As the market volatility extends well into the second half of 2022, alternative investments are increasingly gaining traction against conventional equities and debt instruments. As concerns regarding a global economic slowdown become rampant, equities have demonstrated subpar performance so far this year, with the benchmark S&P 500 and Nasdaq Composite indexes currently in the red, in terms of year-to-date performance.
Comparatively, wine investments have paid off over the past year. With robust global demand for fine wine and a rising number of billionaires, some of the best-known fine wines have outperformed shares of industry-leading companies including Ford Motor Co. F, tech-giant Apple Inc. AAPL and EV-pioneer Tesla Inc. TSLA over the past year.
2019 Château Lafite Rothschild
Bordeaux is the most popular fine wine producer in the world, accounting for nearly 30% to 40% of the global wine trade. Its 2019 Château Lafite Rothschild became one of the best-selling clarets over the past year. Since June 2021, the price of one bottle of Château Lafite Rothschild has more than doubled. The blue-chip Bordeaux was the most-traded wine globally in the last week of June.
This wine’s one-year return of 104% far outpaced the share prices of Apple, Ford and Tesla.
1998 Château Cheval Blanc
Château Cheval Blanc wines are some of the most prestigious products in the world of fine wine, known for extraordinary aromas. It is one of the few wines that obtained the rank of Premier Grand Cru Classé (A), the highest in the classification of Saint-Émilion wines. The price of a 1998 Cheval Blanc rose 40% year over year from $1,032 per bottle to $1,450 per bottle.
The wine’s one-year return doesn’t quite match that of the 2019 Château Lafite Rothschild, but it’s quite impressive and still beat the price gains of Apple, Ford and Tesla over the same period.
2018 Screaming Eagle
While the French are known for their exquisite wineries, the U.S. is catching up. The 2018 Screaming Eagle wine, produced in the Screaming Eagle Winery and Vineyards in the Napa Valley of California is the third on this list of best-performing wines. The price of a single 2018 Screaming Eagle bottle rose 28% over the past year and is currently valued at $4,666 bottle.
The 2018 Screaming Eagle’s year-over-year gains have been neck and neck with Tesla and clearly outperformed Apple and Ford.
One-Year Returns Compared
Data as of August 22, 2022
Asset |
One-Year Price Gain |
2019 Château Lafite Rothschild |
104% |
1998 Château Cheval Blanc |
40% |
Tesla Inc. |
27.83% |
2018 Screaming Eagle |
28% |
Ford Motor Co. |
23.3% |
Apple Inc. |
13.73% |
Liv-ex Fine Wine 1000 Index |
24.3% |
S&P 500 Index |
-6.84% |
Today's Alternative Investment Highlights
- Wine investment platform Vint is set to launch its largest offering to date this week -- Bordeaux En Primeur 2021 Collection at $50 per share. Merlot yields in the Bordeaux region were impacted by cold temperatures and early frost in 2021, leading to lower volumes and higher demand for the vintage.
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