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Investors Develop A Taste For Wine

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http://www.guardian.co.uk/business/2010/aug/03/wine-investment

Investments should improve with age. But a Madrid-based fund has beaten stock markets and hedge funds around the world this year by putting its money in the ultimate vintage buy: wine.

The March Gestion Vini Catena fund, managed by Spain's Banca March, has gained 9% so far this year, compared with a 3.7% drop in the FTSE 100, and an average decline of 0.2% of hedge funds tracked by Hedge Fund Research.

The fund, which started in December, invests in companies involved in production from the vineyard through to the retailer. Its holdings include farm and fertiliser companies as well as makers of bottles, corks and barrels. Winemakers feature, as you might expect, along with firms operating cellars and wholesale retailers.

All the way up the chain, companies connected to the wine trade are cashing in on soaring prices and demand. In March, an Asian collector splashed out £45,000 for a six-litre bottle of Château Pétrus 1982.

"Wine is such an alternative investment, not too correlated to the stock market; it has limited supply – as one can't buy more land in Bordeaux or the Rioja – and fast-growing demand from emerging countries," says José Luis Jiménez, the fund's creator and managing director at March Gestion. "It won't go out of fashion as it's a culture, people go back. And few heart doctors won't recommend one glass of wine a day."

About 70% of the €18m (£15m) fund is invested in Europe, while 20% is allocated to the US and the rest is in Asia. Top holdings include champagne maker LVMH, British-based spirits company Diageo, and Spain's Barón de Ley winery. With a minimum investment of €6,000, the fund is now looking for a partner in London. Britain is not only a financial centre, it is also the world's No 1 wine importer, at 1.6bn bottles a year.

An excellent article telling you to buy into wine and make loads of money. Who needs property when you can buy wine. The price of wine only ever goes up.

Go on you know it makes sense....

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An excellent article telling you to buy into wine and make loads of money. Who needs property when you can buy wine. The price of wine only ever goes up.

Go on you know it makes sense....

Buy wine? I've won a bottle in each of the last three months: ever since being roped in to take part in a local monthly pub quiz. With entry at £2, that seems like a pretty decent return <_<

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This story is actually

"guillable investors meet man with magic beans and invest heavily"

A fool and his cow are soon parted.

Edited by SarahBell

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As per the other posters, this is a story put out by wine merchants every time there is uncertainty in the financial markets.

Anybody who is not a wine lover that buys expensive wine as an alleged investment is a fruitcake. I may not be gold's biggest fan but as least you can sell it as easily as you can buy it.

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As per the other posters, this is a story put out by wine merchants every time there is uncertainty in the financial markets.

Anybody who is not a wine lover that buys expensive wine as an alleged investment is a fruitcake. I may not be gold's biggest fan but as least you can sell it as easily as you can buy it.

Can you drink gold?

At least you can get hammered once you realise your investment is worthless.

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Bigger fool for marrying the cow in the first place :P

Why marry the cow when you can buy milk elsewhere?

;-/

Edited by SarahBell

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  • 152 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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