Investment in Wine: How to minimize the risks

The lessons of the recent past are that, in order to fulfil the promise of any investment, timing, knowledge, and skill (not to mention a measure of luck) are all essential preconditions for would-be investors, whether individuals or companies. Timing requires knowledge both of market conditions and of the potential of a wine for maturing. The finer the wine, generally speaking, the longer it takes to reach its peak, and the longer it remains on a plateau of maturity. It takes knowledge and skill to be aware of and interpret the likely future trends of individual properties and vintages, taking into account their real and perceived qualities. (One of the best ways to acquire such knowledge is to keep abreast of the pronouncements of the most influential wine critics such as Robert Parker on Bordeaux and California, but anyone buying for investment would be well-advised to read a range of expert opinions on any particular wine or vintage and keep track of price indices such as those published by winemarketjournal.com.)