Investment

Investing in wine is not a short term, quick investment. A medium to longer-term strategy of five years or more is advised. 

The key points investors tend to be attracted to include:

• Tax efficiency as there is no CGT on wine sales, up to a value of £400k.
• Diversification of an investment portfolio.
• A tangible asset physically sitting in a secured environment as a named asset.
• A stable long-term investment with increasingly global demand and consumption.
• Relatively liquid as with our relationship with Liv-Ex, wine is easily traded.
• An interesting investment in an increasingly technical and complex investment environment.
• An unusual dividend – should things go well; the dividends can be delicious!

With some Estates only producing wine in small quantities, demand for great vintages is always high. Advising on how to choose the right wine in which to invest is something that Farthinghoe regularly does. Wine increases in value because:

• Demand outstrips supply over time

• Wines surge in popularity in new markets

• As their reputation improves so does their value

Wine investment is a very specialized area of the market, traditionally focused around four to five dozen wines, predominately Bordeaux. As prices of these wines have increased so much over the last few years, the market has started to broaden away from the choicest Bordeaux Châteaux and other areas, including fine Champagne, super Tuscans, cult Napa Estates. The Piedmont has increasingly been under the spotlight in recent years, as well. As with all investments, picking the right stocks at the right time is the key to success.

Give us a call on 01295 811188 and we will devise an investment strategy and portfolio that suits your philosophy.

The wine investment market, like virtually all markets, is cyclical and prone to market sentiment. However, a well-balanced, structured and diversified portfolio will help mitigate these fluctuations and offer an element of hedging. 

No! You do not need to have a vast wine knowledge to be able to invest in wine, as that is where we at Farthinghoe will help. We have advised clients individually on wine investment portfolios and strategies since 2005, and Alex has advised both Singapore and Hong Kong-based investment companies whose clients are private investors. It is important to note that wine investment is not regulated by the FSA and, as with all investments, the value of the portfolio is not always guaranteed to rise. If this is of interest, Alex, Julian, Tom or Malcom would be very happy to discuss an investment portfolio with you on an individual basis.

Through Liv-Ex we are able to provide the latest bid offer and last traded price of most wines available on the market. Liv-Ex is the world’s leading Fine Wine Trading Exchange which offers real-time bids and offers to over 440 trade members worldwide which typically listing in excess of £20 million worth of stock at any one time.

Your wine is stored in what is widely regarded as the best fine wine bonded cellars in the UK, if not the world, Octavian, Corsham. Your wine is held on an account in your name, ensuring you hold full legal title.