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Wine investment

Wines Investment is definitely not for any 'Tom, Dick or Harry'. It is only profitable for those who have deep pockets and knowledgeable with a good nose that could 'sniff out' a good Vintage! And of course, with all investments - PATIENCE is required.

"Understand what you buy and you don't have to worry when to sell." Cheers!

 

Think this investment is not suitable for me. Better stick with equity on long term basis.

ten4one      ( Date: 19-Aug-2008 09:44) Posted: I'm no wine connoisseur, but I love wines (more red than white). I did put some money into wines about 7 or 8 years ago (liquidated now with a very small gain) and find it rather 'dull'. Nowaday, I 'invest' wines in my small chiller at home and of course in my stomach too To be very frank, if you're really interested in this subject, you should visit the winery and talk to the owner and have some 1st hand knowledge for a starter. Cheers!

 

I'm no wine connoisseur, but I love wines (more red than white). I did put some money into wines about 7 or 8 years ago (liquidated now with a very small gain) and find it rather 'dull'. Nowaday, I 'invest' wines in my small chiller at home and of course in my stomach too To be very frank, if you're really interested in this subject, you should visit the winery and talk to the owner and have some 1st hand knowledge for a starter. Cheers!

 

Thanks for the explaination!

 

Wine investment...lets see...

I had been to Asset Wine Management retail shop @ Tanjong Pagar some weeks back to meet up with a wine broker.. Its really a chic shop, very well done up. Yes, u have to purchase the wine in cases.

Couple of things one need to note is that:

1. There is no benchmark about the buying / selling price. It is purely base on supply / demand theory. Of course, the write ups by wine critics are very important. One of the world most influential wine critc is Robert Parker, Jr. Think the highest pointers he had given to a label was 97 or 98. But then, if u invest in this label, the growth will be limited. Usually those labels carried by this company is above 90 pointers, so there is still growth potential. The reputation of the winery is equally important.

2. The marketing team is rather aggressive in China. What they will do is to find potential buyers to buy your portfolio. These are the rich Chinese who indulge in high quality lifestyles. Just read somewhere a Chinese businessman bought an entire label from a shop, about 12 cases, & a few other labels which makes up another few cases which cost S$250,000.00. Its all for own consumption.

3. Other things u need to know is the storage, insurance & logistic. These are usually part of the initial amount invested. U can visit the warehouse, in Singapore, to see your wine as long arrangements are made in advance.

Note: Storage is important. No matter how good its maturing potential, if stored incorrectly, it is as good as a bottle of table wine. Not advisable to store at home though, u might end up drinking your $$$ away. The room temperature usually refer to is about 13 - 15 degree C.

Also, extreme weather, e.g. droughts, are affecting many vineyards around the world. The production by wineries are getting lesser by year. Whether to invest in wine depends on your expectation on returns.

 

 

 ooh, alcohol!!  

normally you have to buy in cases, and it's stored in a warehouse. if you have a proper cellar/wine fridge, you can opt to keep it yourself too.

i think the best thing about wine investment is that, if the px goes down, you can literally liquidate your investment.

for champs, go for the DPs (DP 2002 is apparently very good); if you like aussie reds, take the penfolds grange range or if you can get your hands on it, the grant burge's holy trinity.

i think i'd make a bad wine investor, primarily because most of my investment will be going this way: 



 

 

One question - do we actually have to physically own the wine? Or do they keep it for us?

 

yes, indeed good returns, and its all in black and white...you can check it out at www.uagrp.com

 

Saw a wine investment booth 1st in Great World City last month. Then today at the invest fair saw them again. Sunday Times also featured on wine investment 2 weeks ago.

It mentioned 12 to 30% returns, I find it very tempting. Any wine Connoisseur can advice on this category of investment?

Thanks alot.