Vol. 1 No. 2 …do I care what Parker/Rolland think?

I’ve looked at wine from both sides now,
from up and down, and still somehow
it’s wine’s illusions I recall.
I really don’t know wine at all.

– with just a tad of literary license from Both Sides Now, by Joni Mitchell

If the above causes you to ask if he doesn’t know wine, why write a blog? TB would answer, “I know something about wine but I don’t know what you, dear reader, like. Neither do the guru’s: Robert Parker, who gave us the 100 point grading system back in 1978, and which is now copied by at least half a dozen other wine writers/critics; or Michel Rolland, who consults for over two hundred wineries, and whose goal is to bring the same attributes to all of them. Rolland was immortalized in Mondovino, as a Tiparillo-smoking, jovial fellow being chauffeured all over France…and elsewhere in the world, along with the Mondavis (not to be confused with the MonDAVIES – Bob’s estranged brother). Interestingly, Mondavi was at its zenith when the documentary came out in 2004, but then was sold to Constellation, and has lost its aura…and when you lose your aura in wine, the fall from grace – Can be a long plunge.

Let’s get this straight: if you like Two Buck Chuck (now $3.89 by the way), or Gallo Hearty Burgundy, who is Parker, or Rolland, or Trader Bill, or anyone to set you ‘straight’? What a boring world it would be if everyone liked exactly the same wines…oops, the wine snobs already do which has escalated the price of those 90-100 point wines as speculators, not consumers, buy them and trade them among one another further driving up the price. Some people have never even seen the wines they own and never will.

In Red Obsession, it was said that the Chinese could become the buyers of all the Bordeaux in the world. Flash back to about 1988 and the same was being said about: the Japanese! Arigato! If you don’t believe this, go to this link, just published today: Lower wine prices, less Chinese demand

The above is as negative as you will see in this blog and it is not intended to harm anyone named, but when TB saw this cartoon (sorry, unable to find it so will just have to quote it), at his 50th birthday on the Napa Valley Wine Train, it became indelibly printed in his brain:

Customer tasting at wine shop: “This wine is terrible!”

Clerk: “Really? Parker gave it a 90…

Customer: “I’ll take two cases!!!”

That epitomizes the wine snob who knows little about it but thinks he can look smart by serving and pointing out, “this is a 90-point wine.” It brings about the question: when is the last time you saw a wine displaying a rating below 87 in any store?

In Sideways, Miles was the epitome a wine snob (by the way, it was more disgusting than funny in the book). He loathed Merlot – as if there were no good Merlots, only plonk. He had obviously never tried a Duckhorn, especially the Three Palms, or any of the other wines not produced for the ‘cocktail’ crowd. Instead, he loved Pinot Noir, especially Burgundies. Yet his favorite wine was Cheval Blanc, a beautiful St. Emilion, which is…100% Merlot (in the book he only mentions Chateau Petrus, also 100% Merlot)! For all you France haters, how do you think they feel about us for all those ‘burgundies’, and ‘chablis’ we sold for a couple of bucks a bottle?…not to mention Champagne!

One of TB’s favorite wine writers in San Francisco…sadly, he can’t recall the name…once spent a column on wine writers. He posed: how can you use someone’s wine recommendations without knowing if what they like in a wine is the same as what you look for? Good question…any takers?

Also in Sideways: it was amazing how Miles always brought out the best and most expensive wine when he was trashed! By the way, TB has had this happen after several glasses of wine at a dinner and had that urge to (and satisfied it), bring out some of his best bottles…with little or no recollection of how they tasted with the palate numbed. There’s a lesson here!

TB observed ‘the Sideways effect’ almost immediately when in wine shops the Merlot came down from the eye level shelf to the bottom, changing places with the Pinot Noir…and TB has had some not-so-well -made Pinots. Note that Robert Veseth, now professor emeritus at Puget Sound University, observed the same thing and wrote a paper on it from an economics point of view, the impetus for his blog The Wine Economist and a new career.

Let’s go back to the Parker/Rolland paradox: for all the good they did in improving the quality of wine – globally – they have homogenized it…like buying one brand of milk over another…ok, maybe buying Coke (the drink) over Pepsi. What is missing is something found in the best wines: terroir (tere-wahr).

