The Sobering Reality Of Wine Investing: How Much 5% Into The Right Wine Can Return

Many people perceive wine investing as more of a hobby for the ultra-wealthy than a legitimate investment vehicle.

In reality, premium liquor has found itself as one of the most consistently profitable asset classes — on par with commodities and real estate. Nothing exemplifies this better than portfolio comparisons. 

Click here to invest in expertly curated collections of fine wine and spirits

In March, Vint published an analysis of different portfolio performances mainly focusing on diversified portfolios with and without premium liquor. Here’s what it shows: 

Source: Vint

Allocating 10% of investments to alternative investments over 20 years netted $16,046 for every $10,000 invested. But what happens when you allocate 5% to the Liv-ex 1000 fine wine index? There’s a drastic difference. 

Source: Vint

Allocating 5% of a portfolio to wine at the expense of bonds turned every $10,000 invested into $27,956.

Wine is a noncorrelated, low-volatility asset with an 8.5% historical return. When the markets plummeted in 2008, wine took just a 1% hit to its value. Should you run to the liquor store and grab the most expensive French Chardonnay? Probably not.

Not all premium liquors are created equal. Some appreciate faster and create a bigger buzz than others, which drives demand up. Vint does thorough research to find these wines and spirits. It then creates collections and lets investors buy shares. When the collection is sold at auction, each investor gets a prorated cut of the profits. 

The company’s fine wine experts have done this for the Bordeaux Classics collection, leading its investors to profit 29.98% in 610 days. A similar scenario unfolded with the Champagne Start collection that earned investors 24.25% in returns after 497 days. The Napa Valley collection takes the cake with a 39.04% return after a 282-day hold. 

If you’re keen on diversifying your portfolio with premium liquor, Vint is the way to go. Its collections are carefully curated, and its experts have a deep understanding of the market and can estimate the optimal time to sell.

Both nonaccredited and accredited investors can acquire shares of Vint’s offerings. Unlike buying premium bottles the old-fashioned way, it only takes a few seconds to add shares of Vint’s collections to your portfolio. A great way to start is to check out what the company has to offer. 

Click here to venture into fine wine investing with Vint.