Wine & Spirits
Investment Report
March 2021
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The image at the top represents an aggregate of ALL the new wines we recommended in 2020. Two months are missing because we did not have any recommendations in those months. The worse month is February with -4.43% loss and the best month is October with + 14.47% growth.
If you want to learn how we are achieving such high growth in short periods of time, send us an email with the best number to reach you and we will show you how its possible to turn a a low risk stable investment like wine (Some have even said boring!). Into a hot commodity with serious returns.
The major indices table below, compares the Invest Into Wine Index with the London Vintners Exchange Index and some of the world’s stock markets.
James Pala
Fully managing your portfolio is part of our standard service
If you ask a financial investment firm or bank to fully manage your portfolio, they would ask you to invest a minimum of $250,000 Dollars. Some require even more capital before they will offer a portfolio management service.
With Sure Holdings, even one case of wine will be fully managed by our experts in the fine and rare wine & spirits market. With over 50 years combined experience, our team knows when to buy and when to sell to maximize growth on your hard earned money.
Email support@sureholdings.comif you have any questions.
The Figures for February
This month’s valuations showed the Bordeaux market has decreased by -0.06% for the month. Champagne and Rhone Valley wines have increased 1,71%.
– 33.3% of the wines valued showed a positive return, while 24,1% showed a negative return and 42,6% remained the same.
– 82.3% of our portfolio is Bordeaux while 14.2% is Champagne and Rhone Valley and our new addition of Whisky investments make up 3.5%
– The overall change for ALL the wines valued this month was UP +0.09%
Scroll down for the winners and losers for February versus March.
Below are the five, top and bottom movers compared to the previous month. Over 100 wines are valued each month. The wines valued are ALL OUR recommendations from the last fifteen years.
The new prices, are reflected in your online portfolio every month.
Please log on to our website SureHoldings.com to view your wine portfolio and email us back if you wish to ask anything about which wines that can help build your wine portfolio.
Yours Sincerely,
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Mouton Rothschild did it again this month, with the 1989 vintage achieving a whopping 14% growth in just one month.
Showing that the older vintages are still capturing some of the aggressive growth in the market. Needless to say, the growth spurts in the older vintages are more sporadic than the consistency we see in the younger vintages (5 years or younger).
Mouton Rothschild 2018 vintage has appreciated 18% in a two month period. We invested in Mouton 2018 back in June 2020.
Our investments in 2020 are producing great results already!
What we do different compared to other wine companies.
What often happens in the secondary market is, wine companies will offer the wines their clients are selling to their other clients.
The secondary market is wine that is already bottled and distributed into the market. They may be held by collectors or other private investors or wine companies as part of their own investment portfolio.
While we do have a very active secondary market, there’s good growth opportunities in this market. What we do very different to the rest of the wine market is, we sell client wines mainly into the open market.
We do offer them to our private investor base of clients, but the majority of buyers of our clients wines are other wine companies.
We made the decision to do so many years ago. Because if we only buy and sell within our own investor base, it means we would operate in a very closed market.
By selling worldwide, it allows us to see more data trends in the market, and at a faster pace. Having the ability to assess the appetite of the commercial wine market and the private investor market, is good market intelligence.
Private investors are generally in for the longer term. A wine company is looking at today’s profit margin and the next month’s sales.
By having this balance of clients, we are able to promote our clients wines to an active distribution market, meaning you never wait too long to find a buyer.
If you have been selling any wines recently, you will notice they are selling a lot faster than years earlier.
The market is also very active in the current quarter which contributes to the uptick in activity.
Where is the economy heading?
There has been much talk about the size of the latest stimulus package approved by congress. 1.9 trillion dollars is a huge sum of money. The last bill passed by congress was a 1.4 trillion stimulus bill back in December 2020.
The next stimulus package which the Biden administration is pushing for, is aimed at 3 trillion dollars,
It could spell disaster for markets and the economy if the Feds are not able to control the monetary policy in a positive manner to ease investors’ concerns over inflation.
Back in 2009 when the global markets collapsed, Obama wrote a check for 800 billion dollars and this was a world record stimulus amount.
Only 12 years later, and we are seeing a package that is double in size. Unfortunately, the cost of earnings has not doubled during this period, neither has inflation.
In contrast, the inflation rate in the United States between 2009 and today has been 24.02%. This means that 100 dollars in 2009 are equivalent to 124.02 dollars in 2021. In other words, the purchasing power of $100 in 2009 equals $124.02 today.
The big question on investors’ minds is, where will the economy be in 12 months from now after such huge stimulus have been printed?
Will the economy spiral into massive inflation?
What Is Inflation?
KEY TAKEAWAYS
- Inflation is the rate at which the the value of a currency is falling and consequently the general level of prices for goods and services is rising.
- Inflation is sometimes classified into three types: Demand-Pull inflation, Cost-Push inflation, and Built-In inflation.
- Most commonly used inflation indexes are the Consumer Price Index (CPI) and the Wholesale Price Index (WPI).
- Inflation can be viewed positively or negatively depending on the individual viewpoint and rate of change.
- Those with tangible assets, like property or stocked commodities, may like to see some inflation as that raises the value of their assets.
- People holding cash may not like inflation, as it erodes the value of their cash holdings.
- Ideally, an optimum level of inflation is required to promote spending to a certain extent instead of saving, thereby nurturing economic growth.
Successful investing is one of consistency
Having a regular amount invested every month is one of the key aspects to growing wealth. Every investment and market has its ups and downs. If you take the ups with the downs and it is a solid investment with a good base, then generally you should do well.
It is when we invest at different times where things can go wrong.
OUR TRACK RECORD
- Below is a list of the returns based on an investment of $1000 dollars for every recommendation we have made since 2005.
- Not every year is in profit, the 2011 recommendations are still negative.
- However, because every other year has performed, the overall return is a net profit. And quite a healthy one at that!
- Some years do much better than others. But knowing which of those years are going to do better, is part of our research and analysis.
- Notice the years where the original investment is lower, like 2012. We purposely recommended fewer recommendations in 2012 because there was lesser growth.
- Note bullish years like 2016 and 2020 where the number of recommendations was 5 times higher.
- Many of the wines we invested in 2016 achieved double digit returns over a 12 month period.
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