(NOTE: Whisky in most places is spelt “Whiskey”, however in Scotland it is spelt “Whisky” without the “e”, so as this is where my Whisky investment is, that’s how I spell it).
I recently decided to start investing in Maturing Scotch Whisky. This is a new investment class for me which I’m excited about. From my research, it appears to be a solid investment opportunity and I intend to build a significant portfolio over time, mostly purchasing newer releases & then holding them through WhiskyInvestDirect.com until they are around 5 to 7 years old.
As a brief background; just about ALL Scotch Whisky increases in value with age. That’s probably not new news to anyone, but the process is interesting, and the implication of that fact as far as someone who is looking to invest in whisky, is even more interesting.
After the whisky’s are distilled, they are placed into a cask to mature, and stored in a large, secure, climate controlled area (warehouse typically) while they mature.
At some point, usually when the whisky is between 3 and 12 years matured, they are bottled and sold. Depending on the type of whisky (malt, grain), distillery, date of distillation, type of casks etc., they are either mixed together to make a “blend” (about 90% of all Scotch Whisky is blended), or they are sold as a “single” if they are good enough. Between the distillation and bottling phase, (the “maturing” phase), these whisky’s increase in value significantly. It is that maturing phase which is the best to invest in whisky in order to take advantage of a lower-risk investment with very reasonable returns.
If you are interested in my overall research on investing in whisky, this was my initial writeup: My First Investment in Maturing Scotch Whisky.
My Whisky Portfolio Strategy
My current strategy for this portfolio is to order on the pre-buy page of WhiskyInvestDirect.com all malts & grains that become available, investing around £1,000 into each release. I would like to have a 70/30 malt/grain mix eventually so I’ll adjust as new liquids become available.
From speaking with the team, it appears that there will be plenty of opportunity over then next few months/years to invest a significant amount of capital into new liquids, so waiting for the new releases and investing as they become available on a pre-buy basis also enables me hold the investments longer term thereby lowering commission fees. It also allows me to qualify for the .02p per LPA discount on the storage fees (read My First Investment in Maturing Scotch Whisky to learn more about fees).
Maturing Whisky Portfolio Returns
(Click Image for Interactive Charts)
(Returns are currently negative or low as I am still in the process of building the portfolio, so purchase commissions & storage fees are a factor)
Latest Account Screenshot of my personal WhiskyInvestDirect account.
Maturing Whisky Portfolio Tracking Sheet (live Google Sheet)
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