Native Advertising EDITOR Randall Lane Catches On EXECUTIVE EDITOR Michael Noer By lEWIs D’vORKIN ART & DESIGN DIRECTOR Robert Mansfeld My frst sales trip for FORBES was a stop in Detroit in Au- FORBES DIGITAL gust 2010, memorable for the heat, the humidity and a chilly VP, INVESTING EDITOR Matt Schifrin reception. I was pitching BrandVoice, then called AdVoice. MANAGING EDITORS The ad agencies and clients we visited didn’t get it. Still, we Dan Bigman – Business, Tom Post – Entrepreneurs, Bruce Upbin – Technology pressed on with a product for advertisers that few other pub- SENIOR VP, PRODUCT DEVELOPMENT AND VIDEO Andrea Spiegel lishers ofered.