This is true whether investing in private investments or stock market- quick returns are as much a child of momentum as they are of fundamental intrinsic value of the investment itself. As Benjamin Graham used to say, the markets are a voting machine in short-term, but a weighing machine in the long run. There are multiple quick-return techniques one could apply to achieve wealth:
- Borrowing on Margin in a low interest rate environment, and investing in high yielding dividend stocks. When the interest rate environment is low, it is easy to borrow money on margin at say 2%, and place it in say utility stocks returning 4-5% and pocket the difference. This strategy can yield impressive returns in one quarter to one year.
- Buying momentum stocks -- stocks showing high relative strength and holding till the relative strength holds true. Relative strength is a measure of strength of a stock's performance against the general market or another stock. Stocks with a positive relative strength tend to outperform the market for sometime ("the trend is your friend"), and these stocks can give you quick 5%-10% return. The occasional winner can give you 30-50% returns as well. The strategy works best in a bull market or a strong bear market rally. Avoid it during choppy or flat markets.
- Options in stock market -- Options give you a way to control a large amount of stock via a small amount of money. There are a variety of ways to play the options market -- and you can make significant money in the market, though once again, a strong trend plays to your favor (up, down or flat).
- Fixer-upper properties -- Even in a difficult real-estate environment, buying run-down properties in great neighborhoods offer the possibility of a quick return on investment. Fixing these properties and either renting them out or selling them outright can give you a great return in less than 6-12 months of effort. The trick is finding the right property at the right price -- which can often mean many months of learning, and quick returns after that. Please note that foreclosure purchases are usually not as profitable as fixer-uppers in the short-term, though over a 3-5 year period, foreclosure purchases can yield high returns as well.
In each case, the goal of an investment with quick returns is a return of your invested capital, so that you can deploy it into a new situation. Frequently called as the velocity of money, it is important that you get your own money back first and do so quickly. Locking up your invested capital for long periods is not the formula you are going after with this approach -- and thus must eschew several of the fundamental principles associated with long term investing.

