tv Bloomberg Pursuits Bloomberg May 25, 2014 6:00am-7:01am EDT
>> pursuits. for some, they're more than hobbies, they're passions cultivated over a lifetime. >> we're trying to tackle the problems for what's going on in the oceans. >> meet the financial elite who don't just own luxury, they mastered it. >> the picasso market, it's outpaced the stock market. >> it is as blue chip as any stock could possibly be. >> get an inside look at how they bring the vigor of their day jobs to the creation of their dream life. >> i can take your greatest ferrari and turn it into something else that some people may like more.
[captioning made possible by bloomberg television] >> money manager a top of the line ferrari is a car begging for an upgrade. he ripped apart and reconstructed two ferraris, and e races one at the 24 hour ring, one of the most dangerous racing structures in the world. i'm in his garage in new york to see his impressive collection, ride shot gun and find out what fuels his outside passion for urning rubber. >> wow.
>> now, did you feel the car there? >> yeah. >> what that is is traction and control. >> almost like you're flying. this 650 horsepower machine exists nowhere else in the world. jim custom designed the car sing series of the 1960's as inspiration. two years later he built this second version just for competitive racing. >> ferraris, to me, were always the most beautiful, fastest ars. >> love it! >> getting a lot of looks in this car. >> well, i'm sure there's at least four shots on the internet already. >> today, we're driving the original custom ferrari which is still blindingly fast. 0-60 no 3 tes from
seconds. you get this car out on the highway and get a really slow driver in front of you. does it drive you crazy? what's it like driving such a great car on such pead san francisco roads? >> there are places that you can use them. in italy, there is such a love of these cars, and shall we say they're a little more tolerant of you exercising the cars perhaps in the manner they were wrns once driven. >> you like to drive? >> the experience for me, especially with my work, where i can be in a different zone and not staring at a computer screen or having 12 people yelling at me. i enjoy it. >> how does jim afford these ferrari's? success on wall street and in hollywood. he directed high octane action flicks in the 1980's, including "the exterminator."
from writing money on hollywood to managing money on wall street, how did you make that transition? >> i wanted to retire and i was successful. but getting stoned actresses out of a van is a lot more fun when you're 20 than when you're 40. >> so 15 years ago, he joined an investment firm in midtown manhattan founded by his father. >> jim came to me and said dad, the party's over in movies. can you use me? >> seth is 98, and until recently worked at his firm four days a week. he recently decided to transition the $900 million under their management to another firm. seth and jim will stay on as senior consultants. would you say there's any skill set that's applicable in terms of the cars and in terms of what you do on wall street? >> it's the ability to look at
something and to say this is really a very valuable thing and one day it will be even more valuable. >> so far, jim's put together a very valuable car collection. he owns 16 sports and luxury models, including six ferraris, and he keeps most of them on show in this heated 8,000 square foot garage. there are worse hobbies a husband could have. >> jim's wife meg doesn't share her husband's lifelong obsession, but says love is love. after all, they've been together since they were teenagers. >> i have to say, there isn't an ounce of not wanting to impress people in his collection. >> wow. well, that was a treat. thank you jim. >> thanks, thanks for coming. what was so amazing to me was that there were times i looked over to make sure we weren't going too fast. we weren't, but it felt like it. and you hear the engine. >> absolutely, because that's
>> jim glickenhaus has spent 40 years and $20 million restoring and improving the cars in this collection. so how did you get so into cars? so when i was 16 or 17 in 1966, 1967, there was the great ford ferrari wars. , the s of course the ford only american car that won the ferrari race in the great ferrari wars.
