I like to invest in stocks that are both owned by great investors and that pay great dividends. When you buy a stock that's owned by a great investor you can have a high degree of confidence that he or she did a lot of research before entering the position. Chances are that their research and knowledge is superior to your own.

Earnings growth is vital to a high-performance stock. While that's true, there is one thing that can make things even sweeter ?accelerating earnings growth. While a company showing profit growth of in the 20%-to-30% range is nice, one flaunting 25%, 35%, 50% and 75% increases quarter after quarter is even better. Results like this show power. It's telling you that not only business is good, but things are picking up.

Where do you stand on the trade-off between a small, fast-growing company and a huge, well-established Goliath? The former offers far more upside but subjects the investor to more risk. Can a young IPO fall to zero? Sure, look at Refco. The commodities brokerage went public in 2005 and soon collapsed amid a scandal

When the market is as volatile and dangerous as it is now, you should consider a technique that I borrow from the world of professional chess playing. The key to playing a good game of chess at master?levels is to accumulate small advantages.?A small advantage in chess might mean having a better protected king or controlling an open file with a rook. The same strategy applies in investing but a small advantage here might mean top management is buying shares or Warren Buffett owns the stock. If you accumulate enough of these advantages you have a tangible edge.

When it comes to investments, you generally have two choices -- growth or income. Sometimes, you can have both. Stocks tend to be growth-oriented instruments, but some pay respectable dividends. While its nice to earn a few extra percentage points. Don't buy just because it's paying the fattest dividend yield. Often, the biggest dividend yields come from older, more mature companies. Typically, they're not growing by leaps and bounds like many younger companies.

People love to find good bargains. In the stock market, one commonly used valuation gauge is the price-earnings ratio or P/E. Be careful of picking up bargains because that can mean buying laggards. But there will be times when highly ranked stocks trade at low multiples.

Large-caps are the preferred trading vehicles for many institutions. The reasons: ample liquidity, analyst coverage and widely available information. Despite their hefty size, some still are capable of delivering respectable earnings and sales growth quarter after quarter.

10 Top-Rated Fast-Growing Companies October 1, 2007 by Investor's Business Daily The best performing stocks do well for a variety of reasons but generally they have one thing in common -- solid earnings growth.