Maxwell Nee was drinking an Old Fashioned at a swanky bar in Chicago when he came to appreciate the significant price difference between Macallan 18 and Macallan 12 whisky.
Because it had aged an additional six years, Macallan 18 cost 500% more!
That’s when the lightbulb went off. And Maxwell started looking into wine and whisky as an alternative investment.
Today, Maxwell is Managing Partner at OENO Wine and Whisky Fund, a recession-proof investment fund that leverages the intrinsic value creation in the maturity of fine wine and whisky to earn double-digit returns for investors.
On this episode of Financial Freedom with Real Estate Investing, Maxwell joins Garrett to explain what he looks for in a wine or whisky investment deal and how the assets are aged in a warehouse under the best conditions.
Maxwell shares his strategy for maximizing returns for OENO investors and describes the parallels between investing in wine and whisky and value-add real estate.
Listen in to understand the risks associated with wine and whisky as an alternative investment and find out if investing in Maxwell’s fund is right for you!
Key Takeaways
How Maxwell got into the business of wine and whisky
- Looking for place to invest profits of coaching business
- Paid $125 for Macallan 18 at swanky bar in Chicago
- Realized 500% increase in value of whisky in 6 years
What Maxwell looks for in a wine and whisky investment deal
- Top 1% of production
- Find undervalued hidden gems
- Best deals off-market
The process of investing in wine and whisky with Maxwell
- Produce from vineyard or distillery gets bottled
- Age perfectly in warehouse under best conditions
- Intrinsic value creation in maturity of asset
Maxwell’s strategy for maximizing profits for OENO investors
- Buy when no one else wants it or inflation is high
- Hold until demand is high and supply is scarce
Maxwell’s profile of the typical wine and whisky investor
- Passion investors who love wine and whisky
- Sophisticated investors, i.e.: ex-bankers, traders, etc.
What returns you can expect from investing with Maxwell
- Double-digit returns not correlated to market
- 11% to 15% returns in last 4 years across 3,000 clients
The tax benefits of investing in wine and whisky
- Considered ‘wasting asset’ in UK
- Not subject to capital gains tax there
The biggest risks of investing in wine and whisky
- Market risk
- Pricing risk
- Breakages
- Counterfeit risk
How Maxwell mitigates the risks for his investors
- Work with producers who are price makers
- Independently valued and insured for transport
- Provide documentation of authenticity
Related Articles
How Should I Allocate My Net Worth As A Passive Investor
Connect with Maxwell Nee
Connect with Michael Blank
Apartment Investor Network Facebook Group
Email [email protected]
Resources
Join the Nighthawk Equity Investor Club
Explore Michael’s Mentoring Program
Access Michael’s Free Resources in the Freedom Vault
Review the Podcast on Apple Podcasts
Financial Freedom with Real Estate Investing by Michael Blank
