INVESTMENT STRATEGY
SPECIALIST
INVESTING IN WINE
IS A NO-BRAINER
AS THE SUPPLY OF
INVESTMENT-GRADE
WINE IS LIMITED
IN VINO VERITAS
Investing in wine is a no-brainer as
the supply of investment-grade wine
is limited and there are more than a
million millionaires in China alone
who want to drink it, says Peter
Shakeshaft, chief executive and
founder of Vin-X, a wine investment
company.
“It’s basic economics,” said
Shakeshaft, “while it has had
corrections and crashed in 2005,
it generally delivers double-digit
returns and is very exciting.”
Bordeaux is the primary asset –
few other regions offer wine of a
high enough quality, beyond one in
Australia and a handful elsewhere
in France (Champagnes and a
few in Burgundy), Spain, Italy and
California.
Jeremy Waud, who runs Waud
Wine Club and an investment
company, says investors have
made serious money and dismisses
claims of high maintenance costs
of buying premium wine.
The fact it is held in a bonded
warehouse means wine is not
only CGT-free, but incurs no VAT
or duty until it leaves the site.
He adds any storage costs are
minimal and well below what
you may expect to see in terms of
appreciation in value.
“So you can buy two and
drink one,” said Waud, “which
gives you access to high
quality expensive wines at very
reasonable prices.”
Although funds are available
for investing in wine, the other
advantage of directly owning it
is that your name is on the case
in the warehouse and you’re not
relying on a firm to make the right
decisions or remain in business.
“Wine is now a real asset,”
said Shakeshaft. “We have Liv-X,
a worldwide market for wine,
making it open and liquid – pun
intended.”
COMPARING LONG RUN MEDIAN AND AVERAGE GROWTH
BETWEEN FTSE 100 AND LIV-EX WINE INDICES
Liv-Ex Investables
FTSE100
350%
However, cigars to invest in start
in the region of £20 up to around
£100 per stick, Emery explained,
although you need to buy them by
the box.
Prices have reached the highs of
the mid-1980s, but Emery doesn’t
consider it a cast-iron investment
opportunity: “It’s best if you buy a
cigar you enjoy smoking and now
and again sell a box,” he said.
trustnet.com
300%
250%
200%
244.24%
150%
199%
100%
80.29%
103.15%
40%
36.46%
54%
5 Yr Median
5 Yr Averge
10 Yr Averge
50%
0%
81.77%
10 Yr Averge
Source: Liv-Ex & FTSE
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