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Insufficient data. Do I get a preferred return on my investment? What does the sponsor’s promote look like? What’s the fee structure? These are the first few t

Insufficient data. Do I get a preferred return on my investment? What does the sponsor’s promote look like? What’s the fee structure? These are the first few threshold economic questions that need to be answered before I could even begin to start considering this investment (and this obviously disregards any of other threshold questions around the project itself and the sponsor). Actually, I do have sufficient data to answer this question for me personally - no. This type of investment is only going to attract dumb money, and if I’m going to invest as dumb money (which I most certainly am, in just about any passive investment I can imagine), I’m going to put it into index funds where I pay fees of ten bps or less. Not in an undiversified single project subject to all kinds of uncorrelated risks.

shaburn 4y ago
Hypothetically. Ideally. It would be fractional shares of common stock in a company that included the real estate and all components up until the watts were sold on the wire to the grid operator or long term contract to another party. Also, ideally, that fractionalization would provide some kind of liquidity and diversification across projects/regions. All ETFs operate at a level above this. They do not operate entities or even do a great job at modelling assets(go look at the contango of USO((the largest US oil ETF)) and the WTI West Texas oil price it proports to reflect; its trading paper assets with management cost layers beneath and trading fees of all sort, reflected and not).
- nocoiner 4y ago
  So, that to me sounds like equity in the parent company of an operating business. Which may well be a very worth investment! But not for me on the risk/reward scale. I’m not sure why you’re bringing up the commodity ETFs, but 100% agree with you, those are a mess and I personally wouldn’t touch them.

shaburn 4y ago

Hypothetically. Ideally. It would be fractional shares of common stock in a company that included the real estate and all components up until the watts were sold on the wire to the grid operator or long term contract to another party. Also, ideally, that fractionalization would provide some kind of liquidity and diversification across projects/regions. All ETFs operate at a level above this. They do not operate entities or even do a great job at modelling assets(go look at the contango of USO((the largest US oil ETF)) and the WTI West Texas oil price it proports to reflect; its trading paper assets with management cost layers beneath and trading fees of all sort, reflected and not).

nocoiner 4y ago
So, that to me sounds like equity in the parent company of an operating business. Which may well be a very worth investment! But not for me on the risk/reward scale. I’m not sure why you’re bringing up the commodity ETFs, but 100% agree with you, those are a mess and I personally wouldn’t touch them.