Hope that you think it through especially if you are just a beginner. For the experts out there you already know the wine  market and have adequate knowledge.

Have you ever noticed many sales persons who promote or sell their products normally may never end up buying the same product they are selling themselves unless it is cheap & it serves a useful purpose .

Let’s take an example of a car salesman who is promoting a very expensive model.He is paid to do a job that is to promote the model and bring in revenue or profits for the company at all costs. The brand name maybe the reason which draws & attracts potential clients . Would the salesman know or reveal any  problems that surrounds the car ? A good example would be looking at the newspapers and finding that the particular Model has been recalled due to some defect or certain issues eg safety.

Going back to the sales person Most likely he would have a car but maybe of different model & make  and most likely a cheaper one that fits his\her budget. Don’t get me wrong though, there are sales persons who can really afford and would do anything to splurge to get their dream model but again how many.

The above is only an example of a salesperson and not to blemish or cause any form of disrespect to their vocation or the industry stated above.

To reiterate the point above I once met a wine broker who was promoting wines for investment. I asked him whether he invested in wines and he told me in my amusement that he would rather invest in stocks.

This got me really interested cause if you knew you could make money in investing why not PRACTISE  WHAT YOU PREACH.  A salesperson who is telling or advising his potential clients to invest in a particular product but would rather invest in something else. Wouldn’t you find this amusing ?

Now there maybe many reasons why he\she has chosen the decision above eg. The DOLLAR amount or Initial investment requirement maybe too high, liquidity, transparency,expertise etc.

Wouldn’t you ask your Broker the same question and see what  is his reaction, response & opinion ? Only you can find this out for yourself and  form an opinion & decide yourself.

Remember  as a beginner to find a reliable & trustworthy wine broker .

Do your own research.

If you can afford it go for the Blue chips with a rating of 98 & above. This though doesn’t guarantee.

Timing ,Price & Economic developments,Supply,Demand,risks etc. is always crucial & important in any investment.

 As each persons risks and investment appetite differs  This blog or any other advice mentioned above should NOT be construed as a specific recommendation to buy, hold or sell any security or investment & also NOT influence your investment decisions.

Wine Investments,Stocks, Futures, Forex, Options trading etc are not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses.

Ensure you Perform further research. Nobody or no System can predict the outcome or future. If in doubt consult a professional Financial advisor or consultant.

I hope you will do further research of your own on the First Growth wines of Bordeaux 2007 and decide whether the views & opinions below are correct or inaccurate.

Only you can be the Judge if you know the full facts, the truths & the pitfalls for any investment.

Remember any Investment has Risks and can be volatile in nature. 

When the 2007 was first released mostly every wine merchant was promoting this wine even though the experts were aware it was not the best grade in the market. They quoted names of the famous grading experts and their wine ratings. I must say the ratings didn’t even reach the 98-100 grades. Yet these wines were promoted & sold at a high price as there was stock and they needed to sell inorder to earn their commissions and boost their income.Obviously they had to clear their stock inorder to earn profits. As long as the wine is sold they have no worries whether the potential Client maybe in for a POTENT lesson in Investing down the road . 

To those who had bought the 2007 wines as of this date they are licking their wounds as the prices have tumbled down and they are making a huge loss. Only time will tell when and how long they need to hold to recover their losses. Though there could have been some clients who may have profited from their venture but the question again is how many ?

As of this date some of the 2007 have not recovered. Almost every other asset class has seen profits rise since the 2007-2008 financial crisis eg. Property, stocks etc some of the wines have lost its value.Yes you may state even in stocks etc there are those that have also not gained and losts it value. Yes well noted but these were considered the Blue Chips of the well known Bordeaux  however 2007 may have not been the year of choice.

Thinking of Cutting your wine losses & moving on,you would need to re-value your investment at the current prices and you also have to consider the brokerage charges and tax if any. At the end of the day the choice would always be yours.

An extract  from sfgate.com [link provided ], in our opinion is a very interesting article that caught our eye & attention. It might be interesting to you as well:-

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Impact on 2007 prices

The price drops sent a tsunami through the retail market. Many 2008s are selling for less than the 2007s, an inferior vintage by all accounts. Retailers around the country are slashing prices – and taking losses – on unsold 2007s and even 2006s. MacArthur Beverages in Washington, D.C., just slashed the prices on its stocks of 2006s by 50 percent. Mark Wessels, MacArthur’s Bordeaux buyer, expects something similar for the 2007s. “Who’s going to buy the 2007 l’Angelus for $199 when the 2008, a better wine, is selling for $99?” he asks.

