How Vinovest Pours a New Opportunity for Everyday People

How Vinovest Pours a New Opportunity of investing in fine wine for Everyday People

This post may contain affiliate links that help Mike keep the posts coming but cost you zero extra. Please see my disclosure page for more details.

 

When we talk about historical investment options for the average American, we discuss stocks, bonds, precious metals, and if we’re fortunate enough to have saved up enough capital maybe we dive into real estate or a business investment as well. One thing I hadn’t considered as a realistic investment option, though, is fine wine. Well, thanks to Vinovest, a new LA-based startup run by a proven set of co-founders, investing in fine wine is no longer reserved for the ultra-wealthy. Everyday people – you and I – can do it, too. 

 

(Sponsored content)

 

I had the great opportunity to sit down with Vinovest co-founder, Anthony Zhang, just a couple of weeks ago

 

During our conversation, I had the chance to:

 

 

  • Learn more about how the company, and more importantly how an investment in fine wine through Vinovest works,
  • Determine if these investments are safe and secure,
  • Find out more about one of the men “steering the ship” as he put it, and
  • Decide if this type of investment could be right for our family as well as you – the reader

 

 

And not to spoil the ending, but I came away from the interview equally impressed with the man as well as the company he’s helping to build. 

 


 

Before we dive in, here’s a link over to Vinovest if you’d like to check it out yourself

 

Just for being a MikedUp Blog reader, the awesome Vinovest team is offering 1 month of investing with ZERO FEES. If you’d like to take advantage, simply set up your account through one of the links on this page. Thanks all!

 


 

First, let’s start with Vinovest, how it works, and what it does with fine wine

 

Vinovest opens up a new asset class (fine wine) to the average investor. Anthony told me, “With a minimum investment of $1,000, [Vinovest] will allow you to select a risk profile that works for your goals and handle all of the details that would’ve otherwise excluded this option.” Once you’ve taken their short quiz, Vinovest’s platform helps recommend a globally diversified portfolio of investment-grade wines based on your risk tolerance, investment amount, etc. By default, they professionally store and insure the wines for you, but they can also be delivered to your home at your discretion. Keeping and storing your wines is not much different from your typical investment in a stock, however, the “using” of your investment is a bit different.

 

“One of the bugs of our platform is that you can actually drink your profits,” Anthony joked. But he was accurate in the fact that these are your bottles of wine and if you’d like to have one sent to you to drink on a special occasion – that’s definitely your right as the owner. 

 

Why not tack ‘drinking your profits’ up as a solid benefit to this investment type. But let’s not stop at that. I was more intrigued with the fact that fine wines have shown 11.6% annualized gains over the past 35 years, which makes fine wine a secure, profitable, and – dare I say – fun investment. For comparison purposes, the S&P (a widely-used baseline for the stock market) has returned close to 8% annually over the same time period. 

 

With a return above 11%, why haven’t we heard of this option and why aren’t more American’s investing in fine wines?

 

Access to markets, actually building a wine cellar, and a general lack of knowledge all previously kept this market at arm’s length for most of us. In the past, you either had to know someone in the industry or be on an exclusive mailing list. But Anthony and his company are bridging the gap. “We are advised by master sommeliers, but our company and its investments are algorithmically driven…” This allows for the best and most profitable decisions to be made on his investor’s behalf. “We are also partnering with 3rd party storage facilities to make sure that your bottles of wine are kept safe and in the right conditions.” 

 

With these systems in place, Vinovest eliminates all of the barriers that previously kept this lucrative asset class out of the typical investment portfolio. Additionally, this system puts the company’s investors in the best position to earn a profitable return. 

 

The current minimum investment of $1,000 won’t stay at that level for long

 

“As the company scales, we’ll be able to reduce that initial investment required,” Anthony said. And as the initial investment required decreases, two things will happen and they’ll work in concert.

 

  • More of the average investors will be able to jump in – and
  • The market for fine wine will grow considerably

 

Anthony continued to say that this $1,000 value was set after much consideration. He and the team wanted to make sure that this initial investment required was low enough to appeal to many potential investors, but in the early stages of the company, they also needed to make sure that enough capital was available to make the best investments

 

When investing in banks and stocks, we feel secure with that FDIC logo. Does Vinovest provide similar security with an alternative investment?

 

“Yes, we’re providing just about the same level of security for your wines. We have an insurance policy in place so that if a tsunami wipes out our facility, and your wines, your investment is secured and will not be lost… If someone drops your wine on accident, your funds and investment are still secure and insured at 100%.” 

 

The company launched at the very end of 2019, and as of this writing (February 14, 2020) has already earned $250,000 worth of investments. The investor (you and I) can place our money in an investment account with Vinovest much like we’d use a Fidelity or Vanguard to invest in mutual funds, stocks, or bonds. One of the best things about this investment though, as Anthony put it, “…[The asset class] is not tied to the market and has boasted steady returns outperforming the S&P.” 

 

And when I asked him what a recession could do to the sector and his company specifically, he answered with some supportive facts. During the last recession, when the S&P showed losses in the double digits, fine wines only dropped at a fraction of that level. “[Wine] is a great hedge against a recession.” 

 

“Are fine wines a stable or volatile investment sector?”

