Q: Your largest holding is Wynn Resorts (WYNN). Why are you putting so many of your chips on Steve Wynn? The stock's around 102, way down from its high of 176. A: One of the things that struck us about Wynn Resorts is the company's attention to detail. They really, really care about how everything looks, how it functions and how they treat their clients. They don't want dust in the corners, little things like that. And, management owns an enormous amount of stock. They have also learned from their previous experiences how to do things better. If you can find a management that lives, breathes, eats and sleeps how to make this a better company, that's a wonderful thing.

Q: You're also a fan of Berkshire Hathaway, a stock Barron's recently called too expensive. A: We bought most of our Berkshire Hathaway [BRK/B] shares at lower prices. The B shares are at about 4,701, roughly 7% off their 52-week high. For Berkshire, having $40 billion in cash seemed like a pretty dull thing to do, but now it doesn't seem so dull. Because Berkshire is the ultimate complicated conglomerate, it's very hard for most people to get their heads around a company that does everything from making paint to selling auto insurance. It's clearly not as attractive as it was six months ago. But we think it generates oodles of free cash flow. In a world where there are serious liquidity issues, having a pristine balance sheet and a whole treasure trove of businesses that generate cash is a great thing. It provides a lot of downside protection.

Q: You've developed a reputation over the years for being a shareholder activist as a way to create value. Anything going on for you on that front these days? A: We own about 26% of Consolidated Tomoka Land (CTO). The market cap is about $300 million. We've put one director on the board, and we proposed another three. The company essentially has liquidated its land holdings into a 1031 tax exchange. We have suggested that instead of selling off this property, they should look at developing it. What are the alternatives we can do to create growing streams of income? They've been fairly receptive to what we have said. We're in an environment now where nobody wants to know anything about real estate. Yet, over time, if you buy real estate cheaply, it is unencumbered by debt and you are patient, you can make tons of dollars.