The Investment Approach for Bordeaux Wines
What is the best investment approach for Bordeaux wines? There is no one perfect strategy or winning formula to magically produce the kind of returns that is putting wine investment on the map. To invest profitably in fine wine, one must have a solid financial strategy coupled with an extensive insight into the fine wine industry. Careful selection criteria, industry information and timing are all factors that can influence the outcome of your fine wine investment.
The objective of the Bordeaux Traders structured investment plan is to provide clients with annual double-digit capital growth. Our financial analysts and intelligence department have a proven track record of monitoring and identifying market trends and delivering comprehensive market research that make the target appreciation achievable.
The ideal investment approach when dealing with Bordeaux fine wines is dependent on a host of factors; client needs and requirements, as well as several major points that need to be addressed:
Due to our elaborate market research techniques and due diligence, evaluations of market prices and value for each and every wine from top chateaux is carried out. Comparisons across numerous chateaux and vintages allow our investment brokers to identify undervalued (BUY) and overvalued stocks (SELL). Trend monitoring and analysis of the fine wine market greatly assists in sourcing the top wines for maximum capital growth, while pinpointing the best time to sell for stock that has peaked. In a financial environment where timing is crucial, market research is the backbone to a sound investment strategy.
As fine wine is being traded on a daily basis since a number of years, the market prices have become more sensitive and volatile. Since our traders have access to large amounts of market data and constantly up-to-date ‘Bloomberg style’ trading screens, arbitrage opportunities are spotted by the investment team immediately. With our global network of industry contacts, correctly assessing the market and having the sources to buy and sell stock at any time is of great importance.
It is a fact that professional wine spectators, commentators and critics can influence the prices of fine wines immensely. The most influential wine critic in the world, Robert M. Parker Jr. certainly has a significant effect on fine wine prices. Nevertheless, evidence has shown that these critics can initially underrate and overrate wines from time to time, and latterly adjust their scores. Our expertise, professional connoisseurs and tasting ability allow us to internally review the quality of the wine and thus adapt our investment strategy accordingly.
Whilst Bordeaux Traders believes that the most profitable returns are achieved in the secondary market there are circumstances in which En Primeur purchases, also known as ‘wine futures’, can result in healthy investments. En Primeur is a fine wine investment approach where a commitment is made before the wines are bottled. With this technique clients can invest in wines while they are still in their barrels. This approach to investing carries a higher level of risk, but also an increased potential for massive returns. Demand for such high-end ‘wine futures’ is always extremely high, therefore, having close relationships directly with the French negociants allocating such prestige stock is very useful for our more speculative clients.
As we have outlined, investing in fine wine is by no means a simple procedure. There are many factors to be aware of and an in-depth understanding of the industry is required. Bordeaux Traders have years of experience when it comes to alternative investments, particularly in the fine wine industry, and our investment approach has garnered much success over the years. For a free consultation regarding fine wine investment and financial strategy, get in touch with us today!
Bordeaux Traders - The Fine Wine Investment Brokerage GmbH
Kaerntner Ring 5-7, 1010 Vienna
Phone: +43 1 20511 60 1241
Fax: +43 1 20511 60 1008