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We hope you take some time reading this article which  I believe every wine investor [Beginner] should take some time to read. It might be interesting to you as well - http://articles.sfgate.com/2009-05-10/food/17200118_1_bordeaux-chateau-angelus-wine-market

I would also recommend you visit the following blog links on our site for info purposes only :-

• Prices & Ratings
• Videos

What have we learnt OR are there valuable lessons to gain from the Bordeaux 2007 First Growths ?

• Consider buying BLUE CHIPS [ Remember: Bordeaux Blue Chips have also fallen in price .]
• Look for the very best that you can afford, top gradings\ratings of the wine & year[  98-100 gradings. Note: This is not a recommendation to buy,hold or sell , there are risks & opinions differ in any investments]
• Take into account Currency Exchange risks
• Perform valuable & informed research whether the Producer\Year or the Wine etc.  is excellent in nature.
• Read books, articles, online posts to keep yourself updated
• If there is a major crisis\recession can there be a fall in demand and value [ If it has happened before can it not happen again ?]
• Quality,Supply,Demand & Liquidity
• Price, Fees,storage,Insurance,Country,Tax etc..
• Etc.

The above is not a recomendation or in no way should it be used as an instruction to buy,hold or sell your investments. Consult a certified & professional consultant if in doubt.

Think carefully before you invest and most important PERFORM your own accurate research.

This blog or any other advice by the writer of this blog should NOT be construed as a specific recommendation to buy, hold or sell any security or investment & also NOT influence your investment decisions in any way.  This blog IS NOT MEANT to influence you to invest or should not instill fear or panic in anyway in your decision process.

Previously many years ago you would never find wine bottles in the major asian supermarkets but nowadays this trend seems to have changed.

What does this tell you ? Wines are consumed mostly everywhere & at different level of prices. Some are cheap and some are more expensive than others.

But we are not talking about the majority of such wines as these wines are not the investable wines we are looking for or are they in your opinion ?

Many countries today now produce wines which are cheap and drinkable the moment they hit the supermarket chains. They have produced a glut in these wines to cater to the public’s needs.

What we are looking for are the really true Blue Chip Investable grade wines which are not normally found in these supermarkets.These wines require proper storage and temperature and are usually & normally available & consumed by the higher class.

As I mentioned above, blue chip wines whether it be France, Australia, etc. is what attracts most wine investors .Frankly my best option would still be France best top blue chip wines though your opinion or appetite may differ from mine.

Again my opinion would be to buy the tested and tried brands of the best blue chips.

Now you may differ from me here as I think a better approach and a better value is to find already the best drinkable & affordable blue chips and not the first growths.

Wow!!!! hold on, hear me out first and see whether this all makes any sense.

By all means if you wish to buy those wines do go ahead, there’s nothing out there to stop you. There are reasons why many people make money buying them and holding on to them for a couple of years and hopefully if they appreciate in value & price you make a good decent profit for your Time, Effort, Research & Risk.

My point is if you have the funds to buy the best blue chip wines which are already ranked and are already in the early stages to be drinkable, you maybe to a certain extent that is after doing your research find the prices appreciate to your favour.

Let’s use an example. You have 2 companies in the same sector in the stock market, Company A &; B. Lest Say Company A is a well known and established company which is doing well. Company B is a very new company with a good management but not many years in the market. Now lets say you monitor these two companies before deciding which one to invest in. Who knows you may invest in both if your research is GOOD & proven right.

What I am stating is that from the sidelines you are able to view the Fundamentals, Performance & Price before deciding to put your hard earned savings.

Lest say there are five thorough bred race horse’s and you have already placed your bets.The race has started all you can do is wait till the race ends. You need to hold your ticket for a certain period of time. You could lose if you chose the wrong horse however you could be a winner & walk to the bank if you chose the right one when the race ends . NOW ,What if lets say 10-20 meters before the finishing line you could place your bet wouldn’t it be better cause the best performers would be sprinting towards the finishing line. Having said that Again some horses although lagging do a sudden burst to head for the finish line.

My view and opinion is : It is better to hold VALUE than NONE.

Now some would say that you may buy the first growth at very discounted or low rates and then the hold and sell strategy works very well for them as I mentioned earlier. Thats really good for them.

From what I have encountered is that some First growths especially after the recent crash in the market may not recover rapidly but those with good grade & ratings normally may do better.

The opinions above are the views of the author and should not be used or viewed as a buy or sell recommendation or alternative advice. Consult a professional consultant and perform further research before doing any actual investments.

A man’s heart deviseth his way: but, the Lord directeth his steps.

Quote:

Go to the ant, sluggard; consider her ways and be wise;

Who, having no guide, overseer, or ruler,

provides her food in the summer and gathers her food in the harvest.

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                         Click here For Valuable—>Video Tips on Fine Wine Investment

The question lies whether you can actually select a particular vintage & wine which will be your best investment opportunity that will have a grading of 100 points  ? Well maybe if you have been investing for sometime and you have the experience.  Maybe you have been investing in the Bordeaux Wines or Blue Chip wines for sometime and are actually already making  profits from these Investments.