 

Anthony was quick to answer, “Fine wines have been very stable over the last few decades.” And he’s not wrong. Just because the returns on wine aren’t as publicly monitored as the S&P doesn’t mean the asset isn’t performing well – it is. This Forbes article (and much other research) touts fine wine as a “stable” investment returning, “…8 to 12%…” if, “…the correct wines are bought at the right time.” 

 

As a rule of thumb, and because I don’t have enough knowledge of stocks, companies, and the market as a whole, I do not try to time the stock market. I prefer to buy an investment with plans to hold it for a term of years. 

 

So I asked Anthony how Vinovest helps me, the guy who knows he likes dry reds… and the movie Sideways to know enough to invest in wine and actually come out ahead. 

 

And as it turns out, wine works very well for me – the buy and hold investor. He said, “Our algorithm takes your risk tolerance and investment horizon into account when selecting the best wines for you.” 

 

So why is wine such a good investment? 

 

Looking back at the Forbes article above, fine wine:

  • Has a finite supply – which helps boost value and grow returns
  • Is available to more markets – when economies in China, South East Asia, and parts of Africa continue to grow and build wealth, more potential investors have more currency available
  • Is a physical asset – like I’ve said above, these bottles can be shipped to you if you’d like; they are tangible bottles you can hold in your hands
  • Continues to beat the S&P – and when it comes to investing, that’s not easy to do

 

Where does fine wine fit into my investment strategy?

 

There is a wide array of different investment philosophies out there but a common theme among sage investors is – diversification. And while there are many ways to diversify your investment portfolio, especially with today’s modern markets and technology, the thing that many investors seek with their diversification is stability with a portion of their assets. And over the last 35 years, fine wine has given us great stability, returning 8-12% annually. 

 

So should we pour 50% of our assets into wine and other alternative investments right away?? Not quite. As Anthony mentioned during our conversation,  “While most investors choose to put 80% into stocks and other funds and use 20% for alternatives, fine wines can be a great and independent place to invest [some of that 20%].”

 

How can I start investing in fine wine with Vinovest?

 

Anthony and his team lay out a simple 4 step process over on their site.

 

Click here to check out the Vinovest site

 

Here’s a quick summary:

 

  1. Sign up with Vinovest to become a wine investor – this is open to master sommeliers and average investors (like me), so no industry expertise is required
  2. Take the short Vinovest questionnaire – which is designed to match your risk tolerance and investment timeline with the perfect bottles for you
  3. See your customized wine portfolio – this is my favorite part – once the algorithm does its thing, you can visually see the wines you’ll be investing in, all about their origin, and what makes them unique. It’s like fantasy football for fine wine!
  4. Fund your account and watch it grow – much like a good mutual fund, your wine collection will be constantly and meticulously managed. You’ll be able to view the individual bottle’s performance over time, as well as learn more about your investment and how it’s being stored

 

What fees do investors pay to use Vinovest’s platform?

 

Vinovest has a 2-tier fee structure that is outlined on their site.

 

-The Standard Plan (for account balances between $1,000 – $50,000) has a 2.85% annual fee. There are no additional fees over this 2.85% and it earns you, “Diversified investment portfolios, authenticated asset guide, world-class storage, unlimited portfolio rebalancing, and a fully insured investment.”

 

-The Wine Lovers Plan (for account balances over $50,000) has a 2.5% annual fee with no additional charges. On top of the Standard Plan benefits above you also receive, “1 on 1 expert guidance, exclusive invites to tastings and events, customized portfolio construction, and access to rare, auction-only wines.”

 

What does the future hold for the company and for its co-founder – Anthony Zhang?

 

Here is an article I’ve written detailing some of his past businesses and a bit about his personal story if you’d like to learn more about the Vinovest co-founder.

 

Anthony Zhang is “all in” on this company, what it is, and what it can be someday. And when I asked him if he planned to exit Vinovest just like he did his past two companies (through selling), he was quick to shoot that idea down. 

 

“I’m in this for the long haul,” Anthony said. “I have a passion for wine. In fact, I’ve always wanted to own a winery someday and to make wines for my family and friends. What better way to get to that goal than through this company?” 

 

But he didn’t want to just sit back and stomp grapes either. “We have plans to branch into other alternative investments. Eventually, Whiskeyvest, Diamondvest, and some others will be available through our platform as well.” 

 

Both the passion that Anthony shared for his company and his and his co-founder’s past successes have me very excited about the prospect of investing in fine wine through Vinovest. 

 

So what do you say? Do you think you’ll give Vinovest a shot? 

 

Head over to Vinovest and check them out for yourself – don’t make me drink alone 😉

 

Just for being a MikedUp Blog reader, the awesome Vinovest team is offering 1 month of investing with ZERO FEES. If you’d like to take advantage, simply set up your account through one of the links on this page. Thanks all!

Join Over 2,100 Other Team Members!
Learn valuable skills to build wealth, achieve a higher level of fitness, boost your business' profits, and more...  All in support of a healthier YOU!
By signing up you agree to receive regular emails with exclusive content, deals, and more! Unsubscribe at any time - and it is my honor to NOT SPAM your inbox (I promise)

You may also like

Let us know your thoughts!

This site uses Akismet to reduce spam. Learn how your comment data is processed.