Ever thought about investing in fine wine but didn’t know where to start? We have teamed up with Robert Bentley of Foremost Wines to give you the complete low down on whether you should invest in fine wine and how to build your collection.
Part 1 Setting Your Wine Strategy
This is the first in a trilogy of blogs to help you decide if wine investment is your favoured tipple. Over the coming weeks the positives and negatives of wine investing will be explored. By the third blog, you will have a clear picture of:
- Decision process – is wine investment for me?
- Investment guide lines – avoiding difficulties?
- How do I build a cellar with the aim of partially recovering cost?
If you are like me and don’t have £10,000-£20,000 in your back pocket, then you may feel that the question of wine investment is moot. However, irrespective of investment level, ask yourself whether you are thinking of buying: to make money, for pleasure or angling to do both?
Where to start?
First, spend considerable time on researching and developing your investment strategy. I cannot overstate the importance of getting your head in gear before spending money on this, or any other new investment venture for that matter.
Second, assess investment against the extent of your wine passion. In business, having a real desire or belief in what you do shapes outcomes. The same is true when investing in wine or any other pursuit.
Third, reflect on why you wish to invest. The wine investment strategy matrix defines four investment types. Deciding your type provides the clarity of thought required to build self-confidence. It improves your ability to discuss a wine investment brief in partnership with a reputable merchant.
To help you decide which wine investment personality suits your lifestyle, budget and individual aspirations, answer the questions below.
We know that there are no guarantees in this world. However, good planning will undoubtedly help to reduce the financial risk associated with wine investment. Personally, implementing the above process helps me to buy the wine I need to fuel my passion. Selecting my wine investment personality ensures my merchant/s receives a brief that accurately reflects my future requirements.
The result … both parties reap the benefits of a well thought-out investment approach. You will be confident knowing the merchant will set you on the right investment path. The merchant will be content knowing that the future fine wine portfolio they recommend meets your financial needs and fulfils your wine passion for years to come.
Next time we outline the barriers to avoid if you decide to invest in fine wine.
Read Part 2 of our Wine Investment Guide
And don’t forget if you invest in wine to make sure you update your insurance cover or take out home insurance with collectibles cover. Find out more here.