It’s easy to categorize investments as either paper-based or tangible. Some paper-based investments include stocks, bonds, exchange-traded funds (ETFs) and mutual funds. Tangible investments include real estate and precious metals like gold.
Other investments are not just profitable, but also edible. Edible investments include wine, beer and commodities like soybeans. These assets are tangible and recession resistant, especially since food basics and alcohol will be in demand regardless of the economy.
Besides being recession resistant, wine also offers diversification from traditional stock markets. The average 30-year return of wine is 10.6%, which is slightly higher than the Dow Jones 30 year return of 9.9%. Wine is also a tangible asset, which makes it a great hedge during inflationary times.
It's easy to invest in this sub niche via wine stocks and wine investment platforms. One popular wine stock is Brown Forman Inc BF/B, which also owns other spirits brands, like Jack Daniels whiskey. This stock has an impressive return on equity of 32% and a healthy 22% net profit margin.
Vint offers securitized shares of investment grade collections of fine wine from all over the world. For example, you can own shares of valuable collections from popular wine destinations like Bordeaux and Napa Valley.
Commodities like wheat, rice, corn and soybeans are also edible, in-demand investments. They’re also grown on farmland, which is becoming more valuable. Because of global warming, overdevelopment and an increasing world population, the supply of farmland has decreased.
In fact, the United States lost over 1.3 million acres of farmland in 2021 alone. Besides less farmland, supply chain bottlenecks have made it difficult to transport these commodities, causing demand to further increase.
One of the easiest ways to invest in commodities indirectly is via farmland crowdfunding sites like Steward. With Steward, investors loan money to various types of agriculture projects including farmland development.
The minimum investment per loan is $100, and this site is open to both accredited and non-accredited investors. Rates of return can vary, but 5% to 10% is a common range.
Like wine, beer is a tangible asset that is recession-resistant and can provide protection from inflation. Large brewers like Molson Coors Beverage Co. TAP own common domestic beers like Coors and Miller. It also owns the popular British beer brand, Carling.
One beer sub niche that has become extremely popular over the last decade is craft beer. More than 9,000 craft breweries in the U.S. offer unique styles of beers from IPAs to coffee-flavored stouts.
Investors can miss a unique sub niche, edible investments like wine, beer and commodities.
These investments also offer several advantages like being recession-resistant. Beer and wine are great examples; alcohol sales rose by 20% from March to September 2020.
It’s also easier to include these assets in your portfolio since you can buy beer company stocks like Molson Coors Beverage Co. and use sites like Vinovest to invest directly in physical bottles of investment-grade wine. You can also invest in commodities indirectly via farmland crowdfunding sites like Steward.
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