Drinking My Retirement
Two Swiss economists have published a study demonstrating that wine is a better investment than stock.
The index of highest-quality wines, “first growth wines of top vintages only,” in particular from 2005 onward, “hugely outperforms” the other two indexes, the authors said. The elite gauge has a more than fivefold return, while the regular wine index has more than doubled. The Russell 3000 gained about 50 percent.
April 13th, 2010 at 3:28 PM
I’ve always been curious about this, best justification being that you can’t enjoy stocks with a fine meal if their values crash.
Wondering, though, if the proliferation of fine and affordable wines in many other regions of the world will dilute the exclusivity of top Bordeaux, Burgundy, Barolo, etc. With all the new money in China, Russia, Brazil, and India, I feel like the Ch. Latours of the world have enough brand-equity to remain scarce, thus, valuable.