July 2, 2017
Investing in Wine?
The year of his wedding my younger son Stephen struck a wine deal with my older son Paul. Stephen had bought a case of 2002 Château Clerc Milon, and they agreed that they would share one bottle every year when they would meet.
Stephen brought what is presumably the eleventh bottle to our family vacation in northern Michigan to share. We all had a little of it - a great wine. I gave it 4 1/2 stars.
Now here's the kicker: Stephen said he paid somewhere between $40 and $60 a bottle in 2006. Per Vivino this bottle has a current average price of $267. If we assume he paid $50 then the value of this bottle increased 534% in 11 years. It certainly would have beaten the Dow-Jones by a mile - if we would not have corked it and enjoyed it.
Stephen has a collection of wines he says he bought years ago as an investment, and some of these wines helped him start his business.
My experience is that investment in collectibles can be quite profitable - if you are with someone knows what he is doing. I was one of a small group who bought a painting from a well known Art West painter for $80,000 and sold it for $110,000 some 18 months later.
I guess the advantage of investing in wine (as compared to other collectibles) is that you can always drink it yourself if you can't make a profit.