Fine wine hailed as 20th century winner

Returns on fine Bordeaux wines outperformed government bonds, fine art and stamps throughout the 20th century, making it one of the soundest investments of the last 100 years.

FineWineCellarResearch carried out by a team of academics from the University of Cambridge, HEC Paris and Vanderbilt University, Nashville, Tennessee found that wine investors could expect a 4.1% return on their investment from 1900 to 2012, beating those of government bonds, fine art and stamps, as reported by Reuters. 

The only investment that fared better was in British equities, which would have given annualised returns of 5.2%.

Elroy Dimson, visiting professor at the Cambridge Judge Business School, told Reuters: “You would have done nowhere like as well as equities but the returns are surprisingly high compared to the returns on cash or bonds.

“Life is a little unfair and wealthy people who buy these assets – in this case wine – if they keep half to drink and sell half, maybe the half they sell could pay for the half they drink.”

The research focused on data from 36,271 transactions for five red Bordeaux wines – Haut-Brion, Lafite-Rothschild, Latour, Margaux, and Mouton-Rothschild – from the sales rooms of Christie’s auctioneers and wine merchant Berry Bros. & Rudd.

Annualised real returns over the same period on British government bonds were 1.5%, 2.4% on art and 2.8% on stamps, according to the study’s data.

While fine wine is currently riding high, Dimson said his tip was to watch out for whisky, hinting that “fine whisky may be the coming thing”.

 

One Response to “Fine wine hailed as 20th century winner”

  1. Simon says:

    This is nonsense!
    Wine pays no dividend but has to be bought and sold to release any gain. The investor has to make decisions as to when to buy and/or sell. These decisions are not statistically measureable. Furthermore being a wasting asset many buy/sell decisiions have to be made over 100 years unlike art or stamps the quality of which does not change over time.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

Subscribe to our newsletters

Sales Scotland

Liberty Wines
Scotland, UK

Supply Chain Supervisor

Speciality Drinks
UK, UK

Sales Manager

Stilnovisti
London, UK

Regional Key Account Manager - On Trade

Lanson International UK
South of England, UK

Private Account Manager

Jeroboams Wine Merchants
London N1, UK

Sales Role

JF Tobias
London, UK

Events Assistant

Decanter
London, UK

Head of Marketing

Decanter
London, UK

Market Manager - Asia

Wines of South Africa
China,

Administrative Assistant – Private Clients

Howard Ripley Ltd
Barnes, London, UK

Prosecco Springs

London,United Kingdom
26th Apr 2018

Spirits & More

Rome,Italy
19th May 2018

db Awards 2018

London,UK
23rd May 2018
Click to view more

The Global Malbec Masters 2017

the drinks business is proud to announce the inaugural Global Malbec Masters 2017

The Global Sparkling Masters 2017

the drinks business is thrilled to announce the launch of The Global Sparkling Masters.

Click to view more