Startups fund wine and spirits
“Passion investing” is possible sounds like an oxymoron: what do feelings have to do with optimal returns? But, from art and cars to StockX, collectibles are a fixture in wealthy people’s wallets.
Not wanting to put all the eggs in one basket is not a new impulse. But while it’s easily forgotten in good times, a recession is a great recipe for putting diversification back on the agenda. This has provided a tailwind for alternative investments, also known as ‘alts’, in recent months.
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Not all alts can be described as passion investments; I doubt anyone is very passionate about private equity funds or debt, for example. But the category also includes assets that overlap with hobbies and collectibles, such as wines, spirits, handbags and watches.
In stark contrast to retail investors at large, those investing in these categories were able to post strong returns last year: “Watches and wine led the Knight Frank Luxury Investment Index Q4 2021 results to their strongest annual performance since 2018,” said the real estate consultancy. reported.
At the same time, the number of investors in these categories is also growing.
