BOTTLED PROFITS; `BOUTIQUE' WINES PROVE GOOD BUY FOR SAVVY INVESTORS.Byline: Gregory J. Wilcox Daily News Staff Writer Oak Park resident Bill Kissane treats fine wines like some people do blue-chip stocks Noun 1. blue-chip stock - a common stock of a nationally known company whose value and dividends are reliable; typically have high price and low yield; "blue chips are usually safe investments" blue chip : He buys and holds. Like 3- to 6-liter bottles of French and California reds. ``Three-liter (bottles) I think are a good investment but you can also have them for a dinner party of six to eight people,'' said Kissane, an engineer at Litton Industries Named after inventor Charles Litton Sr., Litton Industries was a large defense contractor in the United States, bought by the Northrop Grumman Corporation in 2001. Inc., on a recent weekend day as he inspected some giant investment-grade bottles at the Duke of Bourbon Duke of Bourbon (French: Duc de Bourbon) is a title in the peerage of France. It was created in the first half of the 14th century for the eldest son of Robert of France, Count of Clermont and Beatrice of Burgundy, heiress of the lordship of Bourbon. in Canoga Park and chatted with Bob Long, owner of Long Vineyards in the Napa Valley Napa Valley, Calif.: see under Napa. Napa Valley greatest wine-producing region of the United States. [Am. Hist.: NCE, 2990] See : Wine . The Nov. 30 cover of Wine Spectator Wine Spectator is a lifestyle magazine that focuses on wine. Founded as a newsprint tabloid by Bob Morrisey in 1976, it was purchased three years later by publisher Marvin R. Shanken. In 2005, paid circulation was over 382,000 and the magazine reached an estimated 2. provides a striking illustration of why some investors are adding cabernet and bordeaux to their financial portfolios. The magazine features two bottles of 1982 Chateau Petrus, a first-growth bordeaux, with a retail price of $60 on release and $1,360 today. David Breitstein, owner of the Duke of Bourbon, said some wines have achieved ``gem gem, ornamental mineral or organic substance gem, commonly, a mineral or organic substance, cut and polished and used as an ornament. Gems also are used as seals (items of assurance) and as talismans (good-luck charms). For birthstones, see month. quality'' status, especially those from small ``boutique'' wineries that may just produce 300 to 500 cases a year. ``It's so boutique Boutique A small investment firm specializing in offering specific, but limited services to a select number of individuals. Notes: These investment firms are the alternatives to large financial supermarkets. They provide a highly personalized environment for investing. that most people can't get their hands on them. They are like IPOs,'' he said of the wines. Experts offer the following tips for building a wine portfolio. Be prepared to invest some capital in caring for your investment. This is critical, experts say, because if the wine is not stored properly it can go bad and collectors can pick up telltale hints without popping the cork. You can build your own temperature- and humidity-controlled cellar cellar Portion of a building beneath ground level, used for utilitarian and storage purposes. It is often called a basement, especially when constructed as part of a foundation. A cellar used for food storage (e.g. or rent space in a professional wine storage facility. Shops like the Duke of Bourbon can help with the arrangements. In general focus on reds, said winemaker Long. ``It's going to be bordeaux and a handful of California wines. But it will be primarily bordeaux, because their value has been established over time,'' he said. Thomas Matthews, a senior editor at Wine Spectator, said that a good way to start investing is buying ``futures,'' or wines that have yet to be released at the retail level. That's typically the lowest price the wine will sell at. For example, that $1,360 Petrus had an initial futures price Futures price The price at which parties to a futures contract agree to transact upon the settlement date. of $63 a bottle, or $756 a case. Buy wines from vintages, or years that get high ratings from critics. That way you can be assured your investment has at least some protection. Breitstein notes that the 1995 vintage is approaching the quality of 1982, when the $1,360 Chateau Petrus was produced. Be prepared to buy at least a case of wine and preferably more. Matthews notes that buyers at auctions almost always pay more for cases in their original packaging than they will for smaller quantities. Spread your money around. ``If you buy more than 10 cases of any wine you are really gambling,'' he said. Single bottles and mixed lots can be harder to sell than cases. Do your research by reading wine publications to find out what's hot and develop a relationship with a wine shop, which will help you in your quest for Verb 1. quest for - go in search of or hunt for; "pursue a hobby" quest after, go after, pursue look for, search, seek - try to locate or discover, or try to establish the existence of; "The police are searching for clues"; "They are searching for the some of the rarer wines. Consi`der the experience of Don Cowie Don Cowie (born 15 February 1983 in Inverness) is a Scottish professional footballer currently playing for Scottish Premier League club Inverness Caledonian Thistle. Cowie came up through Ross County's youth system and went on to captain the club. , a regular customer of the Duke of Bourbon. In 1990, he paid $79.95 for three bottles of Chateau Latour from that vintage. Today, collectors will gladly pony up about $500 a bottle for the wine. Cowie, a physical therapist, has drunk two of his treasures and is saving the third for his son Darrin's wedding next year. ``Everything I buy is to drink and share with friends,'' he said. INVESTOR'S VINTAGE Many 1982s have appreciated more than 1,000 percent since their initial futures price. Chateau Initial 1985 1998 Futures Price Cheval-Blanc $40 $69 $468 Ducru-Beaucaillou $19 $43 $143 Haut-Brion $38 $68 $240 Lafite Rothschild $41 $75 $336 Latour $41 $68 $416 Leoville Las Cases $20 $42 $220 Lynch-Bages $13 $25 $126 Margaux $38 $68 $368 Mouton mouton lamb pelt made to resemble seal or beaver. Rothschild $38 $82 $450 Petrus $63 $269 $1,363 Pichon-Longueville-Lalande $14 $38 $240 SOURCE: Wine Spectator CAPTION(S): Photo, Box PHOTO (Color) David Breitstein of Duke of Bourbon in Canoga Park displays about a half-dozen investment-grade bottles of wine. Tina Gerson/Daily News BOX: INVESTOR'S VINTAGE (See text) |
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