Break the Chateau: Best Bordeaux Wines to Invest in

Break the Chateau: Best Bordeaux Wines to Invest in

The fine wine asset class is flooded with opportunity, but what are the best Bordeaux wines to invest in? We have the answers.

Break the Chateau: Best Bordeaux Wines to Invest in
Sarah Sharkey

Updated Sep 28, 2022

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When you sit down for a fancy meal, you might spot bottles of wine on the menu that cost more than the balance in your checking account.

For most investors, high-end Bordeaux wines with a label to back up an exceptional bottle are often the best bet.

Of course, most of us steer clear of bottles with eye-popping price tags. But the reality is that someone is willing to pay seemingly outlandish sums for a good bottle of wine. Otherwise, the restaurant wouldn’t have priced the bottle so high.

Drinking wine that costs more than your car might be a bit too rich for the tastes of an everyday consumer. But what if you could capitalize on sought-after wines as an investment opportunity?

Since this asset class is one of the best collectible investments in 2022, you’ll find that fine wines are a perfect way to diversify your investment portfolio. Let’s explore why Bordeaux wine can be a good investment and how you can capitalize on this lucrative wine investing opportunity.

What is a Bordeaux wine?

Being a fine wine lover isn’t required to add this asset class to your investment portfolio. But if you're a wine spectator and don’t know your cabernet franc from your sauvignon blanc, you’ll need to take a minute to familiarize yourself with the market for French wine.

All wine produced in France's Bordeaux region is considered Bourdeaux. Popular wines from this region are made of cabernet sauvignon and sauvignon blanc grapes, but red wine constitutes the majority of Bordeaux production.

Is Bordeaux wine a good investment?

Now you can pick out a Bordeaux wine from the crowd. But the real question is whether or not these wines offer a good investment opportunity.

Ultimately, not every bottle of Bordeaux will add a dazzling investment to your portfolio. But here are some factors to consider when selecting an investment bottle.

Benefits of investing in the best Bordeaux wine

If you're considering a wine investment, the major benefit is diversification. As other markets see increasing volatility, savvy investors cannot help but look for alternative assets that are uncorrelated with other markets.

Fine wine investments have the potential to outpace the stock market, so the potential returns aren’t tied to things like stocks and bonds. For example, during the 2008 stock market crash, the S&P 500 plunged 38.5%. However, the Liv-ex Fine Wine 1000, which tracks the top 1,000 investment wines in the world, only dipped 0.6%.

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Chart of Liv-Ex Bordeaux 500 wine index from 2012 to 2022.

Source: Live-Ex

The lack of correlation could be just the kind of diversification you're looking for in your portfolio. Plus, the fact that wine is a tangible asset can make it a more comfortable investment option than things like stocks or Bitcoin. To top it off, some of the most coveted French wine bottles—by investor and wine enthusiast alike—were produced in the acclaimed Bordeaux terroir.

Risks of investing in the best Bordeaux wine

As with any investment, there are risks to keep in mind. When it comes to wines, selecting the right bottle is critical. With nearly 900 million bottles produced in the Bordeaux wine region most years, market saturation and labels are crucial factors to consider.

 

For most investors, high-end Bordeaux wines with a label to back up an exceptional bottle are often the best investment wines. As bottles of particular vintages become scarce, those holding onto a sought-after prize for wine connoisseurs can make a tidy profit.

Supply and demand will play a big role in this investment strategy. According to Liv-ex, wine releases were down by 20% to 30% or more in 2021 when compared to 2022. A year with limited supply can drive up the price of a high-end bottle if demand remains the same or increases. 

What to look for in a Bordeaux wine

Every asset has a series of factors impacting the price. Here’s what to keep an eye on when selecting a Bordeaux wine:

  • Left Bank vs. Right Bank: The Bordeaux region is neatly divided by an estuary and two rivers. Generally, investors favor wines produced on the Left Bank of the Garonne river due to their higher price points and long aging potential. 
  • Classification: A ranking system was established for French wines in 1855. A Bordeaux wine with the highest rating will fetch a higher price on the market. 
  • Prestige: Although you might not be able to tell one bottle apart from the other in terms of taste, Bordeaux from high-quality vineyards with long-term reputations and a premium label often present the best opportunity for investors. 

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Chart comparing Liv-Ex wine indices from 2019 through 2021.

 Source: Liv Ex

Best Bordeaux wines to invest in

Not all wines from the Bordeaux region carry the same clout that investors seek in their portfolios. Let’s dive into some of the best options out there:

Chateau Latife Rothschild

Chateau Lafite Rothschild is one of the most prestigious wineries creating Bordeaux. In the sub-region of Pauillac, it produces expensive wine that’s sought-after by wine aficionados.

With bottles ranging from $365 to $17,450, it’s possible to find an investment opportunity for most budgets.

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Chart comparing 2000 Chateau Lafite Rothschild Pauillac price with benchmark form Oct. 2020 to Sept. 2022.

Source: wine-searcher.com

Chateau Latour

Also located in the sub-region of Pauillac, Latour is known to produce some delicious vintages. With its long-term reputation, many people flock to taste these bottles. The demand for these bottles presents an opportunity for investors.

The average price of bottles can be anywhere from $90 to $23,960. This wide range makes it an accessible choice for investors of all levels.

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Chart tracking sale prices of 2005 Chateau Latour Bordeaux wine from 2006 to 2022.

Source: Rallyrd.com

Chateau Margaux

Another worthwhile choice is a bottle from Chateau Margaux. Though the top-end price point for these bottles tends to be under $1,000, there’s still an opportunity for investors to make profits on a smaller scale.

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Chart comparing 2016 Chateau Margaux price with benchmark from Oct. 2020 to Sept. 2022.

Source: wine-searcher.com

Chateau Montrose

A winery with deals to look out for is Chateau Montrose. They produce bottles across all price ranges, from $50 to $24,000. However, most of their premium wines fall between $200 to $700 per bottle, depending on the vintage. That's a steal considering that critics consistently rate these Bordeauxs at 90 or above.

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Chart comparing 1990 Chateau Montrose Saint-Estephe price with benchmark from Oct. 2020 to Sept. 2022.

Sources: vinovest.co, wine-searcher.com

How to invest in the best Bordeaux wine

Ready to whet your wine investment whistle? Here’s how to invest in the best Bordeaux wines. 

Buy a bottle

If you have deep pockets and storage space, buying an individual bottle of wine might be a good option.

But keep in mind that, regardless of the wine region they're from, bottles must be stored at optimal temperature and humidity conditions to preserve the value of the investment. Depending on your goals, on-site or professional storage costs might be cost-prohibitive. 

Wine investing platforms

Investing in wine might be the right fit for your investment portfolio. But storing individual bottles of wine might not be what you had in mind.

After all, wine needs to be stored under particular circumstances to preserve the value of the investment. It's okay if installing a wine cellar isn’t something you want to deal with. The wine investment marketplaces below make investing in a bottle of Bordeaux less physical for you, without giving up too much of your potential returns.

You won’t have to physically touch a bottle to get into wine investing through Vint. Instead, you can buy shares in a privately managed collection of wine. If you buy shares, you can expect to receive the profits when Vint sells the asset. But the platform plans to launch a secondary market soon for greater liquidity.

vint
Vint

5.0

Wine

When investing through Vinovest, the platform handles the bottle storage for you. With the platform’s help, you can build a diverse portfolio of wines based on your investment timeline and risk tolerance.

vinovest
Vinovest

5.0

Wine

Typically, investors new to the world of wine find the help of a useful platform. But you’ll have to decide for yourself the right strategy for your situation.

Whetting your whistle

Whetting your whistle

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