Off the Beaten Track

Some people are never satisfied--particularly investors. Though 20 million U.S. share owners seek their opportunity in the stock market and millions more are attracted to bonds and mutual funds, a growing number of investors are eager to take a bigger risk in the hope of making a faster buck. They are plunging into unconventional investments that offer such attractions as novelty, tax relief and, when the investor has guessed right, quick-rising profits.

Barrels & Breeding. Many of the opportunities are new; others have been around but are just being discovered by the mass of speculators. Investment in Scotch whisky, once highly specialized, has become so widespread that the Securities and Exchange Commission recently announced that it will move to impose controls on it. Investors buy the raw whisky by the barrel, wait while it ages for three years or longer, often collect a 100% profit when it is finally sold to bottlers. For $1,000, those who want to be angels can buy a 1% share in the North American rights to a low-budget European bedroom comedy or spy thriller, can look forward to doubling their money if the movie is moderately successful or doing much better if one of its smalltime starlets blossoms into a minor Bardot or Lollobrigida.

Antique cars have become so popular in the U.S. that putting money into them frequently produces a handsome profit, and small radio stations across the U.S. are doing so well (average yearly profit: 20%) that they have become a favorite investors' haven. Other investors have discovered both the profit and joys of horse breeding, attracted by last year's 23% increase in the auction price of racing colts. Cattle managing has also become popular; it boasts such notable investors as Jack Benny, Greer Garson and Advertising Executive Marion Harper, all of whom seek the average 30% -40% annual return after taxes. The net runs high because earnings from sales of herds are taxed as capital gains at a top of 25%, and investors can write off the expense of raising herds against their income taxes.

Caveat Emptor. The tax angle has also heightened the appeal of shares in oil wells, which enable the investor to claim the 27 1/2% depletion allowance and write off the expenses of drilling and operating the wells. There is speculation in money itself: the growth of coin collecting in recent years has nudged the value of uncirculated coins up as much as 70% a year. Diamonds, long a solid investment, are attracting more investors than ever; prices of small stones have risen 7% in the last year. Another longtime investment area, commodities futures, is winning new enthusiasts. For as little as $500 and a 95% margin, investors can buy a commodity contract valued at $10,000, gambling that it can be resold at a higher price. To the list of dozens of commodities (including soybeans, wheat and pork bellies), the Chicago Mercantile Exchange last month added a new opportunity for investors: futures in dressed beef.

In such cases the old rule of caveat emptor especially prevails. The offbeat plunger can make a big splash if he is lucky; he can also quickly go under. Bankers and investment houses usually shy away from such unusual and high-risk opportunities, but potential investors seldom have trouble hearing about them. Word travels rapidly through accountants, special brokers, newspaper advertisements, relatives or neighbors who want to let someone in on a good thing--they hope.

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