by Giles Cadman - Venulum Ltd
The Financial Times has picked up on the research from University of East Anglia’s Norwich Business School, which talks about how only investing in French Fine Wine and Champagne may mean investors miss out on good returns from wines from other countries.
Dr Apostolos Kourtis, lead author of the report and a professor at the school, says: “The investment market deals mostly with French wines, but we found that diversification across the different varieties of French wine is not that effective.
“However, our results suggest that diversification across other wine-producing countries is likely to be much more efficient in reducing overall investment portfolio risk.
“This is probably due to the fact that fine wine prices are sensitive to climate variations at a geographical level.”
My experience from nearly two decades as a wine investor is that it pays to diversify as the professor suggests. I like to have the bulk of my portfolio in French wine and champagne but also like some Spanish and Italian wine, Port, and select new world wine to balance out my portfolio.
