Idea - Investing in fine Wine? Anyone know much?

Discussion in 'Share Investing Strategies, Theories & Education' started by Sk3tChY, 14th Sep, 2007.

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  1. DaveA__

    DaveA__ Well-Known Member

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    So they purchase the bottles under the super name and cellar them. I must say im surprised this is allowed, how do you know he doesnt drink it?

    Could the rules extend to purchasing a unique or vintage car and garaging it, waiting for it to go up in value?
     
  2. Rob G

    Rob G Well-Known Member

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    Just add another zero to the auditor's fee.

    Think about all the deductible maintenance & repairs, and of course extended test drives.

    Shame an SMSF cannot run a business, it could rent them out for weddings with you as the driver.

    Sole purpose test, in-house assets etc. is a bit restrictive on your personal use unfortunately.

    Cheers,

    Rob
     
  3. Rod_WA

    Rod_WA Well-Known Member

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    Don't you mean 'corkscrewed'? :D

    I opened a bottle of 1992 Devil's Lair Cabernet Sauvignon with some friends a few weekends ago. Bloody amazing, and I should think so, it would probably be worth a few hundred dollars. I've still got three left.
    (I think I paid less than $200 for the case back then, but only six bottles made it past the hazy early nineties...)
     
  4. Rob G

    Rob G Well-Known Member

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    I had never thought about the tax implications before.

    How does this sound ...

    1. An investor holds a wine collection for a capital gain and so cannot deduct interest, storage, insurance etc. It all adds to the cost base.

    2. If a loss is made, all those interest, storage, insurance costs are disregarded. Also, being a collectable, the capital loss is quarantined against gains on other collectables (an effective stop loss for the ATO ?).

    3. If you drink or gift any bottles you are deemed to have recieved market price and are assessed (unless a loss). If any are lost or destroyed then again you make a loss unless insurance proceeds make a gain.

    I don't know if I like this asset class as the possible non-deductibility of expenses and quarantining (deferring) losses adds significantly to the risk.

    Anyway, I am a beer drinker !

    Cheers,

    Rob
     
  5. Sk3tChY

    Sk3tChY Well-Known Member

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    AYE! I used to listen to La Bamba on vinyl when I was a kid! :p

    I was like the next Michael Jackson. :cool:
     
  6. WineWatcher

    WineWatcher New Member

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    Better drink them quick. They are not going to live very much longer.
     
  7. quoll

    quoll Member

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    A wine investment company went bust a couple of years ago.

    article - wineorb

    I had a good look at them, a few years before, there was a couple of places doing similar, you wouldn't see your investment, just buy it, store it and they would sell it in the USA a few years later.

    found a link to the other company, they have gone bust as well
    article - heritage finewine

    H-SPHERE


    cheers
    quoll
     
  8. DaveA__

    DaveA__ Well-Known Member

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    No one picked this up did they??
     
  9. smeggett

    smeggett Member

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    Quoll is corrent - there has been at least 3 Wine Investment companies in AUS go into administration in the last few years (and you could get some good prices on the stuff at various online auctions, but they seem all over now and anyways, my linen press is full to the brim!) which would tend to suggest that if 'professionals' can't get it right, then your chances would likely be more limited.

    That said you can't eat share certificates, or moreso, the wine should still drink well if you can't sell it. Personally, i buy red to drink 'cos it tastes nice.:D

    Cheers,

    smeggett
     
  10. quoll

    quoll Member

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    I reckon with wine you best bet is to buy it for drinking pleasure, if it happens to appreciate then you are lucky and just enjoy drinking a more expensive wine that perhaps you might not have bought at the dearer price.

    With the wine investing companies there was a lot of chatter at the time of folding to suggest that the inventory systems where crap and they had lost a lot of bottle or had more of some and less of some than they should have.

    cheers
    quoll

    ps I live near Mclaren Vale very good wine at really nice prices.
     
  11. bundy1964

    bundy1964 Well-Known Member

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  12. TryHard

    TryHard Well-Known Member

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    I like wine too but the long-term effects of it would probably prohibit any sensible investment decision, I've steered clear (thankfully, as I was tempted by the Heritage 'story'). A friend of ours got burned by Heritage and recovered some of the stock recently. He has a 3,000 bottle cellar purpose built (in Brisbane, permanently air-cond to the required stable 16 degrees !) with a pile of 30 cases of the Heritage-returned wines which he views as an unexpected bonus from that disaster.

    If you were after short term capital gains, there probably few more difficult investment to become expert in than wine, before taking a plunge. There are so many influencing factors (not the least of it is w*nk value - mind you there's a fair lack of logic in the sharemarket too :p - and what ol' Robert Parker rates a wine out of 100!) you should stick to cellaring whatever you personally enjoy and use it to toast your other investments, IMHO :)

    In fact I'm not sure you can ever be truly expert - our mate might as well be a walking Wine Encyclopaedia and its still not a money-making enterprise for him.

    For research, SBS has that Australian Wine Lovers Guide each week which is interesting.

    Sites like Jeremy Oliver on Australian Wine worth a look on the progress of companies in the industry.

    I'd buy shares in Dan Murphy's if it listed I reckon. I love that place - its like a toy shop for the 18+ :)
     
  13. Dr Lobster

    Dr Lobster Well-Known Member

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    Dan Murphy's is owned by woolworths.

    Ahhhh woolies, I had shares in the float. Which I sold when they were $5.50.

    But I used them (in part) to buy a house which doubled, which I then used to buy IPs in Qld, which went up 35%, which was then used to levarage into the stock market, which is now being used to buy me a better ppor.

    I have a soft spot for woolies, no matter what the parrot says.
     
  14. bundy1964

    bundy1964 Well-Known Member

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    I like my Woolies too, they have so many fingers into common market segments. Now if only I could buy shares in Coopers to go with my LNN and FGL.
     
  15. Rod_WA

    Rod_WA Well-Known Member

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    Maybe you could find a Cooper daughter and marry in? :p
     

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