Scientific research centers, and he puts his name on almost all of them. You want the world to know about it by putting your name on all the things you do support. I dont keep it a secret, thats for sure. [ticking] when sony, the Electronics Giant thats the epitome of japan incorporated, lost its cutting edge, it did something radical. It hired a westerner, sir Howard Stringer, as its new ceo. Sony is no longer the coolest. This is the coolest. You can take ipod and beat us over the head with it, but its only one product, and we have 1,000 products. Still, talk about a tough job. He has to turn sony around in a culture thats not always easy for a westerner to understand. Sorry. Thats all right. Were you lost in translation too . Welcome to 60 minutes on cnbc. Im steve kroft. In this edition, we talk with a trio of business moguls, carl icahn, eli broad, and sir Howard Stringer. We begin with carl icahn. It takes a certain breed of stock market investor to thrive in queasy times, and icahn is one of that breed. He has a knack of turning someone elses loss into profit for himself. But he can also help others improve their bottom line through the socalled icahn lift, an upward bounce that often happens when he starts buying a beleaguered stock. When the financial crisis hit in 2008, many investors were tearing their hair out, but not icahn. The state of the economy changes, but icahns investment philosophy remains the same. As he told leslie stahl in march of 2008, carl icahn looks to pounce while everyone else is losing their shirts. The day we visited icahn enterprises, the stock market was swinging wildly, at one point, dropping 300 points. So has this been a bad day . This is not a great day. Tough day, tough day. Wow, this is beautiful. Look at your view. Icahn works in a skyscraper suite overlooking new yorks central park. I think i lost today. You did . Yeah. Actually, he lost big. Well over 150 million that one afternoon. But when we spoke with him a few days later, icahn told me, no big deal. He lives by the moguls credo never let em see you sweat. I was buying that day. I mean, seriously, i was very happy about that. You looked like you were im not frazzled andcause you were well, im always frazzled. I mean, i look good now i combed my hair but im alwaysgot so much going on, and i enjoy that. [bell clanging] one of his biggest holdings, motorola, plunged 19 that day. But icahn, the ultimate risk taker, was gobbling up more shares in the company. Motorola is a perfect example of how carl icahn operates. First he chooses a company he thinks is poorly run and trading below value. Two years ago, he started buying up millions of shares of motorola. Now he controls over 1 billion worth of stock. As he usually does, hes been making demands in order to jolt up the sagging stock price. First one dump the ceo that happened in december. Then break up the company. His goal is always the same to reap a hefty profit for himself. Hes been successful, say wall streeters, because hes intimidating and relentless. With me, i think, generally, they take the attitude, try to make peace. Try to work with him because hes not going away. Is it cause you just have so much money . Well, and they know my nature. Itsthey know im not whats your nature . That im not going away. That im obsessive guy. That im coming in here. Ive done it, and theres no way that im leaving until they do something. Thats eminently refinanceable. Hes been hunting down vulnerable corporate prey since the 1980s, when he was reviled as a black hat corporate raider. Why does everybody say that youre the man Everybody Loves to hate . Love to hate . Well, youre hurting my feelings. Thats me interviewing him in 1986 after he took over twa. Carl icahn unfair to flight attendants. He was seen as ruthless because he fired people, slashed salaries, cut routes. The management of twaits trueshould have done this a long time ago. And as the company went into bankruptcy, siphoned off money for himself. I own it. Its my money. I worry about the bottom line, because if i lose, you know, im answerable to my bank account. Back then, when icahn targeted a company, management would often pay him socalled greenmail just to go away, but that kind of shakedown isnt tolerated anymore. Ladies and gentlemen, carl icahn. Today hes called an activist because when he targets a company and makes money, so do the other shareholders, the icahn lift. Last year, year and a half, the stocks that we became activists in, their values went up 55 billion. Another success came when Software Giant oracle bought its competitor, bea systems. I just figured it out. Icahn, a major stockholder in bea, coerced oracle into raising its bid. How much did you make . About 300 million. [chuckling] but i took a risk. I mean, i took a risk. But, hey, how bout the other shareholders . All of the shareholdersif you add up what they made, youre talking 2 billion, 3 billion the shareholders made. Thank you. [ticking] its a sad commentary. Coming up carl icahns favorite target ceos. They give them all this money for doing a terrible job. And for my way of looking at it, why . You do seem to have special contempt for ceos as a category, as a group. Were gonna be run by morons, right . When 60 minutes on cnbc returns. Theres a reason no one says easy like monday morning. Sundays are the warriors day to unplug and recharge. What if this feeling could last all week . With centurylink as your trusted partner, it can. Our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and dedicated support, your business can shine all week long. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. 