The optimal composition of your whisky portfolio depends on your investment strategy and personal investment plan. This plan takes into account your financial situation, goals, and preferences.
Are you a defensive, neutral, or aggressive investor?
Defensive investor: This type of investor focuses on long-term products. Investing in whisky casks has a defensive nature: the longer you hold them, the lower the risk of depreciation. A defensive investor prioritizes stability over the potential for high returns.
Neutral investor: This investor combines both strategies, investing in both casks and bottles. A neutral investor has a long investment horizon, where losses in some years are offset by gains in others. This strategy involves a certain level of risk but offers the potential for significant returns.
Aggressive investor: This investor aims for maximum returns and is willing to take on more risk. Investing in bottles suits this strategy better, as anticipating scarcity can lead to significant returns.
Once you've determined your investment profile, you can create a personalized investment plan by answering four key questions:
- How much of your assets do you want to invest in whisky? It’s recommended not to invest more than 10% of your total investable assets in alternative investments.
- What is your investment goal? Do you want to limit risk by diversifying your investment portfolio?
- What is the minimum return you want to achieve?
- How much risk are you willing to take?
Based on these questions, you can decide how much of your whisky portfolio should consist of casks and how much of bottles. This helps you find a balance that aligns with your risk profile and investment goals.