Graphics and Concluding question

Question

In the Graphics “Economics over time” it should consider the big revenue every five years.

Quote:

"Ask the candidate: Does the 20% p.a. strike one as a credible return on an investment-grade wine? Why or why not? How does it compare to other returns you know?

Well, yes, it’s extremely aggressive but not completely implausible. It’s certainly not a sustainable return!"

I think that the answer is quite weak. Could someone elaborate a bit more? I thought that 20% was an actually quite high appreciation and that it would probably be closer to 5%. At least it wouldn't make sense to me that all years appreciate equally. Particularly the first ones. Could someone share their views on that please?

Answer 1

Wine has been growing at almost 10% CAGR since 2003. To be at 20% you would need to outperform this benchmark on a consistent basis. That is a very aggressive assumption.

Answer 2

The short answer is, yes. However, given the limited amount of time you have, I'd strongly recommend connecting with... (read entire answer)

The short answer is, yes. However, given the limited amount of time you have, I'd strongly recommend connecting with a coach, career mentor, or peer to practice casing. Just ma... (read entire answer)