Q: What is an example of that? A: For the most part, we don't invest in banks, but we have a stake in People's United Financial (PBCT), based in Connecticut. It has become the 11th-largest bank in the country by market capitalization.

Q: But not every fund is going to outperform its peer group or benchmark. So isn't there another side to this debate? A: Of course there is. But investors have a tool: Morningstar (MORN), which we hold. Morningstar has write-ups of companies and mutual funds. Just as I read opinions on stocks, individual investors can read opinions about their mutual funds.

Q: What are some areas of energy that interest you as an investor? A: There will be opportunities to invest in energy conservation and transmission, which needs upgrading. In France, 80% of power for utilities comes from nuclear; here, it is 20%. We will have to go to 50%. In America, it is 2% in wind, versus 20% in Spain. So we are going to have to mandate more extensive energy power to America. The government is going to have to say, 'OK, utilities, you have to get a certain percentage from nuclear, and you have to get a certain percentage from wind.' One play on this theme is ITC Holdings (ITC), an electricity-transmission company.

Q: Turning to a different sector, another of your long-time holdings is Wynn Resorts. What's to like there? A: We invested in Wynn Resorts (WYNN) this time around in 2001, and we bought about 10 or 11 million shares for about $135 million, and we got about $70 or $80 million of dividends back. We sold half of our stock between 100 and 150. But unfortunately for us, we didn't sell the other half, which went from 170 in the fall of 2007 down to around 19 recently. In March, we bought about 1.7 million shares when they were at 19. They are now at 39 and change. We think Wynn has been well-managed financially. At the peak, the company was valued at $10 billion or $11 billion, when it was selling for a high multiple on peak earnings. Now it is selling for a low multiple on trough earnings.

Q: What about another holding? A: Blue Nile (NILE) is a purveyor of diamonds on the Internet. Instead of going into the mall stores, you can buy directly from Blue Nile without the five or six levels of distribution from the diamond mines. We have been an investor in the company since it went public in 2004. Of course, in this environment they aren't doing as well as they had been, with people deferring purchases or buying smaller items. But they do sell 2% of all the diamond engagement rings in America. One thing that will help them is that a lot of the competitive stores in the mall are going out of business.

Q: Another pick? A: I have been investing in DeVry (DV), which provides various education programs, since 1990. The stock has gone from north of 60 in January to around 43 late last week; we have recently been adding to our holdings in DeVry and Strayer Education (STRA). The state colleges, because of budget constraints, aren't offering as much of a program as they did before, so DeVry and Strayer are beneficiaries. Their enrollments are up strongly.

Q: Another pick? A: I have been investing in DeVry (DV), which provides various education programs, since 1990. The stock has gone from north of 60 in January to around 43 late last week; we have recently been adding to our holdings in DeVry and Strayer Education (STRA). The state colleges, because of budget constraints, aren't offering as much of a program as they did before, so DeVry and Strayer are beneficiaries. Their enrollments are up strongly.