Lucey, Brian M. and Devine, Liam, Is Wine a Premier CRU Investment?, 2011
We investigate the case for Bordeaux and Rhone wine as an investment. The raw data analysed comprises of approx. 335,000 observations of wine sales prices and is analysed using the repeat sales regression method. General Red Bordeaux and Rhone wine indices are constructed for the period January 1996 - January 2007, which are compared with each other , with the Dow Jones Industrial Average (DJIA), and with a number of wine funds and finally with the the Liv-Ex Fine Wine 100 (FW100) Index. The findings suggest that Rhone and Bordeaux wines can provide average returns in excess of risk-free investments with lower risk at index level. Individual wines and sub-regions carry higher risk than the general indices with varying return levels and so direct investment in such wine by inexperienced, low volume or individual investors carries a high level of risk. Returns on indirect investment via wine funds vary, however all average returns of funds analysed exceed the general Rhone and Bordeaux Index in this research. Volatility for some wine funds was particularly high and may not suit risk-averse investors.
Please note: There is a known bug in some browsers that causes an
error when a user tries to view large pdf file within the browser window.
If you receive the message "The file is damaged and could not be
repaired", please try one of the solutions linked below based on the
browser you are using.
Items in TARA are protected by copyright, with all rights reserved, unless otherwise indicated.