Latest / Best of Business / Gertjan Verdickt: Auckland University finance lecturer unpacks research revealing whisky, Lego and handbags might be safer investments

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Gertjan Verdickt: Auckland University finance lecturer unpacks research revealing whisky, Lego and handbags might be safer investments · Best of Business

• 0:09
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• 0:16
  Speaker 2: New research shows that you might be better off investing
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  Speaker 2: your money into whiskey and Lego rather than the share market.
• 0:23
  Speaker 2: Whiskey came out on top with an average annual return
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  Speaker 2: of seventeen point five to two percent over ten years,
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  Speaker 2: while more traditional investing into the S and P five hundred,
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  Speaker 2: for example, return just twelve percent a year over a
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  Speaker 2: long period. Gerzian verdict is the University of Auckland finance lecture.
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  Speaker 2: Who's been looking into this is with me now.
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  Speaker 3: Good evening, Thank you for having me.
• 0:44
  Speaker 2: How realistic is it making lots of money off Lego?
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  Speaker 3: Well, it's not really that realistic in terms of percentage
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  Speaker 3: is amazing, but we're talking about actual small amounts of money.
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  Speaker 2: How much have you found people are investing in stuff
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  Speaker 2: like Lego or whiskey.
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  Speaker 3: More than than you would think. So Lego is slowly
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  Speaker 3: building up, but the drinkable so wine and whiskey, especially
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  Speaker 3: in the pandemic, has increased significantly.
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  Speaker 2: Give us the numbers. What is you know, the top
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  Speaker 2: three owners?
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  Speaker 3: So in terms of actual percentage like whiskey is by
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  Speaker 3: far number one. Then we have baseball cards, which also
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  Speaker 3: has as a very nice return. Then we are at
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  Speaker 3: wine and lego.
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  Speaker 2: So baseball cards, let's peck them out. So between nineteen
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  Speaker 2: eighty seven and twenty twenty three they posted an average
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  Speaker 2: annual return of thirteen percent a year, which is incorrect
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  Speaker 2: more than the S and P five hundred turn per
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  Speaker 2: year over twenty years. That's correct, yes, And I mean,
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  Speaker 2: what is this research telling us we should go and
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  Speaker 2: pile our money there?
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  Speaker 3: No, definitely not. What this research shows is that there
• 1:55
  Speaker 3: is value in adding an additional component to your traditional
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  Speaker 3: portfolio of stocks and bonds, because having something real, something tangible,
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  Speaker 3: is worth something and it can produce a very nice
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  Speaker 3: additional return on top of your normal portfolio.
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  Speaker 2: Do you have any little extra or alternative investments yourself.
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  Speaker 3: So, I'm myself a wine expert. I do research on
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  Speaker 3: wine as well, so I have a small proportion of
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  Speaker 3: my portfolio dedicated to wine. And I'm also consulted for
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  Speaker 3: wine investment funds, which I do not disclose in the book.
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  Speaker 3: So all the examples in the book are not something
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  Speaker 3: I'm affiliated with.
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  Speaker 2: Ah, So are there funds that will manage your money
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  Speaker 2: for you and invest in alternative assets like this, because
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  Speaker 2: I mean for your average punter learning about baseball cards
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  Speaker 2: or lego or whatever, it might be quite a time
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  Speaker 2: consuming thing to do.
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  Speaker 3: So that's something we actually show in the book. So
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  Speaker 3: you have a direct investment where you can actually go
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  Speaker 3: and buy your lego set. But we also offer a
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  Speaker 3: lot of indirect options as well. So art, for instance,
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  Speaker 3: there's a growing platform online where it can buy a
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  Speaker 3: small piece of art, but also wine, as I mentioned
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  Speaker 3: the wine investment funds, Whiskey similar issue, similar thing. You
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  Speaker 3: have Whiskey investment funds as well. So there are indirect
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  Speaker 3: options which we clearly show what the benefits are also
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  Speaker 3: what the disadvantages are.
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  Speaker 2: Within the book, Dan give us you a hot tip
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  Speaker 2: on wine. What should we be buying?
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  Speaker 3: So Australian wine is actually pretty pretty good at the moment,
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  Speaker 3: so think about your pen falls for instance. That is
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  Speaker 3: something that there's growing interest across the world. People are
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  Speaker 3: moving away from your traditional Bordeaux French style wine and
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  Speaker 3: moving more into this Californian, Australia and Argentinian wines.
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  Speaker 2: Hard thing about that, and you mentioned pin Folds is
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  Speaker 2: actually keeping it and not drinking it exactly.
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  Speaker 3: There's a small lin Dreen Consumption and Investment.
• 4:04
  Speaker 2: Certny is Get you On, Thank you for your time,
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