Roger Parfitt, a 59-year-old bank manager and father-of-two from Coventry, has earned himself the chance of early retirement as a result of his shrewd decision to invest in whisky back in 1994.
After more than 40 years in banking, Roger has made a career helping businesses and individuals make and manage money – it’s safe to say he understands the importance of good personal money management.
Understandably then, you would be forgiven for not seeing the immediate link between the traditional investment practices he deals with at work and a more unusual investment like whisky casks.
By his own admittance, Roger has never been an expert in whisky, but when the opportunity to invest in cask whisky came up in 1994, he believed it to be a relatively low-risk option: “I remember thinking, if it doesn’t appreciate in value, the worst that could happen is that you would have to get it out of the warehouse, bottle it and drink it. It always had that fallback for me – you could drown your sorrows if it didn’t work out financially,” he laughs.
Fortunately for Roger, that was not the case. For his original £4,700 investment twenty-seven years ago (£3,200 and £1,500 for a Macallan and Tobermory cask, respectively), in June this year he signed a sale agreement for a whopping £225,000! A massive 4,600% return on his initial investment.
Alistair Moncrieff, Managing Partner at Whisky Investment Partners who purchased the cask from Roger, commented: “As whisky casks are classified as a wasting asset, due to the natural evaporation that occurs during their lifespan, all gains are free from tax, meaning investors like Roger can profit completely Tax Free! The process is straightforward too; investors can simply select a cask from our stock, receive confirmation of sale, and sit back.”
Now £225,000 richer, Roger’s able to pay off his mortgage and foreshorten his retirement by three years. The funds have also given him the opportunity for some much-deserved leisure time. He plans to take his wife, Helen, to visit family in Florida, as well as a long list of fishing and golfing trips with his good friends.
Roger is so happy with his investment decision, he has decided to invest some of his windfall into two more casks for his two children, in the hopes that they will be able to enjoy some of the same fortune he did in the future!
We went back to ask the investor what he would say to anyone who is sceptical or unsure of cask whisky as a viable investment option.