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In this issue
May 2, 2011 Vol. 163 No. 6 / Fortune Asia

30 LEADERSHIP Q&A: THE AIRLINE KING
How will new CEO Jeff Smisek make the United/Continental marriage work?

INTERVIEW BY GEOFF COLVIN

37 PROMOTING THE SPIRIT OF BERMUDA
Malcolm Gosling Jr.'s mission is to export the family rum窶蚤nd protect the
trademark on a certain cocktail.
BY DAVID WHITFORD

40 TROUBLE@TWITTER
Boardroom power plays, disgruntled founders, and CEO switcheroos are clipping
the wings of this tech highflier.
BY JESSI HEMPEL

49 ASIA BUSINESS
ASIA'S 25 MOST POWERFUL BUSINESSPEOPLE
Our list reflects a major power shift in the region, from Japan to China, India,
and beyond.

58 TATA TAKES ON THE WORLD: BUILDING AN AUTO EMPIRE IN INDIA
Chairman Ratan Tata has transformed the company founded by his great-grandfather.
BY ALEX TAYLOR III

66 GOOGLE AND ITS ORDEAL IN CHINA
In a new book, Steven Levy looks at Google's past five years in China窶蚤nd where
it went wrong along the way. A Fortune book excerpt.

72 | BING!

FIRST

8 | BY THE NUMBERS
Texting at 17,060 feet.
BY TARA MOORE

10 | THE CHARTIST
Rising food prices could spell trouble for fast-food chains.
BY ANNE VANDERMEY

12 | CLOSER LOOK
Sailing goes mass market.
BY PAUL V. OLIVA

14 | GUEST COLUMN
Here's how to come up with the political will to deal with the budget deficit.
BY ERSKINE BOWLES AND ALAN SIMPSON

VENTURE
15 | HOW I GOT STARTED

Cheesecake Factory's winning formula.

INTERVIEW BY DINAH ENG

18 | DAVID VS. GOLIATH
Three nimble small businesses challenge the giants.
BY ELAINE POFELDT

TECH

19 | BRAINSTORM: THE FUTURE IS NOW
The voice of a new machine.
BY JESSICA SHAMBORA

20 | TECH@WORK
Social pioneer Ning switches its focus to paying customers.
BY MICHAL LEV-RAM

INVEST

21 | INVESTOR Q&A
Chris Davis makes the case for financial and energy stocks.
BY SCOTT CENDROWSKI

24 | INSIDE WALL STREET
A fund manager uses his skills to research autism.
BY SCOTT CENDROWSKI

Opinion
25 | The hocus-pocus behind Rep. Paul Ryan's proposed Medicare "reform."
BY ALLAN SLOAN

26 | Order from chaos: Why we shouldn't panic over the world's many crises.
BY MICHAEL ELLIOTT

28 | The biggest problem for developing economies: corruption.
BY GEOFF COLVIN

CORRECTIONS

April 11, 2011 Vol. 163 No. 5 / Fortune Asia

40 CHRIS WHITTLE'S PLAN TO MAKE A WORLD-CLASS PRIVATE SCHOOL
His Edison project got mixed grades. But Whittle's new for-profit venture aims
to revolutionize K--12 education.
BY DAVID A. KAPLAN

46 IT'S TIME TO BUY AGAIN
Forget stocks. Don't bet on gold. After four years of plunging home prices, the
most attractive asset class in America is housing.
BY SHAWN TULLY

54 GREEN FORUM
WHAT'S NEXT FOR NUCLEAR POWER?
The Fukushima disaster is raising antinuclear sentiment around the world. But
can society afford to live without this carbon-free energy source? Six experts
weigh in.

64 CAN JAMES GORMAN MAKE MORGAN STANLEY GREAT AGAIN?
He's been CEO of the storied but bruised investment bank for a year. Now all he
has to do is reduce risk and restore profits at the same time.
BY DUFF MCDONALD

72 | BING!

FIRST

14 | BY THE NUMBERS
Russia invests in American steel.
BY DANIEL ROBERTS

16 | CLOSER LOOK
Major League Baseball commissioner Bud Selig: Ready to play ball.
BY DAVID A. KAPLAN

17 | THE CHARTIST
GM's recycling boom.
BY DANIEL ROBERTS

18 | WORLD'S MOST ADMIRED COMPANIES
Oracle's bold moves.
BY SHERIDAN PRASSO

20 | BRAINSTORM
Fixing the mortgage mess.
BY JOHN STUMPF

VENTURE

23 | LEADERSHIP
Looking for new ways to manage your troops? Some tips from New York Philharmonic
conductor Alan Gilbert.
BY JESSICA SHAMBORA

26 | VERNE HARNISH
Five ways to get your strategy right.

TECH

27 | THE PROBLEM WITH MICROSOFT ...
No one questions CEO Steve Ballmer's drive or intentions窶巴ut is his devotion
to the company and its Windows business hurting its ability to innovate?
BY GARY RIVLIN

INVEST

33 | INVESTOR Q&A
John Calamos's quest for growth.
BY MINA KIMES

35 | ANATOMY OF A TRADE
Jerry Jordan is betting on a magical ride at Disney.
BY SCOTT MEDINTZ

36 | WEALTH ADVISER
Taxes: saving money at home.
BY PAUL SULLIVAN

37 | ANALYST FACE-OFF
Is drilling rig operator Diamond Offshore a buy?
BY ANNE VANDERMEY

Opinion

38 | How to tackle the problem of economic inequality without hurting the
recovery.
BY GEOFF COLVIN

39 | The Fed has the authority to curb unemployment. Here's why it shouldn't.
BY BECKY QUICK

CORRECTIONS: In "The Great Online-Radio Race" (March 21, 2011), we misidentified
two executives. Tim Westergren is chief strategy officer of Pandora and Bob
Pittman is chairman of media and entertainment platforms for Clear Channel.
Fortune regrets the errors.

