{"id":1153,"date":"2022-10-05T21:16:00","date_gmt":"2022-10-05T21:16:00","guid":{"rendered":"https:\/\/moneymade.wpenginepowered.com\/?p=1153"},"modified":"2025-06-02T18:30:28","modified_gmt":"2025-06-02T18:30:28","slug":"best-california-wines","status":"publish","type":"post","link":"https:\/\/moneymade.io\/learn\/articles\/best-california-wines\/","title":{"rendered":"A Grape Feeling: Best California Wines to Invest In"},"content":{"rendered":"\n
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Fine wines are can be a strategic way to grow your portfolio. Here’s how to invest in the best California wines.<\/em><\/strong><\/p>\n\n\n\n

You stick your nose into the glass and inhale deeply. You swirl and watch the droplets trickle down the sides of your glass. You pour it into glass decanters and use words like tannins<\/em> and oenophiles<\/em> (wine enthusiasts). Maybe you\u2019re even turning into one.<\/p>\n\n\n\n

Whether you fit this profile or not, investing in top-notch wines is a way to grow your investment portfolio for the long term.<\/p>\n\n\n\n

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If you\u2019re concerned about performance\u2014over the last 15 years, the fine wine asset class has had 10.6% annualized returns.<\/p>\n<\/blockquote>\n<\/blockquote>\n\n\n\n

The best wines we\u2019re highlighting come from California\u2014the epicenter of top wineries, gobbling up a 90% market share. According to Live-ex, California wines experienced a 34% growth from 2021 to 2022 and a 59% increase in the last five years. Can you imagine if your retirement funds performed like that?<\/p>\n\n\n\n

The popularity of investing in cult wines has become more accessible to everyone, especially with investing platforms like Vinovest and Vint. They help you buy and store fine wine bottles and give you the latest scoop on the best investment wines.<\/p>\n\n\n\n

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Chart tracking California 50 wine index from 2014 to 2022.<\/em><\/p>\n\n\n\n

Source: liv-ex.com<\/em><\/p>\n\n\n\n

Why invest in California wines in the first place?<\/h2>\n\n\n\n

As the saying goes, don\u2019t put all of your eggs in one basket. If you mostly invest in stocks and index funds, wines could make a great addition to help diversify your portfolio.<\/p>\n\n\n\n

If you\u2019re concerned about performance\u2014over the last 15 years, the fine wine asset class has had 10.6% annualized returns.<\/p>\n\n\n\n

One crucial aspect of investing in Californian wines and other luxury spirits is scarcity\u2014the gap between supply and demand. Factors that play into supply and demand include weather patterns for growing grapes, harvest yields, and consumer trends. And once in a blue moon, a global pandemic.<\/p>\n\n\n\n

Many of these factors don\u2019t tie into the overall stock market, which makes fine wine an excellent uncorrelated asset to invest in. From January to July of 2022, wine outperformed the S&P 500, with an 11% positive return compared to the S&P 500’s 20% dip over the same period.<\/p>\n\n\n\n

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Chart tracking the California 50 wine index by winery.<\/em><\/p>\n\n\n\n

Source: liv-ex.com<\/em><\/p>\n\n\n\n

Wine investing for the long term<\/h4>\n\n\n\n

From growing grapes, picking them, and aging them in special barrels, winemaking is hard work. This alone should tell you that wine investing isn’t an easy way to make a quick buck. It\u2019s common for wine investors to hold on to bottles for years or decades before turning a profit.<\/p>\n\n\n\n

Word of mouth, leading critic scores, and limited productions are all factors driving higher prices and demand for California wines.<\/p>\n\n\n\n

Best California wines to invest in<\/h2>\n\n\n\n

Napa Valley accounts for more than half of all trading, while just a half-hour away is Sonoma, home to over 450 small to large wineries. From fruity to lush reds, crisp whites, and resilient sparklers, check out these tried-and-true California wines that have the makings of a great investment.<\/p>\n\n\n\n

Screaming Eagle<\/h4>\n\n\n\n