Wine outpaces stocks in the investment world

According to research conducted by wine investment firm Vin-X and published this week, quality wine has been the most profitable asset since 1988.

The report was authored by Martin Pruszynski, head of purchasing at Vin-X, and specifically shows that wine investing has had the best overall performance when looking at the total growth of major asset classes since 1988.

Over this period, the growth of fine wines is 1,474 %, almost double the closest asset in the ranking, the Dow Jones (783 %). The S&P comes third with 744 % and real estate, fourth (312 %). Even though the latter asset has been on the rise since the very end of the 1990s, the average price of a house in the United Kingdom has only increased by 17 TP3T during this decade.

The FTSE 100 is fifth with 306 %, well ahead of gold (162 %). Certainly rising sharply between 2000 and 2011, gold came back from afar after two dark decades between 1980 and 2000.

Dividends have not been included in the calculations because it is impossible to systematically know whether they have been spent, reinvested or simply not paid.

Pruszynski notes that even though wine investment has been coming out of a difficult period since 2011, it has only seen three negative five-year slices over the period studied, and no negative ten-year slices.

It is telling that the worst ten year slice in the wine market (out of almost 30 years) is still double the average and median inflation rates in the UK.

Geoffrey Dean

November 11, 2015

The Drinks Business