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WINE INVESTMENT FOR PORTFOLIO DIVERSIFICATION
How Collecting Fine Wines Can Yield Greater Returns than Stocks & Bonds
Best Wine Education Book in the World – 2005 Gourmand World Book Awards
Exclusively distributed by Premium Liquid Assets at a Promotional Price of S$50, excluding GST
“Premium Liquid Assets is Asia’s leading edge wine brokerage that provides the most comprehensive wine investment service in the region. Premium Liquid Assets has the expertise in identifying the best wine for consumption, collection and for investment purposes. With state-of-the-art fully bonded warehouse facilities for storage, Premium Liquid Assets is at the forefront of wine brokerage.
Asia has a large number of sophisticated investors who have caught onto the significant benefits of investing in wine. And working closely with Premium Liquid Assets will no doubt help you achieve your goals.” - Mahesh Kumar
About The Book
After a long and beguiling climb, the stock market dive of 2000-2002 put phrases like “irrational exuberance” and “speculative bubble” back into common usage and was a stinging reminder of the importance of portfolio diversification.
Financial wizard Mahesh Kumar shows how to guard against the inherent riskiness of the stock market while still reaping the benefits of a profitable portfolio in his new book "Wine Investment for Portfolio Diversification: How Collecting Fine Wines Can Yield Greater Returns than Stocks and Bonds". It’s a thorough piece of academic analysis, which combines the Nobel Prize winning Markowitz Theory and Kumar’s Fine Wine Fifty Index, empirically proving that Fine Wine is one of the best diversification tools available (whether you’re high-finance or a modest personal investor). Fine Wine is “uncorrelated” with stocks and bonds; that is, they aren’t affected by the same types of risk.
Moreover, Kumar points out that Fine Wine has a HIGHER than expected return relative to its overall contribution of risk. “Smart investors are those who recognize large shifts in the economy early on and invest for the long term,” he writes. “In the ‘70s, gold investors thrived; in the ‘80s it was the real estate owner’s turn. In the ‘90s the action shifted to stocks. What will this decade bring? Alternative investments (Fine Wine, Fine Art or Antiques) will make a breakthrough, and compensate investors for their disappointing equity, bond and cash portfolio returns.”
The book also includes a history of wine markets dating back to the 12th century; chapters on the different modes of marketing and distribution in Bordeaux, and the primary and secondary markets; and he critically analyses the total alternative investment market, and the relationships between their price and quality. He also discusses, systematically, the key question: what constitutes a good investment portfolio?
There’s little academic writing published in the way of wine’s investment potential, and what there is has whipped up a frenzy of mixed messages. In Wine Investment for Portfolio Diversification: How Collecting Fine Wines Can Yield Greater Returns Than Stocks and Bonds, Bissett School of Business Professor of Finance Mahesh Kumar uses modern portfolio theory and his special insight to create a Fine Wine 50 index that fills the gap in the financial literature. The only book of its kind, this analysis offers a real opportunity to learn about blue chip wines & portfolio diversification. Not only is it essential reading for all players in the investment world, it’s also a must have for every seller, collector & enthusiast. Based on robust financial analysis this book demonstrates the attractiveness & synergy of holding fine wine in a diversified portfolio of traditional financial assets.
Whether you see wine as simply fermented grape juice, or divine ambrosia, putting this book to work in your portfolio will have you seeing dollar signs.
| “Is wine a wise investment, or bold speculation? No need to rely on luck. Mahesh Kumar’s structural analysis could be of considerable help.” |
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- Michael Broadbent, Master of Wine
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| “Kumar’s study of wine investment is undoubtedly the most comprehensive research available worldwide. The book should prove to be the definitive guide to investment in fine wine.” |
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- George Clowes, Fine Wine Management Ltd
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| “This scholarly work is a must for any serious collector of Bordeaux wines, whether it be the professional wine trade-person, Wall Street investor or avid consumer.” |
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- Robin Kelly O’Connor, President, Society of Wine Educators
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| “America wholeheartedly embraces another long standing European tradition! A smart combination of passion and pleasure, keep this book next to your Wine Advocates and Wine Spectators.” |
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- Ralph Sands, Bordeaux Expert, K&L Wine Merchants
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“I hate to think of wine being thought of primarily as an investment, but the world’s finest wines do appreciate significantly in value, and it would be foolish to ignore the fact that more and more shrewd investors are looking at wine as a way of making money.” |
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- Robert M. Parker, Jr.
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About the Author
Mahesh Kumar, BA (Hons), MBA, DipIC Mgmt, ACMA, ATT, CMC is a London trained Chartered Accountant, Management Consultant and Taxation Practitioner. Mahesh has an MBA and Diploma in Management from the Tanaka Business School, Imperial College London.
Mahesh has over 12 years of global corporate finance, financial management, management consulting and teaching experience with blue chip firms such as PriceWaterHouseCooper, GlaxoSmithKline, Novartis Pharmaceuticals & Imperial College London. Since his move to Canada in 2004, Mahesh has spent the past 2 years teaching finance and accounting at the Bissett School of Business, at Mount Royal College in Calgary, Alberta. Mahesh is now teaching finance and accounting in Royal Roads University in Victoria, British Columbia. Mahesh is also the founder and CEO of Roman-Boston Consulting Corporation. He is now working on his second book, “Collecting Wine for Pleasure and Investment”.
For more information please visit http://www.finewineinvestment.com
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