▻ Collecting and Investing in Wine – Part One

Let's Talk About

24 Mar

Written By Sarah Kemp

In conversation with Jamie Ritchie

Episode Summary:-

In the first of our new series on “Collecting and Investing,” Elin McCoy, our US editor, talks to Jamie Ritchie, Worldwide Head of Wine for Sotheby’s. Jamie explains the first steps to take if you decide you want to start collecting, and how it is important to decide whether you are buying to enjoy or invest or a combination of the two. In this episode, Elin and Jamie discuss how much money you need to start a collection, how to devise a cellar plan depending on your preferences, and the factors you need to consider to work out how much wine you should buy to suit your lifestyle and age.

Elin and Jamie discuss the best places to buy and sell wine and the importance of provenance, especially with older “trophy wines.” Sotheby’s have introduced instant cellars, from introductory cellars to investment cellars which can be delivered the next day, and Elin suggests these could be the ultimate graduation or wedding present. If you are looking at wine purely as an investment Jamie states that you have to look at what has the greatest potential to increase. He reveals that Bordeaux and Burgundy make up 85% of Sotheby’s business for collectable wine. He advises buying the best producers in the best vintages and believes Bordeaux prices look like pretty good value to him. Jamie reveals his tips for wines he believes offer investment potential, including 2005 Bordeaux, which he says hasn’t started appreciating yet compared to the 2000 Bordeaux vintage.

““You’ve got to enjoy yourself. This is fun. You are only doing this for yourself and who you are drinking this with, so you have to make yourself happy. It’s on the investment side you don’t care about any of that.””

— Jamie Ritchie

Running Order:-

0.00 – 11.00

“Make sure when you are starting out you have something to drink, there is nothing worse than buying some wine and having nothing to drink.”

Elin McCoy asks Jamie how you should approach collecting wine, whether for pleasure or investment. Jamie Ritchie explains how Sotheby’s have devised a questionnaire which helps clients put together a cellar depending on their preferences, budget, quantities required and age. For a serious collection US$5,000 is a reasonable amount to budget. They discuss balancing the need for wine to drink now, wine for medium term and wine for long term. Jamie advises focusing on buying what’s not going to be available ten years on when you would like to be drinking it.
11.00 – 22.30

“What’s not going to be available in ten years’ time when I want to be drinking it, that’s what to focus on first.”

In 2012 Emma and her father imported a variety of vine stock, including Pinot Noir, Sangiovese, and Syrah. She describes her approach to winemaking where lots are vinified and aged separately.

Elin and Jamie discuss the importance of provenance, especially with older “trophy wines.” They agree that most people don’t ask for advice, and the wine trade’s vast knowledge is under-utilised. Jamie explains how Sotheby’s has introduced instant cellars, from an introductory cellar at US$5,000 to an investment cellar at US$25,000, which can be delivered the next day, and how in the last year online auctions have attracted a new, younger client base.
22.31 – 30.19

“The 2005 Bordeaux vintage is of outstanding quality and hasn’t really kicked in and started appreciating compared to the 2000s – it looks very good value.”

If you are only looking at wine as an investment then you need to buy the best producers in the best vintages Jamie explains. Bordeaux and Burgundy are still the two biggest areas for wine collecting, making up 85% of Sotheby’s business. Jamie recommends which wines he believes are undervalued, and gives his predictions for the fine-wine market for the next few years.