this one the 24 hours at daytona. these guys raced each other. they get along ok. now. >> there's a story behind every car here. the lola was part of andy warhol's fleet. and steve mcqueen liked to race this dune buggy. how long does it take you, start to finish, to restore cars? >> it depends on the finish. this car's taken about four years. >> with $20 million and untold hours invested in cars, how do you protect them? >> in terms of stealing them? they're really unstealable, they're so well known, who could you sell them too? >> as much as jim loves the prefab kated cars in his collection, he still wants more from a sports car. >> there was a period where people were saying the new ferraris aren't pretty anymore and we don't understand them. i've been a collector for a number of years. an one day i got a call from outside design workshop. >> they created most of the
iconic ferrari model. the head designer wanted to prove he could still make a classically pretty ferrari, an idea the car company rejected. that designer turned to jim, for jim's ideas and jim's cash, offering to make him the ultimate car. >> he needed to find someone who wasn't afraid of annoying ferrari. it was a pretty radical idea, they did get extremely annoyed. but the thing is, i didn't care. what can ferrari do to me? >> jim spent a year on it, starting with the classic ferrari and bringing it up to date. >> so the idea of this was to be a modern interpretation of the great ferrari sports racing cars from the 1960's, but to make it a very functional car. > he wanted to call it the p45
ferrari. >> oddly enough, they come to respect people who stand up to them. >> ferrari declined our request for comment, but the company's actions speak for themselves. ferrari sent a chairman to personally vet the car and decided jim could call it a ferrari. but why? how does it affect him? >> this project was starting to get publicity, and there was the audacity of basically saying, i can take your greatest ferrari and turn it into something else that some people may like more. >> and ferrari fans do like jim's custom cars, a lot. partly because he posts every step of his design and assembly online and invites their input. >> there are a hundred million eb page entries on ferrari p 4/5. you get feedback. it's not that you accept what people say, but you listen to
them and it makes you think about what you want to design and what direction you can go with. >> i think sharing it with -- he and everything is says we're lucky to pass along the history. >> a car they built that looks so classically ferrari, they have to acknowledge it as part of their fleet. emboldened by their first success, jim and jesse designed a second ferrari in 2010. for the engine they used parts from three different ferraris. they unveiled it at the infamous 4 hour race last year. the car was treated like a rock star. >> people's reaction to it is what's exciting, and the people really seem to love it and enjoy it. they show up and we let them into the pits, take pictures and we have a good time.
>> but the attention drove ferrari management crazy all over again. but you don't sell the cars. >> well, it's not really that. they came back and said you can't put ferrari badges on that because you're going to merchandise the car, you're going to get sponsors, and the only reason anybody would ever be a sponsor is because the car's a ferrari, you're trading on our name. i said no problem. and i took the ferrari badge off the nose and i put my family's badge on it. none of the sponsors cared and now the car is known by something else. >> under its new identity, the car was challenged the factory team at europe's most notorious ace. this course is known as the green hell. each lap is over 15 miles long, and every year there are multiple casualties. on race day, 2011, jim wasn't
behind the wheel of his car, but he saw how dangerous the course can be. p cars racing alongside the 4/5 on crowded asphalt. at almost across the halfway point, another car crashes into it. >> we got hit in the rear and were in the pits for three hours, but we fought back out. >> despite, it finished second in class, 39th overall. >> one of the greatest thrills i ever had was after we finished they gave our family a constructor's trophy. we said you know what? we're going to be back. >> this year he did come back, with a new green braking system that allowed the car to harvest energy as it slowed around turns. >> there it goes!
>> and the p 4/5 finished first in class, 12th overall. it's a win that makes the car the jewel of jim's collection. can someone who really likes your car, and has seen it race, go out and buy a version of that? >> no. i've been offered incredibly stupid amounts of money by various people to buy -- >> what was one of the best offers? >> it turned out it was one of the members of the saudi royal family. it was like $40 million, which is just completely stupid. these cars are my kids and my grand kids. i bought them because i love them. i'm very lucky enough to be able to afford to own them. >> you would never sell them? >> they're worth nothing, because i'm never going to sell them. when i die, my kids will have to pay inheritance on them. will one great, great grandkid sell one on ebay one day? i don't know.
