🍷 You Should Invest in Fine Wine

→ CLICK HERE TO INVEST IN FINE WINE W/ VINT ←

In this post, we’re going to explore:

• The concept of investing in fine (investment-grade) wine

• The historical returns of fine wines compared to the stock market

• How to begin investing in fine wine with $50

⚡ The Concept of Investing in Fine Wine

I don’t know about you, but I love sipping on a glass of a $15 cabernet sauvignon while relaxing after a long week of work. I’m not a heavy drinker — I’ll share a glass of wine with friends maybe once or twice a month — but I sure do enjoy it.

Let’s start at the beginning

As you all are well-aware, in the stock market we have indices — like the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite. These indices track an underlying “basket” of stocks, that either go up or down.

Here are the stocks in the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite for reference.

Similar to the stock market, when it comes to investing into investment-grade wines, there is an “industry leading benchmark” investors follow — it’s called the Liv-ex Fine Wine 1000.

Throughout 2021, the broad-market index grew +21% — and is up +12% YTD, representing ~21 month returns of about +33%.

According to their website, the Liv-ex Fine Wine 1000 tracks 1,000 wines from across the world and is the broadest measure of the market. It comprises seven sub-indices which represent the most traded wines from regions around the world:

• Bordeaux 500

• Bordeaux Legends 40

• Burgundy 150

• Champagne 50

• Rhone 100

• Italy 100

• Rest of the World 60

Above is an image that illustrates the trailing 12-month returns of the each subcategory inside of the index. As you can see, the Champagne and Burgundy subcategories are both up nearly +50%.

What is driving these returns higher?

If we zoom out, we can see there have been a few years of consolidation in prices before moving higher — so why now?

Why are the value of these investment-grade wines increasing so much?

There are a few main catalysts for this outperformance:

• Inflation-Resistant — inflation has little effect on fine wine

• Recession-Resistant — fine wine weathers economic downturns just fine

• Low Volatility — with bond-like stability, you can expect consistent performance, even when the stock market feels like a roller coaster

🍷 Building a Collection of Fine Wine (and More)

If you’re like me, you have a diversified portfolio. As you all know, my money is invested across several different asset classes:

• Single stocks

• ETFs

• Cryptocurrency

• Real Estate (Fundrise)

• Privately-held Companies

• Alternative Assets on Rally Road

However, with all of that being said — I’m always looking for a way to continue to diversify my investments in an effort to not only grow, but more importantly, preserve my wealth against inflation.

How to get started

After researching several different options, I chose to invest my money using Vint — the only modern wine investing platform that I’ve seen to produce distributions for their investors.

Unlike their competitors, you are not blindly buying a bottle of wine or champagne in a marketplace-fashion — crossing your fingers someone is going to buy that bottle from you for more than you paid for it.

With Vint, real people with decades of experience in the wine and spirits industries do the hard work of sourcing the right collections. Once sourced, the bottles are transferred to a climate-controlled professional storage facilities where they’re monitored, insured, and kept in pristine condition.

The collection is then securitized with the SEC and goes live to investors — like us.

Vint monitors the market and fields offers on the collection, until ultimately selling either a portion or the entire collection to someone else. Once sold, Vint then returns the proceeds back to the initial investors.

Vint has followed this process now with 39 collections of investment-grade wines and spirits — with their most recent distribution to investors representing a +22% annualized return on investment.

Investing in my first collection

I say this every time we talk about alternative assets — but I want to remind everyone reading now. Only invest a small portion of your overall portfolio into these type of things — 2-5% depending on risk tolerance, time horizon, and other personal factors.

This is the collection I’m going to invest $1,000 into — and here’s why:

• Bordeaux seems to be one of the most sought-after names in the wine world — not just because of the fame of past wines produced in this region, but also because it acts as a hub for commerce and trade.

• Today, Bordeaux is still at the forefront of the global wine trade as it is the only major wine region in the world that sells a large majority of its wine via futures contracts (En Primeur).

• This collection offers exposure to 46 producers and over 1,100 bottles from the 2021 vintage — carefully crafted to include top producers in the region as well as “bang for your buck” value.

Read more analysis on the offering here.

To learn more about investing into fine wine and spirits, click this link — create an account, then navigate to the website’s blog where they share research on supply & demand trends, choosing a collection, and the impact of inflation on wine.

If you end up investing into a collection — let me know!

Right now there are three that are live on their site:

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.