Advice about building a wine portfolio

10 Key Principles offered by wine merchants Justerini & Brooks for building a fine wine portfolio

1. Any investment should be treated as a long term one and at J&B a
minimum of five to 10 years is usually recommended.

2. Only buy from trusted wine merchants and never be drawn in by
cold-callers. Demand a strong track record from the people you will be
buying from.

3. Build a rapport with your merchant. Loyalty will be rewarded with the
opportunity to get hold of the rarest wines.

4. Do not put all your eggs into one basket. Wine should only be a
percentage of your portfolio.

5. Do your research. Get to know the market, the fine wines and the
current trends. Ask a wine merchant you trust to guide you.

6. Use wine-searcher.com to compare prices.

7. Buy under bond cases whose provenance you know. And keep your
wines stored under bond. If it is purely an investment purchase then you
will be able to sell your wine without ever having to pay VAT.

8. Store your wines in a proper storage facility. J&B use Octavian where
each case is labelled for each customer. This is not as common as it
should be, but is definitely recommended.

9. Diversify your portfolio. Trends come and go and having all your holdings
in one or two wines is a risky strategy.

10. Enjoy wine. This sounds obvious but investments can go down as well
as up, and even if you can’t sell it, you will have the pleasure of drinking
some of the finest wines in the world.

Reproduced from economia with the kind permission of the publisher and Justerini & Brooks

http://economia.icaew.com/

http://www.justerinis.com/