Dear readers, thought you might enjoy this…sort of, like a root canal! Here is a link to the latest article from The Wine Gourd which mathematically analyzes many facets of wine. Also, in it the link to the prior article that started this is interesting.
To recap, TB still prefers the UC Davis system, why? Because it rates the quality of the wine in various degrees to come up with an overall quality rating. I have used it with novices and it works even with them. The problem with the others is subjectivity.
Under the Davis system, there are just two subjective points, under Parker:
• Color and appearance have 5 points.
• The aroma and bouquet receive up to 15 points.
• The passage of mouth and aftertaste receive up to 20 points.
• Finally, the overall quality level and the potential for future evolution and improvement receive up to 10 points.
I have been in tastings with other 100 point systems that can have 20-25 subjective points. That is the problem: we aren’t judging wine quality, we are letting the taster tell us what he/she likes and frankly, who cares? I certainly don’t since I differ greatly in what Parker looks for in a wine and have been disappointed at times when I buy (used to) based on his or anyone’s ratings.
I would be interested in your opinions and will end with a study that was done showing point escalation or ’rounding up’ to 90 which this article illustrates, although not stated, to me.
For my 50th birthday, we had a party on the Napa Wine Train. Waiting to board I saw this in a gift shop:
Man in tasting room: This wine is awful…worst I have ever tasted!
Pourer: Really? Parker gave it a 90.
Man: I’ll take two cases!
Just as Sideways tarnished Merlot, and embellished Pinot’s (the joke being that Mile’s favorite wine was Cheval Blanc which is predominantly Merlot), ratings are leaving a lot of good wines sitting on retailers shelves.
While I applaud Parker for creating a system that has improved quality of wine (in his early publications there were many wines with mid-80’s scores and until the ’82 Bordeaux, I can’t recall any wine with a rating of 99 or higher), and Michel Rolland’s efforts (although I fear all wines would taste alike if everyone made them to his standards), it is time for the consumer to take control and have the confidence to drink and pour for guests, wines they feel are high quality. The same goes for vintages: there are winners and losers in each one and terroir does make a difference.
That’s how I see it.
P.S. tasting note: last week I opened a bottle of wine, a Rioja I bought a couple of years back, Marques de Riscal Reserva 2007. It was marvelous, particularly for a $20-25 wine. The current release is 2011, I believe. It was full of luscious fruit flavors yet stood up well to a grilled steak. We drank half the bottle that night and using a trick I learned from Carles Pastrana at Clos de l’Obac, a fine Priorat wine, I merely recorked it and left it out, finishing it the next night…and guess what? It was even better, more developed and more intense. No signs of oxidation. A beautiful wine. For those of you not familiar with this wine, it is in the central part of La Rioja, was the first to export the wine, and has a beautiful hotel with it designed by Frank Gehry who designed the Guggenheim in Bilbao. Quite a sight in the middle of nowhere!
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.
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