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.
NEW YORK (AP) — Shares of Tesla soared Wednesday as investors bet that the electric vehicle maker and its CEO Elon Musk will benefit from Donald Trump’s return to the White House.
Tesla stands to make significant gains under a Trump administration with the threat of diminished subsidies for alternative energy and electric vehicles doing the most harm to smaller competitors. Trump’s plans for extensive tariffs on Chinese imports make it less likely that Chinese EVs will be sold in bulk in the U.S. anytime soon.
“Tesla has the scale and scope that is unmatched,” said Wedbush analyst Dan Ives, in a note to investors. “This dynamic could give Musk and Tesla a clear competitive advantage in a non-EV subsidy environment, coupled by likely higher China tariffs that would continue to push away cheaper Chinese EV players.”
Tesla shares jumped 14.8% Wednesday while shares of rival electric vehicle makers tumbled. Nio, based in Shanghai, fell 5.3%. Shares of electric truck maker Rivian dropped 8.3% and Lucid Group fell 5.3%.
Tesla dominates sales of electric vehicles in the U.S, with 48.9% in market share through the middle of 2024, according to the U.S. Energy Information Administration.
Subsidies for clean energy are part of the Inflation Reduction Act, signed into law by President Joe Biden in 2022. It included tax credits for manufacturing, along with tax credits for consumers of electric vehicles.
Musk was one of Trump’s biggest donors, spending at least $119 million mobilizing Trump’s supporters to back the Republican nominee. He also pledged to give away $1 million a day to voters signing a petition for his political action committee.
In some ways, it has been a rocky year for Tesla, with sales and profit declining through the first half of the year. Profit did rise 17.3% in the third quarter.
The U.S. opened an investigation into the company’s “Full Self-Driving” system after reports of crashes in low-visibility conditions, including one that killed a pedestrian. The investigation covers roughly 2.4 million Teslas from the 2016 through 2024 model years.
And investors sent company shares tumbling last month after Tesla unveiled its long-awaited robotaxi at a Hollywood studio Thursday night, seeing not much progress at Tesla on autonomous vehicles while other companies have been making notable progress.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
