One of my best girlfriends was part of a team that wrote an economic study about investing in wine.
Excerpt: If you are heading out to the store to buy a case of wine for a holiday party this week, you might want to have a look at the latest economic literature before you depart. If you do, you might buy a few extra cases. Maybe even a truckload.
Wine, it turns out, may be more fun to invest in than to drink. The only thing better would be the discovery that it induces kids to eat their vegetables.
A new paper by economists Lee Sanning, Sherrill Shaffer and Jo Marie Sharratt at the University of Wyoming investigated the returns that wine investors get. They collected ``hammer price'' data for auction results of red Bordeaux vintages ranging from 1893 to 1998. They studied auctions that took place between 1996 and 2003, and estimated risk-adjusted returns for individual wines.
The results were stunning. The holy grail for investors is an asset that delivers healthy annual returns, but doesn't have a great deal of associated risk.
Read more about it on Bloomberg.com.
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