Wine as an investment class has become more appealing

Here's a good article for the investors in these uncertain time:

By DALJIT DHESI

INVESTMENT in quality wine is fast making waves across the globe as an alternative investment class amidst plummeting equity value, extreme volatility and looming recession. It appears that many investors are diversifying their portfolio into premium wines and others, including teetotallers, are also jumping into the bandwagon.

Sure Holdings Ltd managing director James Pala says the biggest appeal of wine as an alternative investment class is that it is low risk, offers stable returns and has a low co-relation with stocks and bonds.

In addition, he points out that wine investment has also become increasingly attractive in recent years due to the fact that people do not have to pay capital gains tax when they sell their wines.

Vintage Assets Pte Ltd director Lionel Lau says the investment in this “liquid asset” is unique as once wine is produced in a certain year, it can never be repeated again in line with the famous saying in Bordeaux “Once in a bottle, never again”.
Pala

Bordeaux is a province in France and the mother of all quality and investment grade wines of the world.

From the world’s total production, only 1% is categorised as investment grade wine, out of which 80% comes from Bordeaux.

Lau says the longer a wine is held, the higher the price it can fetch and the higher the potential returns. During one of the great vintage years of 2005, he says the price of certain wines surged by over 148% between the pre-bottling stage (in June 2005) to the time they hit the market three years later.

General manager Chris Low says great vintage is a term used to describe the best harvest by the top critics of quality wines.

The top five performing wine brand of Vintage 2000, Low says, is Lafite Rothschild, Haut-Brion, Latour, Mouton Rothschild and Margaux.

Sure Holdings and Vintage Assets are believed to be the only two wine advisors and brokers operating in Malaysia. According to Lau, the higher consumption and demand is set to drive existing investment and collection of wines in the global market.

He says investment grade wines like Lafite has survived three recessions – of the eighties, nineties and the present one.

Annual returns on investment grade wines, says Pala, especially those from Bordeaux can typically rake in returns of between 12% and 20%, even though they have averaged far higher returns over the last 25 years.

Liv-ex, the world’s biggest fine wine index based in London, estimates the prices of the best vintages have currently increased by 50% since the start of last year, in sharp contrast to the global stock market, where prices had fallen by 15%. Over the last 12 months, he says wines traded on the Liv-ex 500 Fine Wine Index has increased by 14.4% as against a decline of 33% and 37% on the FTSE 100 and S&P 500 respectively.
Lau

Due to its close proximity with France, London is currently the wine hub of the world as it has the best bonded public wine warehouses equipped with high tech facilities and conducive storage temperature, amongst others.

The turnover on wine investment in Britain alone has currently reached over a billion dollars, not accounting for the US and Asia markets.

The trend in Asia is visible. Hong Kong recently abolished tax on wine and beer in a bid to become a wine hub in the region.

He says in Malaysia the market for investment grade wines was on the uptrend as investors were looking for safer investments to grow their monies.

Pala says he generally advises his clients to go for less risky and relatively short to medium term (two to three years) type of investment.

“We trade Bordeaux wines and part of it is the 1855 classification. Over the last three years, we have recommended 40 different wines to our clients with investments totalling £69,000, which have made returns of 43% (£98,000 in value) during the period,’’ he notes.

Vintage Assets was set up last year. Lau says the lowest return raked in by a client so far is less than 20% return a year.

Wine investors in Malaysia are generally high net worth individuals who are businessmen, CEOs of companies and banks, university lecturers and doctors.

Before investing, Lau says that he analyses his clients’ risk appetite and the time frame they expect to realise their investment returns, be it two, three or even in five years time. Both Pala and Lau advised their clients to store their wines bought at bonded warehouses in London to ensure its premium quality.

“It is not advisable to ship them to other parts of the world as it is risky and will affect the wines quality, leading to depreciation in value,’’ Pala remarks.

Source: The Star BizWeek Section

Notice

Umm... Hi there. Wow, didn't expect to see people visiting this dilapidated blog haha. Yeah, the owner is a lazy bum, who would rather go out for a teh beng (or iced milk tea for the westerners) session than writing some useful stuffs in his blog. I will try to be more active in writing, though I admit, am very susceptible to distractions. Namely World of Warcraft, teh beng, gatherings, and MSN haha.