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ON THE COVER

Photograph by Peter Adams窶濡etty Images

[IMAGES]

NINE PHOTOS

ILLUSTRATION

March 21, 2011 Vol. 163 No. 4 / Fortune Asia / The WORLD'S MOST ADMIRED Companies

29 THE FUTURE OF BOWLING? IT GLITTERS.
A Dallas businessman plans a chain of luxury tenpins clubs窶敗tarting with the
one at his house.
BY PETER ELKIND

32 SEARCHING FOR PROFITS IN PATAGONIA
Warren Adams has an idea for land preservation that actually makes money. Now
he just has to prove it.
BY BRIAN DUMAINE

THE WORLD'S MOST ADMIRED COMPANIES
After the tumult of the recession, our annual survey finds a new world order.
BY GEOFF COLVIN

44 IBM'S SUPER SECOND ACT
CEO Sam Palmisano has restored Big Blue's focus on innovation.
BY JESSI HEMPEL

52 THE NEXT OIL COLOSSUS
Brazil's Petrobras is on track to eclipse Exxon.
BY BRIAN O'KEEFE

61 THE LIST OF INDUSTRY STARS

70 THE BALLAD OF RICHARD JAY CORMAN
This Kentucky railroad baron isn't a household name. But his story is one of
extraordinary success, generosity, grit, and sadness.
BY CAROL J. LOOMIS

10 | EDITOR'S DESK

80 | BING!

FIRST

11 | BY THE NUMBERS
The coming boom in joint replacements.
BY TARA MOORE

12 | THE CHARTIST
The price of an airline ticket: Where the money goes.
BY ANNE VANDERMEY

14 | CLOSER LOOK
Pakistan's richest man speaks.

INTERVIEW BY ISMAT SARAH MANGLA

TECH

17 | FUTURE IS NOW
Motion-sensing technology brings a wave of innovation.
BY MICHAL LEV-RAM

18 | CARS + TECH
The great online-radio race.
BY STEVE KNOPPER

19 | TECH@WORK
Can Nokia and Microsoft win in the workplace?
BY MICHAL LEV-RAM

INVEST

21 | INTERVIEW
Oakmark International's David Herro: Going against the grain to find value
globally.
BY SCOTT CENDROWSKI

24 | ANATOMY OF A TRADE
Pepsi stock provides Rob McIver of the Jensen Fund with the steady performance
he craves.
BY SCOTT CENDROWSKI

25 | INSIDE WALL STREET
Are bigger stock exchanges better?
BY CHRIS REDMAN

Opinion

26 | Don't blame turmoil in the Middle East for the world's oil woes.
BY MICHAEL ELLIOTT

28 | Why a conservative and a liberal governor are singing the same tune.
BY ALLAN SLOAN

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ON THE COVER

Photograph by Jill Greenberg

[IMAGES]

NINE PHOTOS

February 28, 2011 Vol. 163 No. 3 / Fortune Asia

36 TED FORSTMANN'S BAD BET
Allegations of sports betting and more have cast a pall over the buyout king's
comeback. True or not, it doesn't look good.
BY WILLIAM D. COHAN

44 AMERICA'S HOTTEST EXPORT: WEAPONS
Arms sales to the Middle East are booming. The defense industry's surprising
partner in the race to arm the world? President Obama.
BY MINA KIMES

56 GRADING JEFF IMMELT
The GE chief executive has been at the helm for almost a decade. How has Obama's
jobs council czar done? Not so great by a number of measures.
BY GEOFF COLVIN

64 CONAN 2.0
How a late-night Luddite accidentally fought his way back into bedrooms (and
computers, smartphones, and tablets) across America.
BY DOUGLAS ALDEN WARSHAW

FIRST

7 | BY THE NUMBERS
'Tis the season for dog lovers.
BY DANIEL ROBERTS

8 | WASHINGTON WATCH
Google woos the Republicans.
BY TORY NEWMYER

10 | THE CHARTIST
The secretive process of FDIC receivership has all the makings of a heist flick.
BY DANIEL ROBERTS

11 | THE BRIEFING
The Mongolian tugrik, 2010's best-performing currency; Hollywood product
placement; and more.

12 | WORLD'S MOST ADMIRED COMPANIES
How Amazon made its debut in the top five of Fortune's Most Admired rankings.
BY SCOTT CENDROWSKI

VENTURE

15 | CREATING A CULT BRAND
The secret of the Van Winkle family's success in the bourbon business? Make prize-winning spirits and keep supply really low.
BY BRIAN DUMAINE

18 | DAVID VS. GOLIATH
Three small companies aim to upstage their larger rivals by giving consumers what
they really want.
BY JESSICA SHAMBORA

TECH

19 | TECH STAR
Home dﾃｩcor site One Kings Lane wants to be the Gilt Groupe of throw pillows and
footstools.
BY JESSICA SHAMBORA

22 | TECH TRANSFER
AeroVironment is applying its environmentally friendly research to military
drones.
BY DORON LEVIN

23 | WIRELESS WARS
How to switch to the Verizon iPhone.
BY JESSICA SHAMBORA

INVEST

25 | INVESTOR Q&A
Tom Marsico of Marsico Capital is betting on banks.
BY JON BIRGER

27 | ANATOMY OF A TRADE
Thomas Forester likes Marathon Oil.
BY SCOTT MEDINTZ

28 | WEALTH ADVISER
Now is a great time to grab a second-home bargain.
BY PAUL SULLIVAN

29 | ANALYST FACE-OFF
Is News Corp. worth buying?

