This article will be a mini review of Amphora Portfolio Management, which allows investors to invest in wine.
If you are looking for a second opinion you can email me ([email protected]) or send me a WhatsApp (+447393450837).
Who is Amphora Portfolio Management?
Amphora Portfolio Management Limited was set up just after the Global Financial Crisis. The company lets investors purchase physical bottles of wine, which are then stored and insured.
It has built an algorithm which helps investors buy wines that can be sold more easily.
Amphora is an audited member of the Wine Investment Association, but like the wine industry in general, it is not regulated by the UK FCA.
Whilst many of its investors are overseas, it does have UK-based investors. This article is mainly written with expats in mind.
Has the price of wine gone up over time?
The answer to this question depends on the timescale and the wine in question. Over the long term, many wines have performed excellently.
In recent years, the wine market did see some massive increases in price during COVID-19, before the price went down due to weakness in China after 2022.
Prices are now stabilizing with many markets, such as India, seeing booming demand for alternatives to local alcohol.
It could be argued that now is a good time to invest in wine, but nobody can say that with 100% confidence.
What are the positives and negatives associated with Amphora investment?
The directors of Amphora have a long history in the wine industry and are transparent, as shown by their podcast interview with us.
By rebalancing the portfolio, and adding sufficient diversification, they have been able to manage risks with the investment.
Importantly, the liquidity risk (the possibility of not being able to sell), has been sufficiently mitigated, with the wines they offer typically selling within 4-6 weeks.
That being said, all investments have risks and rewards.
Wine doesn’t produce an income and should only be one portion of a portfolio.
What is more, investors either go in with advisors (most overseas investors) or execute a do-it-yourself strategy (typically UK investors).
This makes it important that you, and your consultant or advisor, assess your entire financial situation properly to make sure this can fit into the overall strategy.
Conclusion
Investments like this can add real value to a client’s portfolio, but you do need to make sure it fits into your wider financial plan.
Pained by financial indecision?
Adam is an internationally recognised author on financial matters with over 830million answer views on Quora, a widely sold book on Amazon, and a contributor on Forbes.
