Dimson, E, Rousseau, P L and Spaenjers, C (2015) The price of wine. Journal of Financial Economics, 118 (2). pp. 431-449. ISSN 0304-405X
Abstract
Using historical price records for Bordeaux Premiers Crus, we examine the impact of aging on wine prices and the long-term investment performance of fine wine. In line with the predictions of an illustrative model, young maturing wines from high-quality vintages provide the highest financial returns. Past maturity, famous châteaus deliver growing non-pecuniary benefits to their owners. Using an arithmetic repeat-sales regression over 1900–2012, we estimate a real financial return to wine investment (net of storage costs) of 4.1%, which exceeds bonds, art, and stamps. Returns to wine and equities are positively correlated. Finally, we find evidence of in-sample return predictability.
More Details
Item Type: | Article |
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Subject Areas: | Finance |
Date Deposited: | 17 May 2016 12:46 |
Last Modified: | 09 Nov 2024 03:15 |
URI: | https://lbsresearch.london.edu/id/eprint/494 |