Mark Littler has recently been featured in The Scotsman, hoping to educate the public on why whisky investment is only profitable when done correctly, and how data without context can be dangerous.
In the article, Mark explains that a lack of educational resources surrounding whisky investment is leading to market bubbles surrounding specific bottles that may not be as stable as they may appear.
Modern bottles, in comparison to vintage collectable whisky, tend to be more volatile despite appearing to shoot up in value a lot faster than their older counterparts. An example of this is the Macallan Folio 1.
The Macallan Folio 1 has been sold more than 700 times at auction since its release in 2015, and has shot up in value from its RRP of £199 to an auction average of £7,750. So, on the face of it, the Macallan Folio 1 looks like a great investment. However, Mark Littler advises caution.
The Macallan Folio 1 is a no-age-statement, and non-vintage modern release that does not have years of data to back up its growth (unlike The Macallan Private Eye, which has seen an average of 24% year on year growth for many years now). It is the lack of history and the volatility of modern bottles that make them a riskier investment than vintage collectable whisky. Data without context causes investors to put all of their capital into a bottle that is not proven and is currently in a bubble that may very well pop.
Mark Littler Ltd aims to educate potential investors by giving them context surrounding the whisky market, and delving deep into the auction data behind these bottles. This context will help investors to put their capital into a proven bottle, rather than relying on market hype to keep a certain bottle afloat.
As Benjamin Franklin once said “an investment in knowledge pays the best interest”.
You can read the full article on The Scotsman, here.