Liquid Investment

Collecting fine wine can help stabilise a portfolio, as long as you do it correctly, advises Johnny Hon from the Global Group.

For many, the upside of investing in fine wine is that you get to drink the returns. But people are increasingly coming to see wine as an asset with remarkable financial qualities as well. Historical analysis shows that returns from fine wine have been more stable than those from stocks, both in the short and long term, which means that replacing some of the equities in a traditional portfolio with wine investments can help to lower volatility. This defensive quality is helping to shift the perception of wine from that of a pure passion play to a serious alternative asset class.

But it still helps to approach the market as a collector, because the best returns come from knowing the market inside out. Johnny Hon, founder of Global Group and a connoisseur himself, has a few rules as a professional collector.

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