Terroir is the summation of all that goes into a wine from the soils and climate, to the way the vines are planted. It is what distinguishes a Heitz Martha’s Vineyard from other Cabernets, or a fine Chablis with its flintiness, from any other Chardonnay.

Now for the consequences: imagine a farmer growing corn, and some ‘expert’ comes along and says he is rating your corn an 87? What would he do? Escort the guy off his farm…and probably not in a pleasant way. But take away all the romanticism and wine is just that: farming, and farming means you can do everything right and still have a bad crop…you hope, (pray ?), for the best. But the farmer doesn’t see the price of his wine double or more with a 100 point score, instead the independent wine buyer who does his own research pays for it. Relief may be in sight as this 2015 prediction states: 2015 wine predictions

On this you don’t need to take TB’s word. He was told this by none other than Joe (Joseph) Heitz. TB, with a group of friends, which included Joe’s nephew from Reno, Nevada, was invited to lunch on the Heitz’ deck and enjoyed some of their Riesling and wonderful sausages on a beautiful Napa morning. This was followed by a tour, in which, Joe said that vineyard land could not go any higher and still allow the buyer to make money. I bought a case that day of the 1974 Martha’s Vineyard Anniversary Cabernet…$40 a bottle, I believe. Remember, Heitz was the most sought-after Cabernet Sauvignon in America. At that time Mondavi Cab was about $7.50 a bottle (don’t laugh, TB bought the 1972 with $4.95 price tags). In 2000, TB put some of his older wines up for auction, including his last bottle of the Heitz: it sold for $400 – is any wine worth that much? It’s WINE, not art, and meant to be consumed…and don’t forget old wines don’t taste anything like they did when young.

If you want proof of just how much impact Parker and Rolland have had consider this article published on Aug. 6th 2014 – my 45th wedding anniversary by the way – remember 1976 was pre-Parker AND Rolland, then came the conversion (capture?); are we about to go round trip? You decide…1976 Wine Judgement: then and now

Maybe you should just trust your own taste buds. If you like a wine, buy a case of it and drink it over the next 3-5 years…be able to serve it a dinner when it might be worth 2-3 times what you paid for it. That is the fun of wine…not ‘hoarding’ it, right?

If you can find it, Jancis Robinson wrote a book, Vintage TimeCharts, which graphs how wines she tasted lasted over the years…it is extremely valuable in knowing just how long most wines will keep, and how long the best can keep. It tracks wines from as far back as 1989 to 2000…some of the best! Highly recommended, and here’s the good news if you are interested: you can buy it online for $4.95 or less! A wonderful addition to any wine library. TB would add that Jancis is one of the great wine writers, long on fact, short on ego.

Well, dear reader, hope you found this as interesting as the trip down memory lane was for TB. Ah, but there are a million wine stories in the Naked City…this is just one of them (anyone remember?).

TB

©Copyright 2015 TBOW, all rights reserved.

