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Lifestyle: Money well spent

08 Nov 2018

I recently made a great investment. $2,000 up front, no dividend for ten years, no liquidity, zero expected dollar return!

A friend contacted me who was putting together a syndicate to purchase a barrel of whiskey from the Cardrona distillery (https://www.cardronadistillery.com/) which is located in a new building opposite the base of the Cardrona ski field. 

Did I mention I don’t even drink whiskey!

Why would I do this? A very good question.  There are six couples involved in our barrel and at the end of our ten-year maturing period each couple will end up with around 40 bottles of Single Malt whiskey. That will take care of a few birthday gifts in ten years. 

Each bottle will end up costing me around $50.  If inflation ticks along at 2% over the next ten years, this increases the average cost to around $60 a bottle.  I could have put the $2,000 into my high-growth share portfolio and doubled my money in ten years. That would be more than $100 per bottle to spend on anything I wanted, in 2028. That’s what the maths tells me I’ve done, paying for something now that I don’t really need or want.

However, there is plenty of upside for me other than monetary gain.  Last weekend our syndicate attended the distillery to fill our barrel and the six couples enjoyed two meals out together.  My wife, Anna and I enjoyed 49 childless hours over the weekend as my parents looked after the kids.  No one in our syndicate took their kids on this trip.  It was like a drink from the fountain of youth – we could remember what it was like being adults without timing meals to coincide with children’s naps.  We ate at normal meals times and we attempted to sleep in.  We caught up with old friends who we hadn’t seen for a long time.  We made new friends.  We get to do it all over again next year, and the year after, for ten years.  I’m already looking forward to it. 

So, on balance, while I’m not prepared to put my retirement savings into investing in whiskey, it’s nice to put a fraction of my savings into an investment that is purely for enjoyment.  Who knows, a worldwide shortage of whiskey in ten years might result in a saleable asset, or not.  At least Anna and I will have had a nice excuse to catch up with new and old friends for the next ten years and that is money well spent.

Cardrona

By Jared Campbell…

Campbell Jared

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