Investing in Fine Wine: A Rigorous Beginner's Guide
What Liv-ex data tells us about returns — and what the brokers won't
Marcus de Villiers
Culinary Correspondent
1 July 2024
14 min read
Fine wine has delivered average annual returns of 13.6% over the past decade according to the Liv-ex Fine Wine 100 index. Before you invest, here is everything the brokers prefer you didn't know.
The Liv-ex Fine Wine 100 index tracks the price performance of 100 of the world's most traded fine wines. Over the past decade, it has returned an average of 13.6% annually — outperforming most equity indices over the same period. The caveat: these returns are pre-storage, pre-insurance, and pre-transaction-cost. Net of all three, the typical retail investor achieves considerably less.
Where the Returns Actually Come From
The top 10% of Liv-ex-traded wines — dominated by First Growth Bordeaux (Petrus, Pomerol, Margaux, Latour, Mouton), Grand Cru Burgundy (Romanée-Conti, Leroy, Henri Jayer), and a handful of cult producers (Screaming Eagle, Harlan, Sassicaia) — generate the index returns. Everything else performs closer to inflation. The investment case for wine depends almost entirely on which wine.
“Investors who buy Bordeaux futures en primeur and hold for ten years have, on average, doubled their money. Investors who buy retail and sell retail have, on average, broken even.”
- DRC Romanée-Conti: 10-year CAGR ~18%
- Petrus (top vintages): 10-year CAGR ~15%
- First Growth Bordeaux (broad): 10-year CAGR ~11%
- Super Tuscans (Sassicaia, Masseto): ~9%
- Champagne (Krug, Dom Pérignon Prestige): ~7%
Partner
Vinovest
Managed fine wine portfolios from $1,000. Storage, insurance, and authentication included.