But again even the Best Wine Producer’s cannot control the weather,the quality & price and thus they cannot achieve the same results year after year.

Remember the vintage must mature before you can actually know its true value & worth. As we ourselves age gracefully we gain experience and wisdom.In this World  the older you are the corporate world condemns you as there are always cheaper younger energetic workers to replace you unless your skills are of high demand or you are financially worthy or well known.

Wine producers play an important role. For example they have the knowledge, they know the soil, temperature, they determine the supply of stock for sales in the market but inorder for the wine to create a stir in the markets a lot depends on the Wine Tasters, the demand then follows. There are professional tasters and their gradings make or break a particular vintage. Professionals like Robert Parker, James Halliday and some others have been tasting and grading these wines for quite some time now.

Maybe you are a beginner in Fine Wine Investments OR you have a wide Understanding on Wine Investment & have considerable knowledge on  other Investment products other than Wine. You may find that your wine Investments are not currently to your expectations compared to the other Investments Products in your diversified portfolio which is bringing you better gains, bear [ pun intended] in mind that in a Market Crash ALL Investment products will have an adjustment in your portfolio whether up or down . A wine glut may also affect your wine prices in the market. Again do consult a professional or do your proper research in any & ALL investments.

Bear in mind that in wine Investing your funds or cash are committed usually for the  long term to see specific gains in your portfolio provided you have researched & followed the proper guidelines in investing.

We suggest that you diversify ensuring  your portfolio includes other products eg. Stocks, Mutual funds or Unit Trusts, ETF’s, Bonds, Fixed Deposits, Savings, Wine Investments etc. If one Investment turns sour or there is no movement at least you may have another opportunity  note though that any investment involves risks.For those with KNOWLEDGE & with a higher risk appetite and know the know how they may even choose to invest in commodities.

As a general rule however you may choose to differ with our opinions & suggestions. Be aware Every Investment has its own Risks.Always consult a professional when in doubt and make sure again you understand what you are entering before you part with your hard earned money or be prepared to venture into further debt.

When you are broke or bankrupt there are no friends to your rescue unless you have rich parents or close ones or you strike a lottery[chances may be slim]. Once Broke you MAYBE BROKEN for a longtime.

In Vintage selection you could also select different vintages, different growths, producers, countries etc. You may also want to research &  inquire which countries[e.g.  China, India etc.] are now expanding their consumption in wine and target the blue chips of different years and growths.

Storage and Insurance are also very critical & crucial. Make sure you understand the full clause & terms as it may sour your investment returns.

Can you  really make money putting all your eggs in one basket ? Some have tried & done it and have made huge profits, the question lies whether can you take that risk & can there be others who have actually failed taking the same path ?

The decision lies with you & you alone. Do your research and seek professional advice & expertise when in doubt.

The Question lies are you really prepared in Learning & Understanding more in Wine Investment.

Click here For Valuable –>Video Tips on Fine Wine Investment

Proverbs 19:8

Quote:

‘Do yourself a favour & learn all you can: then remember what you learn and you will prosper.’

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Proverbs 19:27

Quote:

‘Son,when you stop learning, you will soon neglect what you already know.’

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Learn from your own MISTAKES and those around you & it will make you a better person with  knowledge  & experience of a wise man.

As God rewards the Farmer who Trusts & Prays in God, the Farmer inorder to bring food to his table and provide for his family must make full use of his talents, his intelligence & experience in cultivating & harvesting his crops in whatever conditions he encounters eg. Weather,Resources,Time etc..

 So too will God Reward you  & your family from your efforts & work. But you Have & MUST DO the Hardwork, the Research & your Labour will DEFINITELY NOT go unnoticed & Will be Rewarded accordingly in due time. 

Remember : Where there is GREED & DISHONESTY RUIN WILL EVENTUALLY FOLLOW.

Psalm 112

Quote:

Praise the LORD.

1Blessed is the man who fears the LORD, who finds great delight in his commands.

2His children will be mighty in the land; the generation of the upright will be blessed.

3 Wealth and riches are in his house, and his righteousness endures forever.

4 Even in darkness light dawns for the upright, for the gracious and compassionate and righteous man.

 5 Good will come to him who is generous and lends freely, who conducts his affairs with justice.

 6 Surely he will never be shaken; a righteous man will be remembered forever.

7 He will have no fear of bad news; his heart is steadfast, trusting in the LORD.

8 His heart is secure, he will have no fear; in the end he will look in triumph on his foes.

9 He has scattered abroad his gifts to the poor, his righteousness endures forever; his horn [d] will be lifted high in honor.

10 The wicked man will see and be vexed, he will gnash his teeth and waste away; the longings of the wicked will come to nothing.

