Q: At 18, the stock trades at less than six times forward earnings. A: We got interested in it when it was in the 20s, so we are not too bad off now. We are not blind to the changes that are occurring in the newspaper industry. I can't draw the plan that they are going to use, but I know that most of these guys, particularly the guys at Gannett, get it.

Q: The consensus has next year's earnings growing by about 5%. A: If you are only paying 12 times earnings for that growth, that is OK. Plus, you get the dividend. If you can get 4% from the dividend, you only have to get 4% from the stock for an 8% total return. You don't have to grow a lot to get to an 8% return, and there is not much risk. Of course, I would have thought there wasn't much risk when the stock was at 35, versus around 29 currently. This is in the eye of the beholder. But I like what Immelt has done, and I will be interested to see what he does here. I'm happy to continue to accumulate the stock and have it be 2% of our portfolios.

Q: As of June 30, your portfolios were underweight energy -- nearly 14%, versus 16.2% for the S&P 500. What's behind that move? A: We didn't reach an underweight in energy until a couple of months ago. We were double the index weight three years ago, and rode it up. But we got nervous that the risk factor was too great. And if you look at the ExxonMobil s [ticker: XOM] and the Chevron s [CVX] of the world, they are going to have a difficult time increasing production. These are great companies, but they will probably have a difficult time growing. One of the things that made us nervous about energy was that three of our top five holdings in the firm were in energy. That's a good warning sign. So we cut out a lot of those holdings except for the biggest companies, like Schlumberger [SLB].

Q: As of June 30, your portfolios were underweight energy -- nearly 14%, versus 16.2% for the S&P 500. What's behind that move? A: We didn't reach an underweight in energy until a couple of months ago. We were double the index weight three years ago, and rode it up. But we got nervous that the risk factor was too great. And if you look at the ExxonMobil s [ticker: XOM] and the Chevron s [CVX] of the world, they are going to have a difficult time increasing production. These are great companies, but they will probably have a difficult time growing. One of the things that made us nervous about energy was that three of our top five holdings in the firm were in energy. That's a good warning sign. So we cut out a lot of those holdings except for the biggest companies, like Schlumberger [SLB].

Q: As of June 30, your portfolios were underweight energy -- nearly 14%, versus 16.2% for the S&P 500. What's behind that move? A: We didn't reach an underweight in energy until a couple of months ago. We were double the index weight three years ago, and rode it up. But we got nervous that the risk factor was too great. And if you look at the ExxonMobil s [ticker: XOM] and the Chevron s [CVX] of the world, they are going to have a difficult time increasing production. These are great companies, but they will probably have a difficult time growing. One of the things that made us nervous about energy was that three of our top five holdings in the firm were in energy. That's a good warning sign. So we cut out a lot of those holdings except for the biggest companies, like Schlumberger [SLB].

Q: Looking ahead, what is it about Qualcomm's business that you like? A: 3G involves sending data over the phone. We are convinced that the transmission of data and video over phone lines is going to continue right to your laptop or to your cellphone, etc. It is going to happen, and 4G is just a faster version of transmitting data. Look at Qualcomm's business model. They get a license on every phone, based on the value of the phone; it is an incredible business model. As long as you believe that you are going to have a camera on your phone and you are going to get video on your phone, you want to be in 3G. I think the broadcasting of the Olympics from China is the biggest thing for 3G yet.

Q: One more pick, please. A: Kimberly-Clark [KMB] is a new holding. I'm impressed with the management. It's trading at the same price as it did nearly 10 years ago. The earnings have expanded a lot, and it is a steady consumer-products company. So it is just brand management. If you manage your brands right and work hard on your costs and get new-product introductions, you will be fine. The management team there now is in their late 40s and early 50s, so they have got a bunch of young people working hard to run the brands right.