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traderbill

How did Trader Bill originate? It was conceived by me as a way of providing information summaries of global financial markets so that friends and associates could bring themselves up to speed on events and changing market conditions upon their arrival at work. In addition, it provides information on speakers and economic releases that day with consensus estimates and level of last release so that the reader is prepared to react, or knows how the market might react upon the release of information. Who is Trader Bill? Initially any reference to me was as ‘i’. This is to remove the aura of ego and to suggest that i am but a humble reporter, albeit with 35 years of investment experience. Investments are demanding of ego, however, or one would not feel that he was qualified to manage someone else’s money in the first instance. Therefore i needed an ‘alter-ego’. Like Winchell and Mahoney, Edgar Bergen and Charlie McCarthy and especially Trader Vic and Mai Tai’s! Why Trader Vic? Because he was a likeable man who delivered pleasure to his customers and knew exactly what their desires were. The reason for the alter ego became obvious once I introduced Trader Bill into my commentaries: people started asking what Trader Bill thought. They had never asked me what I thought before, but suddenly they wanted to know what TB thought! Now mind you they KNEW that I was Trader Bill but for some reason he became bigger than life. Maybe it was the small ‘I’? What does Trader Bill try to do?His goal is to educate from his years of experience. Consider that most of the traders and people managing investments weren’t even around in 1987 for the crash! Consider that Graham and Dodd, and even Warren Buffet are not relevant to them, too old hat. Their historical perceptions of markets and fundamentals (earnings, price/earnings ratios, bonds, debt service coverage) are irrelevant in this fast moving world. This is the NEW ECONOMY, or is it? How did your style originate?Years ago i found that i had a knack and talent for writing. In addition, i developed an ability to analyze market news about 15 years ago. It took the Crash of ‘87. Prior to that i was just listening to what others said about the economy. But bond yields had been soaring in ‘87 yet the stock market just kept hitting new highs. That was when i began to learn about markets. i have both a dry and witty sense of humor (some call it inane!). Therefore i attempt to make even the worst news somewhat amusing: whether it is the absurdity of an economic release, or the comments of a CEO. This is trading desk humor (or gallows humor). It isn’t politically correct but it does ease tension. Ironically, it is seeing the light at the end of the tunnel (in the Navy they say: it’s always darkest before it’s pitch black!), that allows you to be more objective in your analysis, as bad as a situation is there will still be a tomorrow! You will see that i practice three-dot journalism, a style made famous by San Francisco reporter Herb Caen, whom i idolized. At least to me it is effective. What is so special about your analysis?Frankly, i don’t know that it is special, but at least it beats “the market closed down today on profit taking.” What i do know is that most of what you read is spat out without considering whether or not it is rational, like the above statement. Is it right? Sometimes yes and sometimes no, and that is the key to what is different about my analysis: it is meant to make you think. Is Dan Rather right or is Trader Bill right? If it causes you to stop and think about it, regardless of whether you agree, i win! Because THAT is my goal…not to have you think i am a guru, got that? Bet you never heard that ANYWHERE before in my business! Instead they want you to think just how smart they are but remember in this business if you are right 60% of the time you ARE a genius! Another thing that is different is when i am wrong on an analysis i will tell you, not hope you forget what i said. So now you have the tools to do what the speculators and hedge funds do: challenge authority, and if you make money it is because YOU did it not me. i was just a tool, your flunky to do the grunt work and let you decide…course you could be wrong too but at least you looked at the big picture. But the goal is also to have fun! This shouldn’t be a business of hushed tones and grim faces. It is a living, breathing thing and nowhere else in the world do you have the odds as much in your favor as here. Just beware of the guy who wants to put his arm around you and tell you he is your friend. So there you have it. I hope you select me as one of your sources for market information. If you do I promise to work my best for your financial success. Trader Bill

2 thoughts on “Vol. 1 No. 2 …do I care what Parker/Rolland think?”

  1. “Yet his favorite wine was Cheval Blanc, a beautiful St. Emilion, which is…100% Merlot”. You might want to double check that fact. I think it’s a blend of Merlot & Cab Franc. The blend varies from year to year, but hovers around 50-50. That said, I think buying wine by the Parker rating is silly if you want to enjoy wine. It makes sense if one is trying to “invest” in wine. Some years ago, we had dinner with a couple who made a statement to the effect of “We never drink any wine that is rated less than 95 by Parker”, which I found laughable, as Parker wrote in his book that he usually drinks wines rated in the 80’s and low 90’s. They didn’t much like that fact.

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    1. Thanks Solot (sounds like thanks a lot). Thanks for the clarification. I am sure I read it was 100% Merlot. But in the book his favorite was Petrus which IS 100% Merlot!
      Initially, Parker, like Michele Roland made great contributions but ended up by rating wines on what they liked thus causing the winemakers to go for the rating not to make a distinctive wine.

      There is a lab in Napa Valley that a winemaker can take his juice to and they will chemically analyze it and tell them what they need to do to make a 90 point wine. Fortunately, no longer does the price of a wine jump as it did until the early 2000’s. Referred to as Parker fatigue.
      All the best, and thanks for reading…it’s lonely being the all-night DJ.
      TB

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