tag:blogger.com,1999:blog-1567042805993048802.post4254326076197530798..comments2023-11-08T06:40:36.804+00:00Comments on investdrinks (blog): Investing in case of 2005 Lafite in 2010 could mean a loss of nearly £5K Jim's Loirehttp://www.blogger.com/profile/06696024920441263899noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-1567042805993048802.post-48097057249721348102014-08-16T09:33:03.015+01:002014-08-16T09:33:03.015+01:00Chris.
The Liv-ex index used here covers 24 lead...Chris. <br /><br />The Liv-ex index used here covers 24 leading châteaux – I suspect few investors will have such a wide range of wines in their portfolio. Small investors will have and be relying on just a few wines. A number are likely to have 2005 Lafite, which illustrates the potential volatility of fine wine. <br /><br />I could have selected an actual example from Cult Wines Ltd's business. In mid-2010 a putative and first time investor met Cult's director, Tom Gearing, at an investment exhibition at the Business Design Centre in London's Islington. Soon after this he was persuaded by Gearing to buy a case (12b) of 2009 Carruades de Lafite. He paid £2600 + 15% commission charge making a total of £2990. A few months Gearing persuaded him to buy a case of 2009 Les Forts de Latour for £1800 plus a 10% commission charge – Gearing trimmed it down from the usual 15%. Total expenditure £4970. <br /><br />Four years on the investor is looking at a substantial loss – using wine-searcher the price for the Carruades has dropped by to earth at £1480, while the Les Forts can be purchased for £1320. The Les Forts has shown less volatility in a long bear market. Total cost to purchase £2800. The investor is looking at a loss of £2170 or £2230 if storage charges are included. <br /><br />Given that Cult Wines Ltd charge a 15% commission charge it would be reasonable for investors to think they are given sensible advice. Tom Gearing ought to have known that Les Carruades de Lafite was a high risk, bubble stock that was not suitable as a first purchase for a first time investor.<br /><br />Entirely reasonable I think to look at how individual wines have performed.<br /><br /> Jim's Loirehttps://www.blogger.com/profile/06696024920441263899noreply@blogger.comtag:blogger.com,1999:blog-1567042805993048802.post-52072653820990069212014-08-15T21:28:57.451+01:002014-08-15T21:28:57.451+01:00Chris. An interesting question which deserves a fu...Chris. An interesting question which deserves a full reply, which I will post tomorrow. Basically this is a snapshot but a realistic example of wine investment.Jim's Loirehttps://www.blogger.com/profile/06696024920441263899noreply@blogger.comtag:blogger.com,1999:blog-1567042805993048802.post-50837827407102149582014-08-15T11:20:01.257+01:002014-08-15T11:20:01.257+01:00Hi Jim,
I'm confused. If the Cult Wines figure...Hi Jim,<br />I'm confused. If the Cult Wines figures are calculated on a Liv-ex wider market indices, why are you comparing that with one crude example of the worst performing wines over the past few years?<br /><br />Just because my Morrisons shares are down 26% this year or my American Apparel shares are down over 60%, does it mean my stockbroker isn't allowed to boast about my Astra Zeneca share performance?<br /><br />Please explain<br />ChrisChris Phttp://www.knightfrank.co.uknoreply@blogger.com