INTERVIEWS BY SCOTT CENDROWSKI

72 | BING!

Opinion

30 | Banker Arthur Snyder's life was proof that you can do God's work while also
doing Mammon's.
BY ALLAN SLOAN

32 | We need a new concept of American greatness that relies more on political
ideals than GDP.
BY GEOFF COLVIN

34 | Excessive taxation is a big reason airlines have had so much trouble earning
healthy profits.
BY BECKY QUICK

35 | The largest private equity firms no longer return enough bang for the buck.
BY DAN PRIMACK

February 7, 2011 Vol. 163 No. 2 / Fortune Asia / THE 100 BEST COMPANIES TO WORK
FOR

51 "AN ACCIDENT WAITING TO HAPPEN"
A Fortune investigation into BP's Deepwater Horizon disaster reveals a saga of
hubris and ambition.
By PETER ELKIND and DAVID WHITFORD with DORIS BURKE

28 THE KING OF HOME EQUITY FRAUD
How a con artist manipulated lenders to siphon millions out of the accounts of
homeowners.
BY LUKE O'BRIEN

34 100 BEST COMPANIES TO WORK FOR: UNDERCOVER EMPLOYEE
A day on the job at three Best Companies.
By DAVID A. KAPLAN

43 THE 2011 BEST COMPANIES LIST
These highly rated companies hope to hire more than 150,000 people this year.
By MILTON MOSKOWITZ, ROBERT LEVERING, and CHRISTOPHER TKACZYK

FIRST

10 | BY THE NUMBERS
Is the Southwest all dried up?
BY ANNE VANDERMEY

12 | THE BRIEFING
The best (or worst?) perks of 2010, and more.

13 | THE CHARTIST
Fortune's top networker.
BY JESSICA SHAMBORA

14 | WORLD'S MOST ADMIRED COMPANIES
Nike, the sports juggernaut, dominates its industry.
BY SCOTT CENDROWSKI

16 | BRAINSTORM
A new American energy plan.
BY FREDERICK W. SMITH, CEO, FEDEX

TECH

17 | TECH STAR
Jack Dorsey, the creator of Twitter, has a new bold idea: make accepting a credit
card as easy as sending a tweet.
BY MICHAL LEV-RAM

INVEST

21 | INVESTOR Q&A
Richard Gao of the Matthews China Fund is betting on the consumer.
BY KATIE BENNER

23 | WEALTH ADVISER
Transfer great wealth to your heirs tax-free窶背hile you're still alive.
BY PAUL SULLIVAN

24 | ANALYST FACE-OFF
Netflix's stock has tripled in a year. Will it go higher?

INTERVIEWS BY SCOTT MEDINTZ

Opinion

25 | The government's rescue of GMAC has left its old shareholders with a
multibillion-dollar windfall.
BY ALLAN SLOAN

26 | History doesn't have to miserably repeat itself. This year, there's much
to look forward to.
BY MICHAEL ELLIOTT

27 | The commodities crunch is corporate America's dirty little secret.
Inflationary pressure is creeping in.
BY BECKY QUICK

8 | EDITOR'S DESK

72 | BING!

ON THE COVER: Photograph by Fredrik Broden.

[IMAGES]

ILLUSTRATION:ﾂCarl DeTorres

SIX PHOTOS

In this issue
January 17, 2011 Vol. 163 No. 1 / Fortune Asia

31 DIARY OF AN ELECTRIC COMMUTER
Living with Nissan's charming Leaf is a journey from range anxiety to energy
smugness to charging perplexity.
BY SUE CALLAWAY

34 ON HISTORY'S STAGE: CHIEF JUSTICE JOHN ROBERTS JR.
As the youngest leader of the high court in two centuries, he has the energy,
the intellect窶蚤nd the votes窶杯o reshape our world.
BY ROGER PARLOFF

50 WHAT THE HELL IS GOING ON WITH TV?
Google TV. Xbox. Apple TV. Roku. All these gadgets promise to make television
more like the web. There's just one problem: None of them are ready for primetime.
BY JESSI HEMPEL

58 P&G'S NEW MISSION: MAKE MONEY IN PLACES WHERE PEOPLE EARN $2 A DAY
As Western companies duke it out for a piece of the developing-markets pie,
Procter & Gamble is courting not just the newly rich but also the very poor.
BY JENNIFER REINGOLD

64 THE NORTH CAROLINA POWER GRAB
The battle between a rural county and giant Alcoa over rights to the company's
dams.
BY KEN OTTERBOURG

7 | EDITOR'S DESK

72 | BING!

FIRST

8 | BY THE NUMBERS
When crime pays.
BY JESSICA SHAMBORA

10 | WASHINGTON WATCH
The big political player you've never heard of.
BY TORY NEWMYER

12 | THE BRIEFING
The great light bulb war, our communist founding fathers, and more.

14 | THE CHARTIST
Where the BCS bowl money goes.
BY DANIEL ROBERTS

TECH

15 | BRAINSTORM
Sun spots: Solar power across the nation.
BY SHELLEY DUBOIS

16 | TECH@WORK
Intel's sunny vision for the cloud.
BY MICHAL LEV-RAM

18 | MOBILITY
Phil Falcone hedges his mobile bet.
BY SCOTT WOOLLEY

INVEST

19 | HOW A BRIDGE CHAMP BEATS THE MARKET
Brad Moss uses his gaming skills to make his hedge fund prosper.
BY ADAM LASHINSKY

21 | ANALYST FACE-OFF
Mexican food chain Chipotle's stock is hot. Can it keep sizzling?

