- 2 mins
𝗬𝗼𝘂 𝗰𝗮𝗻 𝗶𝗻𝘃𝗲𝘀𝘁 𝗶𝗻 𝗪𝗛𝗔𝗧? - 𝗔 𝗚𝘂𝗶𝗱𝗲 𝘁𝗼 𝗧𝗿𝘂𝗹𝘆 𝗜𝗻𝘃𝗲𝘀𝘁𝗮𝗯𝗹𝗲 𝗔𝘀𝘀𝗲𝘁𝘀
Over this past weekend, I was talking to a guy I just met at a dinner party who was completely flabbergasted that you can actually invest in fine wine. His exact words: "So you're telling me I can buy fancy bottles, never drink them, and make money? That sounds like the saddest investment ever!" 😂
That conversation got me thinking about what actually makes something "investable" in the first place. By definition, an investable asset is anything with the potential to generate positive returns over time while preserving capital, whether through appreciation, income generation, or both.
But what should everyday investors really look for? Here are the 7 essential qualities that make any asset truly viable for investment:
1. 𝗜𝗻𝘁𝗿𝗶𝗻𝘀𝗶𝗰 𝗩𝗮𝗹𝘂𝗲
An investment should have actual utility or desirability beyond pure speculation.
✅ Fine wine: Produced to be consumed and enjoyed, with centuries of established cultural value that ensures baseline demand regardless of investment trends.
2. 𝗘𝘀𝘁𝗮𝗯𝗹𝗶𝘀𝗵𝗲𝗱 𝗠𝗮𝗿𝗸𝗲𝘁𝗽𝗹𝗮𝗰𝗲
There must be functioning markets where buyers meet sellers.
✅ Fine wine: Trading platforms like Liv-ex (the "wine stock exchange"), global auction houses, and merchant networks create liquidity and price discovery.
3. 𝗧𝗿𝗮𝗰𝗸 𝗥𝗲𝗰𝗼𝗿𝗱
The asset class should have verifiable historical performance data.
✅ Fine wine: The Liv-ex Fine Wine 100 index has delivered approximately 7-9% annualized returns over the past two decades, with documented performance through multiple economic cycles.
4. 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝗦𝘂𝗽𝗽𝗹𝘆
Some natural constraint on availability helps maintain value.
✅ Fine wine: Investment-grade wine comes from specific vineyards with fixed acreage. Each vintage is produced exactly once, and supply diminishes as bottles are consumed.
5. 𝗥𝗲𝗰𝗼𝗴𝗻𝗶𝘁𝗶𝗼𝗻
Broader acceptance as a legitimate store of value matters.
✅ Fine wine: Consistently included in Knight Frank's Luxury Investment Index alongside art and gold, with increasing institutional recognition as banks accept fine wine as collateral.
6. 𝗧𝗿𝗮𝗻𝘀𝗳𝗲𝗿𝗮𝗯𝗶𝗹𝗶𝘁𝘆
Ownership must be legally and practically transferable.
✅ Fine wine: Established ownership documentation and professional storage solutions ensure wine can change hands efficiently between investors worldwide.
7. 𝗩𝗲𝗿𝗶𝗳𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆
Authenticity and ownership can be verified reliably.
✅ Fine wine: From provenance tracking to secure storage facilities, verification systems protect investors from counterfeits that plague many collectibles markets.
While most people consider only stocks, bonds, and real estate "real investments," alternative assets like fine wine often provide complementary benefits.
What alternative investments have caught your attention lately? Let me know in the comments!
