Riding Global Growth

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BYRNE: We own Alcoa, which we consider a defensive play. Alcoa doesn't just make aluminum. It owns alumina, which is the starter, the yeast, and which is in short supply. Alcoa pretty much controls alumina in the world. That makes it special.

TIME: What else is special?

BYRNE: I also believe in the financials, names like Lehman Bros., which just reported earnings above expectations, and Bear Stearns, which is one of the best-managed companies on the planet. A number of the health-care companies are attractive. I don't know whether we will have a national purchasing system of drugs. From my viewpoint, it's irrelevant. Drug prices would come down with controls, but usage would soar. That's the nature of the business for Pfizer and Merck, both of which I find attractive. I want companies that no matter what happens, they would be able to pay me my dividend. For a defensive play in housing look at REITs [real estate investment trusts]. They are up three years in a row, and everybody thinks they're done, but I like Tejon Ranch, one of the largest landowners in California, and Rayonier, which owns 1.6 million acres of Florida timber. It's a real estate play with a 6% dividend for safety.

TIME: Which isn't a bad thing. Thanks, all.