Saturday, February 15, 2014

Alternative Investments With Liquidity: "Fine Wines, Best Value"

When I was a young hotshot I decided I would sample every representative wine of one type or another.

I had decided on Bordeaux and told a very connected sommelier/procurer of my intent. He advised I definitely not go with Bordeaux as I "would have cirrhosis before I was a quarter of the way through" the 1500 wineries, each with multiple labels. Even if I limited the experiment to certain châteaux, the multitude of vintages would probably mean I'd end as just another poor alcoholic with an educated palate.
So we decided on the Champagne instead.

Anyone serious about this stuff should probably read "'Dimson et al: "The impact of aging on wine prices and the performance of wine as a long-term investment'" wherein, as a special bonus I recount the sommelier's favorite wine joke. (you've probably heard it but it is so bad it's good)

From Barron's Penta:
What are some of the best-value wines on the market? That’s what we asked Daniel Johnnes, both a wine director for Daniel Boulud’s Dinex Group and a successful importer of wines.
Last time we visited Johnnes in his downtown digs, we asked the oenophile to identify the truly special wines he would serve his nearest and dearest over Christmas. (See “Three Magical Wines for the Holidays,” Penta, Dec. 9, 2013.)

Wall Street’s well-paid wine junkies didn’t bat an eye at his list, but some Penta readers—and a few colleagues—wagged their finger at us for soliciting what Johnnes calls “once in a lifetime” wines and vintages.
Many of the rare wines he picked cost about $1,500 a bottle, if you could find them at all. “It’s possible,” he says, “that the wines I selected previously could only disappoint you, because you’re already expecting so much that it couldn’t possibly deliver much more.”

So when we circled back, we asked Johnnes another question: Your kid is getting started in the world, is hosting a work-related dinner party, and he or she calls you to ask, “What are some of the best-value-for-money wines I could serve in the $25 to $100 range?”

Each of the following fine wines Johnnes picked ­delivers “more than what you’d hope for at that price point,” he says, and “they won’t break the budget.”

Johnnes is a classicist who believes in starting a dinner with a Champagne or sparkling wine to stimulate the palate. For his kid’s dinner party, he’d start with a Champagne from Christophe Mignon. This six-generation, family-run boutique vineyard is very hands-on, with the producers keeping a close eye on everything from gently removing the grapes from the vine to aging the juice.
At $45, the Champagne ends with “a very refreshing, savory finish,” says Johnnes.
Johnnes’ pick is the Christophe Mignon Blanc de Noirs ‘Pur Meunier’ Brut Nature. The Brut Nature signifies it’s one of  the very driest of champagnes, and it’s a nonvintage, which means it’s made from Pinot Meunier grapes plucked and blended from different years. The grapes are grown 13 miles west of Epernay, a region well known for producing grapes for fine Champagnes....MORE