Ones and zeros may dictate the world, but those same data points reflect a new generation of professionals bent on living a comprehensive and sustainable life. Millennials and Gen-Z are integrating their consciousness into the careers they choose, the cities and homes they live in, and the journey their earned money takes along the investment trail.
The younger generations aim to rebrand what an authentic life looks like not just Monday through Friday, but 24-7 and through the vertical of their respective lives. Many work for companies focused on Diversity, Equity, and Inclusion (DE&I) and Environmental, Social, and Governance (ESG) targets. Along the way, some are investing in new ways to enjoy old pleasures.
Oeno continues to expand investment opportunities through education for global clients.
Oeno
Michael Doerr, CEO of Oeno Group, an investment advisory service in collectible wines, is trying a different approach to the investment model. The International Investor Awards named him the Wine Investment CEO of the Year Award for 2022, with the company awarded Best Global Wine Investment Firm two years running.
Doerr’s mission from the beginning has been to bring something different to the world of investing. It’s a full life cycle approach that connects a long-term investment model to the culture of wine enthusiasts.
Nothing is ever recession-proof, but Doerr operates multiple offices worldwide, knowing that wine is celebrated during the good times and embraced during nail-biting periods of economic unrest.
Understanding Fine Wine Investment
For those with little understanding of an investment advisory for wine, Doerr explains the concept.
“It’s the investment in the appreciation of fine wine. Many people are unaware that they can invest in wine and that it rises in value,” says Doerr. “It represents about 5% of the wines on the market and is closer to pieces of fine artwork made in the most extraordinary ways and low in production with a huge following behind them. Asset appreciation works with supply and demand. As time passes, fewer bottles are on the market, and the price appreciates.”
According to Doerr, adding to the investment lifecyle, once the wine is bottled, it’s still evolving. “For instance, it can take 10-to-15 years for a Bordeaux to reach that ‘drinkable window’ state,” adds Doerr. “As a company, we buy [wine] stock early on, our investors and collectors hold on to that stock, and then we release it back into the market. By that time, it’s risen in price through supply and demand. Because the wine has evolved, it’s now drinkable at a high price.”
While some view the younger generation as a fast-moving crypto-buying segment, many young investors are more interested in long-term opportunities and tangible strategies to address the uncertainties of their financial futures. Doerr stresses that fine wine investment is not a highly liquid asset but a more sustained investment strategy.
“It acts more like a property waiting for a buyer to come into place that can take a year or two to sell,’ he says. “It should be treated more as an Incentive Stock Option (ISO) and part of a diversified portfolio. In most countries, it’s capital gains tax-free.”
Part of the appeal is the global market and volatility-free component. “When the market is thriving, everyone’s making money and spending money on wine. When the markets dive, everyone’s still spending money on wine, drinking more to get through the issue at hand,” states Doerr.
Doerr opines hypothetically if the U.K. stopped consuming wine altogether, it doesn’t make a difference to investors because consumers are still readily available worldwide. “We were tested when the Russia and Ukraine crisis happened,” adds Doerr. “Suddenly, no one could import into Russia, a big fine-wine-drinking country. But we saw no change because all the excess wine that would have sold in Russia was soaked up by China, India, the U.K., or North and South America.”
Life Cycle
While many companies offer wine investment, the Oeno Group approach is unique because it improves on an old model by concentrating on all aspects of the wine life cycle. When Doerr approached this sector, he didn’t want to start up another wine investment company but looked to see how he could improve the model.
Michael Doerr has quickly made a name for himself in the wine and investing industries, … [+] respectively.
Oeno
“I saw from the investment standpoint that the cycle was broken. I love it and put everything into it because there’s a lovely natural life cycle attached,” says Doerr.
“There are multiple investor-to-investor tie-ins created through a seamless and sustainable process. As soon as you find that consumer, you can sell assets at a profit to a happy consumer on the other end. Money is made, and the consumer can hold the asset or enjoy a beautiful bottle of wine with friends and family. It’s the most lovely life cycle of an investment.”
Doerr explains that with most other asset classes, someone along the way is losing out. But with fine wine, a different dynamic exists. “In fine wine, as long as you can bridge the gap between the collector and the investor to the consumer, it’s a match made in heaven,” he says. “The whole thing marries up.”
Generational Education
A spike in interest is growing within the younger generation. Five to ten years ago, fine wine investment was more of an old-fashioned model with an appeal to older segments of the population.
“We’ve tried to be a much newer, younger company open to the opportunities of everyone,” says Doerr. “We’ve seen huge growth in the younger generation (25-to-35-years-old) that are taking an interest. That generation appears more proactive in investments to find choices that match their lifestyle. They recognize that they need to make their money work harder than their parent’s generation.”
The Oeno Group is developing educational models as part of its future offerings. An online academy is already taking shape to educate more people on fine wine and investment. The goal is to share knowledge through podcasts and other sources so people can make their own decisions. It’s a financial literacy angle with fine wine at the helm.
“I think education is such an important tool. I’m a huge advocate for getting out there and educating investors on how this asset class works while bringing more attention to it,” shares Doerr. “No matter the age group, it’s significant on our radar to ensure we’re educating investors on how to invest safely in the sector.”
According to Doerr, the industry average market returns are usually between 8% and 12%. However, over the last three years, the Oeno Group has seen numbers climb toward the top of the spectrum. Last year alone, the rate of return for Oeno clients reached 15.56%.
Classic investing resembles traditional western education based on tried-and-true methods mitigating market risks in the name of stability, if not predictability. Financial literacy reaches into communities and empowers its respective citizens to craft a strategic path of financial independence.
Doerr, with returns that regularly exceed expectations, is laying a foundation of sustainable and enjoyable investing that allows the next generation to sip their returns while taking on a more vintage lifestyle.
Interviews have been edited and condensed for clarity.
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets climbed to their best week of the year.
“It’s been almost a complete opposite or retracement of what we saw last week,” said Philip Petursson, chief investment strategist at IG Wealth Management.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
While last week saw a “healthy” pullback on weaker economic data, this week investors appeared to be buying the dip and hoping the central bank “comes to the rescue,” said Petursson.
Next week, the U.S. Federal Reserve is widely expected to cut its key interest rate for the first time in several years after it significantly hiked it to fight inflation.
But the magnitude of that first cut has been the subject of debate, and the market appears split on whether the cut will be a quarter of a percentage point or a larger half-point reduction.
Petursson thinks it’s clear the smaller cut is coming. Economic data recently hasn’t been great, but it hasn’t been that bad either, he said — and inflation may have come down significantly, but it’s not defeated just yet.
“I think they’re going to be very steady,” he said, with one small cut at each of their three decisions scheduled for the rest of 2024, and more into 2025.
“I don’t think there’s a sense of urgency on the part of the Fed that they have to do something immediately.
A larger cut could also send the wrong message to the markets, added Petursson: that the Fed made a mistake in waiting this long to cut, or that it’s seeing concerning signs in the economy.
It would also be “counter to what they’ve signaled,” he said.
More important than the cut — other than the new tone it sets — will be what Fed chair Jerome Powell has to say, according to Petursson.
“That’s going to be more important than the size of the cut itself,” he said.
In Canada, where the central bank has already cut three times, Petursson expects two more before the year is through.
“Here, the labour situation is worse than what we see in the United States,” he said.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
— With files from The Associated Press
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
