News - Media - Tuesday, December 5, 2023

Forbes x RareWine Invest: build a winning investment strategy with fine wine

RareWine Invest has reported fantastic results and caught the curiosity of the US business magazine Forbes, among others. Here is what you missed…

“RareWine Invest, based in Denmark, has reported outstanding results in wine investment” – Forbes.

Recently, we had the pleasure of meeting with Liz Thach and Forbes to discuss wine investment. Naturally, the conversation centered on the perfect strategy for achieving a perfect wine portfolio. Our conversation was published in Forbes and can be found here in its full length.

But here is a recap with some of the highlights…

Highlights From The Article: Realized Return Of 88%

Wine investment has been one of the best investments, and the performance of wine under the management of RareWine Invest was a stunning 22.5% in 2022, and the annualized performance for the past five years was a whopping 12.8 % per year. Furthermore, we realized 1,115 positions in the past year with an average return of 88%. More on that can be found in our annual report for investors.

The article portrays our company structure with RareWine Invest, RareWine Trading, and Nordic Freeport, a trinity of realizing a wine portfolio. When wines need storage, Nordic Freeport is key. When a portfolio is to be sold, RareWine Trading takes over, and that is one of our most significant assets in succeeding on behalf of our investors; we offer an effective way to realize your portfolio.

The success of RareWine Invests also lies in assisting our investors in selecting the right wines for their portfolio – this calls for great insights into the market, always being a step ahead. To accomplish this, we use data when qualifying wine for investment and leave taste and feelings out of the decision-making. 

Right now, an average portfolio at RareWine Invest consists of approximately 25%-40% Burgundy, 20-40% Champagne, 10-20% Italian, and 10% wines from rest-of-the-world, including Napa Valley, Australia, and whisky, among others. We always recommend diversification in a portfolio. This percentage breakdown does not change daily, but in recent years, whisky has become an exciting category, so it is obviously one to keep an eye on. Whisky has gone up 373% in the last 10 years.

But how do we know when a wine is suitable for investment?

First, becoming a wine investor does not require knowledge of wine. When we assess whether a wine is suitable for investment, we rely on the judgments of the world's leading wine critics. And then, of course, wine investment is about the value and the right time to sell – and this we guide our investors in, making them achieve the best possible profits.

We do not make risky investments. Solid data is vital when a portfolio is put together. Both historical data and prospects for future wine consumption are considered. China, for example, is an emerging wine market, and we believe that the Middle East will also increase its consumption of wine within the next 5-10 years. Add to this the fact that India is the largest market for whisky in the world. And they have reduced their import taxes from 200% to 100%. The above are all considered when putting together a winning portfolio.

Liz Thach also gets answers to how many positions are currently under management by RareWine Invest. How we prevent fraud, why we do not recommend Bordeaux wines for investment right now, why we do not recommend taking positions out of your portfolio for consumption, and, of course, we talk about what our ambitious goal is – we happily told Forbes that we want to be number one in the world.

Read the full article here.