Investment in premier cru Bordeaux wines has far outstripped the US stock
market over the past few years, according to a study by two Swiss economists.
The 26-page paper* (backed with some complex maths) was recently published by the American Association of Wine Economists. It claims that elite wines have out-performed more mundane vintages over the period 1996-2009, and may help reduce risk for investors.
Anthony Yadgaroff, MD of Allenbridge Group the Mayfair investment consultants, comments: "We would drink to anyone who is doing well with wine investment, although on balance, we might be more tempted to drink the investment itself."
"More seriously, comparisons between wine and the stock market can be skewed. Wine does not produce dividends; shares do, and that can make a big difference over time. The cost of buying, holding, and selling shares is low, whereas wine is expensive to store and insure. Moreover, costs of purchase and disposal can be high. There is little effective regulation in an industry in which it is not unknown for a merchant to go bust, with its clients losing their entire investment. Moreover, there is growing evidence of "fake" fine wines in circulation. This is an area of alternative investment better left to the wine professionals."
* AAWE Working Paper No. 57: "Raise Your Glass: Wine Investment And The Financial Crisis"
Contact Details:
Kate Davidson, Public Relations and Media Manager at Allenbridge Group PLC.
Mob: +44 (0)78 1462 4161
Tel: +44 (0)20 7409 1111
Kate.davidson@allenbridge.co.uk
http://www.allenbridge.co.uk/
Anthony Yadgaroff, Managing Director at Allenbridge Group PLC.
Tel: +44 (0)20 7409 1111
Anthony.yadgaroff@allenbridge.co.uk
Notes to Editors:
Allenbridge Group PLC is a rare beast in the investment jungle, a Mayfair-based discount broker that also advises large FTSE corporate pension funds and global banks. Founded in 1985, it carries out specialist research and consultancy, analysing investment manager performance across a wide range of funds: Unit Trusts, Investment Trusts, Venture Capital Trusts, Enterprise Investment Schemes, Charities, Hedge Funds, Funds of Hedge Funds and institutional Pension Funds.
In addition to providing comprehensive advice and strategic investment consultancy to leading institutions, Allenbridge also offers monitoring services, valuations and its specialised AllenbridgeCare service to individual investors on investment products and tax-shelter vehicles.
Allenbridge’s private investor division serves over 14,000 clients; retail and institutional funds under advisement exceed £25 billion.