>> you can't drive this next pursuit, but you can bring it home with you. we talked to legendary art collector ronald lauder. >> a question of taste and passion. > and his top advisor gives us an insider's tour of today's market. so it sounds like you're telling me not to buy it. >> i'm telling you to take your time. >> ronald lauder is heir to the famed estee lauder cosmetics fortune. he started collecting art at age best has amassed one personal collections in the
united states. >> these are all picasso. >> here, he displayed it publicly for the first time at a museum he founded on new york's upper east. what ininspires you? >> art that is very brutal. kandinsky.seo, >> lauder's collection made the headlines when he purchased that portrait. how do you know what would really be magnificent addition to what you already have? >> how does a woman know which man is right for being a husband? >> wow, this really is a passion. >> you look at and say that's right. you say that's right for me. he's also guided by trusted
advisors. she's known ronald for decades and has bought him hundreds of prints and paintings over the years. >> she's one of two dealers i listen to as far as following their taste also. >> you trust her? >> yeah. usually my ego won't let me do that. >> hi! so nice to meet you. she offered to give me an inside tour of the manhattan art market, starting with her own collection. wow, this is unbelievable. gosh, i don't even know where to look. to phyllis, it's not just what she puts on the wall, but places beside it. she has a personal connection with some artists and likes to take their preference into account. >> well, bill knew picasso -- >> bill, your husband? >> my husband, had maybe 20 visits with picasso. they talked about the influence of tribal on picasso.
>> phyllis's late husband was curator at the museum of modern art for 20 years. he passed away in 2006 but that didn't stop her from growing the collection and investing in picasso's like this one. >> it didn't look very astounding but i saw it and knew wow, that's for me. and it had a reasonable estimate 00,000-$150,000. >> do you think you could get the money back if you sold it today? >> i think so. >> more than you paid for it? >> yes, yes. >> almost all these works turned out to be good investments. since 2003, works by picasso have roughly doubled the return on equity. it's outpaced the stock market. >> it is as blue chip as any stock could possibly be. >> have there been down years? >> not for the best of picasso.
>> but is it still possible to build a collection like this today? $100 million.over but you can also start at a human level, with great prints by picasso. >> so these are more reasonable picassos? >> these are what i call affordable picassos, of the best of their kind. on average, under $200,000. >> we've all seen bubbles in the tech market, we've seen bubbles in the art market. how do you guard against buying something at an inflated price and just seeing its value deappreciate? >> you have to know enough to go for quality. that's your only protection. >> after the break, we head to the depalries in new york's chelsea district to test my eye.
>> it's an insider's tour of chelsea. we're exploring manhattan's hottest galleries. >> we're looking at a 1975 painting by roy licten stein. >> i'm having a hard time seeing this. what's the price on this? >> yeah, this is $3.5 million. >> i like the silver paint, but it's not something i look at and say wow, it's worth millions of dollars. it's limed, it looks like someone a text tile design artist could come up with this. >> so you see it more as design than as art? i would challenge that, but we'll keep looking. >> next, we hit the world's largest fine art dealer, and we get a backstage tour of the new
york exhibition as it's going up. >> this is a german contemporary artist who began in the 1960's in east germany behind the iron curtain. >> any idea what it costs? >> between $600,000-$800,000. >> if i were your client, what would you advise me? >> i'd say take your time to ook at these more than once. and decide how it holds. >> so it sounds like you're telling me not to buy it. >> i'm telling you to take your time. the people that are new run the risk of being taken. i think having someone to work with gives you a security, and a crutch. it's a big, tough market. >> so you wear a lot of hats, you collect art, you deal art and you advise on art. are any of those in conflict?
>> maybe inner conflict. but if i'm working with a client, for a client, and i find something for him or her, i offer it to them first. >> are there any mistakes you've made in your collection? >> of course there are plenty i regret. but i keep thinking there's always something ahead. >> i have yet to find an artist i really like, so she adds one more stop to the tour. this is the pace gallery. these are really beautiful, i love the color and such intensity. >> exactly. i'd love us to move even to the smaller works. look how well they project. >> they do, they do, they jump off the wall. >> i know living with them would be great joy. and their price range is very reasonable compared to what we've been looking at. >> how reasonable? >> well, it starts at $250,000 and goes up to around $7 un,000. >> my enthusiasm has given phyllis an idea.
she invites ronald lauder to view a pair of earlier paintings in her private collection. >> this is probably the best of the group, as you know -- >> not probably the best, this is the best. >> this is the best. >> and she has a second one to show him. >> really does look like a wall. >> i love how it's in the teeth, the mouth, the toughness. i would not like to meet him on the streets. >> but the first one catches his eye. phyllis says it's worth $10 million, and she's waiting for lauder to bid that much before she'll part with it. >> many pieces i want. part of the art, part of the passion is the chase. >> what do you get when you bring a mathematical genius into the kitchen? we'll find out after the break when we're shown how to take food into the next dimension.