INTERVIEWS BY SCOTT CENDROWSKI

VENTURE

23 | GOLDMAN'S GIFT
In late 2009, the pilloried bank launched a half-billion-dollar program to help
entrepreneurs in distressed communities. Was it real?
BY RICHARD MCGILL MURPHY

26 | VERNE HARNISH
Five business myths to ditch now.

27 | HOW I GOT STARTED
Fred Carl Jr., the creative spark behind the Viking oven.

INTERVIEW BY DINAH ENG

Opinion

28 | Next time a slick salesman like Bush or Obama tells you how much he'll save
you in taxes, be skeptical.
BY ALLAN SLOAN

29 | Risk taking got us into this mess. But unless we embrace risk taking again,
we face a darker prospect.
BY NINA EASTON

30 | David Stockman is back and criticizing tax cutters. Why should we listen
to a man with his track record?
BY DAN PRIMACK

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ON THE COVER

Photograph by Benjamin Lowy

[IMAGES]

TEN PHOTOS

TWO ILLUSTRATIONS

December 27, 2010 Vol. 162 No. 10 /
Fortune Asia / SPECIAL ISSUE / INVESTOR'S GUIDE 2011

INVESTOR'S GUIDE 2011

10 BEST STOCKS FOR 2011 30 Investor fear has made for some surprising bargains.
By Jon Birger

STRATEGY SESSION 42 Five top money managers offer advice on where to invest.

Interview by Geoff Colvin

GOLD FEVER 50 Everybody's catching it. A dispatch from the zone of contagion.
By Paul Keegan

THE MEGAMIND OF MIAMI 62 Meet the star founder of the $18 billion Fairholme Fund.
By Scott Cendrowski

THE DANGER IN BONDS 72 With bonds moving into bubble territory, here's how to
adjust your strategy.
By Shawn Tully

STOCKS FOR A CLEAN PLANET 85 After the downturn, it might be a great time to buy
green shares.
By Brian Dumaine

12 | EDITOR'S DESK

88 | BING!

FIRST

13 BY THE NUMBERS THE BIG BOARD IN 1962.
By Anne Vandermey

14 CLOSER LOOK THE DEATH TAX SPRINGS BACK TO LIFE.
By Michael V. Copeland

18 THE BRIEFING GARY WINNICK REBUILDS, CURE FOR A STRESSED NATION, AND MORE.

TECH

21 VIDEOGAMING'S ONLINE EXPLOSION ACTIVISION BLIZZARD'S INTERNET VENTURE.
By Stephanie N. Mehta

OPINION

28 A MODEL DIVIDEND POLICY THE FEDS AND BIG BANKS SHOULD PAY ATTENTION.
By Allan Sloan

CORRECTION

In "Sing Happy Birthday, Pay Up" (First, Nov. 15), we wrote that Justin Bieber
was paid for an American Cancer Society ad. He volunteered his time.

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ON THE COVER: Photograph by TOM SCHIERLITZ

December 6, 2010 Vol. 162 No. 9 / Fortune Asia / The 2010 BUSINESS PERSON of the
YEAR

46 BRAND-NEW GUMSHOE
Jules Kroll invented the modern corporate investigations industry. Now his son
Jeremy wants to bring it into the 21st century.
BY DUFF MCDONALD

50 BUSINESSPERSON OF THE YEAR
REED HASTINGS: LEADER OF THE PACK
The secret to the Netflix CEO's success? He never stops looking over his shoulder
BY MICHAEL V. COPELAND

60 THE LIST: 2010'S TOP PEOPLE IN BUSINESS
What does it take to be at the top in business in these times? The ability to
create opportunities out of turmoil.
BY PETER NEWCOMB

76 CHANOS VS. CHINA
The influential short-seller is betting that China's economy is about to implode
in a spectacular real estate bust. A lot of people are hoping that Chanos is wrong.
BY BILL POWELL

12 | EDITOR'S DESK

14 | LETTERS

86 | BING!

FIRST

15 | BY THE NUMBERS
Holiday hope?
BY DANIEL ROBERTS

16 | CLOSER LOOK
Narco-terror and U.S. business.
BY SCOTT CENDROWSKI

18 | THE CHARTIST
All about gift cards.
BY JESSICA SHAMBORA

20 | BRAINSTORM
How seven executives, from Jeff Immelt to Ursula Burns to Chad Holliday, hope
to work with the feds to create a green economy.
BY BRIAN DUMAINE

22 | EDUCATION
School reform: One size can't teach all.
BY DAVID A. KAPLAN

25 | PURSUITS
Fortune's 2010 gift guide: What the bosses are giving.
BY KATE FLAIM

TECH

31 | THE FUTURE IS NOW
Building a better golf club.
BY JESSICA SHAMBORA

32 | TECH STAR
Frog Design's Jan Chipchase: Technology's roving R&D man.
BY JESSI HEMPEL

34 | VALLEY TALK
Kleiner Perkins gets its digital groove back on.
BY ADAM LASHINSKY

INVEST

39 | SHOPPING FOR TECH
Big companies have started spending money on information technology again. Who
will be the big winners in the new replacement cycle?
BY JOHN CURRAN

42 | ANATOMY OF A TRADE
David Winters is still sweet on Nestlﾃｩ's stock.
BY SCOTT MEDINTZ

Opinion

44 | Is the bipartisan debt-reduction commission for real? Here are four easy
ways to find out.
BY GEOFF COLVIN

