Wine investment outpaces stocks and shares

Fine wine has been the best performer of all major investment assets since 1988, according to research published this week by wine investment company Vin-X.

Fine Wine has performed better than the Dow Jones and the FTSE 100 (Photo: Wiki)

The report, written by Martin Pruszynski, Vin-X’s head of procurement, underlines how fine wine investment has been the best overall performer when total growth across major asset classes since 1988 is considered.

In that time Fine Wine has appreciated 1474%, nearly twice as much as its nearest rival, the Dow Jones (up 783%). The S&P comes in third with 744% and Property fourth with 312%. Although on a roll since the very late 1990s, the average price of a house in the UK only rose by 17% in that decade.

The FTSE 100 is fifth with 306%, well ahead of Gold with 162%. Gold, despite its rampaging bull run from 2000 to 2011, suffered from a major bear run from 1980 to 2000.

Dividends have not been included in the stock indices’ calculations as it is impossible to know for data purposes if they were spent, re-invested or just not paid.

Pruszynski points to the fact that, while Fine Wine is coming out of a difficult time since 2011, it has experienced only three five-year negative holds in the period in question, with no negative ten-year holds.

Tellingly, the worst performance seen for a ten-year hold in Wine (over what is nearly 30 years) is double the average and median inflation rates in the UK.