Is Lafite the best-performing asset of the noughties?

Is a case of 1982 Lafite Rothschild the best-performing asset of the last decade?

A 12-bottle case of 1982 Lafite Rothschild has increased in price by 857% over the last ten years, from £2,613 to £25,000.

The best-performing equity on the LSE (British American Tobacco) increased in price 454% over the same period, while gold prices are up 297%.

Overall, fine wine has proved itself one of the top-performing assets of the “noughties” – beating equities, houses, oil, stamps and fine art.

 
 *31 December 1999 to 30 November 2009/ **Compound annual growth rate

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So which wines have seen the largest price increase over the period? As mentioned earlier, Lafite 1982 tops the charts and it comes as no surprise that Lafite dominates the rest of the top ten, taking another five places. (Only includes those wines that are components in the Liv-ex Fine Wine Investables Index)

 
 

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Comments

[Liv-ex]

Thanks for the feedback Donald. Which vintages did you have in mind? Our research showed returns for the Carruades 1989, 90, 95, 96 and 98 vintages come in just under the figure for Lafite 82 (although they are mightily impressive themselves). Holding on to your money for a year and a half and then buying the 2000 vintage may well have been the best strategy (providing a return of close to 900%). Although when you factor in the increased storage costs (you would need up to 13 cases of Carruades to equal one of Lafite) this is arguable.

[Donald Howes]

Shouldn't you guys really know the answer to this?

Clearly, Lafite has not been the best investment. Carruades has outperformed Lafite by a considerable margin over the same period. If you want to know more, contact Donald Howes at DAFT Investments.