45 | The U.S. isn't falling behind. The rest of the world is just catching up.
Get over it.
BY MICHAEL ELLIOTT

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ON THE COVER

Photograph by Gregg Segal

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SEVEN PHOTOS

TWO ILLUSTRATIONS

November 15, 2010 Vol. 162 No. 8 / Fortune Asia

88 BOOK EXCERPT
COUNTRYWIDE: HOW THE ROOF FELL IN
CEO Angelo Mozilo saw a subprime mortgage crisis coming窶破ust not for his own
company. From the new book All the Devils Are Here.
BY BETHANY MCLEAN AND JOE NOCERA

94 THE DREAM PHONE
The soon-to-be-unveiled Verizon iPhone is the answer to many consumers' prayers.
But a deal with Apple will test the company that Ivan Seidenberg has spent his
career building.
BY SARAH ELLISON

103 WHERE ARE THEY NOW?
They once made headlines. Now they thrive behind the scenes. Fortune catches up
with business leaders who shook things up, from "Chainsaw Al" to "Unruly Julie."

114 THE PATRIOT
Robert Kraft has turned the New England Patriots into a football juggernaut. Now
all he has to do is save the NFL.
BY WILLIAM D. COHAN

FIRST

8 | BY THE NUMBERS
Container city.
BY BETH KOWITT

12 | CLOSER LOOK
Where Michael Dell is winning.
BY KATIE BENNER

15 | THE BRIEFING
Bambi vs. the American motorist, a kinder, gentler Goldman, and more.

16 | THE CHARTIST
Annals of toilet tissue: When less is ... less?
BY BETH KOWITT

18 | BRAINSTORM
Electricity storage窶把an it work?
BY BRIAN DUMAINE

20 | EDUCATION
How the documentary Waiting for "Superman" misses.
BY DAVID A. KAPLAN

25 | PURSUITS
The best new business hotels.
BY DIANE TEGMEYER AND SARA HENRICHS

TECH

29 | VISIONARIES
Developer and two-time space tourist Charles Simonyi has a far-out plan to change
the way software is made.
BY ADAM LASHINSKY

32 | PERSONAL TECH
A gizmo maker's logical move upmarket.
BY MICHAEL V. COPELAND

INVEST

35 | IS GOLDMAN A DINOSAUR?
Goldman Sachs claims it can still deliver big returns. But new post-crisis rules
mean it can't operate the way it used to. The surprise: There may be hope for
investors.
BY SHAWN TULLY

VENTURE

42 | BIOTECH PIONEERS
How two unlikely partners plan to unleash China's young pharma industry.
BY BILL POWELL

Opinion

47 | Want to get away with murder? Become a bank. If a bank screws up bigtime,
all it gets is a do-over.
BY ALLAN SLOAN

50 | It's the ultimate economic experiment: Europe's cutting vs. America's
spending. Who's right?
BY GEOFF COLVIN

6 | LETTERS

122 | BING!

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ON THE COVER

Photo illustration by Matt Mahurin

November 1, 2010 Vol. 162 No. 7 / Fortune Asia / 40 Under 40

42 WHY CAN'T WASHINGTON MAGICALLY FIX THE ECONOMY?
The nation has suffered a financial trauma, and it will take years to get healthy
again. Policymakers just won't admit it in public.
BY ALLAN SLOAN AND TORY NEWMYER

52 40 UNDER 40

40 UNDER 40 PORTFOLIO
The networkers, the merchant, the economist, the trader窶杯hese are stars who have
achieved a remarkable amount at a very early age.
PHOTOGRAPHS BY JEFF MINTON

61 THE LIST
Our annual list of the most influential young people in business. Get ready to
feel old.
PLUS: Wall Street's young guns.

70 CHINA CHARGES INTO ELECTRIC CARS
Faced with scarce oil supplies and polluted cities, Beijing has ordered its
booming auto industry to make a great leap forward in technology.
BY BRIAN DUMAINE

10 | LETTERS

78 | BING!

FIRST

13 | BY THE NUMBERS
The migrant economy.
BY JESSICA SHAMBORA

14 | CLOSER LOOK
Catching up with Jamie Dimon.
BY DUFF MCDONALD

16 | THE POWER OF WOMEN
Fortune's annual Most Powerful Women Summit, this year in Washington, D.C.

18 | THE BRIEFING
Mﾃｶtley Crﾃｼe, courtesy of BP; GM staffs up; and more.

20 | EDUCATION
Death to the SAT!!!
BY DAVID A. KAPLAN

23 | PURSUITS
Skiing goes digital.
BY SCOTT CENDROWSKI

TECH

25 | VISIONARIES
BigChampagne's Eric Garland thinks he has a better music chart.
BY STEVE KNOPPER

28 | TECH@WORK
Cisco's online video gamble.
BY JON FORTT

29 | TECH STAR
Frank Quattrone is back with a new firm and big deals.
BY MINA KIMES

INVEST

31 | HOW TO PLAY THE TAKEOVER GAME
Companies are buying again, creating opportunity for investors who can sniff out
the next targets.
BY SCOTT CENDROWSKI

34 | ANATOMY OF A TRADE
Why Bill Fries is buying Canon's stock.
BY MINA KIMES

Opinion

36 | In business, regulatory uncertainty means that leaders are afraid to act.
BY GEOFF COLVIN

38 | Can the Chinese government really mandate creativity and innovation?
BY MICHAEL ELLIOTT

+

39 | FALLEN ANGELS
Fortune 500 Series: Lessons from three companies that dropped off the Fortune
500.
BY MARC GUNTHER

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ON THE COVER

Photograph by Jeff Minton

[IMAGES]

EIGHT PHOTOS

TWO ILLUSTRATIONS

October 18, 2010 Vol. 162 No. 6 / Fortune Asia / the 50 MOST POWERFUL WOMEN issue

A power shift toward the board is leaving a leadership vacuum at many publicly traded companies. Here, a new governance model.
BY RAM CHARAN AND GEOFF COLVIN

61 TURKISH TAFFY RETURNS
Just in time for the baby boomers' second childhood, the Bonomo candy bar is back on store shelves.
BY SCOTT CENDROWSKI

66 50 MOST POWERFUL WOMEN
OPRAH'S NEXT ACT
The queen of all media is risking everything to launch a TV network. Will Oprah's biggest gamble pay off?
BY PATRICIA SELLERS

74 THE 2010 LIST
BY JESSICA SHAMBORA AND BETH KOWITT

PLUS: The highest-paid women in business, and the most powerful women in Washington.

80 FACEBOOK'S FRIEND IN RUSSIA

DST's Yuri Milner makes big bets on social networking companies and brings new clout窶蚤long with a mysterious oligarch backer窶杯o Silicon Valley.
BY JESSI HEMPEL

10 | LETTERS

92 | BING!

FIRST

12 | BY THE NUMBERS
Digging for jobs.
BY SCOTT CENDROWSKI

16 | CLOSER LOOK
VW's grand plan.
BY ALEX TAYLOR III

18 | ENTERPRISE
China's best new cities for business.
BY SCOTT OLSTER

21 | THE BRIEFING
From B-school to begging, how to smell like an ironman, and more.

22 | THE CHARTIST
Louisville flies high.
BY ALEX KONRAD

24 | EDUCATION
Climate science under attack.

DAVID A. KAPLAN

TECH

26 | THE FUTURE IS NOW
The science behind Gorilla Glass, used for damage-resistant displays.

29 | TECH STAR
When Pacific Biosciences CEO Hugh Martin learned he had cancer, he did the unimaginable. He revealed everything.
BY MICHAEL V. COPELAND

INVEST

37 | THE $6 TRILLION OPPORTUNITY
The emerging-markets infrastructure boom is just getting started. Here's how to play it.
BY MINA KIMES

41 | ANALYST FACE-OFF
Shares of Gap have slumped by 14% over the past year. Can they recover?

INTERVIEWS BY SCOTT CENDROWSKI

Opinion

43 | Will prosperous pensioners be the target of the next populist storm?
BY NINA EASTON

44 | Politics! Infighting! Gridlock! Welcome to the newly democratic corporate boardroom.
BY BECKY QUICK

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ON THE COVER

Photograph by Brigitte Lacombe

[IMAGES]

SEVEN PHOTOS

TWO ILLUSTRATIONS

PHOTO ILLUSTRATION

September 27, 2010 Vol. 162 No. 5 / Fortune Asia

42 MEET THE CEO OF THE BIGGEST COMPANY ON EARTH
Wal-Mart's Mike Duke. Will his colossal company be the first to hit $500 billion
in sales?
BY BRIAN O'KEEFE

53 THE FATAL DEAL
Six men died in a power plant explosion. How did three partners with limited
experience land the project窶蚤nd get financing from Goldman Sachs? A tangled tale
of politics and power.
BY KATIE BENNER

60 THE BUSINESS OF STYLE
RETAIL'S NEXT BILLION-DOLLAR MAN
How designer Michael Kors has nailed the retail formula for the times.
BY SHERIDAN PRASSO

66 THE EVOLUTION OF CHEAP CHIC
More than 100 brands have gotten in on the high-low game, offering stylish design
at affordable prices. This year new launches have dipped. Bad economy? Or trend
fatigue?
BY JP MANGALINDAN

68 THE NEW LUXURY
The recession hasn't killed the good life entirely. Meet the iconoclasts who are
redefining the meaning of luxury. A Fortune photo essay.

PHOTOGRAPHS BY BEN BAKER

TEXT BY JESSICA SHAMBORA

78 VERNON HILL IS THE BEST DAMN BANKER ALIVE (JUST ASK HIM)
The impresario who upended retail banking in the U.S. is taking his show to London.
BY SHAWN TULLY

84 | BING!

FIRST

9 | BY THE NUMBERS
Gadget gluttony.
BY KATIE BENNER

10 | CLOSER LOOK
The collective wisdom of online fashion gamers.
BY JESSICA SHAMBORA

14 | EDUCATION
New rules imperil for-profit colleges.
BY DAVID A. KAPLAN

14 | THE BRIEFING

When good bosses go bad, Wall Street vs. Facebook, and more.

TECH

17 | VISIONARIES
Genevieve Bell, Intel's cultural anthropologist, helps the chipmaker analyze a
complex system: humanity.
BY MICHAEL V. COPELAND

INVEST

21 | SHOULD YOU BUY APPLE STOCK?
An epic string of hits, a soaring share price, and analysts' predictions of a
continued rise. What could possibly go wrong?
BY SCOTT CENDROWSKI

Opinion

26 | Making mortgage payments on loans underwater? You need a break.
BY ALLAN SLOAN

28 | Predictions of the economic demise of Europe.
BY MICHAEL ELLIOTT

29 | On the deficit: Fiscal hawks and doves need to make peace.
BY BECKY QUICK

30 | C-SUITE STRATEGIES
Ernst & Young CEO Jim Turley talks about regulatory reform, tax policy, and more.

