Fine Wine Investing
Fine wine expert Dominic Brennan joins The Next 100 Days to discuss wine investing. Today he wants to explain the things you might consider if you’re going to invest in fine wine.
Noble Rot
Noble Rot was founded by two very interesting people. Esme Johnstone who founded Majestic Wine and Lord Clifton Wrottesley.
Dominic says that Noble Rot is actually a process for making some of the best sweet wines in the world. It’s a fungus that dries the grapes out, takes out the water and makes it more sugary and syrupy.
Why to Consider Fine Wine as an Investment?
It’s certainly a niche investment Dominic states. Fine wine investing has definitely been growing. En primeur is something people have been doing for decades upon decades.
How it works is very straight forward. You go to France and buy two cases of wine. By the time you got round to drinking the first case, the second case would have gone up in value.
So if you sold the wine, you make your money back.
Like all things, technology comes into the game and creates a more connected world. Fine wine investing is incredibly exciting to Dominic. It’s something that really
grabbed his attention when he was looking at working in the wine industry. What makes Noble Rots different to any other investment is that you’re investing into a real asset.
A physical thing. That sets it apart from other things such as equities and bonds. Having a physical asset is ahead against inflation and risk.
How Long Do I Have To Invest
Dominic says that every portfolio is different. So there’s different levels of risk, time periods for investments. He’d suggest investing for around 5 years to make a good profit.
They have a bunch of clients and a mixture of different strategies. Whether you have bit more money, or just £2000, there are wines that Dom knows that will appreciate in value crazily.
Returns over time varies. The longer you leave it the more it will gain value.
When compiling a portfolio for our clients, Dom ensures that in each wine there is the perfect marriage of an excellent rating, and good liquidity. When clients instruct him to ring-fence a portion of their investment for en primeur, the team actually travels to Bordeaux each year to taste and assess the vintage – allowing them to detect any emerging opportunities in the market.
If you think you’d be interested in Fine Wine Investing then visit their website here.
Kevin Appleby is the Business Accountants Mentor and is COO at GrowCFO. He also hosts the GrowCFO Show, a podcast dedicated to finance leaders. You can get in touch with Kevin directly here.
Graham Arrowsmith runs Finely Fettled a marketing consultancy that helps businesses market to the affluent. Additionally, he is about to launch a new business called Meet Professionals, which introduces people looking for financial advice to Financial Advisers.
Contact Graham Arrowsmith or Tori-Jade Rhodes at: https://finelyfettled.co.uk
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