Vinovest review: the wine investing platform
Introduction
Do you like wine? I like wine. You need money to buy wine… what if you made money on wine… so that you could buy more wine? Enter VinoVest. Let’s take a moment to review the Vinovest platform and some of the mechanics behind investing in the “fine wine” asset class.
VinoVest is a unique investment platform that allows individuals to invest in fine wines. By providing access to a traditionally exclusive asset class, VinoVest aims to democratize wine investment, making it accessible to both novice and experienced investors. This review will explore VinoVest's history, operating model, performance, user experience, and its pros and cons, along with a consolidated summary of reviews from various sources.
Vinovest Overview and History
Founded in 2019 by Anthony Zhang, VinoVest offers a platform where users can invest in fine wines with the potential for attractive returns. The company is headquartered in Los Angeles, California, and has quickly grown to become a notable player in the alternative investment space. VinoVest leverages technology and wine expertise to help investors build diversified wine portfolios that can appreciate over time.
Let’s hear it directly from Tony…
As Mr. Zhang notes out front, fine wine is an alternative asset class; a type of private-market, illiquid investment. This means it perhaps will not fluctuate in value and performance alongside the stock market, and hence can be a decent diversification tool.
If you already have exposure to real estate (the “gateway drug” of alternatives), wine investing could be a great next step in building a diversified alternatives portfolio.
I don’t know how truly uncorrelated fine wine or fine whiskey is versus private-market real estate, the stock market, or anything else… but it really stands to reason. Basically Vinovest is acquiring fine wine and whiskey, allowing you to invest fractionally, and then trying to manufacture profit by selling higher. They employ a bunch of fancy people to really know the wine and whiskey worlds, and leverage their relationships to sell at a favorable moment for a good price. This strikes me as a dynamic fundamentally uncorrelated from the swings of any other asset class. After all, booze is a very inelastic good. There will always be rich people, and rich people like fancy booze (along with their poodles and rare books).
Vinovest Operating Model
VinoVest's operating model is designed to simplify the process of investing in fine wines. Here’s how it works:
Account Creation: Investors start by creating an account on the VinoVest platform.
Investment Strategy: VinoVest assesses the investor's risk tolerance, investment goals, and preferences to recommend a personalized wine portfolio.
Wine Selection: Based on the investor's profile, VinoVest selects wines with strong potential for appreciation. The wines are sourced from reputable wine producers and auctions.
Storage and Insurance: VinoVest takes care of the storage and insurance of the wines. The wines are stored in professional, climate-controlled facilities to ensure their quality.
Portfolio Management: Investors can monitor their portfolio’s performance through the VinoVest dashboard. The platform also provides regular updates and insights into the wine market.
Selling and Buying: Investors can choose to sell their wines through VinoVest’s network when they are ready to realize their gains. The platform also facilitates the acquisition of new wines to keep the portfolio dynamic and optimized.
Performance and Returns
VinoVest provides access to an asset class that has historically shown strong performance. Fine wines have demonstrated resilience during economic downturns and have delivered consistent returns over the years. Here are some key performance highlights:
Historical Returns: Fine wine has averaged annual returns of about 10.6% over the past few decades, outperforming traditional assets like stocks and bonds during certain periods.
Risk Management: VinoVest’s expert team utilizes a data-driven approach to select wines that have a high potential for appreciation and low volatility, mitigating investment risks.
Portfolio Diversification: By investing in a diverse range of wines from different regions and vintages, VinoVest helps spread risk and optimize returns.
User Experience and Platform Usability
VinoVest's platform is designed to be user-friendly and accessible. Key features include:
Intuitive Interface: The platform is easy to navigate, with clear sections for viewing portfolio performance, market trends, and wine details.
Educational Resources: VinoVest provides a wealth of information to help investors understand the wine market and make informed investment decisions.
Expert Support: Investors have access to wine advisors who can offer personalized guidance and answer any questions.
The platform's design and functionality make it straightforward for investors to manage their wine portfolios, even if they have no prior experience with wine investment.
So, is VinoVest Legit?
