Cult Wines Ltd - Solutions For Fine Wine Investment

Fine Wine Investment

A diversified portfolio of investment- grade wine, either on its own or as part
of a diversified portfolio, delivers superior double-digit returns and
significantly lowers volatility. Buying and selling bottled wine from and on to secondary markets, such as trade, retail and auctions, has grown into a multibillion-dollar industry over the past 25 years.

Investment-grade wine - the blue-chips - have impeccable quality, longevity, history, a price performance track record and a highly liquid secondary market following (annual volumes of almost £1bn).

Also "pale-blue chip" (which appeal to the higher risk investors) can lend themselves to significant potential in the future once they receive wider acclaim and the demand for them increases.

Over the period from 1982 to August 2008, the Fine Wine 50 Index (a
portfolio of 50 investment grade wines) averaged an approximately 16 per cent return per annum, with the some individual cases making that return in
a matter of months!

The risk of a portfolio of investment-grade wine is significantly lower
compared to a portfolio of equities and bonds only. So what this means is
that having either a portfolio of investment-grade wine on its own or as part
of a diversified portfolio of traditional financial assets reduces the overall risk
of the portfolio while maintaining the superior double-digit returns.

The investment-grade wine market does not closely correlate with financial markets. This means that any fluctuations in the money market (for example treasury bills or equities) do not affect the price of investment-grade wine. Investment-grade wine prices are supported by a global demand/supply imbalance.

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