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Fine Wine Investment Tips   -   click here – ” Wine Video Tips”

If you haven’t read the Art of River Investing I suggest that you do take some time in reading the previous article as it will explain in detail & you will be able to understand better what this article is all about.

Imagine at Point ‘Y’ on the map is where you plan to go for the day. At Point ‘Y’ is a Financial Institution or some corporate body trying to convince you to invest with them?At Point ‘Y’ is whether you choose a safer low paying yield or you move into risky waters with high risk but a better return of your asset.

As you enter the building at Point ‘Y’ you are approached by a salesperson. You are all happy and excited and also a bit fearful as you plan to invest you’re hard earned savings. You are greeted by the sales person and asked a few questions on your purpose of your visit and your plans ahead for the future.

Now the norm nowadays is that a risk profile be created in order that you & the financial Institution are aware of what type of risks you are prepared to take in your investments and for the institutions record purposes. This may or may not help you in the future.

In most cases many salespersons will try to explain fairly to you on what are the benefits of taking each product and the risks involved although some may not actually do so or they may not even know the full risks that lie ahead. Remember the trader is the person who knows & trades the actual market whether making a profit or not & the salesperson’s job is to sell you the product, they may only give you the information on what they know from a text book point of view. Most will show you a product which may give you minimum interest but they would also throw a carrot into the basket by informing you that you can earn better results with another product which provides a better yield. Good advice comes from proper training and guidance & the ability to visualise what dangers lie ahead.

This is where Point ‘Y’ is very crucial. The sales person may be selling you a product cause this is what the organisation is targeting & promoting and the sales person may get a better commission by convincing you and selling the product. The choice is obviously yours as your money has still not left your pockets. There may be a cooling period but once the cooling period expires your funds may be tied down for a certain time or maybe exposed to certain risks unknown to you.

In most crisis especially the 2008 Crisis many Investors were informed of high yields with huge risks. Imagine who would put money in a saving account which was giving poor quality rates. With Inflation their savings would be robbed under their very own noses by placing it in a savings account. Even the Old & retired couldn’t basically survive on these rates. A normal human being would have been forced into high risks as the basic savings was a far cry from injustice while some of the Companies Management were being paid very high bonuses & salaries for the Risks they took while investing your money.

This seems very interesting, Who was actually taking or bearing the risks, you are they ? Well another interesting question “Who lost the most, you or they ?” . Were the Old pushed into such extreme risks remains a question to be answered by only the relevant companies or Institutions.

As explained in the Art of River Investing article – if you tread in a fast flowing river and you are old you may not be able to survive the trip if your boat capsizes as there are certain conditions not known to you before you set out on that trip. Can you recover fully is a question mark and can you get compensation is also a big hurdle to prove as there are many laws and regulations to protect the Financial Institution. Although there are laws to protect you most of the time it may be difficult to fight the case. Look at the Mini bonds crisis of 2008 & how the many investors were hurt. The world got their attention but what losses they incurred will be only known to them with a few battles & hearings.

Our point is normally there are people who are only concerned in getting your buck after that where the boat or investment goes will be your fate based on their good or bad investment decisions.

In the 2008 Crisis there were Management’s who were blaming their lower levels for selling the products. There were even reports that staff had to meet a criteria or be subject to performance failure. But honestly ask yourself who really did approve and kept silent when top dollars were paid to those very top people .Were they willing to forgo their benefits?

Before the 2008 Crisis many Institutions were asking many people to take the fast flowing River as the yields were higher than the savings account. Greed, Risk,lack of regulatory control,etc was also another major factor. Although the 2008 crisis has passed there will be many more ‘Y’ junction River’s & this will definetely happen again in some other crisis in the future and you can be sure of that.

• The Art of River Investing applies to all types of Investment –even Fine Wine
• Be prepared to walk away when the risks are very high [unless you enjoy taking high risk] and especially you do not know what you are getting into
• You will never know what truly lies ahead, more research on your part must be done.
• If you or you know someone who is OLD or uncertain, explain to them thoroughly the pro’s & con’s of what they are entering into if that is you have an in depth knowledge of the contract or the product or a better approach would be to consult a separate recognised professional consultant looking into the persons interests .
• Know that ‘Y” the Art of River of Investing is crucial and beneficial & that it ONLY applies to you. Take your time to consider carefully.
• Would anyone actually advise you to divert from Point ‘Y’ and take a safer path for your Investment? If there is you would seriously want to consider probing further & doing more research before investing.
• Note to consider : Everyone says it is safe to buy their products only you can decide whether it is safe or not.
• Will you consider Diversification in other areas or products from some other reputed organisation?
• Make sure there is a cooling off period which maybe useful as you can get further advise from a separate professional advisor looking into your interest.