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Just waste. Now why is that a problem . Because thats whyone of the problems in our competing this is the specter coming because we cant compete with asia, and we still walk around with our head in the sand. Its a sad commentary. He gets really worked up over fat ceo paychecks and bonuses even when the Company Loses money. They give them all this money for doing a terrible job. And from my way of looking at it, why . You do seem to have special contempt for ceos as a category, as a group. Were gonna be run by morons, right . Okay. I have no contempt for them. Theyre well, you dont have cont they have responsibilities. Youve called them morons. What do you mean, you no, no. You know, that is unfair. You didyou have i have a metaphor that the guy that gets in the company. He moves up the ladder. Hes like the fraternity president in college. Hes the guy that you like. Hes always there when you need a buddy. He doesnt make waves. You never know what you cant ever figure out when hes studying because hes always at the eating club with the fraternity when you go over there. And thats the guy that moves up the ladder in the corporate world. You really think thats who becomes the ceo . In many cases, absolutely. Now, are there great ceos . Yes. I mean, i want to make it clear. There are a lot of exceptions. He says, too often, boards of directors dont hold managements feet to the fire, so other investors often call on him to step in. Hey, i get calls all day from smart guys, hedge funds that will come call, why dont you look at this one . Im sort of the guy in school that the other guy goes to and says, why dont you beat that guy up, you know . He loves a good fight, no doubt about it. Im looking as im walking along here, all your paintings are battle paintings. Many a ceo has passed these bloody scenes of a warrior vanquishing his enemies as they head to a meeting with icahn. Does it tell me something about you . Is what im trying to figure out. Not really. It sends a slight message to people who come. With the sword in the hand . Yeah. Even as a kid, his mother said he was like genghis khan. He was an only child growing up during the depression in far rockaway, part of queens, new york. My father said, son, look, you have no talent really. I said, well, thanks, dad. Thanks for making me feel good about that. Clearly mr. Icahn didnt get his son, who was smart and ambitious. Carl got into princeton and paid for half his tuition with his winnings at the poker table. I was always very good, if you call iti dont know if you call it talent or whatever. I was always good at making money. Was her ever. Hes said to be worth 14 billion. Do you live a glamorous life . Id say no. Absolutely not. Hes married to gail golden, his second wife and former assistant. How you doing . Because he is such a workaholic, gail says they have little time to enjoy the money hes made. Do you have a yacht . We have a yacht, but we dont use it much. You dont have a lot of houses . Yeah, we do, but we dont go. [chuckles] can she have anything she wants . She takes it. She dont ask me, you know . I have no idea what she buys. But why do you care . Well, you know, i just donti wouldnt like Somebody Just frittering away money. I mean, it still means something to me. Im a kid from far rockaway. I still would not you have 14 billion, and she wants to go well, you say ive got 14 billion. I never said it. So how do they spend their money . More and more on philanthropy, like building this track and field stadium for the School Children of new york city. Raise your hand. And building two Charter Schools in poor neighborhoods in the bronx. These are overseen by icahns foundations, which gail runs. Call them just to make sure. She works in the office, and so does his son. Thats my son. Brett, an analyst at the icahn firm, plays chess with his dad on the weekends, for money, of course, and recently, brett began winning. Beat the hell out of me. Tell em how you beat the hell out of me. No, no. Hes too good. Hes too good. He just says that cause he wants to get odds. Thats bull. He beats me. I heard that you went out and hired somebody to teach you to play better so you can beat him again. Well, i got a grandmaster. Icahn, along with his son and 40 other analysts and lawyers in the firm, work long hours looking for more companies to target. And these guys do a great job. Somebody left. I dont know who that is. Ill find out. They also work on icahns hedge fund. Keep working. Thats good. After the fund had been averaging gains of 30 a year, it slid to just 7 in 2007. Has anybody questioned whether, since you didnt do so well last year, whether youre losing it . Losing the touch . Nobody calls me. They dont call me. I dont know if can we read anything, though, into just 7 . Some years, youre gonna make 70 . Some years, youre gonna make 7 . You should always do better than the market, and you shouldnt lose. One of the big raps against you is that what carl icahn wants to do is go in and get a fast, quick profit out of the company, and he doesnt think down the road. Yeah, but i can only talk facts. In every company weve gone into that we get control, weve put millions and millions of dollars into them. Its true. Sometimes he takes over bankrupt Companies Like a chain of nevada casinos, puts millions into them, and turns them around. But more often, he buys up a stock, agitates to get the price upthe icahn lift and gets out. I make money. Nothing wrong with that. Thats what i want to do. Thats what im here to do. Thats what i enjoy. Today you tell me youre a shareholder activist. I dont saythe name is the same. An activist is the same as a raider, you know. They call it whatever you want. Rose by any other name. So you havent changed . I havent changed at all. Not one iota. Im still doing the same thing. I go in, buy a lot of stock in an undervalued company. It helps the other shareholders a great deal. But im not putting myself in a cloak and saying, oh, shareholders, you know, im doing a great job for you. Im saying so you dont do it for the other shareholders. You do it for you, but it does happen to raise all the boats. It helpsit helps the shareholders immensely. In january 2011, motorola was split into two Companies Motorola mobility and motorola solutions. Seven months later, Motorola Mobility agreed to be purchased by google for 12. 