Our New Benchmark: VGSLX

Measuring Up to Our Benchmark As mentioned in our past investment letters to you, we have selected the Vanguard Real Estate Index Fund Admiral Shares (Ticker VGSLX)[1] as our benchmark for comparison on all investments going forward. We feel this is the most appropriate benchmark to compare our returns to. Why the change now? You might be asking this question right now.  As with all things in my investment philosophy, the answer lies in something related to my hero, Warren Buffett. I recently went back and read all the Buffett Partnership, Ltd letters. As you may know, prior to his taking over of...

What is Crowdfunding?

I’ve spoken before about crowdfunding and how we use it to make real estate deals, but I realized that I’ve never actually explained what crowdfunding is. Crowdfunding is the concept of raising large sums of money by appealing to a large group of people. Typically this is done over the Internet in order to reach the size we need. In 2013, more than $5 billion was raised through various crowdfunding campaigns. It’s a powerful tool. Crowdfunding is a spinoff of the fundraising industry. Depending on the type of organization, some fundraisers will seek smaller donations from large groups of people, rather than...