New Year’s Resolutions

#1: trust wine in 2023

The festivities to end 2022 have passed in a flash, and here we are, braced for bad weather in 2023. To send New Year wishes feels crass when newspaper headlines paint such a gloomy picture of the months to come. Financial authorities predict a global recession, unease surrounding China’s new “living with Covid” policy fills the air, and inflation continues its upward stride despite central banks’ best efforts.

But numbers can only go so far in wine. Though prices for mainstream wines are expected to soften in the secondary market this year, urgency remains for those seeking to build a fine wine collection to stand the test of time.

Not unlike private equity funds, wine shows a heavy dispersion of returns. Focusing on the most sought-after wines, where access is more challenging than ever, guarantees long-term performance while minimising risks for mid-term value erosion. Mother Nature waits for no man, and with each new vintage, lower volumes of such wine are being released for sale, yet demand grows fervently.

Sourcing these wines with perfect provenance – as directly as possible from the estate, and with documented authenticity and traceability – is essential, not only to guarantee their enjoyment as intended by their creators, but also to generate additional alpha in the meantime.

#2: drink with your senses, collect with sense

Beyond the benefits of wealth preservation (providing the right wines are selected), collecting fine wine remains a noble pursuit, satisfying all our senses.

Following our noses when collecting can guide us to a point. The recent obsession for Pinot Noir is the perfect example, wherein the jealous suitors’ chase after Burgundy caused prices to soar.

Nonetheless, a keener eye will notice that prices of many mid-level Burgundy brands are stagnating, with less liquidity than icons from further afield (Bordeaux, Champagne, the US etc). It is important, particularly in challenging economic times, to remove emotion from the collectible through expertise and impartiality.

Whether planning future drinking experiences, designing a collection for our children, or sheltering a small store of wealth, building a vinous legacy requires a level head.