London Cask Traders

tmen

My nephew is considering investing in a cask of whiskey from London Cask Traders. 

I was wondering if anybody has had any experience dealing with this company?

They say that the average annual return is between 12 to 20% and is CGT free, which would suggest to me that it is very high risk at best.

Brie

Well if it sounds too good to be true.......

At the very least I'd be looking at all the T&Cs.  Do you actually own a particular cask of whiskey?  Or is it a certificate/share in the company that may or may not actually own casks.  If you own a cask do you have to pay for storage?  What if you wanted to drink it instead of sell?  

How can there be an annual return if you are paying once for something that is then not sold?  Or are they suggesting you need to make further investments to keep things churning which makes it all look a bit pyramid shaped.  

boingy

There is no formula for the easiest way to get ripped off but if there was it would probably feature investing in whisky or wine. They have only existed as a company for two years. So it might be real but personally I would avoid it.

Albermarle

They say that the average annual return is between 12 to 20% and is CGT free

Maybe the person who wrote that had been a bit too free in sampling the product beforehand.

Martin_the_Unjust

They say that the average annual return is between 12 to 20% and is CGT free, which would suggest to me that it is very high risk at best.

…..it suggests to me that you’d never see your money back.

If the return was that good why do they need to advertise for investors?

jimjames

If he wants to buy a cask of whisky why doesn't he contact a distillery directly?

Richard1212

London Cask are a highly reputable company. It has a minimum buying price of £2,000-£3000 and promises much for a long-term investor, though the figures tend to be a bit lower than the O/P suggests ( around 12% on average----though there is one case on record of a 20,000 % increase in price ---really !!!!). 

As well as my properties and shares portfolio, I also have a collectibles investment portfolio. I looked at the Whiskey market at one point , and that is how I discovered London Cask. In the end I did not proceed -----it seemed too long an investment, over 20 years seemed average----and moved on to adding to my growing collection of Krugerrands.

But O/P can be pretty certain that he is dealing with a reputable company if he proceeds. But look at the drawbacks before doing so-----I'm sure they are listed on google somewhere -----good luck whatever your choice. I like unusual collectibles as a change from the old market shares game.

jimjames

Richard1212 said:

London Cask are a highly reputable company and promises much for a long-term investor,

I find this very hard to accept you can say with such certainty, are you confusing with another company? How can you be so sure about long term when the company is only 2 years old? When did you look to invest? 

It seems highly dubious that you claim they are reputable but without any personal experience. I would be very wary about any company offering guarantees that are very new and for something that may never exist.

Their website was only registered in 2021 and company in the same year

https://find-and-update.company-information.service.gov.uk/company/13600373

Micro company accounts only single set logged for 2022, 1 director, 1 employee. That doesn't stack up to me as a company with any track record to determine if they are reputable or not.

Maybe the sole director's previous company would be more relevant, Masterclass Sales Ltd. That was dissolved in 2020 without ever trading. Is this a masterclass in selling something to people willing to part with cash?

https://find-and-update.company-information.service.gov.uk/company/11567202

Nothing in the info I've seen would give me any confidence to invest my money. Maybe it's on a par with investing in Asda or Waitrose shares.

eskbanker

Richard1212 said:

London Cask are a highly reputable company. 

[...]

But O/P can be pretty certain that he is dealing with a reputable company if he proceeds.

How are you defining, measuring and validating 'reputable' in this context, and precisely where are you seeing their reputation discussed?

Eyeful

FTSE yield = 3.84%

Very high risk to me = FTSE yield x 2 = 7.68%

When you say annual returns of 12% to 20%, I think " do not touch it even with a barge pole"

Albermarle

If you look at the mainly glowing Trust Pilot reviews, there is a suspicious number of people with only one or two contributions.
Plus they all praise the company for the ease of purchase, but not one comment about selling the casks again, where I suspect is when the issues will start.