Comments on: WSJ: fund with wine http://www.drvino.com/2007/02/26/wsj-fund-with-wine/ wine talk that goes down easy Fri, 05 Dec 2008 17:04:11 +0000 http://wordpress.org/?v=abc By: Philippe http://www.drvino.com/2007/02/26/wsj-fund-with-wine/#comment-1057 Philippe Fri, 23 Mar 2007 16:40:14 +0000 http://70.103.16.189/~drvinoco/wordpress/2007/02/wsj-fund-with-wine/#comment-1057 An important point in favor of wine investing is that it is difficult for the taxman to know the basis, and, for now at least, the returns skirt the capital gains trap. An important point in favor of wine investing is that it is difficult for the taxman to know the basis, and, for now at least, the returns skirt the capital gains trap.

]]> By: Winevestor http://www.drvino.com/2007/02/26/wsj-fund-with-wine/#comment-936 Winevestor Thu, 01 Mar 2007 13:23:00 +0000 http://70.103.16.189/~drvinoco/wordpress/2007/02/wsj-fund-with-wine/#comment-936 There are no ifs and buts - Wine is an investment. If you look at it as part of a portfolio, it is largely uncorrelated with the broader US financial markets (a good diverification ploy), and has had a ROR equivalent about equivalent to the S&P500 over the long term (and a lot better over the short term).<BR/><BR/>However, for those of us who love wine and know where the good stuff is, it gives an extra dimension to our hobby, to get more than we need and then sell some off when we need another fix of the new stuff.<BR/><BR/>Life is good! There are no ifs and buts - Wine is an investment. If you look at it as part of a portfolio, it is largely uncorrelated with the broader US financial markets (a good diverification ploy), and has had a ROR equivalent about equivalent to the S&P500 over the long term (and a lot better over the short term).

However, for those of us who love wine and know where the good stuff is, it gives an extra dimension to our hobby, to get more than we need and then sell some off when we need another fix of the new stuff.

Life is good!

]]> By: Dr. Vino http://www.drvino.com/2007/02/26/wsj-fund-with-wine/#comment-937 Dr. Vino Mon, 26 Feb 2007 22:15:00 +0000 http://70.103.16.189/~drvinoco/wordpress/2007/02/wsj-fund-with-wine/#comment-937 Perhaps a crash will come, Mark. Indeed, bubble-like conditions where wines are priced like Dutch tulips in 1637 you've got to wonder. Of course there are those who will point to the positive supply-demand characteristics: Chateau ABC only produces X cases of wine every year, but every year there are more people who gain the purchasing power to buy it. Perhaps a crash will come, Mark. Indeed, bubble-like conditions where wines are priced like Dutch tulips in 1637 you’ve got to wonder. Of course there are those who will point to the positive supply-demand characteristics: Chateau ABC only produces X cases of wine every year, but every year there are more people who gain the purchasing power to buy it.

]]> By: Mark http://www.drvino.com/2007/02/26/wsj-fund-with-wine/#comment-938 Mark Mon, 26 Feb 2007 18:23:00 +0000 http://70.103.16.189/~drvinoco/wordpress/2007/02/wsj-fund-with-wine/#comment-938 I see that Decanter.com has just launched its guide to wine investment (http://www.decanter.com/specials/104729.html) - sadly I don't have the £10,000 suggested as the minimum required for a balanced portfolio (nor the will power required to tuck into my nestegg...)<BR/><BR/>I think you're right, however; an increased interest in wine investment could push up prices in the short-term at least. With any market, however, there needs to be room for growth and when this becomes limited we'd likely see a correction - or maybe even a crash - as investors get out. Perhaps then the rest of us will be able to pick up some great wines at affordable prices...hopefully just as they reach their peak! That's my plan, anyway. I see that Decanter.com has just launched its guide to wine investment (http://www.decanter.com/specials/104729.html) - sadly I don’t have the £10,000 suggested as the minimum required for a balanced portfolio (nor the will power required to tuck into my nestegg…)

I think you’re right, however; an increased interest in wine investment could push up prices in the short-term at least. With any market, however, there needs to be room for growth and when this becomes limited we’d likely see a correction - or maybe even a crash - as investors get out. Perhaps then the rest of us will be able to pick up some great wines at affordable prices…hopefully just as they reach their peak! That’s my plan, anyway.

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