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Buy domains, be they new or used, that have solid branding and marketibility potential.
The other strategy, buying for current se traffic is fine, as long as you recognize it is short term approach that will eventually dwindle out. If you can make a sufficient return in the time you can grab some free traffic, that's a plus, but it won't last forever.
The long term strategy doesn't pay upfront, but in a few years forward you'll have many goldmines.
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