i can't believe that i actually used to buy stocks on the reg. sure, dividends are great and paying long term gain taxes is nice too (if you have the discipline to hold for over a year) but it's difficult to beat the leverage and risk-reward balance of options. having the ability to expose oneself to several hundred shares of a company while only risking a max of several hundred dollars is huge, in my opinion.
2. spin-offs
most businesses are much more interested in creating value for their shareholders through mergers and acquisitions but historically speaking, spin-offs and their parent companies tend to result in bigger profits for shareholders. one that i'm currently monitoring is Sabra Healthcare REIT, Inc (SBRA). why spin-offs you ask? the biggest problem with spin-offs is that they are simply too small for big institutional investors. guys like Uncle Warren rarely make investments of less than $100 million and a lot of these spin-offs have valuations of less than $100M. this usually means that the institutional investors divest the newly minted spin-off shares while keeping the parent which often results in bargains for the little guy.
3. lending club
i'm not crazy about the idea of actually becoming a lender (because most of the borrowers are probably shady at best) but this website is pretty cool in theory.
http://www.lendingclub.com/home.action
i think there is a small possibility for some nice returns but the risk of default is keeping me away at this point.
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