>> meet nathan, a legendary innovator and former chief technology officer at microsoft who trades in big ideas. now he's bringing his curiosity to the kitchen and cooking will never be the same. welcome to intellectual ventures, where nathan likes to work and play. he's a polymath who studied under stephen hawking and that's the brains he brings to the kitchen, where he's creating type of food few have ever seen before. >> ultimately our whole approach is about loving food and loving the process of how you take that food and do with it something that will really be amazing. >> for nathan, amazing food that
what is subject to rigorous scientific testing. he published his discoveries in six volume bible last year. it cost $625, and so far he's sold 45,000. >> why did you decide to write a cookbook? >> great naivity is the mean answer, because i thought it would take like a year and it would be really big like 600 pages. it took five years and 2400 pages. >> doesn't it weigh 40 pounds? >> my favorite statistic is in one copy there's four pounds of ink. >> but nathan's still not satisfied. his team is testing a stack of secret recipes, including savery fudge and a modernist take on mac roons. all hint that his next book will focus on dessert. it's not just nathan's cooking style that's scientific, he also
uses ingredients more commonly found in the lab. >> it's intensely cold, 321 degrees below 0 fahrenheit. so never do this. never. this is like a bad idea to do this, or play with it. >> but now i really want to do it. >> go ahead. >> all right. it is cold. how does one come across this and use it in one's kitchen? >> it cost less than bottle water, believe it or not. >> what has been the risk factor among the traditional foodies? are they welcoming of the technology? >> there are people who have this idea that it should be about soul and art, get the liquid nitrogen out of there. but you put baking soda and baking powder in your muffins, and that's pretty technical. >> not as technical as nathan's steak. he cooks it in lukewarm water for hours, then he introduces
the liquid nitrogen. >> we're going to freeze it a little bit, that puts a barrier in so we're going to basically deep fry the outside of the steak while using liquid nitrogen to keep the inside of the steak from getting too hot. >> he repeats this freeze fry cycle three times. so nathan, does this beat grilling? >> it achieves something different than grilling. very often when you slice a steak, you see the outside is brown, this layer, and the inside is the part that's rosie and red so we're trying to avoid that. >> it's beautiful. now that's not too rare for you? >> for me? o. you would have less benefit from this technique. if it's cooked beyond recognition. >> for his french fries, he found this machine for blasting dirt part cals from fine
jewelery. >> you feel that tingling? it beats up the potato, starts tearing the potato up. the more it does, the crispier the french fry gets. i don't think you can find any burger joint that has any of these for its fries, but maybe one day you will. >> now, the moment of truth. oh, wow. those french fries are great. really, really good. in case you couldn't tell, nathan isn't a newcomer in this field. nike ro tenure at soft, he worked nights as a sue chef. >> when i was 10-year-old it, i told my mom i was going to make thanksgiving dinner, she count come in the kitchen at all. i had all these cookbooks, and by god i cooked thanksgiving dinner. >> wow, you've really always been into cooking? >> yeah. but i do a much better job now.
>> i'm at an invention lab that nathan co-founded in 2009. here scientists are designing laser vents to zap mosquitos, along with something that sprays the clouds for climate control. >> do you see yourself as a modern day thomas edison? >> his labs were really about one guy, thomas edison. and i'm creating a company that's about lots of inventors. i'm not on every patent. i'm not the only invent other here. >> patents are at the core of the business. in fact, he's amassed so much
intellectual property, the press sometimes calls his company a patent troll. some people say hey, you know what, this isn't fair. nathan's out there acquiring all these patents on everything. how can i create anything when i ave to pay such heavy fees to company like yours? >> i think there are companies that have gotten used to not paying. they've gotten used to a situation where oh, a university owns that, or little start-up owns it. if a little start-up owns it, they'll never come after us, and that's ok, because we can stiff them. >> but as c.e.o., how much time does he actually get in the kitchen? >> most of the reason i dress like this and work like this is because i love doing it. >> when nathan can't be here, chef maxine takes over the place. he's the co-author of the
cookbooks and walks us through some of their favorite concoctions. >> we're going to make a istachio gelato for you. >> it will use a machine built for bio chemistry ex peerms. the creamy essence of pistachios. it hangs by its feet for three days. only then does it enter a sea bass oven which is hotter than the ninth circle of hell. >> it's getting amber, golden, beautiful. it's a hot chicken. >> it gives slow cooking a whole new meaning. >> you hear that sound? like glass. really nice, perfect. >> to illustrate how these recipes work, nathan takes some crazy photos. to get a shot like this, he slices his pricy cooking
equipment in half. in fact, no food or drink is safe from nathan's questioning mind and outlandish experiments. >> this is a great bottle of wine. we're going to pour it into the blender. >> into the blender? >> into the blender. >> now this seems sacreligious to me. >> particularly sacreligious. it takes all of the same benefits and makes them so much more so. the other thing is, it freaks people out. >> have you always been a risk taker? >> yes. well, including that thanksgiving dinner when i was 9, that was risk taking, let me tell you. and the risks are paying off. it's hard to believe food this good is cooked in liquid nitrogen and a jewelery clink. it conjures up, the image, forgive me, of the mad scientist. >> you say that like it's a bad
>> i believe it's more fun to say yes than to say no. >> he's a man who likes to test the limits of what man can do. at work, and at play. he lives to explore, from outer space, to the deepest reaches of the ocean. > certainly an adrenaline rush when you're out there. >> i'm joining richard branson, virginand founder of the
group. my goodness this is beautiful! catamaran.his luxury he uses it to discover the secrets of the ocean. today, it's headed for the largest breeding ground in the world of humpback whales. >> the whales from all over the atlantic converge in this one bank, and it's magnificent. >> so we'll really get to see them? >> not only get to see them, you should get to swim with them -- >> fantastic. >> which is brilliant. >> they're not bothered? >> if they are, they'll show it. >> richard routinely swims with sea creatures of every size and shape and shows us footage. he was nearly skewered by this fish. and this whale shark accidentally swallowed his head before spitting him out again. for richard, underwater exploits
like these are more than fun. they've inspired him to start a company devoted to ocean exploration in flying submarines. >> it's incredible that think that only two people have ever been below 18,000 feet, where nearly 500 people have been in space. >> after a rough overnight crossing, we wake to a breathtaking sight, dawn at the silver bank. >> how did you sleep? >> off and on. just wonderful to wake up and to see whales splashing all around you. >> it's a sheltered stretch of the caribbean, halfway between the dominican republic, with shallow waters and reefs that make it treacherous for boats and perfect for a breeding whale. only four boats have the necessary permits to come here. we're on one of them. like all of branson's properties, including his necker island home, this is available
for rent, if you're willing to part with $110,000 for a week. you could say, this is sort of 001%he extreme 1%, the ont in society being able to do something like that. >> it's up to us to use that privileged position that we find ourselves in to campaign and save the world. the campaign to save the sharks. so, i think you know, as long as we don't just use it for our own personal gratification, which is very nice, we actually put it to good use, then i feel i can justify the conscience of doing something as wonderful as this. >> this is something you talk a lot about in your book, really in a different way, with business, being more ethical. do you feel that's been lost in society? >> i think, i wrote the book because that we can persuade
business leaders worldwide to adopt a problem and use that business to help tackle that problem, use the entrepreneural skills to tackle that problem, i think we'd get on top of most of the problems in the world. >> for his part, richard is assembling a deproup of ocean elders, including ted turner and queen noir to lobby on behalf of sea creeshes around the world. with whale guide tom con lynn. have you ever, in your 22 years experience had something bad happen? a whale get aggressive? >> well, we've had whales get aggressive. i personally have never had anybody hurt with the whale out here. we're real good when to put you in, when not to put you in as far as -- the temperment of the whale, yeah. >> after the break, what's it like to get in the water with not one, not two, but a whole family of humpback whales?
>> the real adventure begins here. we're on tom conlin's motor boat heading out into the deep blue looking for whales. you've taked scaredy cats in here before, right? >> we were down there and we just saw like the most magnificent viewing of whales ever, and i held this girl's hand around mine, kept squeezing and got to the surface, i realized it was this guy, and not this beautiful girl at all that i thought it was. but still, you feel very -- >> there was a moment. >> there was a moment. guy or girl, it doesn't matter. >> after an hour we finally find a whale pod calm enough to let us dive with them.
