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| Passion Investments: Wine |
Cult Following
Eryn Brown
02/01/2005
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Savvy investors seek to minimize their initial investments in cult wine by eschewing the volatile aftermarket entirely. Despite many noteworthy exceptions, the secondary market for cult wines can be lukewarm. A 1997 Colgin Herb Lamb that auctioned for $700 in 2001 garnered just $625 in 2004, according to Sotheby’s. By buying these vintages direct from wineries, collectors greatly increase their chances of reaping future profits. But identifying future cult wines and gaining access to their growers can be as vexing as gaining entrée into today’s hot hedge fund. Retailers almost never keep cult wines on the shelf; even the most reputable wine purveyors are allotted only a few cases each to sell to eager customers. Ironically, Serota might be using the most effective method: attempting to get on cult winery mailing lists. This gives oeneophiles the right to buy yearly allotments at the vintner’s release price. Of course, wine fans can wait years before finding a spot on one of these coveted rolls. (For more details, see “In Vino Vanitas”.)
Weltman’s quest has taken him 3,000 miles from his homes in New York and East Hampton to the tiny California town of Calistoga. There he has purchased a third home and has begun building relationships with winery owners, winemakers and their vines. He plans to travel to Napa Valley every four or five weeks to fine-tune his avocation among the cult classics. “The name of the game with investing is, you always have to buy the top names,” he observes. “You can’t think, ‘This little garage operation will deliver bang for the buck.’” Eryn Brown is a Los Angeles-based freelance writer. Her work has appeared in the New York Times, the Los Angeles Times Magazine, Fortune and other publications. eryn_brown@sbcglobal.net
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