How to build wealth with a strategy based on fine wine

by Oct 29, 2020News, Wine Trading Academy0 comments

Photo: Martyna Jovaišaitė Paukštė, for Alti Wine Exchange

Photo: Martyna Jovaišaitė Paukštė, for Alti Wine Exchange

Dear reader,

It seems hard to think of building wealth in times of upsurge in covid-19. But yes, you can do it with fine wine investment. And you can start today.

All it takes is a simple change of strategy for the long term: commit yourself to a small share of alternative investments. In the case I will show you, relying mostly on fine and rare wines.

Yes, you really can build wealth if you invest in fine wine.

I’m Breno, proud fine wine investor and head of content at Alti Wine Exchange. And here is why and how you should go ahead a modified wealth-building approach by investing in wine. Thus, diversifying your portfolio with a profitable and ever more attractive asset for new prospective investors.

 

What makes fine wine a good alternative investment asset

In times of economic uncertainty, many investors go for physical and tangible assets: some buy real estate, gold, or art. These are famously referred scarce resources when we talk investment – real, hard assets.

Fine, rare wines like the ones offered by Alti Wine Exchange and traded on its marketplace are among them. They have unique advantages:

  • Without even having to get off the couch, you can digitally invest in them to be kept with full safety and perfect storing conditions in bond.

  • Unlike cryptocurrencies, for example, fine wines you purchase at Alti Wine Exchange are asset-backed (one token, one bottle).

  • You can physically enjoy your investment (you can ask for delivery at any time you want).

  • Wine has perpetual demand (as a consumer product), and every fine wine sold at Alti Wine Exchange improves with age.

  • Fine wine investment is based on supply and demand: as time goes by, bottles of a determined vintage are consumed, thus supply becomes rarer and makes the remaining ones appreciate due to stable or rising demand.

  • Even if wine price indexes may experience ups and downs, fine wines are hard assets that are not correlated to the stock market, thus subject to constant appreciation once you already hold them.

  • You can put bids and offers whenever you want in a secondary marketplace, maintaining full control.

  • You also have tax advantages, because considered a waste asset (but always check with your tax advisor in case you redeem a bottle!)

Don’t believe how this translates into appreciation? Compare the performance of our fine wine indexes versus key European stock indexes.

AWEeuroindex.png

 

A new strategy to build wealth with the help of fine wines

As we go through this era of risks, it’s time to consider the strategic opportunity that a tangible asset such as fine and rare wine represents.

Here’s how you can adopt a simple strategy:

  • Commit around 3 to 5% of your portfolio to alternative assets as fine and rare wine.

  • Research the wines you would want to hold, ensuring they will withstand the test of time or improve as the years go by (the wines offered at Alti Wine Exchange are all previously proven to be age-worthy).

  • Find a reliable source, with certified provenance, to build your “wine collection” portfolio to avoid cold calls and scams.

  • Unless you plan on redeeming your bottles, keep them in bond for years to ensure the best storing conditions. Consequently, ensuring the maximum possible appreciation they can have as tangible assets.

  • When you are all set and good to go, you can start to invest even monthly, as you would do with the spare of your salary.

  • Buy diversified wines (country, vintage, style…).

Here are a few top tips on what you really need to know to start investing in fine wine.

 

Why investing in fine wine is easier and safer with Alti Wine Exchange?

With our innovative blockchain-based platform, you can do it all I showed you above with little concerns, full transparency and safety.

We are the world’s first blockchain-based platform for wine exchange. We work every day to make wine trading simple and convenient for everyone by offering direct access to rare wines and — at the same time taking care of storage and security of their assets in the Bordeaux City Bond.

We are happy to say that we have a whole team of superstar investment-grade wines available for investment now.

In times when stocks may heavily drop or float, what we offer is an opportunity to add fine, rare vintages to your portfolio as great alternative assets. You don’t even have to be an expert.

Most importantly? We are free to join and easy to start trading. Got doubts? Check our FAQ.

 

Explore More from Our Blog

“Should I open my 1913 Spanish Bottle of wine?”

DEAR READER, Thank you for the warm wishes following my initial post; it brings a tear to my eye. As a wine expert, I’m honored to inspire the next generation of drinkers, growers, and lovers (of wine, I mean!). This week, I’ve selected a question that’ll give us some...

A Mailbag Column from an Eccentric Sommelier

DEAR READER: As I’ve aged, it helps me to reach out to the youth. Everyone I speak to has to be 18+ (since I deal in wine), but reaching out makes me feel like I’m giving back to the Earth—giving it more energy to spin once I’m gone. At least for now, before I get too...

Songs about wine to listen now (and our playlist for you!)

Dear reader, Wine goes well with basically anything. Music, for example, always lightens up the mood alongside a glass. It can be that you want to listen to jazz, rock, blues, pop or other music genres and styles while having a sip. It pairs so smoothly. But have you...

It’s never too late to look back and learn from the past

Paulo Pinto Alti Wine Exchange founding member Dear reader, In life, just like in the financial world I’m often mulling over, one has to reflect on what brings value to them. For this article, I have been wondering about how nothing is certain and how there are only...

Could Bordeaux wine producers save the city’s frail top tier football club?

Dear reader and wine lover, What would you do if your favourite sports club were on the verge of collapse? And what if you could use your professional contacts to save it for good? Billionaire François Pinault, France’s third-richest man – also founder of luxury group...

Summer is coming – and things really do not look promising

Paulo Pinto Alti Wine Exchange founding member   Dear reader, I must be honest. I am in a bad mood because of something I just read: this economic contraction we are in is four times worse than the one in 2008. Western living standards are getting squeezed...

A trip to Italy and its wines: a video series by Julien Miquel

  Our Chief Wine Officer Julien Miquel is always embarking on different journeys to explore what’s best and finest in different French wine regions. From Bordeaux to Burgundy to Champagne to Italy to others, he gifts us with videos and articles about what makes...

Five useful apps for wine lovers anywhere in the world

Dear reader, wine lover, No matter where you are in the world, nowadays there are great apps for wine enthusiasts like you and the rest of us. After all, as the world is ever more connected, it is becoming increasingly easier to find options right in your phone to:...

What’s ahead for French wine 2021 vintages after the frosts?

Many wine lovers have seen the recent pictures and footage of the aggressive April frosts in most French regions – from Burgundy to Bordeaux to Champagne to Rhône to Languedoc to Alsace to Provence. For many producers, the worst spring frosts in decades led to nearly...

The Lafite Spirit: our Wine Club offers from Domaines Barons de Rothschild (Lafite)

From Lafite Rothschild to its new ventures through time, Domaines Barons de Rothschild (Lafite) is always seeking new frontiers - from Bordeaux to South America to China Alti Wine Exchange offers investors and customers the finest investment-grade wines sourced...

Investing in fine wine remotely in times of Covid, tariffs and stuck cargo ships

A beautifully crafted case with bottles of Opus One, the Mondavi-Rothschild masterpiece wine we offered in 2020 Dear reader, The recent unbelievable blockage of the Suez Canal by the cargo ship Ever Given has led not only to endless memes and jokes on the internet,...

Building wealth wisely, change is both need and opportunity

Paulo Pinto Alti Wine Exchange founding member Dear reader, Every 24th day of the month I sit down figuring out what I spent. It’s an exercise that I do every month because I want to see how much I spend to live. There are two reasons for me to do that. One is my own...