Rehak: So we've set the stage for some stock picks. Bill, you're our technology bull. After this huge tech rally, how will you find new opportunities?
Wilby: You have to control your risk by thinking like a bookie, looking at market opportunities, and probability of success, diversifying holdings to maximize the probability of success over time. You can't use a broad brush. You have to be specific. We own Tandberg in Norway. It's well run, kind of the Mercedes of the videoconferencing software business. With people worried about travel, and high definition television coming on, the quality of a videoconference meeting is going to improve significantly. It missed a couple of quarters because of currency, so it sells at 13 to 14 times earnings.
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We could have a semiconductor boom that rivals the last one for several reasons, including consumption of semiconductors in China, which is going to blow everyone away. My best stock idea is Advanced Micro Devices.Their Opteron microprocessor is an incredible product. I believe it will take significant market share from Intel, and it's cheap at $16. We think it's a $60 stock.
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Rehak: Michael, you own some tech stocks.
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Holland: IBM is now challenging Intelas a semiconductor maker, and I still own both. Semiconductors are such an integral part of the world economy that it's a good bet they will lead economic growth. But other sectors, like health care, look more interesting to me.
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