RareWine Invest: Expanding Opportunities for Wine Enthusiasts
In a recent virtual interview, top executives at RareWine Invest, CEO Mads Lund Jensen and CMO Lars Granat Jensen, shared their insights on the best investment strategies in the wine industry. With impressive average returns and a meticulous approach to selecting wines, RareWine Invest has established itself as a leader in the field.
Mads Lund Jensen emphasized the importance of building a portfolio of the correct types of wine for success. He revealed that RareWine Invest achieved a performance of 22.5% for the wines under their management in 2022, with an annualized performance of 12.88% over the past five years. These results are significantly higher than the average return for fine wine, which stands at around 10% according to the Liv-Ex index.
However, Lars Granat Jensen pointed out that the true test of a wine investment is realized when the wine is sold and positions are closed. In this regard, RareWine Invest has proven its expertise, with last year’s 1,115 positions under management realizing an average return of 88%.
With a minimum investment of €10,000 ($10,752), RareWine Invest caters to a diverse range of customers. The average portfolio size is €67,000 ($72,042), contributing to the total value of wine under their administration, which exceeds €165 million ($177 million). Notably, RareWine Invest is part of the larger RareWine Group, founded in 2006, and offers additional assistance through their trading arm, RareWine Trading.
The success of RareWine Invest lies in their meticulous approach to selecting wines for their portfolios. Assisting their investors in making informed decisions, the company focuses on safe bets with proven track records. At present, they are bullish on Burgundy, Champagne, and Italy, while cautioning against investments in Bordeaux due to the current En primeur system.
A typical RareWine Invest portfolio consists of 25% to 40% Burgundy, 20% to 40% Champagne, 10% to 20% Italian wine, and 10% covering other regions such as Napa Valley, the Northern Rhone, and Australia. To make these selections, Mads and Lars evaluate approximately 4,000 different wines each quarter, relying on trading prices, databases, and critic scores from reputable sources.
In a recent development, RareWine Invest has also entered into the world of fine whisky investments. Given the significant increase in whisky prices, with a 373% surge over the past 10 years, the company recognizes the potential in this market.
Ensuring the authenticity of the wines they purchase is a top priority for RareWine Invest. They employ cutting-edge authentication methods, including the analysis of high-resolution images and a comparison with their extensive collection of fine wines.
While wine lovers are naturally drawn to the world of fine wine investing, Mads and Lars advise against letting emotions guide investment decisions. They encourage investors to separate personal enjoyment from investment choices, as consuming even a single bottle from a case can diminish its value. Instead, they recommend purchasing individual bottles from trading houses or reputable retail establishments.
Contrary to popular belief, wine investment is not solely for experts in the field. RareWine Invest is making it increasingly accessible to a wider audience, allowing more individuals to experience the potential advantages of wine investment.
As RareWine Invest continues to expand its reach, wine enthusiasts and investors alike have a unique opportunity to enter the world of fine wine investment and benefit from the expertise and success of this leading company.
Investing in Fine Wine: More Than Just a Matter of Taste
When it comes to investing, most people would not consider wine as a viable option. After all, how can a beverage that is consumed and enjoyed have any monetary value? But according to Mads and Lars, two executives from RareWine Invest, fine wine investment is all about the value and the timing to sell, and not about the taste.
In a recent interview, Mads explained the rationale behind investing in fine wine, stating, “It’s not about the taste of the wine, it is about the value and the time to sell.” This sentiment was echoed by Lars, who added, “We only predict the future based on data.”
Despite the challenges posed by the Covid pandemic, both Mads and Lars remain positive about the future of fine wine investing. They shared that during the pandemic, people turned to drinking better quality wine, resulting in a surge in wine prices. However, with inflation and higher interest rates, people now have less discretionary income to spend on luxury items like fine wine, leading to a decline in prices.
But Lars remains optimistic, stating, “We believe that for the next couple of months, the market will not have large demand, but then will go back up.” To take advantage of this, RareWine Invest has been strategic in their investment choices. Lars shared, “Therefore, we bought lots of Champagne when prices were down. We know that the price of land in Champagne has gone up 25%, and we believe Champagne is undervalued.”
In addition to traditional markets, both executives also see potential in emerging markets such as China, the Middle East, and India. Mads believes that China will continue to play a large part in the fine wine world, while Lars sees the Middle East as an increasingly recognized market, despite religious beliefs. And let’s not forget about India, the biggest whisky market in the world, which has recently reduced import taxes, making it an attractive market for investment.
So, what is the ultimate goal for Mads and Lars in terms of RareWine Invest? They aim to become the biggest fine wine investing company in the world. “We aim to move from the #2 top global company in wine and spirits investing to #1,” said Mads with a confident smile.
In conclusion, investing in fine wine may not be the conventional choice, but as Mads and Lars have shown, it is all about understanding the value and timing the market correctly. With strategic investments and a positive outlook, RareWine Invest is poised to make its mark in the world of fine wine investing.