How to Start Your Fine Wine Portfolio

A fine wine portfolio is a wonderful thing to have - great wines, secured away and hopefully one day, sold for a profit.

 

If you’re new to the market the choice can be overwhelming: where to start, what to buy and who to buy it from and how to sell it? At FINE+RARE, we’ve been helping clients to build portfolios for over two decades, so, what tips can we give you if you are thinking about having a fine wine portfolio?

 

1- BUY IN THE GREAT VINTAGES.

 

Buying fine wines from the best years brings a host of benefits; the wines will be great examples of their type and the quality should be excellent across the board. A great vintage from a prestigious region also generates a huge buzz – the wines will be popular upon release and will remain so as they age; in short, they will be easier to sell later than wines from a lesser year. They should also age spectacularly well, further heightening demand as they mature and reach their optimum drinking windows.

 

2- BUY FROM THE MAIN FINE WINE REGIONS

 

While we’re all keen to find the big new thing, buying from the ‘classic’ regions: Bordeaux, Burgundy, Champagne and Vintage Port is always a sensible strategy. These regions are sought-after, and have been for decades for a reason; the wines are excellent with a track-record of ageing well and finding routes to market. The more esoteric the region, the less familiar it will be to prospective buyers and the more difficult it will be to sell if and when you decide to.

 

3- KNOW YOUR CRITICS

 

This may upset the purists but third party scores, such as those from Robert Parker, are a key component in both potential re-sale values and the ease with which you can sell. In simple terms, a 94/100 point wine is easier to place from your portfolio than a 92/100 point wine, and so on. 100-point scores from the most noted critics in their respective regions can and do have a direct impact on values, as they are a ‘brand’ in their own right and are a real driver of demand.

 

4- BUY ‘IN BOND’ STOCK AND STORE IT PROFESSIONALLY

 

‘In bond’ stock (that which has never left HMRC bonded storage and therefore never had its duty paid) is always more attractive. The ‘in bond’ status means that if the buyer wishes to keep it in bonded storage then no duty or VAT is yet payable within the EU. It is also an indication (though by no means a guarantee) that the case has been professionally stored and a professionally stored case will find many more buyers than one that has been removed into a private cellar.

 

5- BUY THINGS YOU’D LIKE TO DRINK

 

It’s the dream scenario: buy fine wine, store for a few years and sell for a profit. Choose well and with a bit of luck this is achievable; however, with the fine wine world susceptible to the influence of the global economy and changing consumer tastes, it is by no means guaranteed. Our advice: buy things you’d like to drink in the future. If it ends up below water, then you’ll have a fantastic cellar of great wines with which to console yourself.

 

 

Are you still looking for some guidance? Do you know what wine you would like to buy, but lack the time to source it yourself? Our dedicated team of account managers are here to help. With decades of experience between them, they are well placed to offer advice on every stage of the wine collecting process, helping you select, source, store and sell your wine.

 

For impartial expert advice n how to create an unparalleled cellar, drop us a line at wine@frw.co.uk