Looks like another wine investment that are being sold to retail investors has gone sour.
Accordingly to an article in the Straits Times yesterday, six angry investors had gone to the office of The Bottled Wealth Holdings to demand their money back. The investors had been promised returns of at least 15% within three years but have not received a cent. The investors mostly invested in 2008 to 2009.
Previous wine investment companies that had defaulted on their payments include Assets Wine Management (AWM), Australian Wine Index (AWI) and Universal Asset Group (UAG). You can read about those in my articles under the wine investing section.
Apparently, the The Bottled Wealth Holdings had bought over the business of AWI, with clients of AWI asked to top up money.
After the publicity of the Straits Times article, it is likely that more investors of The Bottled Wealth Holdings will come forward with their own stories.
One piece of advice that I always give to people on investments with promised returns is that any promise is only as good as the ability of the company to pay you back.
Will you trust a stranger in the street if he comes to you and promises you 10% return in exchange for $1000? Most of us won’t but ironically. people will readily part with their money when the stranger appears in the form of a company they have never heard of before.