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- Burgundy - 1. April 2020
Got 78.4% In Return On Two Bottles Of Wine In Just Nine Months
A story from the world of wine that is too good to be true ... but is it?
When Reality Surpass Imagination
Sometimes, all you need is a good story. One of those making you stop and think “wauw”. And sometimes it’s a story where reality transcends imagination. Read on and get a real-life story from the wine world about an investor who might have made the best investment of his life - and we have to go up the very top shelf of the wine rack to find the wine in this case.
Impressive Returns
Impressive Returns
In the summer of 2018, an investment opportunity emerged that you do not encounter every day. In collaboration with our trading company RareWine, we had got three fantastic and, to say the least, extraordinary bottles of wine we had very high expectations for. From here, it was all about finding the investor with an investment profile that fit perfectly with such a case. The right investors were located and presented to the case, which in many ways does not resemble the classic investment cases. The price is soaring and the security that is usually achieved by distribution was not an issue here. On the other hand, this was some of the most exclusive wine in the world - and we knew it carried great potential. Through thorough cooperation between investors, RareWine and RareWine Invest, the right investor was found, and after a short period of reflection he turned to two of the three bottles.
”The only mistake was that I didn't buy all three”
-Musigny-investor
The wine in question was Domaine Leroy's top wine, Musigny, from the top vintage of 2015, with Japanese backing label - this is the absolute best wine, from one of the best and most prestigious producers in the world, in one of the strongest Burgundy vintages ever and out of a production of well under 1,000 bottles a year – maybe as few as 600.
The price sensitivity of wines of this caliber produced in such a small number is higher than is usually seen among investment-eligible wines and just eight to nine months later we gave our sales recommendation and the wines were put up for sale. The buyers for wine of this caliber are of course fewer than for almost all other fine and rare wines and the two bottles were also sold to two different buyers, both of whom had a purpose of drinking them. But when something is in demand, the price is rising, and it was, to say the least, also on the two bottles of Musigny, to great enthusiasm of the investor. In just nine months, he could enjoy a return of € 29,000 corresponding to 78.4%:
| Wine | Purchase price | Sold at | Return | Return in % |
|---|---|---|---|---|
| 2015 Leroy Musigny | € 18.500 | € 31.000 | € 12.500 | % 67,6 |
| 2015 Leroy Musigny | € 18.500 | € 35.000 | € 16.500 | % 89,2 |
| Total | € 37.000 | € 66.000 | € 29.000 | % 78,4 |
One of the three bottles of 2015 Domaine Leroy Musigny. The picture is taken by our wine detective as a part of our anti-fraud program.
The World's Most Expensive Wine
In January 2019 we reported that after more than 20 years on the throne as producer of the world's most expensive wine, Domaine de la Romanée-Conti had been removed from the throne and overtaken by Domaine Leroy and their flagship wine Musigny. It happened on top of some hefty price rises that at this time sent the price of a 2015 Musigny up for approx. € 38,000 for a 2015 vintage while a Romanée-Conti of same vintage cost "only" in the approx € 21,000. To date, Domaine Leroy's Musigny has been the primary holder of the title as the producer of the world's most expensive wine* and although Romanée-Conti has been more expensive from time to time, there has been no doubt that it is among the two most expensive wine is to be found at all times.
Read more about Domaine Leroy here: Defying Burgundy Hardship: Outstanding Leroy Delivers Solid Returns On Les Beaux Monts
* By most expensive is meant the most expensive bottle of 750 ml. in general trade
RareWine Invest stocks some of the best and most exclusive wines in the world. On the image are different wines from Domaine Leroy stored
The Price Of A Back Label? € 3,000-7,000
The attentive reader may notice the significant price difference between the investor's wines sold for respectively € 31,000 and € 35,000 while the price in the above case was € 38,000. This significant price difference of otherwise the same wine, is due to tradition and an uncertainty with the roots back in history. In the old days, the French wine producers labeled the wines that, for example, were to be sold in the US with American labels. For wine connoisseurs and collectors, these labels became a sign that the wine had been subjected to an extremely long journey under poor conditions - conditions that are no good for precious wine. Therefore, if you came around a wine with American labels in Europe, you knew that it was very likely to have been across the Atlantic twice - something that is not desirable when paying a lot of money for a sublime wine experience.
Today, handling and transport of wine is handled in a completely different way where temperature, humidity, light and even vibrations are accommodated to ensure the wine as best as possible. However, tradition and "fear" today have become so firmly established that wines with, for example, American labels, or in this case Japanese back label, are still traded for less - more or less for no reason.
But why not buy "the right ones" then? In fact, it is very simple: With wines such as Domaine Leroy's Musigny, for example, it is not a matter of what to choose, but what is possible to buy at all. In this case, we acquired the two bottles of 2015 Musigny that are very well conducive to becoming the best investment of the investor.
We always have different investment-suitable wines from Domaine Leroy in stock and are happy to put together a portfolio for you. If you, like our investor in history, have a desire for an extraordinary investment, our trading company RareWine is active on the wine market every day, all year, and has unique access to procurement of the world's most rare and exclusive wine. Contact us via the form below if you want to learn more.
The above case has been forwarded in consultation with the investor concerned. The investor still have an active portfolio managed by RareWine Invest and the profits from the Musigny case were reinvested in the same. Not even an extraordinary bottle was opened to celebrate the day the deal came around, the investor laughed in a previous conversation. The investor is kept anonymous for reasons of discretion.