INTERVIEW BY GEOFF COLVIN

37 | 3M'S INNOVATION REVIVAL
How the company got its mojo back. A Fortune 500 Series feature.
BY MARC GUNTHER

+ FORTUNE.COM

Everything we know, the minute we know it.

CORRECTIONS: On our list of the 100 Fastest-Growing Companies (Sept. 6), revenue
for International Assets Holding (No. 19) should have been $34.7 billion. In "Dick
Fuld in Exile" (Sept. 6), we incorrectly stated that Clare Baldwin of Reuters
trespassed on Mr. Fuld's property. Fortune regrets the errors.

ON THE COVER Photograph by Peter Yang

September 6, 2010 Vol. 162 No. 4 / Fortune Asia

38 INSIDE TRADER JOE'S
America's hottest retailer is also notoriously hush-hush. Fortune uncovers the
secrets of its success.
BY BETH KOWITT

46 WHY J&J'S HEADACHE WON'T GO AWAY
Once praised for setting the standard in crisis management, the health care giant
is reeling from a stream of recalls. An inquiry into what went wrong窶蚤nd why
it isn't getting better.
BY MINA KIMES

60 FORTUNE'S 100 FASTEST-GROWING COMPANIES RISING STARS
They may not be the next Starbucks, but here are three companies with a bright
future.
BY RICHARD MCGILL MURPHY

67 THE 2010 LIST OF RAPID GROWERS
Our collection of rising phenoms reveals who窶蚤nd what窶琶s succeeding even in a
stagnant economy.

76 DICK FULD IN EXILE
Already lampooned and vilified, the former Lehman Brothers CEO now faces
investigation and maybe a cash crunch. No wonder he's working so hard.
BY WILLIAM D. COHAN

8 | EDITOR'S DESK

84 | BING!

FIRST

9 | BY THE NUMBERS
The Empire State Building gets a green makeover.
BY SCOTT CENDROWSKI

10 | THE CHARTIST
Building a faster, cheaper startup: The growing power of technology and social
media has made starting a business easier than ever.
BY JESSI HEMPEL AND BETSY FELDMAN

12 | WASHINGTON WATCH
Meet the pro-business Democrats, who have run afoul of their party's liberal wing.
That's a good thing for Nancy Pelosi.
BY TORY NEWMYER

14 | THE BRIEFING
The official Lost memorabilia auction, the highs and lows of hemp, and more.

TECH

17 | BRAINSTORM TECH 2010
For the executives and entrepreneurs at Fortune's annual technology summit窶罵ike
Xerox CEO Ursula Burns (above)窶杯he forecast calls for growth.

19 | VISIONARIES
Always ahead of his time, Flipboard's Mike McCue builds products that make tech
easier, whether consumers are ready for them or not.
BY MICHAEL V. COPELAND

INVEST

23 | FINDING TODAY'S INVESTING BUBBLES
Even after multiple crashes, investors still tend to pile into overheated sectors.
Where are the biggest risks today?
BY STEPHEN GANDEL

Opinion

26 | One hundred thousand transistors cost less than a grain of rice. Here's why
that matters.
BY GEOFF COLVIN

28 | Guess who's embracing a carbon tax? The answer (hint: think red, not green)
may surprise you.
BY NINA EASTON

31 | BILL GATES' FAVORITE TEACHER
The homemade tutorials of the one-man Khan Academy are sparking a revolution.
BY DAVID A. KAPLAN

34 | CHRYSLER'S SPEED MERCHANT
CEO Sergio Marchionne is racing to fill a dry product pipeline.
BY ALEX TAYLOR III

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Everything we know, the minute we know it.

ON THE COVER

Photograph by Stefano De Luigi窶之II Network

[IMAGES]
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In this issue
August 16, 2010 Vol. 162 No. 3 / Fortune Asia

42 GOOGLE: THE SEARCH PARTY IS OVER
The company is still growing at rates others would kill for. But its core business
is slowing, and its stock is down. Can Google find its footing in this brave new
world?
BY MICHAEL V. COPELAND, WITH SETH WEINTRAUB

50 CAREERS
BUILDING YOUR BRAND (AND KEEPING YOUR JOB)
In a shaky economy, personal branding is supposed to build a measure of employment
security. It can窶巴ut there's a right way to do it.
BY JOSH HYATT

56 BUFFETT'S MR. FIX-IT
When a Berkshire Hathaway business needs help, it's often David Sokol who gets
the call. His latest assignment: NetJets.
BY BRIAN DUMAINE

64 THE NEW FORCE ON WALL STREET
Upstart investment banks are taking business and bankers from battered larger
competitors. The hottest boutique, Evercore, is grabbing a growing share of the
biggest deals.
BY SHAWN TULLY

68 FORTUNE 500 SERIES
THE MAKING OF A FUTURE 500 COMPANY
Smucker's secret ingredient for growth? Keeping the business in the family.
BY MARC GUNTHER

72 | BING!
FIRST

5 | BY THE NUMBERS
Logging for dollars in Madagascar.
BY MELANIE LINDNER

6 | CLOSER LOOK
The secondary market in private equity is on fire, thanks to Antoine Drﾃｩan's
Triago.
BY SHAWN TULLY

8 | THE CHARTIST
Hurricane season is here, and Home Depot is primed and ready.
BY BETSY FELDMAN

10 | 100 BEST COMPANIES
American Express focuses on making life better for its employees窶蚤nd that in
turn means happier customers.
BY CHRISTOPHER TKACZYK

14 | WORLD'S MOST ADMIRED COMPANIES
One of the banking industry's rare success stories, Northern Trust is a banker
to the wealthy.
BY SCOTT CENDROWSKI

