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Cut-Rate, Super-Second Fine Wine Investments

When it comes to fine wine investments, the most well-known effect of the Bordeaux Wine Official Classification of 1855 is that it created the big four ‘First Growth’ wine estates. These fine wine estates are considered to be the very best in the region, due to their prestige, high-quality, and their prices that have reigned supreme ever since.

Super-second fine wine investments

A slightly lesser known outcome of the ‘First Growth’ classification is that it has also sorted a whole range of other Bordeaux wines into four other categories of descending quality: second to fifth growths, respectively.

Since 1855, the lines quality between the first and second growth categories have been decidedly blurred. There’s plenty of argument to suggest that the second growth estates should be of just as much interest and importance to fine wine investments specialists as their ‘Premier Cru’ counterparts.

The 2008 factor

The Super-Seconds from 2008 seem to represent extremely good value to the keen fine wine investor and we believe that there are two main reasons for this.

Firstly, they overshot by a significant margin during the bull-run, whilst most doubled, ‘en premeur’, and Duhart Milon increased their value fivefold.

Secondly, their arrival in physical delivery form in 2011’s second quarter coincided with the peak in the fine wine investment market. Rather than take delivery, it appears that many en premeur owners simply sold up.

Take a look at this evidence of Super-Seconds performance against the Liv-Ex 100 in the chart below:

The fine wine investment report

This chart also highlights two principles that we’re always keen to stress: there is no homogenous ‘fine wine investments price’. Fine wines are like stocks; they don’t all perform in the same time or way so for this reason, it pays to pick the right one at the right time when it comes to investing.

Despite the correction in recent years, it was still possible to make returns – provided that you didn’t buy in the last couple of months during the rally.

So where do 2008 Super-Seconds sit now, relative to other ‘off’ vintages?

2008 on the Left Bank scored a vintage score of 91. As a point of comparison, an ‘on’ vintage would score 95 or above. The highest ever is 2009, which scored 99 points. Most ‘off’ vintages score in the 80s, so clearly the 2008 is a cut above the rest and the off vintages since 2000 range between 86 and 88 points.

So, it would follow that the 2008 fine wines are pricier than other ‘off’ vintages then, right? Wrong.

Invest in fine wine from 2008

Here we encounter the heart of the current opportunity. The most obvious examples are listed below, along with their comparables. In each case, there is a clear discount on the 2008 vintage, despite the superior overall vintage, and the individual fine wines within it.

We find pricing in the fine wine investments market to be largely coherent. Most wines, relative to each other, cost roughly what they should. Occasionally, however, we find anomalies.

Over time, these are likely to be eroded. And, whilst it’s fair to say that 2008 is a generally underappreciated vintage, its constituent wines often offer the best buy opportunities at current levels.

London fine wine investment

If you’re looking to invest in fine wine, chances are you’re looking for the lowest price for the most promising fine wine investment. And sure, nobody can truly predict that, but we reckon these 2008 Super-Seconds show a lot of promise. If you want to find out more about our fine wine investment services, then get in touch with us today.

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