>> all right, coming up at 2:00, there's the baby, mom's right next to her. >> oh, look at that. >> that's the escort right there. >> all right, i am a little nervous. > you should be nervous. >> as soon as i put my face in the water, i see a whale bigger han a double-decker bus. oh, it's coming straight towards us. >> come with me, hold my hand. >> it's ok, i know you're going to go straight towards the whale. >> you'll be all right, you'll e all right. there's certainly adrenaline rush when you're out there. these beautiful whales, not many
people have gone that close to whales, so not quite sure how they're going to react. but it's absolutely magnificent. you see them? >> incredible! full disclosure, i was a little nervous out there. in case you couldn't tell? >> i think, you should never be embarrassed about being nervous. i've done a lot of mad things in my life. i've been extremely nervous on most occasions, and you know, sometimes you're lucky enough to overcome those nerves. >> what was amazing though, and i learned this in time, was that the whales, they didn't bother you. they're just there, doing their thing. >> as long as we don't go harpooning them, and you know, try to hurt them, they'll live very happily alongside us. >> is every time that thrilling? >> every single thing, it's a miracle, seing the baby coming off the mother, and turning, and
every time i go in, i'll carry on until i'm freezing cold. >> i know! we had to drag you out of there! it's not just under water that richard takes big risk. he brings the same to business. >> the way i approach my adventure side of life is similar to the way i approach my business side of life. what's the worst that will happen. am i going to lose my life? will i survive it? >> you've had some close calls, been rescued six times by helicopter? >> i think one my favorite slogans is nothing ventured, nothing gained. i think life is so much more fun is you get out there and venture. >> for branson, taking risks in business have been challenging the most powerful brands. he started off in music, taking out the big record labels. then he branched out into planes, trains, mobile phones,
coca cola. and he even took over a major british bank. what made you decide to buy a european bank at a time like this? >> i mean, without sounding big headed, we've been tried and tested in a whole lot of different industries, so the public trusts us. >> and it looks like all means of trust richard too, because he's planned another adventure. >> ok. all we've got to do is look out here. >> wow, oh my goodness. >> you see any of the white areas? >> that means coral reef. >> there's one right ahead of us. >> oh, that's great! oh, here we go! got to be careful what you say around this guy! down in the water, or up in the air, his drive to escape gravity has no limits. >> wow, it really moves up here. >> we really do feel it, don't we? >> when you think of what you would like to do next, your next
big business opportunity, what would it be? >> i do think that space travel could be an enormous business, as well as tremendous adventure. we believe there are millions of people, most people, would just love the opportunity to go into space if they could afford it and if we could offer them a return ticket. >> yeah, that's important. >> no, we'll get the money up front, so it's not an issue. [laughter] >> branson plans to launch the first commercial flight into space next year on his space line virgin galactic, and 500 people have already paid a $100,000 deposit to hold their places. >> decades from now, we may well be able to get you to australia in the air quicker than it takes you to go through the airport to get to check in on the spaceship. >> but as he gets older, branson says he's lest interested in business and more focused on his legacy. >> 90% of my time is spent on building up nonfor profit
ventures. >> 90%? >> yeah, i've got a great opportunity for running the virgin group. i'm trying to use any entrepreneural skills to tackle conflicts in the world. trying to tackle diseases in africa, trying to tackle global warming. if you are fortunate enough to have been successful in life, it's very important to give back. >> i want to know what other advice does richard give young c.e.o.'s stuck in the boderoom? >> the first thing i would do is find my replacement. >> some people would feet threatened by that. >> that's a really big mistake. i think you look for the best in people, you'll get the best out of them. >> now in his 60's, will richard branson ever slow down? >> i'll never retire. i've been creating things since i was 15 years old, and i will always continue to create things. but i've never seen it as work, so i will create something, i'll find someone to run it and then
>> welcome to the best of bloomberg west where we cover invasion, technology and the future of business. every weekend we'll bring you the best of west, the top interviews with the power players that are reshaping our world. microsoft hopes the third time is the charm in the tablet market. the company unveiled the surface pro 3 aten event in new york city. >> ladies and gentlemen, this is the tablet that can replace your laptop, surface pro 3. >> now