TECH

17 | THE FUTURE IS NOW
California startup BAT helps marketers connect with sports talent and then
digitally place their images into ads.
BY PAUL KEEGAN

18 | HAS INTEL FINALLY MET ITS MATCH?
Nvidia CEO Jen-Hsun Huang thinks Intel is a bully. And he's going to court to
prove it.
BY ROGER PARLOFF

INVEST

20 | THE RETURN OF THE IPO
After a two-year freeze, there's been a resurgence in initial public offerings.
Should investors be celebrating?
BY TIM GRAY

22 | FACE-OFF
Berkshire Hathaway shares have risen 20% in 2010. Two analysts argue about whether
they can keep chugging along.
INTERVIEW BY SCOTT CENDROWSKI

22 | BOTTOM FEEDER
Office Depot's shares have dropped 89% since early 2007, but now hedge fund stars
Steve Cohen and Lee Ainslie and others are buying in.
BY SCOTT CENDROWSKI

27 | THE NEXT JETBLUE
Former JetBlue CEO David Neeleman's new airline in Brazil.
BY PATRICIA SELLERS

32 | C-SUITE
CEO Randall Stephenson on AT&T's big bet on mobile窶蚤nd more.
BY GEOFF COLVIN

40 | VISIONARIES
Philanthropist Carol Goss won't give up on Detroit's schools.
BY STEVEN GRAY

Opinion

23 | How KKR lives the tax dream that you can only ... well, dream of.
BY ALLAN SLOAN

24 | The U.S. isn't alone: High unemployment rates are the new global reality.
BY MICHAEL ELLIOTT

26 | The Dodd-Frank bill: Is it true financial reform or regulatory "kick the
can"?
BY BECKY QUICK

CORRECTIONS: In "Safe or Sorry" (First, July 26), Highline Data provided Fortune
with the incorrect figure for the total amount of direct premiums written by U.S.
insurance companies for commercial property in 2009. The figure is $76 billion,
not $475 billion. In "The 10 Smartest People in Tech" (July 26), we incorrectly
stated that Mary Meeker is 52 years old. She is 50. Also, in "Why You Need a Career
Curator" (July 5), we misspelled the name of Mary Ellen Slayter, senior editor
at SmartBrief. Fortune regrets the errors.

+ FORTUNE.COM

Everything we know, the minute we know it.

ON THE COVER

Illustration by Joe Zeff Design

[IMAGES]

TWELVE PHOTOS

ILLUSTRATION

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July 26, 2010 Vol. 162 No. 2 / Fortune Asia / Global 500 / THE WORLD'S LARGEST
CORPORATIONS

68 DANGEROUS LIAISONS AT IBM
How a star executive's love affair ensnared him in the biggest hedge fund
insider-trading ring ever.
BY JAMES BANDLER, WITH DORIS BURKE

80 BRAINSTORM TECH
TEN SMARTEST PEOPLE IN TECH
What constitutes tech savvy today? Intellect, ambition, and the ability to see
around corners. Some of our choices may surprise you.
BY JESSI HEMPEL AND BETH KOWITT

98 FORTUNE GLOBAL 500
THE WORLD'S NEW ECONOMIC LANDSCAPE
This year's companies know how to do business anytime, anywhere, with any
customer.
BY MARC GUNTHER

106 HOW TOYOTA LOST ITS WAY
Conquering the auto market, the company didn't globalize. It colonized. No wonder
it couldn't hear cries of alarm.
BY ALEX TAYLOR III

THE LIST

F--1 The World's Largest Corporations

F--11 Arrivals and Departures

F--12 Notes

F--13 Company Performance

F--15 Ranked Within Countries

F--21 Index

140 | BING!

FIRST

18 | BY THE NUMBERS
Safe or sorry?
BY BETH KOWITT

22 | CLOSER LOOK
Media vs. Chevron: Bring it on.
BY ALEX KONRAD

24 | THE CHARTIST
When allergies attack.
BY MELANIE LINDNER

26 | 40 UNDER 40
Omar Hamoui's startup sparked a bidding war between Google and Apple.
BY JESSI HEMPEL

28 | WORLD'S MOST ADMIRED COMPANIES
SABMiller, the second-largest brewer.
BY SCOTT CENDROWSKI

30 | THE BRIEFING
Sizing up Meg vs. Carly, a stock-car stock fund hits the wall, a summer greed
read, and more.

32 | PURSUITS
The new power watches.
BY SUE CALLAWAY

INVEST

34 | INTERVIEW
Billionaire investor T. Boone Pickens talks about the impact of the BP spill and
the buying opportunity he sees in oil shares.
BY KATIE BENNER

36 | ANATOMY OF A TRADE
Bill Nygren votes for the Comcast deal.
BY TIM GRAY

Opinion
40 | Why free trade matters: Breaking down barriers equals more U.S. manufacturing
jobs.
BY NINA EASTON
42 | Don't believe the populist hype. The government bailouts were the right thing
to do.
BY BECKY QUICK

CORRECTION: In "The Top Picks From 25 Great Investors" (June 14), we incorrectly
stated that Nektar Technologies sells specially modified drugs; in fact, Nektar
partners with other companies, which then sell the Nektar-modified drugs. And
in "Shelling Out for Coconut Water" (The Briefing, June 14), we presented market
share numbers for the coconut water industry as fact. They were, however,
estimates by an industry expert. Fortune regrets the errors.

FORTUNE.COM

Everything we know, the minute we know it.

ON THE COVER

Illustration by Alex Varanese

[IMAGES]

SEVEN PHOTOS

ILLUSTRATION

PHOTO ILLUSTRATION