Wine investments have beaten stock returns with a 13% annualized return but these wines have returned even more! Get started investing in fine wine with Vinovest [ Ссылка ]
Just like stocks, pick the right wines and you could be floored by the returns rather than the alcohol content. In this video, I’ll reveal five wine investments with amazing returns including one with a 4,900% return. I’ll share why I’m investing in wine and how to pick the best bottles.
But why even invest in wine at all? Not only has the price of fine wines beaten stocks with an annualized 13% over the last 20 years but you get so much more than just the price return.
From learning about different regions where wine is grown even down to the best years for each, this goes way beyond an investment return.
The downside to wine investing, similar to other alternative investments, is that costs will be higher than other types of investments. While an investment in a bottle of wine might cost less than $20, you’ll need to store it within the right range of temperatures and at the right level of humidity. You’ll also need to insure your wine investments against damage or theft.
It’s really why the annual fee of 2.25% to 2.85% on Vinovest doesn’t seem as high as you might think when you consider it stores and insures your wine professionally. Beyond storage and insurance, you get expert pricing as well as other benefits like a portfolio review and access to rare wines.
I also want to also share four key factors to picking wine investments, four things to watch for to buy the best bottle!
First is the producers of the wine, there are just some vintners recognized as producing the best wines like Chateau Cheval Blanc and Chateau Angelus with its history stretching back all the way to 1782.
If you’re investing yourself and taking possession, you’ll also want to make sure you get proof of authenticity …not just to prove to yourself but if you later sell the bottle.
Get to know the different regions for wine . Not only is this immersion learning one of the benefits to wine investing but can also improve your returns. It’s just a fact that some regions like the Bordeaux in France are known for the best returns in the market.
You also want to get to know which years are considered the best for the regions and vintners . Besides environmental events that can make for a particularly good year for a region, the age of a bottle is going to be important for how long you hold it before resell.
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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
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