In the never-ending attempt to beat the market, some investors will leave the markets altogether to find outperforming investment ideas. These strategies range from the brilliant to the bizarre, and they are not necessarily the most accessible or liquid ideas. Still, for investors who want to look beyond stocks, bonds and mutual funds for portfolio growth, there are some unconventional ideas worth considering. (For further reading, read Alternative Assets For Average
"Invest" in your Fridge?
Much has been written over the past couple of years about how people could have beaten the market if they had simply bought various pantry or freezer staples and hung on for a while. To a point this is certainly true - the price of butter and bacon has absolutely gone up in the last year or so. But are these really investments? It is not as though you can buy $10,000 worth of butter, hold it in your freezer, and then sell it later. At best, it is a hedge against future commodity price inflation, though one that carries a risk of spoilage.
No Wine Before Its Time
In contrast, wine actually offers some investment potential. It is possible for people to buy bottles, cellar them properly, and then sell them at a higher price down the line. It is difficult to find properly audited performance reports on wine as an investment, but there is strong anecdotal evidence that investments in top first-growth vintages have done very well for the past decade-plus. To participate, an investor will have to educate themselves and be savvy about their purchases; buying wine at the local wine store isn't going to get the job done. Rather, prospective investors will need to investigate auctions and so-called "wine futures" to really benefit from this opportunity.
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