"What we're seeing right now are two significant trends (related to leisure spending). One's a long-term trend, which is what you mentioned. Growth will continue in leisure spending, primarily because of the aging population. But we also have some near-term trends, which is still a soft economy, unemployment's creeping up. And so you're seeing a little softness in the near term, but long term the trends look great."

Hilton Hotels

"We actually have a “buy” (rating) on Hilton. I like the lodging stocks. I like the fact that supply growth is slowing in the industry. And I think in the second half of this year, if we get any type of pickup with demand, you'll see nice pricing gains and the stocks will work."

Starwood

Harrah's Entertainment

MGM Mirage

Penn National Gaming

"Penn National is a very interesting company. They have several casinos in the southeastern United States, but more importantly they have two race tracks in Pennsylvania. And Pennsylvania is one of the most likely states to move forward on gaming. If that occurs, it should be a home run for Penn, so it's one of our favorites."

Hilton Hotels

"You've got to think about what's going to happen down the road. And I think that Hilton has done a good job with its business model. And we bought Hilton stock last year and we added to our position just in the last few weeks. I think they're going to do well over the next couple of years. They're going to make a lot of money in it."

International Game Technology

"International Game Technology, the slot machine company, is one of our biggest holdings. They have the biggest slot machine share in any of the casinos around the world, and there's a lot more gambling going on around the country. And they generate a lot of free cash. They're going to do well."

Harrah's Entertainment

"Harrah's Entertainment, the casino company, I also like a lot. That's also one of my biggest holdings. Both IGT and Harrah's we've held for several years and made a lot of money for our shareholders."

"In the technology industry, I like what I call the headliners, the sector leaders: the Microsofts, the Intels, the Dells, the EMCs and all of these that have market share, have cash on the balance sheets and have a lot of intention to drive what I call the pretenders out of the business.

"This is probably one of the best industries, in general, on a secular growth basis, when we look at our economy that's going to grow at 3 percent.

"It's also an industry that (has a product that) needs replacement. It isn't like real estate that stays there 20 years -- 3.7 years (is) the average obsolescence for the machinery. We're getting into the fourth year since Y2K. Companies are going to have to buy."

"And the government -- the president should have focused more on investment tax credits or liberalized appreciation. I hate to say it, the Democrats' bill addresses that issue with a 50 percent write-off in 2003, and that's the jumpstart this technology industry needs."

Dell

"Key in this technology area is staying ahead of the crowd, making sure you have the market share position to kind of leverage the other people out of the business. Dell has had a great philosophy over the last two or three years. Dell's intention is to stay number one, to grow the fastest and to truly jettison those that are pretenders in this business. And they're doing a heck of a job on it, because they forced the merger of Compaq and Hewlett (Packard), they've got Gateway on the ropes right now, and they got IBM to outsource a lot of their PC businesses.

"That's the business model that we've got to adopt right now in technology."

Microsoft

Intel

EMC