New York — Buying rare wines is like investing in a startup: you need 10 years of runway to see significant returns. But unlike a startup, an investment in wine is virtually guaranteed. Had you allocated $100,000 to Cult Wines, a UK-based wine portfolio manager, your money — which is to say your wine — would have returned an average of 13% annually. In 2016, its index performance was actually 26%. The fine wine secondary market hovers at about $5bn, a fraction of the $302bn global wine market. But Euromonitor projects that while "key luxury players face mounting risks in 2018," the wine and champagne category is set to increase by an estimated 7%. When it comes to what private bank Coutts calls the "passion index", wine is right up there with fancy cars and rare coins. Due to the unique nature of wine, however, investors should hire a manager. Cult Wines, Farr Vintners and Berry Bros & Rudd are a few of a small network that will invest your money depending on your risk level, sugges...
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