Vinovest “review of reviews”
VinoVest has received a variety of reviews from multiple sources:
TrustPilot: VinoVest holds a rating of 4 stars based on numerous reviews, with many users praising the platform's ease of use and the unique opportunity to invest in fine wines. However, some complaints revolve around customer service responsiveness and high fees (The Millennial Money Woman) (Finbold).
Better Business Bureau (BBB): VinoVest has a rating of B+, indicating a good faith effort to resolve consumer complaints but also highlighting areas for improvement in customer interactions (Finbold).
The Money Manual: Reviews on this site highlight the platform's legitimacy and the substantial returns on fine wine investments, but also point out the necessity for long-term holding to realize significant gains (The Money Manual).
The Impact Investor: This site notes that VinoVest’s higher-tier accounts offer greater control and access to rare wines, but the minimum investment requirements can be a barrier for some investors (The Impact Investor | ESG Investing Blog).
VinoVest has only earned a 2.5 star aggregate review on Google… it’s important to remember that reviews of financial service products skew negative. We’re not talking about reviewing a neighborhood bagel shop or yoga studio here. The crankies really come out of the woodwork. Reviewing the comments you can see that some investors simply don’t understand the nature of illiquid investments.
Also note, CJ McCollum is an investor (and a wine guy, who knew). Must have been a habit he picked up when hooping near the Willamette Valley.
Overall, VinoVest has an average rating of approximately 4 stars across major review platforms. Positive feedback centers on the platform's innovative approach to wine investment, ease of use, and professional management. Criticisms mainly focus on customer service and the high fees associated with managing and storing the wines.
ESG Considerations
While VinoVest does not explicitly market itself as an ESG (Environmental, Social, and Governance) platform, it emphasizes sustainable and ethical practices. The company works with wine producers who adhere to high standards of quality and sustainability, indirectly promoting environmentally responsible practices in the wine industry.
Wine investing feels less dubious to me in some ways than real state or fine art investing (even though it feels pretty smarmy). Ultimately you’re talking about making a buck on a precious liquid that people have put love and care into. And, there is the potential to capture the value of sustainable agricultural practices.
Pros and Cons
Pros:
High Returns: Potential for attractive yields with historical returns averaging around 10.6% per annum.
Diversification: Adds an alternative asset class to an investment portfolio, reducing overall risk.
Accessibility: Open to all investors, with low minimum investment requirements.
Professional Management: Expert selection, storage, and insurance of wines.
User-Friendly Platform: Easy to navigate with comprehensive educational resources.
Marketplace: Vinovest allows investors to participate in a “marketplace” where individuals can buy and sell wine to each other. This isn’t really the kind of peer-to-peer asset trading that investors can do on other alternative investing platforms. Not a true secondary market for fractional investments, but still a fun idea.
Cons:
Liquidity: Wine investments are less liquid than traditional assets, meaning it may take time to sell and realize gains.
Market Risk: While historically stable, the wine market can be affected by changes in consumer preferences and economic conditions.
Storage Costs: Ongoing storage and insurance costs can impact net returns.
The Righteous money take
I’m early on in my experience investing with VinoVest. I like that it’s unique and very narrative-driven. There are a number of platforms for investing in real estate, but nothing really competes with VinoVest. That gives me some confidence that they can exert pricing pressure in terms of favorable investment terms.
I’ll check back with more as events warrant, but for now, I’m righteously on board. The main knock on Vinovest in my view is that they only offer investments to accredited investors. Otherwise, I’d review Vinovest quite positively.
For now, 4.0/5 stars
Now then, for some gratuitous CJ McCollum highlights…
Conclusion
VinoVest offers a compelling proposition for those looking to diversify their investment portfolios with fine wines. The platform’s accessibility, professional management, and potential for high returns make it an attractive option for both novice and experienced investors. However, potential investors should be mindful of the inherent risks and the illiquid nature of wine investments.
By leveraging technology and wine expertise, VinoVest democratizes access to the fine wine market, making it easier for individuals to invest in this unique asset class. As with any investment, it is important to perform due diligence and consider one’s financial goals and risk tolerance.
For more detailed reviews and user experiences, you can check out other Righteous Money's reviews on various investing platforms, and why not, go check out VinoVest.
Any experiences with VinoVest you’d like to share? Drop it in the comments below!