Are you Leveraging your Fine Wine Portfolio?
What makes a good investment? “Something that makes a profit!” Do you agree? Today in a fast paced world, everyone longs for that magic pill, that shortcut, that break.
When you think of fine wine as an investment, do you think of it as a product? Or do you see your fine wine investment as a process?
If your answer is product then there is a high chance you are not realizing the full potential of your fine wines yet. Why would I say that? Because fine wine investing is not just a product or mere luck but a process. A three tiered process which involves risk management, strategy and timing.
Risk Management – Sure Holdings knows fine wines are your rare assets and mitigates your risks by storing your wines in the two best bonded warehouses in the world. All your wines stored in our warehouses are insured. We also manage the entire logistics of your buy and sell of your wines, warehousing, physical and paper audits of every single case of wine that our investors own. All wines invested with Sure Holdings are 100% owned by our clients. We also mitigate your risks by recommending only classified and highly rated French wines because they command the best resell value. Choosing a fine wine investment company of integrity like us will be your first tier to your process. You can read more about our management of our clients’ wines in Wine Storage.
Strategy your second tier is equally as important. Most times we make decisions from the heart. However, to really formulate a proper strategy for your investment, you first need to understand the market and have updated information at your finger tips. Current trends in the wine market, which wines are rallying and which are bearish. You will then know where you can reinvest your profits into either a younger or more highly rated wine. By knowing the trends, you can make informed decisions like putting investments that are not performing into something that is really moving. We understand how important information of the market is for our investors, therefore we always update you about the wine market via phone calls and emails. Plus, it is always a good rule of thumb that Sure Holdings abide to, by diversifying your portfolio. Buying wines from different regions and vintages is a good call because different wines have varying maturity times and demand cycles. With diversification, you can now leverage on your wine portfolio.
Timing is your third key component of your investment process. Timing of your buy and sell is so crucial in fine wine investment and just about any other investment. Urgency is our motto, so should yours. You need to buy when prices are low and sell when prices are high. Buy wines that have yet to rise in price and catch the uptrend of the market. Do not miss out on opportunities because wine prices do not stay for long. Sell wines that you see are moving into profit. Don’t forget to take profits and bank in your returns along the way. Even if you sell a wine and its price continues to go up further, don’t worry as long as you are making money. Reinvest your profits. Turning over your portfolio regularly is key to maximizing the full potential of your wine investment. During a downturn in the wine market, it is wise to assess the market. Do not sell your wines in blind panic. Remember, it is all about timing – when to enter and to exit the market, regardless whether the market is on an uptrend or downturn.
Potential wine investors always ask, “Is fine wine investment a good investment?”, but this flawed question sadly distracts from the true potential of fine wine investment . To leverage your fine wine portfolio, it is all about risk management, strategy and timing. It’s all in the process.
Has it given you a new perspective or am I missing the beat? I would love to hear your thoughts and thank you for participating in our chat.
– Asia’s First Class Mandarin Speaking Wine Investment Expert