Stockpickr: Four Ways to Win Like Buffett

A basic example of where this type of investment occurs in the markets is in merger arbitrage. If someone offers to buy company ABC for $50 a share and ABC trades for $45 a share (perhaps because people are doubtful the merger will occur), you can take advantage by buying ABC for $45 and later selling at $50 when the deal is done.

I plan to write a more detailed article on how to play this strategy and why these situations occur. In the meantime, at Stockpickr we're updating the latest merger arbitrage plays every week with some explanation for each one.

Stockpickr tip of the day: I don't follow football too closely, but I love to watch all of the commercials during the Super Bowl. We have a two-part series on how to benefit from looking at the stocks of companies that advertise in the Super Bowl. Here are some fun facts:

• Since Jan. 1, 2006, until now, the stocks of the top advertisers in last year's Super Bowl have together returned an average of 25% to their shareholders.
• Since 1987 until today, investing in the top advertisers returned 1,087% vs. 881% for the S&P 500.

For more information, plus some rationale as to why these things are occurring, please check out the blog posts here and here.