5 billion. Carl icahn says the deal is a vindication of his investment and efforts to split up the company. But even carl icahn isnt completely recession proof. Since our report first aired in 2008, icahns fortune has dipped a little from its thenreported 14 billion. In 2011, Forbes Magazine estimated icahns net worth at 13 billion, making him the 25th richest person in america. [ticking] coming up the billionaire philanthropist changing the culture of los angeles. Youve said that your sense of being a wealthy man actually increased the more you gave money away. I think its true. I dont feel im here to just maintain the status quo. Im here to make things better or different. Meet eli broad when 60 minutes on cnbc returns. At wvalues matter. Ket, so were transparent about the fresh wild seafood we sell. And the species we dont. Independently rated for sustainability. Traceable from dock to store. Sent fresh from over 50 u. S fisheries with responsible fishing practices. Like bornstein seafoods because to us, value is inseparable from values. Whole Foods Market Americas Healthiest Grocery store. Fifteen percent or more fifon car insurance. D save you Everybody Knows that. Well, did you know certain cartoon characters should never have an energy drink . Action blahbechtblah blublublubblah geico®. Introducing the birds of america collection. Fifty stunning, handpainted plates, commemorating the state birds of our proud nation. Roud. Blahbechtblah blublublubblah geico®. Fifteen minutes could save you fifteen percent or more on car insurance. Ii like to think of myself as more of a control. Enthusiast. Mmm, a perfect 177degrees. And thats why this road warrior rents from national. I can bypass the counter and go straight to my car. And i dont have to talk to any humans, unless i want to. And i dont. And national lets me choose any car in the aisle. Control. Its so, whats the word . Sexy. Go national. Go like a pro. [ticking] in this era of belttightening, its kind of refreshing to take a look at people whose favorite pastime is giving money away. Such a man is eli broad, a selfmade billionaire who is one of the most generous philanthropists in america. Along with supporting education reform, medical research, and the arts, he also wants to transform los angeles into a cultural capitol. Eli broad likes to think big, but some of his critics say he can act very small. As he told morley safer in april 2011, eli broad doesnt really care what anyone says. All he wants to do is die poor. Well, relatively poor. I believe in two things one, Andrew Carnegie said, he who dies with wealth dies in shame, and someone once said, he who gives while he lives also knows where it goes. Theres no one quite so civicminded in america. Eli broad and his wife, edye, have become paparazzi pets because of the money they lavish on los angeles, so far, more than half a billion dollars. Eli, over here now who says money cant buy you love . And eli and your lovely wife, right here please. Behold his footprint on los angeles. Hes a driving force behind 16 major public institutions. In the center of downtown, the a cultural corridor, anchored by the magnificent disney hall, home of the los angeles philharmonic. [sprawling symphony music] next to it, the home of the los angeles opera, the museum of contemporary art, the high school for the performing arts, and the school of music. In greater los angeles, three Scientific Research centers, a theater, an art center, and another contemporary art museum. He puts his name on almost all of them. You said that your sense of being a wealthy man actually increased the more you gave money away. I think its true. I dont feel im here to just maintain the status quo. Im here to make things better or different. And you want the world to know about it by putting your name on all the things you do support. I dont keep it a secret, thats for sure, broad took us to grand avenue. This is quite a vista. Which he plans to transform into a vibrant city center, rivaling new yorks museum mile. Disney hall, designed by frank gehry, almost did not get built. Broad rescued the project by putting up his own money and putting the squeeze on fellow plutocrats. Its really become the symbol of our city. And then theres his own museum, the broad. This is a rendering. Its still a parking lot, but it will eventually hold his 1. 6 billion art collection. How much is this going to cost . Something approaching 1 billion . More. More . More. We were interrupted by an angeleno driving by. Eli, buy the dodgers. Buy the dodgers eli, buy the dodgers. You could be the George Steinbrenner of los angeles . Oh, no, no, no. Ive got enough on my plate, broad runs his Philanthropic Foundation like a forprofit business, not a charity. Charity, he says, is just writing checks. He practices what he calls venture philanthropy. We dont give it away. We invest it, and we want a return. Remember, i started work as a cpa, so that gave me fiscal discipline in everything i did in business, and i guess some of it carries over to philanthropy, eli broad says, i want results, and if youre not gonna show me results, im not gonna give you the money, and incidentally, after one year, if you dont show me results, im gonna stop funding you. New york mayor michael bloomberg, no mean philanthropist himself, admires broads uncuddly approach and the 32 million he h