Long-term wine investment is the key says 'Crystal Ball' adviser

A senior adviser for global asset management company Schroders has spoken out on wine investment, encouraging those looking for decent returns to take the long-term view.

Chateau Lafite Rothschild
The illustrious Lafite may bounce back after a poor performance in 2012

Alan Brown, who has been a fund manager for more than 38 years and is known for his "Crystal Ball" predictions, has a collection of around 3,400 bottles, but he's not worried by the poor performance of Bordeaux in 2012.

"Take a long-term view. Don't buy high and sell low. The price may recover in the long term," he told the South China Morning Post newspaper.

The news follows a 24.2% decrease in value for Bordeaux first growths in 2012, according to the Liv-ex 50 index. However, this was hardly a surprise to Brown, who told the newspaper that the price level in 2010 was just not sustainable.

Brown bases his positive assertions on the correlation between the wine and equities markets, stating: "If the equities market maintains a good run for a year, confidence will return and you will see wine bulls back in the market."

He also stressed the importance of a diverse portfolio, encouraging investors to try wines from different regions or countries that offer the same quality for reasonable prices.

"My wine portfolio, like my stock one, is very balanced.

"You do not necessarily need to go for the top wine but it is better to have a collection from different areas and different countries.

"The beauty of wine investment is the options it provides. If the price is up, you can sell it for a profit. If price goes down, you can hold it for the long term. Or, you can simply drink it!"

Paul Fraser Collectibles brings you all the latest wine news and investment advice. Never miss a trick with our free weekly newsletter.

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