Bouri, ElieGupta, RanganWong, Wing-KeungZhu, Zhenzhen2019-01-302018-10Bouri, E., Gupta, R., Wong, W.K. et al. 2018, 'Is wine a good choice for investment?', Pacific-Basin Finance Journal, vol. 51, pp. 171-183.0927-538X (print)1879-0585 (online)10.1016/j.pacfin.2018.07.002http://hdl.handle.net/2263/68315We extend our understanding on the role of wine investment within a portfolio of different assets (US/UK equities, bonds, gold, and housing) by considering a rich methodology based, among others, on the mean-variance and stochastic-dominance approaches. The main findings suggest that wine is the best investment among all individual assets under study, and investors prefer to invest in with-wine portfolios than without-wine portfolios to gain higher expected utility when short selling is not allowed. However, investors are indifferent between portfolios with and without wine when short-selling is allowed. In addition, with-wine portfolios generally either dominate individual assets or investors are indifferent in choosing between individual assets. Interestingly, the with-wine portfolios first-order stochastically dominate housing in both the long-only and short-allowed strategies, pointing towards market inefficiency. Finally, we reveal that investors prefer the low-risk with-wine portfolios to the equal-weighted portfolios but are indifferent between the high-risk with-wine portfolios and the naïve portfolios for both long-only and short-allowed strategies. Our findings can be used by investors in their investment processes, and reveal the possibility of earning abnormal returns when wine is included in the investment.en© 2018 Elsevier B.V. All rights reserved. Notice : this is the author’s version of a work that was accepted for publication in Pacific-Basin Finance Journal. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. A definitive version was subsequently published in Pacific-Basin Finance Journal, vol. , no. , pp. , 2018. doi : . [12 months embargo]Wine investmentMean-variance portfolio optimizationMean-risk criterionStochastic dominanceAsset classesPostprint Article