Ryan Schroeder, of Darien, CT, has more than 18 years of experience in wealth and asset management, including managing global funds and alternative investment funds (AIF). In Darien, Ryan Schroeder spends a lot of his free time blogging about alternative investments. This is a broad category which can include, among other things, real estate venture capital, hedge funds, art and antiques – and wine. Yes, even that popular beverage can have investment potential.
Fine wine has become very attractive to investors in recent years. This particular asset had impressive returns of 9.2 percent in 2018, and this is not just a recent trend. Almost a decade ago during the market downturn, fine wine outperformed both the S&P index and the commodities markets, in addition to seeing a 14.1 percent compounded growth rate annually on the Liv-Ex Wine 100 only a few years later.
Investors have a taste for this particular product for other reasons outside of what the figures reveal. Unlike other commodities like gold or even real estate, repeated supplies are available every season from winemakers. Furthermore, wines get their value from not only great vintages (in certain locations), but through appreciation as they age. Plus, new markets are emerging. in Asia in the last few years, there has been a spike in the demand for fine wine. Ultimately, though, fine-wine investing is great way to diversify a portfolio and reduce risk.
Ryan Schroeder 