This book has been optimized for viewing at a monitor setting of 1024 x 768 pixels. All the Money in the World Contributors Paul Berger Anna Isgro Gwen Kinkead Alex Ulam All the Money in the World 400 How the Forbes Make–and Spend– Their Fortunes E D I T E D B Y Peter W. Bernstein A N D Annalyn Swan Alfred A.Knopf New York 2007 this is a borzoi book published by alfred a. knopf Copyright © 2007 by ASAP Media,LLC All rights reserved.Published in the United States by Alfred A.Knopf, a division ofRandom House,Inc.,New York,and in Canada by Random House ofCanada Limited,Toronto. www.aaknopf.com Knopf,Borzoi Books,and the colophon are registered trademarks ofRandom House,Inc. Forbes 400 is a trademark ofForbes LLC. Image ofSam Walton (p.17):AP Photo/Danny Johnston; image ofWarren Buffett (p.17):AP Photo/Seth Wenig,File. Library ofCongress Cataloging-in-Publication Data All the money in the world :how the Forbes 400 make—and spend— their fortunes / edited by Peter W.Bernstein and Annalyn Swan. p. cm.—(A Borzoi book) Includes bibliographical references and index. eISBN: 978-0-307-26770-2 1. Rich people—United States. 2. Millionaires—United States. 3. Wealth—United States. I. Bernstein,Peter W. II. Swan,Annalyn. III. Forbes Inc. HC110.W4A436 2007 305.5′2340973—dc22 2007015676 v1.0 Contents Acknowledgments vii Introduction 3 Part One: What It Takes 1. Education,Intelligence,Drive 23 2. Risk 46 3. Luck—and Timing 68 4. Winning Is Everything 87 Part Two: Making It 5. Blue-collar Billionaires 109 6. West Coast Money 131 7. Entertainment and Media 156 8. Beyond Wall Street 176 Part Three: Spending It 9. Conspicuous Consumption 205 10. Heirs 230 11. Family Feuds 252 12. Giving It Away 276 13. Power and Politics 306 Afterword:Money and Happiness 327 Appendix: The Forbes 400,1982–2006 331 Notes 361 Index 397 Acknowledgments For the past twenty-five years, Forbes magazine has compiled its now leg- endary list ofthe four hundred wealthiest Americans and considered the state of the nation’s vast fortunes.Its issues on the subject have been rich in facts and figures,on who’s up and who’s down,on whether Bill Gates (or Donald Trump) has a billion more or less.But the list is perforce numbers-driven;the issues focus less on the character of the people and the peculiar world they inhabit.What makes the Forbes 400 members tick? Who gets to the top—and why? How different are they from more average Americans? Are they happy? What lessons about money and life can we glean from them? In All the Money in the World: How the Forbes 400 Make—and Spend— Their Fortunes,we set out to answer these questions and to create a collective profile of America’s superrich over twenty-five years. While this book was created in collaboration with Forbes, much of the information comes from our own interviews,original research,and never-before-compiled data. When we first approached Tim Forbes, the company’s chief operating officer,with the idea for the book,he enthusiastically endorsed it.Through- out the research and writing, many at the magazine eased our way, sharing insights, opening archives and files, providing phone numbers and e-mail addresses, and helping in every way possible. Pete Newcomb, the longtime editor of the Forbes 400 list, was an inexhaustible source of information about members of the 400, as was his successor, Matthew Miller. James Michaels,the first editor ofthe Forbes 400,shared with us information,anec- dotes, and insights from the early years.Additionally, Mitchell Rand, direc- tor of information technology, provided original and insightful analysis of Forbes 400 data over the last twenty-five years,while Barbara Strauch,direc- tor ofForbes’s book division,reviewed the data and manuscript and compiled the definitive list of all Forbes 400 members. Their efforts are immediately evident in the many charts,graphs,and tables throughout the book,to which designer Nigel Holmes has brought his distinctive flair. At the heart ofAll the Money in the Worldare the voices ofthe Forbes 400 members themselves,as well as those oftheir families.Many gave us extensive viii Acknowledgments interviews. (A few requested anonymity; we honored their wishes.) Others responded—sometimes at length—to a questionnaire we sent. Still others maintained an e-mail correspondence with us.We are most grateful to them for their time and insights into every aspect of Forbes 400 careers, philan- thropic causes, and much more: Sheldon Adelson, John E. Anderson, Leon Black,Timothy Blixseth,Michael Bloomberg,Eli Broad,Peter Buffett,Susie Buffett,S.Truett Cathy,Jim Clark,Mark Cuban,David Duffield,Red Emmer- son,Ken Fisher,Ted Forstmann,Daniel Gilbert,David Gold,Stanley S.Hub- bard, J. B. Hunt, Jon Huntsman Jr., Michael Huffington, Wayne Huizenga, David Kaplan,Vinod Khosla, Charles Koch, David Koch, Jerome Kohlberg, Herbert Kohler Jr.,Bruce Kovner,Ronald Lauder,John Malone,Ross Perot, Ross Perot Jr.,T.Boone Pickens,Marc Rich,Julian Robertson,Arthur Rock, Wilbur L. Ross, Richard Mellon Scaife, Charles Schwab, Steve Schwarzman, Charles Simonyi,Ram Shriram,Robert F.X.Sillerman,John Sobrato,James Tisch,Donald Trump,Ivanka Trump,Mortimer Zuckerman. This book has also benefited greatly from the wisdom of many writers, professors,and analysts who have thought and written about wealth.Each is credited in the Notes section, at the top of the chapters in which they are quoted. We owe a number of them special thanks: the writers Nelson W. Aldrich Jr., Ken Auletta of The New Yorker, Dr. Paul Babiak (industrial psy- chologist and author),Ron Chernow,Richard Conniff,Edward Jay Epstein, David A. Kaplan of Newsweek, Dr. Michael Maccoby (psychoanalyst and author), Washington Post business columnist Steven Pearlstein, Matthew Symonds of The Economist,and Thayer Cheatham Willis.A number of pro- fessors gave generously of their time and insights: Raphael Amit (Wharton School,University of Pennsylvania),Joseph Astrachan (Kennesaw State Uni- versity),John C.Coffee (Columbia University Law School),Pablo Eisenberg (Public Policy Institute,Georgetown University),K.Anders Ericsson (Florida State University), Charles Geisst (Manhattan College), Alexander Horni- man (Darden School ofBusiness,University ofVirginia),Christopher Jencks (HarvardUniversity),StevenKaplan(UniversityofChicagoBusinessSchool), Andrew Keyt (Chicago Family Business Center, Loyola University), Josh Lerner(HarvardBusinessSchool),AnthonyMayo(director,LeadershipInsti- tute, Harvard Business School), Eli Noam (Columbia University Business School),Peter Singer (Princeton University),David A.Skeel Jr.(University of Pennsylvania), George Smith (Stern School of Business, New York Univer- sity),James Allen Smith (Georgetown University),Roy C.Smith (New York University), Robert J. Sternberg (dean of the School of Arts and Sciences,