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EACH week we ask an expert to allocate a hypothetical lump sum of R1m in his or her field. Investment ideas range from the stock market to art and stamps.
This is how Robin von Holdt, CEO of Top 100 SA Wines, responded to the challenge:
The telephone rings. The news is good. Finally I have won something - and it is something good: a million rands are coming my way. There is one minor caveat - I have to spend it all on wine.
Hmmm, this is still looking pretty good. Further, I need to spend it as would an astute hedonist.
Well, they have found their man! The only less-than-encouraging news is that the cheque is in our notoriously unreliable mail. I guess that makes the odds about even that I get my astute hedonist's hands on the handsome boodle.
Optimistically, I plan my strategy.
Astute investments need to fulfil three key criteria: first, they should be pretty safe. Second, they should be liquid (this makes it easy); and third, they should have a sound chance of appreciating. Of course, a useful fourth criterion would be a dividend stream, but in this case the dividend will be personal enjoyment.
To fit all criteria there are rather limited options. Bordeaux and to a lesser extent Burgundy have the only established secondary markets in fine wine. Yes, to an exceptionally small extent there are a few top Barolos and Super Tuscans, as well as a handful of Champagnes, Rhônes and cult Australian, Californian and Spanish wines which have a limited secondary market following.
So France it is, and here is the list:
Bordeaux:
Lafite 2005: £15 000
Haut Brion 2000: £7 000
Cheval Blanc 2005: £6 000
Le Pin 2004: £10 000
Petrus 2004:£13 000
Burgundy:
Romani Conti Richebourg 1990: £10 000
Romani Conti Echezeaux 1999: £8 000
Total cost: £69 000, converted into rands, plus shipping to SA and taxes.
Grand total: R1m for 84 bottles of the world's greatest wines.
I know I can sell these wines with ease; I know I can consume them with equal ease. My final strategy, knowing that Julius and his cronies have expensive tastes as well as ambitions, is this: I secure each lot of 12 wines, in six-bottle cases.
I keep one of each six-bottle case in a bonded warehouse in the UK. This is called risk management. No one can nick them. The other six-bottle cases I bring into SA.
I plan to drink these over the next 30 years, while my UK investment grows in a safe haven.
No, you cannot have my contact details.
- Fin24
- Previous Dream Big investment ideas:
Charl Bezuidenhout, owner of the Worldart-gallery.
Schalk Louw, head of Contego Asset Management.
Alan Rogers, president of the Philatelic Federation of SA
This is how Robin von Holdt, CEO of Top 100 SA Wines, responded to the challenge:
The telephone rings. The news is good. Finally I have won something - and it is something good: a million rands are coming my way. There is one minor caveat - I have to spend it all on wine.
Hmmm, this is still looking pretty good. Further, I need to spend it as would an astute hedonist.
Well, they have found their man! The only less-than-encouraging news is that the cheque is in our notoriously unreliable mail. I guess that makes the odds about even that I get my astute hedonist's hands on the handsome boodle.
Optimistically, I plan my strategy.
Astute investments need to fulfil three key criteria: first, they should be pretty safe. Second, they should be liquid (this makes it easy); and third, they should have a sound chance of appreciating. Of course, a useful fourth criterion would be a dividend stream, but in this case the dividend will be personal enjoyment.
To fit all criteria there are rather limited options. Bordeaux and to a lesser extent Burgundy have the only established secondary markets in fine wine. Yes, to an exceptionally small extent there are a few top Barolos and Super Tuscans, as well as a handful of Champagnes, Rhônes and cult Australian, Californian and Spanish wines which have a limited secondary market following.
So France it is, and here is the list:
Bordeaux:
Lafite 2005: £15 000
Haut Brion 2000: £7 000
Cheval Blanc 2005: £6 000
Le Pin 2004: £10 000
Petrus 2004:£13 000
Burgundy:
Romani Conti Richebourg 1990: £10 000
Romani Conti Echezeaux 1999: £8 000
Total cost: £69 000, converted into rands, plus shipping to SA and taxes.
Grand total: R1m for 84 bottles of the world's greatest wines.
I know I can sell these wines with ease; I know I can consume them with equal ease. My final strategy, knowing that Julius and his cronies have expensive tastes as well as ambitions, is this: I secure each lot of 12 wines, in six-bottle cases.
I keep one of each six-bottle case in a bonded warehouse in the UK. This is called risk management. No one can nick them. The other six-bottle cases I bring into SA.
I plan to drink these over the next 30 years, while my UK investment grows in a safe haven.
No, you cannot have my contact details.
- Fin24
- Previous Dream Big investment ideas:
Charl Bezuidenhout, owner of the Worldart-gallery.
Schalk Louw, head of Contego Asset Management.
Alan Rogers, president of the Philatelic Federation of SA
