Q: Will my shares of Charles Schwab Corp. have a good year, or should I be worried? — F.L., via the Internet

A: The brand name of this diversified financial-services company, with $1.446 trillion in client assets, continues to be strong, thanks largely to the efforts of its trusted founder.

A comeback began when Charles Schwab returned as chief executive in mid-2004 to improve its sagging fortunes. Former CEO David Pottruck had left after some blamed declining profit margins on faulty decision-making.

Schwab's sale of its US Trust subsidiary to Bank of America enhanced its bottom line last year, while its customer base rose because it lowered some brokerage fees.

Less than one-fourth of revenue is derived from commissions tied to unpredictable trading activity. Asset-management, banking and advisory-services divisions supply most of its income and offer solid growth potential.

It is definitely worth monitoring the small percentage of potentially risky structured investment vehicles, or SIVs, that are in some Schwab money-market funds such as its Schwab Advisor Cash Reserves. But those SIVs are not expected to lose all their value or cause the money-market funds to drop below their $1-a-share value.

The firm said it does not construct collateralised debt obligations or make sub-prime loans.

Schwab (SCHW) stock rose 32 percent in 2007, repeating its gain from 2006. Founder Schwab owns about 19 percent of the outstanding stock, providing incentive to work hard to keep it profitable.

Fitch Ratings increased its rating on the financially sound company to "B" from "B/C," based on improved financial performance and a renewed focus on its core businesses. That rating indicates strength, with no troublesome aspects.

Although most Schwab business takes place online, it maintains about 300 retail offices. Average daily trades by Schwab clients have been on the rise in recent months.

Earnings are expected to rise 21 percent this year compared with the 37 percent decline forecast for the national investment-brokerage industry. Next year's expected increase is 19 percent versus a 56 percent rise industry-wide. The five-year annualised growth rate of 20 percent exceeds the 13 percent projected for its peers.

Schwab recently amended its bylaws, adopting a majority-vote standard for director nominees in uncontested elections. More than 50 percent of votes cast must be "for" the election of the director for the person to be elected. In contested elections with more nominees than there are available seats, a plurality standard will apply.

Q: My adviser talks all the time about investing in both growth and value. What does that mean exactly? — T.T., via the Internet

A: The adviser is seeking to combine the hare with the tortoise.

A growth stock's earnings are expected to grow at an above-average rate in comparison to the overall market. Purchasing stock in a fast-growing company, such as a technology firm, may provide some substantial gains.

A value stock, on the other hand, is believed to be trading at a lower price that its fundamentals would seem to justify. This represents an opportunity for a patient investor to buy at a bargain price and wait for the stock to reach its intrinsic value. Some experts consider embattled financial shares to be value stocks.

Rather than commit totally to either investment strategy, financial advisers often recommend that their clients invest in a combination of both because either strategy can outperform the other at any given time.

"If you were a growth investor from 2000 to 2005, you got killed while value investors did great," said Paul Nolte, investment director for Hinsdale Associates, in Hinsdale, Ill. "But now growth is starting to do better than value, which is an indication that you need to invest in both to achieve balance."

Q: What's your opinion of Brandywine fund? It seems to be different from some other funds. — C.R., via the Internet

A: What makes it special is its relentless and crafty research team.

Suppliers, customers, competitors, management and industry experts are consulted by phone, e-mail and through visits. The team wants any edge it can get in discovering the next positive investment surprise.

It snaps up stocks of profitable, fast-moving companies at reasonable prices and then sells quickly when something else looks better.

The $4.75 billion Brandywine fund (BRWIX) had a 12-month return of 10 percent and a three-year annualised return of 14 percent. Both results rank in the upper one-third of mid-cap growth funds.

"We typically don't like high-turnover, earnings-chasing strategies because we think the costs of such strategies are hard to overcome," said Karen Dolan, analyst with Morningstar Inc. in Chicago. "However, Brandywine Fund is phenomenal at what it does: going at research in a different way that provides an advantage."

(Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, P.O. Box 874702, Tempe, Ariz. 85287-4702, or by e-mail at andrewinv@aol.com.)