Why not? Have you ever thought about investing in wine? In this period more than ever, diversifying your portfolios can be wise: bonds offer very low yields and for the stock market you need to be able to withstand sudden (and sometimes shocking) ups and downs. So why not decide to make a different investment, perhaps “anti-crisis”?
According to the Knight Frank Alternative Investment Report, collectible wine is the 2nd most performing after art, with double-digit growth over the past 5 years.
It is no coincidence that finance guru Warren Buffett has repeatedly advised investing at least 1% of your wealth in wines, and added: “Invest only in something that you would be perfectly happy to keep if the market closed for ten years.” Over the past 10 years, investments in fine wine have consistently recorded higher returns. Wine, in fact, improves with aging and, due to consumption, becomes rarer: the production of a specific wine is limited to certain soils and is not like any other product of which one can simply produce more as the demand grows
Now, then, there is also an app that makes everything even easier: it’s called Vindome and allows you to trade with wine. Of course, these are wines of a certain type, which come directly from renowned producers. One of the main advantages of using the Vindome platform is that it offers immediate access to hundreds of wines, including special vintages and en-primeur (i.e. sold before the wine is bottled, a sort of future of the wine market).
And it is the CEO of Vindome, Ingrid Brodin (in the picture), Swedish with an MBA from SDA Bocconi, to explain the secrets of investing in wine.
How does it work? If I have a thousand euros, what should I do to invest in wine?
«Investing in Wine with Vindome is really very easy! The app is available for free for iOS and Android. Once you have downloaded and registered Vindome allows you to purchase fine wines in two ways: Collections offers the opportunity to access wine assortments divided by budget and calibrated investment time horizons. A mode designed mainly for beginners, which allows you to know the wines and the main mechanics of the market and to start creating a balanced portfolio. Then, there is Vindome Live Market which instead allows you to operate in a real wine market in real time, browsing among hundreds of excellences and where it is possible to buy directly at the market price or make an offer, without minimum investments required. Once you have found the wine of interest, you can buy it directly at the market price or make an offer. The app will then indicate the quantity, total price, commissions, storage costs and ask the buyer to confirm the purchase, making transactions simple for all types of users. There is also a page for each wine Wine Details, including the product description, ratings, and any previous investments the buyer has made in that particular wine. We also have a team of experts, available by email or phone, to offer advice based on budget, personal taste and profitability expectations. To make everything functional and safe, it is the high technology that permeates every step of the process. Each case of wine is labeled and sealed with an NFC tag and all transactions are recorded on the blockchain, thus guaranteeing their total inviolability. The crates are stored in warehouses strategically located near the production regions and equipped with advanced technologies, capable of guaranteeing ideal temperatures, humidity and safety. The system at the basis of Vindome also provides for the storage in suspension of VAT, which must be paid only at the time of any redemption of the wine and limited to its purchase price, not on the current market value. Through our app, we offer the possibility to create and manage your portfolio in a modern, secure and transparent way, through a very intuitive experience ».
How long do I have to wait to understand how my investment is doing? Then how can I resell what I bought?
«Wine is a medium and long term investment. We are talking about an average of 5 years even if it is possible to make punctual operations in the short term. To facilitate the selection of quality wines by less experienced investors and the construction over time of a portfolio that can acquire value, wine collections have been designed for short (2-5 years), medium (5-9 years) investments. ) and long term (9+ years). New collections are regularly introduced, to offer the user additional investment opportunities and the ability to grow their portfolio. To sell, simply select the wine you want to sell in your portfolio on the app, set the price and create an offer that will appear on the Vindome Live Market. The other users will see the sale proposal and to buy they can make an offer equal to the proposal, and then the transaction will be executed immediately, or make another offer which then it will be up to the seller to decide whether to accept or not “.
When investing in a wine what do you need to pay attention to?
«First of all, the provenance in order to guarantee authenticity. The history of the case, how and where it was kept. It is advisable to buy wine stored in warehouses with ideal conditions and in suspension of VAT. It is recommended to buy only wine in original wooden crates and not crates of wine assortments. As with any investment, you must also think about creating a balanced portfolio, diversifying between countries, regions, producers and vintages. Furthermore, since wine is a passion asset, I recommend investing in wines that you would like to drink ».
Which wine should you bet on?
«The great French wines remain a guarantee and a safe investment. Not to be underestimated are the second labels of the great Château which at an affordable price offer excellent quality and potential Return on Investment remarkable. For example The Little Sheep, Echo de Lynch Bages e The Pagodas of Cos just to name a few. Personally I am a fan of Italian wines and looking at their performance in recent years: they are wines that I am ready to bet on. I can trust that in addition to consuming them regularly, I am also increasing their share in my portfolio. In addition to the Tuscans such as the Brunelli and Super Tuscans, the Piedmontese wines such as Barolo and Barbaresco are meeting an important international consensus and recording remarkable financial performances ».
What would investing in wine compare to? What about works of art? About gold?
«Wine is a passion asset and as such I would compare it to art, vintage cars and watches. And today we also see other types of alternative investments such as sneakers and luxury bags which I believe have similarities with wine as an asset ».
Could you give us an example of an investment that worked?
«Little sheep, second label of Mouton Rothschild 1st Grand Cru Classé, purchased in 2009 for around 58 euros, was resold in 2019 for more than 350 euros. Recently, the en-primeur Chateau Pontet Canet 2019, sold at 58 euros per bottle in May 2020, reached 76 euros on the market in less than 3 months
at a performance of 30% ».
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
