Simply put, from all the current investment opportunities premium domain names provide the highest possible returns.

A couple quick examples:

• computer.com was purchased a year ago for $1.2MM and then resold for $2.2MM recently - 83% in a year passive return.
• LLL.com domains (3 letter .com’s) have gone up in prices over 100% in less than a year!

For the last half a year I’ve concentrated on building a portfolio of quality domain names. I try to stick to .coms only and I mostly go for premium generics and 3-4 letter domains.

So I’ve managed to grab a large number of premium LLLL.com’s at decent prices and I think these are the best ones to hold on to at current time. Premium LLLL.com domains (containing only letters: A, B, C, D, E, F, G, H, I, L, M, N, O, P, R, S, T) are now selling at minimum prices of $150-200 and CVCV.com’s (like goru.com, bohy.com) are now selling in low-mid $x,xxx. While this might sound like quite expensive for useless 4 letter domains, these are actually the most brandable of all domain name groups possible, consider VISA.com, HULU.com etc.

Generic domains rule because they bring very targeted traffic and are great for development. Although good generics are expensive. Anything decent is above $10k nowdays.

Another good option is buying domains with traffic, but these mostly include typo domains with possible TM problems. Unless you really know what you’re doing better stay away from these - this is a shady area, because according to anti cybersquatting laws there is a maximum $100K fee per domain that is in violation with an existing trademark and was registered in bad faith.

One advice to beginning domainers: Go .com!