Avoid These Risky Investment Ideas (10 of 10)

Wineries And Vineyards: What Traps People

There’s an old joke out there that asks “How do you make a small fortune in the wine business? Start with a large one”.

For sure, there are many companies and vineyards that have had great success, but those successes have taken a lot of time. Starting one yourself, you’ll be looking at at least five years before getting your first harvest from a vineyard. During that time, you’ll need to sink a lot of money into equipment. You’ll need tractors to till the large fields, equipment for pumping, sorting and pressing, barrels to age the wine, the bottles themselves, and more.

The Dangers Of Wineries And Vineyards

Out of those costs mentioned above, you’ve also got consultants, the farm hands, and your storage costs too. And a lot of those costs can fly out the door when you consider the wildest of all costs: weather damage. Bad weather, natural disasters, or a freak hailstorm can wipe out your crops and your profits. You’ve also got animals to tend to, as well as bugs that can kill the vines or other critters nibble at the grapes themselves.

If that isn’t enough, you’ve also got to keep in mind that the wine industry is highly regulated. You’ll run into a lot of paperwork and permits every step of the way before you even cork a bottle.

At the end of the day, vanity purchases such as vineyards or fancy cars are more likely to leave you in a deep financial pit to crawl out of.

How you wish to invest is entirely up to you, but keep in mind this one thing: investing is like life, there are no guarantees of what you’ll get. With investing you can be right about things, but you can end up losing money.