(FORTUNE Magazine) – WEALTH/Cover Stories 44 THE BILLIONAIRES: DO THEY PAY THEIR WAY? For the most part, yes. Many are shrewd risk takers, creating new companies, even whole industries, and lots of jobs. But they also serve the rest of society simply by enjoying the good life and thus making work look worth the trouble. Though some demonstrate a voracious yen to spend, others take pains to give away most of what they have. A slightly irreverent essay reveals the meaning of wealth and how the rich pay their freight. by Alan Farnham

50 HOW TO LIVE WITH A BILLION It's not as easy as you might think. The price of effulgence is sky high, reclusiveness costs even more. Here's a glimpse into the lives of the super- rich and how they cope with wealth and publicity.

73 THE LIST OF BILLIONAIRES Meet the world's 157 wealthiest individuals and close-knit families.

133 INDEX TO THE LIST

POLITICS & POLICY 137 SO THE COLD WAR IS WON. NOW WHAT? With doddering old enemies looking less fearsome, the U.S. should pay more attention to vigorous old friends. by Richard I. Kirkland Jr.

DEALS 145 CAN UNITED AFFORD TO BE TAKEN OVER? As the battle for UAL Corp. heats up, airline stocks are soaring. But this industry needs new planes, not new debt. by Kenneth Labich

CORPORATE PERFORMANCE 151 COMPANIES TO WATCH Toys ''R'' Us, Santa's superelf, is stocking up on must-buy videogames, racing cars, and a new baby doll for Christmas. by Faye Rice

Also: Fedders, Sigma Designs, Constar International, and CXR Telcom.

MONEY & MARKETS 155 A RARE GLIMPSE INSIDE THE FED Former governor Robert Heller contrasts the Volcker years with the Greenspan regime. He comes away convinced that the nation's central bank can tame inflation without a recession.

SELLING 159 READY, SET, SELL -- JAPAN IS BUYING The retailing revolution the West has been waiting for is here. Flamboyant merchandising is edging aside mom and pop stores. American goods are suddenly hot. by Carla Rapoport

MANAGING 189 HOW TO CUT THE COST OF HEADQUARTERS Losing the battle of overhead bulge? Most companies are. But some have found new ways to shrink expenses -- like forcing their staffs to compete with outside suppliers. by Terence P. Pare

TECHNOLOGY 200 GADGETS FOR EXECUTIVES These nifty electronic gizmos are no mere gewgaws but a cornucopia of serious productivity-boosting tools. by Brian O'Reilly

DEPARTMENTS 6 EDITOR'S DESK 8 INDEX 10 NEWS/TRENDS Is U.S. business giving away technology? A new career for Warren Buffett, hot wheels for yuppie bikers, Bush picks a free-marketer for the SEC, and more.

25 FORTUNE FORECAST The rainy summer will lift farm incomes and stunt the rise in food prices. by Theodore Young

Also: Inflation is dormant but not dead.

31 PERSONAL INVESTING The Dow is back near its precrash highs. Stocks are much safer than they were , two years ago, but now is the time for caution. by John J. Curran

Also: Making odd lots into a silk purse, a contrarian case for junk bonds, and Portfolio Talk with mutual fund manager Edward Antoian.

209 FORTUNE PEOPLE J. D. Power knows what drives car buyers, Frank Lorenzo toughs out Eastern's striking pilots, Camilla Dietz Bergeron shifts from picking stocks to flogging rocks, and more. by Mark Alpert

210 ON THE RISE

219 LETTERS TO FORTUNE ITT Chairman Rand Araskog trashes LBOs, Toyota's luxury Lexus draws a yawn, and more.

223 KEEPING UP The Vegas connection, two for the seesaw, looking leftward, and more. by Daniel Seligman

With a royal patrimony worth $10.9 billion, Queen Elizabeth II is the world's richest woman. COVER STORIES/PAGE 44

COVER PHOTOGRAPHS: Buffett by Mark Hanauer -- Onyx; Gates, Rich Frishman; Walton, Louis Psihoyos -- Matrix; Agnelli, Sichov -- Sipa; Ford, George Lange; Elizabeth II, Chancellor -- Alpha/Globe; Nakajima, Robert Wallis -- JB Pictures