About a month ago I published an article on a rare asset class that outperforms. Soon after completing that article, which my wife read and (spoiler alert!) which featured wine investments, I found myself in the liquor store.
I just couldn't help it, and apparently I wasn't the only one. As soon as I entered the house with my purchase my wife ran to get two wine glasses. We drank the bottle in record time.
Clearly, I thought, I was on to something here. The subject of wine was intoxicating.
So it was with intense interest that I read about Crimson Wine Group's (OTC: CWGL) spin-off from conglomerate Leucadia National (NYSE:LUK) in March. One interesting detail of this spin-off was that it apparently had less to do with CWGL being better off as a stand-alone company than with management (LUK recently merged with investment bank Jefferies) at LUK not wanting the "underperforming" asset.
Perhaps ironically, the performance of the two stocks hasn't been much different since the spin-off was completed. In fact, if you want to split hairs CWGL has marginally outperformed LUK.