Edward Mackauf, President of FineWineCollector.com buys and sells the finest of investment quality wines. He obtains his fine wines from serious collector/investors many of whom drink these great wines free. Here is how they do it.
Serious collectors research which wines are mostly likely to appreciate in value. They follow what Mackauf calls the “RAQS”TM system, paying attention to Reputation, Ageing Potential, Quality and Scarcity. With that in mind, their goal is to purchase wine that doubles in value in a reasonable period of time. Once the wine has doubled in value, they can sell half of the case that they purchased for their cost of the entire case, and then enjoy the remaining 6 bottles of great wine for free.
Below, Mackauf gives some examples of wines that have doubled in value and have enabled many of his collectors to drink fine wine for free.
– Ch. Lafite-Rothschild 2003, $400 release price; $1,214 auction average 2010
– Ch. Margaux 2000, $350 release price; $1,102 auction average 2010
– Ch. Lafite-Rothschild 1996, $175 release price; $505 auction average 2006; $1,435 auction average 2010
– Ch. Latour 1996, $225 release price; $864 auction average 2010
– Ch. Margaux 1990, $90 release price; $395 auction average 1999, $1,026 auction average 2010
– Ch. Lafite-Rothschild 1986, $75 release price; $237 auction average 1999, $1,571 auction average 2010
– Ch. Latour 1982, $33 release price; $444 auction average 1999, $1,820 auction average 2010
Although the above list is entirely comprised of great Bordeaux* wines, Mackauf believes that it is equally possible to double one’s money with great California cabernets. However, one needs to be prepared to wait approximately 10 years to double your money on a great blue chip wine that you have purchased at a good price (excluding Ch. Lafite-Rothschild which has soared in value in recent years due to the love of this wine by the Chinese**).
To reap the rewards of this investment strategy and to be able to drink great wines for free, you have to know which wines are the blue chip wines, buy them at a good price and be able to properly store them in a refrigerated environment for at least 10 years. Mackauf of FineWineCollecor.com suggests that having a good personal relationship with your wine broker is key.
That is all there is to it – buy low, sell high and drink fine wine for free.