Anyway, hope you guys will visit my other blogs as well. For now, please visit my personal blog. Yes, this blog is not for personal purpose, though I tend to get things mixed up every now and then. The link is on the left-hand side bar. Drats... I need to update those as well. Sigh.

Okay, RadicalScope signing off. Time to take a bath. I'm smelly :p

Be nice to people, as long as they are certified nice.

I remember watching "Fruits Basket" the animation, and listened to the story of "The Foolish Traveler". This particular traveler, had a very good heart. Always wanting to help people, to the extend that he was manipulated by the people he met in his travel. He gave away all his possessions, after listening to their stories, even though they were lying. In the end, as he got not even a single article of clothing on him, he went into the jungle. There, he got tricked by the demons in the jungle, who ate everything save his head. The demons said, "Thank you for your kindness. We have a present for you." The traveler, since he never asked anything in return for his kindness, and never got anyway, was very happy. He keep on saying, "Thank you, thank you. I've never got a present before. Thank you, thank you." He said those words so happily, as he was dying. The present the demons left was a piece of paper, with "Stupid" written on it.

Lesson of the story: DO NOT BE NICE TO PEOPLE UNLESS THEY GOT PROOF THAT THEY ARE NICE TOO.

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CALL NOW TO ARRANGE FOR AN INTERVIEW: 0166001609

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We are looking for inspiring, hard-working, goal-driven, exciting sales people to help us market our provent investment portfolio. If you have what it takes and you need a new challenge, then get in contact with us now. Proficiency in English is a MUST and very crucial to our success in the business. Join a world class marketing team NOW!

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• involves telesales and/or face to face meetings with potential clients to introduce our wine investment portfolios.
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• strong telephone skills etiquette
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• 1-2 years of documented successful sales experience.
• must be a self-motivated, disciplined professional.
• knowledge in wines and investment jargon is an added advantage.
  

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An Age Old Argument on the Almighty

Born into a Muslim family, my parents (like any other "rational" Muslim parents in Malaysia) would tell me not to question about God. Which, as I grow up, makes no sense as there are plenty verses in the Holy Quran that hinted that as Muslims we should. Not question in a negative manner, but question in a questing manner. We are supposed to question His existence in order to find Him, not to deny Him.

With that mentality in mind, I look around and sure enough, I found that intellectual people who argues about the divine spirit with the intention of seeking the truth found them, whereas those who seek to deny the truth will not. You gain what you seek. So how should we argue about something that we never seen, cannot be touched, never been heard, cannot be tasted, and has no smell? The following conversation might give you an idea:

An atheist professor of philosophy speaks to his class on the problem science has with God, The Almighty.
He asks one of his new students to stand and.....

Prof: So you believe in God?
Student: Absolutely, sir.

Prof: Is God good?
Student: Sure.

Prof: Is God all-powerful?
Student: Yes.

Prof: My brother died of cancer even though he prayed to God to heal him. Most of us would attempt to help others who are ill. But God didn't. How is this God good then? Hmm?
Student: (Student is silent.)

Prof: You can't answer, can you? Let's start again, young fella. Is God good?
Student: Yes.

Prof: Is Satan good?
Student: No.

Prof: Where does Satan come from?
Student: From...God...

Prof: That's right. Tell me son, is there evil in this world?
Student: Yes.

Prof: Evil is everywhere, isn't it? And God did make everything. Correct?
Student: Yes.

Prof: So who created evil?
Student: (Student does not answer.)

Prof: Is there sickness? Immorality? Hatred? Ugliness? All these terrible things exist in the world, don't they?
Student: Yes, sir.

Prof: So, who created them?
Student: (Student has no answer.)

Prof: Science says you have 5 senses you use to identify and observe the world around you. Tell me, son...Have you ever seen God?
Student: No, sir.

Prof: Tell us if you have ever heard your God?
Student: No , sir.

Prof: Have you ever felt your God, tasted your God, smelt your God? Have you ever had any sensory perception of God for that matter?
Student: No, sir. I'm afraid I haven't.

Prof: Yet you still believe in Him?
Student: Yes.

Prof: According to empirical, testable, demonstrable protocol, science says your GOD doesn't exist. What do you say to that, son?
Student: Nothing. I only have my faith.

Prof: Yes. Faith. And that is the problem science has.

Student: Professor, is there such a thing as heat?
Prof: Yes.

Student: And is there such a thing as cold?
Prof: Yes.

Student: No sir. There isn't. (The lecture theatre becomes very quiet with this turn of events.)

