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An Enjoyable Hobby That Appreciates Too? (4) – Returns & Time Horizon
Continuing from the last post, R said he tends to be conservative. “Industry standard is a 2x return in about 5 to 7 years,” he explained. “I usually recommend clients hold for at least 5 years.”
I did some quick math and said, “So that’s roughly 10–20% annual returns, right?”
He nodded. “That’s about right in most cases. Of course, I’ve had clients achieve much higher returns—some hit 40% annually, and a few even 100% per year in special cases. But there are also clients who had to exit early—say, after just 1–2 years—for personal reasons. Even then, most still saw 8–10% annual returns. So the ‘double in 5 years’ rule is pretty widely accepted in the industry.”
Then he added, “There’s another major perk: whisky investments, in our region and in some U.S. states, are not subject to taxes! No capital gains tax, and no inheritance tax either.”
I laughed and said, “Alright, that’s definitely not happening where I pay taxes. But for people living in places with those tax exemptions, that’s a huge advantage.”
Then I asked, “Okay—so what about risk? You mentioned you have worked with about 3000 clients right? Has anyone ever lost money?”
Till next time!