Investments can come in many forms, and arguably most experienced brokers will turn you in the direction of precious metals, but what if you could hone in on your more patient side? That bottle of ‘Faustino 1’ you bought for your significant other this Christmas could well be the answer. A lot more people are wine investing and here’s why:
In the year 1833 the price of an ounce of Gold is registered at around $20, and that same nugget today is worth approximately $1670.
But why is this important?
Because, this shows that the precious metal we all know for it’s tenacious value, has appreciated over 83 times in the last 180 years.
If this excites your investment organs, then perhaps paying attention to how vintage wines have come to be such a centrepiece for opportunists around the world today.
For example, a single bottle of d’Yquem from Sauternes 1787, probably sold retrospectively for $100, will today fetch over $191,000.
Although undrinkable, people will always pay more for something that increases in scarcity, whether it fuels a hobby or for the sake of turning a profit over more time.
Although it seems simple for one to talk about the benefits of wine investing, you should only ever deal with someone you feel you can trust and always do your homework. From the prospective of somebody who wants to invest in wine coming across a rogue could cost you everything, as some commission fees from sellers can swallow up the capital immediately.
Making the decision to invest in wine could be the greatest decision you ever make, but why does it appear to appreciate faster than precious metals?
One of the main reasons is that once a bottle is tainted, opened or smashed, that’s it, it cannot be recovered and in case of any of these events unfortunately happening, others of it’s kind should go up in price.
This doesn’t happen with Gold for example, thus only increasing in price representative of it’s value against other commodities.
Although precious metals are limited due to the impossibility of fusing the elements needed to create them, fine wines are in continuous production, the passing of time that matures their value is out of our control and can create an inevitable investment opportunity. Whether the investment is for personal or commercial intent, there is no doubt that such a commodity won’t go unnoticed to the sharpest of opportunists for centuries to come.
There are many advantages to diversifying the investments of your business through international investments. Here are a few things to consider when expanding the portfolio of your business.
Diversity means less risk
If you only invest in one sector then you can find yourself in real trouble if that sector experiences losses. Having a diverse portfolio can mean investing in stocks, bonds, real estate, limited liability corporations, etc. When you are investing in more areas then if one investment has a loss there is a good chance that gains in another area will make up for the loss. At the very least the loss is minimized. This also gives investors the opportunity to play the market a bit if they are unsure what areas they want to invest the most in.
International success is possible with planning and dedication
In today’s business world we are lucky to have the opportunities presented by the vast international marketplace. Many companies have had great success by expanding their investments throughout the globe. Najib and Taha Mikati created the M1 Group after their success in international sectors such as telecommunications and construction. They felt the need to branch out into other sectors. M1 Group was the result of this desire. Now the group has a vast portfolio of investments in sectors such as entertainment, fashion, real estate, aviation, and industrial manufacturing. These investments have helped emerging economies expand. In fact some economies such as that of the United Arab Emirates are predicted to expand an outstanding 25% over the next decade. The profile of Najib Mikati indicates that he is a man that has the power to ensure that this happens through good investment choices.
Opportunities to expand
Better communication has made it possible for companies to have better opportunities for expansion. By investing internationally a company can grow its assets enough to allow for international expansion of their own firm. Purchasing real estate in an emerging business center such as Dubai, Beirut, or UAE, while prices are lower can pay off big in the end. Even if a business is not considering expanding to these locations quickly, purchasing commercial property and leasing it to other firms can help raise valuable capital that can be used to expand domestically or just increase revenue.
Research is essential
If a business wants to expand internationally it is essential that they do a lot of research before they expand. Social customs are very important when doing business with other cultures. What is seen as good etiquette in one culture may be extremely rude or off-putting when doing business with another. Language barriers can make business harder to accomplish. Those that want to expand to an international location often choose to have local employees and contacts that can help them communicate and relate better to the local people. This also shows that your company wants to invest in creating local jobs and that you respect the culture and community that you want to do business in. A business also needs to make sure that they are aware of and following all the labor, business, and tax laws that exist in their chosen area.