Sir, you can have lots of heat, even more heat, superheat, mega heat, white heat, a little heat or no heat. But we don't have anything called cold.
We can hit 458 degrees below zero which is no heat, but we can't go any further after that.
There is no such thing as cold. Cold is only a word we use to describe the absence of heat.
We cannot measure cold. Heat is energy. Cold is not the opposite of heat, sir, just the absence of it.
(There is pin-drop silence in the lecture theatre.)

Student: What about darkness, Professor? Is there such a thing as darkness?
Prof: Yes. What is night if there isn't darkness?

Student: You're wrong again, sir. Darkness is the absence of something.
You can have low light, normal light, bright light, flashing light....But if you have no light constantly, you have nothing and it's called darkness, isn't it?
In reality, darkness isn't exist. If it were, you would be able to make darkness darker, wouldn't you?
Prof: So what is the point you are making, young man?

Student: Sir, my point is your philosophical premise is flawed.
Prof: Flawed? Can you explain how?

Student: Sir, you are working on the premise of duality. You argue there is life and then there is death, a good God and a bad God.
You are viewing the concept of God as something finite, something we can measure.
Sir, science can't even explain a thought. It uses electricity and magnetism, but has never seen, much less fully understood either one.
To view death as the opposite of life is to be ignorant of the fact that death cannot exist as a substantive thing.
Death is not the opposite of life: just the absence of it.
Now tell me, Professor.
Do you teach your students that they evolved from a monkey?
Prof: If you are referring to the natural evolutionary process, yes, of course, I do.

Student: Have you ever observed evolution with your own eyes, sir?
Prof: (The Professor shakes his head with a smile, beginning to realize where the argument is going.)

Student: Since no one has ever observed the process of evolution at work and cannot even prove that this process is an on-going endeavour, are you not teaching your opinion, sir?
Are you not a scientist but a preacher?
Prof: (The class is in uproar.)

Student: Is there anyone in the class who has ever seen the Professor's brain?
Prof: (The class breaks out into laughter.)

Student: Is there anyone here who has ever heard the Professor's brain, felt it, touched or smelt it?.....No one appears to have done so.
So, according to the established rules of empirical, stable, demonstrable protocol, science says that you have no brain, sir.
With all due respect, sir, how do we then trust your lectures, sir?

Prof: (The room is silent. The professor stares at the student, his face unfathomable.)
Prof: I guess you'll have to take them on faith, son.

Student: That is it sir.. The link between man & God is FAITH. That is all that keeps things moving & alive.

Chicken Soup for the Malaysian Soul

Hi there . Now, how long has it been since the last time I posted? Well, life has been a bit harsh on me. But I know, it is because life is preparing me for something bigger. Something that the current me can never comprehend. Thus, all the hardship I'm facing right now. But hey, we're talking about being positive here, so let's put the depressing talk aside.

What I wanted to talk about today, in this post, is about something that has been in my mind since last year. Have you guys read the book Chicken Soup for the Soul? When I was younger, they even made a TV series based on the stories featured in that book. Since then, there had been various other chicken soup books published, due to the impact brought by the stories featured. So a thought came into my mind, "Hey, it's about time we have a Chicken Soup book for Malaysian." Now, I'm not looking for an avenue for profit. I just want to have an avenue where people share their most motivating, life-changing, inspiring stories with other Malaysians, as well as the world. So the most I can promise for now is a Teh Tarik session at a mamak stall of your preference.

So, I need you to help me to:

1. Send me 1 (one) motivating, life-changing, and inspiring story that you had experienced PERSONALLY. It must be a true story, not an adaptation of any sort. Please include your personal details (name, contact number) as well, so that we can have the teh tarik session I promised. Stories are to be sent to my personal email: radicalscope@gmail.com.
   
2. Next, recommend me 3 people whom you know would be able to provide me with stories of the same or greater impact. All I need is their name and email address. If they don't do emails, a phone number would do as well.

The stories, once compiled, will be sent to Jack Canfield, the original author of the Chicken Soup series. If he lets me publish the book under my name, or with me as the co-author, I'll share with you all whatever I get from the book. But the teh tarik session is a confirmed promise.

Okay, that's all for now. Looking for ward for the wonderful stories that you have in store for me, and the people you'd like me to meet for more stories. And thank you in advance. Lord bless you all with happiness beyond imagination.