For those looking to invest money in something that has a low correlation with the performance of the stock market, you may find yourself looking at investment in fine wine and there is now an app to assist you: Vinovest. Co-founders Anthony Zhang and Brent Akamine are serial entrepreneurs who have a background of founding, then selling, lucrative start-ups.
The idea for Vinovest came to Zhang when he had an interest in investing extra savings but found himself excluded from the world of fine-wine investing. These types of investments, after all, are notorious for being limited to the ultra-wealthy or to those with inside connections to exclusive brokers or secretive auctions. Zhang penetrated this barrier by creating an algorithm after sifting through years of data which analysed the historical performance of fine wine investments against the performance of other asset classes.
From this, Vinovest was born. Vinovest works by providing investment opportunities and accessibility for anyone with $1,000 to spare. You simply select the amount of money and time you wish to invest, and Vinovest’s team of experts, which is comprised of data scientists, software engineers and experienced sommeliers, will recommend the smartest investments. Included in their monthly fee is the infrastructure needed to house such wines, including storage and insurance. According to the Vinovest team, an investor should never expect to be able to hold the physical investment in their hands. This certainly takes away the temptation to drink one’s investment after a stressful work week.
The minimum amount of time needed for an investor to see returns is generally three years. However, most exclusive wines reach financial maturity in the 30-to-50-year range. If you are looking to diversify your portfolio with something more secure and less volatile than the S&P index, and you have the money and patience required, Vinovest may be worth looking into. www.vinovest.co