Startups are making wine and spirits money.
You can “interest investments”. It sounds like an oxymoron: what do emotions have to do with appropriate returns? Yet, from art and cars to stock X, collectors are in the portfolios of wealthy people.
Not wanting to put all your eggs in one basket is not a new idea. But while it’s easily forgotten in good times, a recession is a great recipe for putting diversity back on the agenda. In recent months, this has created a tailwind for alternative investments, also known as “alts.”
The exchange examines startups, markets and money.
Read it every morning on TechCrunch+ or get the Exchange newsletter every Saturday.
Not all alts can be described as discretionary investments; I doubt anyone is very fond of private equity or debt, for example. But the category also includes assets that overlap with hobbies and collectibles, such as wine, spirits, handbags and watches.
Unlike retail investors in general, those invested in these categories accounted for strong returns last year: “Watches and wines led the Knight Frank Luxury Investment Index results for Q4 2021 to its strongest annual performance since 2018,” the property advisory firm reported. .
At the same time, the number of investors entering these categories is growing.