Stocks, bonds, cryptocurrency—these are all popular investments. But what about something more tangible, more interesting? What about having a wine investing strategy?
It might sound strange to think of wine as an investment, but wine investments have been around for years. Only recently have they become more accessible to the general public.
If you’re looking to get started with a wine investment strategy, don’t worry. Here are 5 great tips to get you started.
1. Do Your Research
This first tip sounds obvious, but we’ve all seen people waste money on “guaranteed” investments.
Take the time to learn about the different types of wine. Not only will you have a better grasp on what makes a certain vintage or type of wine appealing, but you will also be able to better understand why a particular wine would have value.
2. Patience Will Pay Off
A return on investment will not be immediate. A fine wine investment is a medium to long-term investment. You should expect to wait 3-7 years.
Investing in wine is not something for the impatient. But if you can wait a few years and build a good portfolio, it will pay off.
3. Diversification Matters
Building a wine portfolio is similar to investing in stocks and bonds. You want to build a diverse and well-rounded portfolio of wines.
Invest in different vintages of wines. Don’t invest in wines solely from one region, either.
A good variety of wines at different vintages is ideal. As your older wines reach their maturity, you can introduce newer wines into your investment portfolio, ensuring that you will have a successful wine portfolio.
4. Know How to Keep Your Investment Safe
The size of your wine portfolio means nothing if you can’t keep your wines safely stored.
If your collection consists of only a handful of wines, you could consider home storage. However, it still needs to be secure and climate-controlled.
Ideally, you will want professional wine storage. While this may cost you, the long-term returns are likely worth it.
5. Consider How Much to Invest
As with any investment, consider how much you are willing to invest. The buy-in for a wine investment may not be as low as the buy-in for stocks.
Wine investment is not without its risks. A natural disaster or a poor harvest can threaten crops. Circumstances such as these would drive up the costs of wines, which could make a new investment costlier.
However, building a diverse portfolio and investing in insured wine collections can mitigate the risk. Even during the coronavirus pandemic, fine wine has withstood the hit.
Create Your Winning Wine Investing Strategy with Vint
For decades, fine wine was an investment that few had access to. But now Vint is making it more accessible. With Vint, you can invest in wine without the costs, hassles, and worry of buying, selling, and storing it yourself.
Vint is regulated. We work with our partners to ensure all of our wine collections and to guarantee their authenticity, allowing you to invest with peace of mind.
Build your wine investing strategy with Vint today.