Empowering Collectors to be Investors
Wine Ratings and Auction Prices
By Joseph L. Breeden Wine ratings such as those by Wine Spectator and Wine Advocate are intended to describe the flavor of a wine. Rated in the blind by experts, they serve as a guide to buyers on the quality of the wine when it reaches maturity. A natural question is, do ratings reflect price? It seems reasonable to assume that a high rating may drive up the price of a wine. Statistically we can only determine if a relationship exists, not whether ratings drive price. That said, our analysis...
Read more | 0 commentsBurgundy: Back to Basics
By Sisi Liang Thanksgiving food (or drink?) for thought: What you appreciate appreciates—intriguing idea to apply to fine wine investing. We can get so caught up in the math, the science, and the data in analyzing anything these days—so much so that we might have moved 20 steps away from the basics, and forgot what actually makes sense. This happens quite frequently in the investing world, even when it comes to fine wine. I recently had the great pleasure to watch a...
Read more | 0 commentsShipwreck of the Chinese Stock Market May Lead to Sunken Treasure in the Fine Wine Market
By Sisi Liang and Joseph L. Breeden The Chinese stock market has recently shipwrecked. And a lot of people around the world are in the same boat (or adjacent boats) feeling the pain. The Shanghai Composite rose by 44% in five months since January 2015, peaked in May and then dropped 21% in the next two months. It has sent a ripple through the rest of the world, causing a multitude of problems. But in crises can come opportunities. From what we see in our wine analytics, we might have a...
Read more | 0 commentsNew Insights into the Lafite Bubble through Vintage Modeling
By Sisi Liang and Joseph L. Breeden, When considering the fine wine market, our curiosity naturally leads us to the most traded wine in the world—most traded and, in this case, most dramatic as well. Produced in Médoc in the Bordeaux region of France, Lafite is ranked as a First Growth by the Bordeaux Wine Official Classification of 1855. Lafite wines are the most traded in our database, with over twelve thousand auction results. In particular, the 1982 L...
Read more | 0 commentsA New Kind of Wine Analytics
By Joseph L. Breeden, Auctionforecast.com is an excellent source for wine auction histories and portfolio tracking, but our true uniqueness is in our analytics. The same database and analytics that provide robust, long-range, scenario-based forecasts also provides us the ability to explore interesting questions of the wine market. With this blog we will explore a wide range of topics that will be useful to connoisseurs and investors alike. The analytics powering our website are different...
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