If only Ida…

A common refrain among investors with 20-20 hindsight.  If only Ida bought Apple when it was at $40…If only Ida gotten out of the market 6 months earlier…

Let’s apply the If only Ida mantra to fine wine.  The track record for good returns from investing in the world’s best wines—Lafite, Petrus, DRC, Jayer, etc—has been stellar, right? 

Not if you bought into the ’09 and ’10 Bordeaux first growths when they first came on the market.  Most have taken double-digit tumbles as the shine wore off in China and investors in these wines will be lucky to see even meager returns in the foreseeable future.  Now it’s If only Ida bought the 2000s or the ‘05s…

So what’s the secret sauce to fine wine investment?  We found a great article from Barron’s by a business savvy wine lover who built an enviable cellar with lots of very good wine that he was confident he would be able to sell down the road and make a good return.  The results were decidedly mixed and his story is a cautionary tale for investors considering wine as an alternative to more traditional markets.

We think much smaller.  Why not invest in a few cases of great wine from top vintages, hold on to it until it appreciates in value, and then sell half of it to fellow collectors.  If you play your cards right you may be able to drink the other half for free!