This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

One Lesson You Must Learn to Collect Wine

NEW YORK ( MainStreet) -- Wine experts insist that even the rarest vintages are meant to be drunk. Collectors who ignore that advice could end up with six-figure vinegar if they choose poorly.

Wine collection can be a tough, unforgiving process if you're in it for value and not for the wine itself. Great wines that survive frost, drought and Nazi occupation such as the 1945 Chateau Mouton Rothschild can sell for as much as $57,500 a bottle, as a case did at Christie's six years ago. Then again, an $85 1991 Pinot Noir that just happened to be bottled during a warm vintage can taste absolutely repugnant if a buyer lets it sit for nine years.

The latter happened to Ryan Sharp, winemaker and co-owner of Enso Winery and wine shop in Portland, Ore. He'd bought the bottle from an Oregon winery he'd known and enjoyed for years, but lacked some essential background information on that year's vintage. Normally, the tannins and other acidic/phenolic compounds found in the stems, seeds and skin of pinot noir grapes would preserve it, but a warm weather vintage throws off the acid and fruit balance or "structure" of a wine and leaves it ill-equipped for aging:

"It's just like with anything else: Oxygen is going to eventually spoil it," Sharp says. "That's just how our world works."

It's also evidence that generalities suggesting red wines always age better than white, old world wines always age better than new or that sweet wines always age more poorly than their drier counterparts don't hold much water when you get down to specifics. Large winemakers including Constellation Brands (STZ), Diageo (DEO), Altria (MO), Brown-Forman (BF.B) and even smaller vintners such as Willamette Valley (WVVI) can balance out a bad vintage by adding acids or create vintages specifically designed for immediate drinking.

Still, with only a small fraction of the world's wines capable of improving with age, there are plenty of warning signs to look for and spots to avoid if you're looking to invest in a wine with flavor and value that only improves with age. With help from Sharp, we came up with five wines that don't age particularly well and don't give the buyer any return on their investment unless enjoyed with some urgency:

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $128.70 -0.19%
FB $78.81 -0.23%
GOOG $540.78 0.54%
TSLA $230.51 1.98%
YHOO $42.04 -1.11%

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs