Nicholas was educated at Winchester and then New College, University of Oxford.
He was also a noted philatelist who was added to the Roll of Distinguished Philatelists in 1940. Waterhouse entered his father"s firm in 1899. By 1945 he was senior partner.
Unable to serve in the military in the First World War due to an injured knee, he worked at the War Office and performed similar official functions during the Second World War.
He was made K.B.E. in 1920 for his service in the earlier war. He was auditor to Royal Exchange Assurance, the Oriental Steam Navigation Company, the Duchy of Cornwall and Westminster Abbey.
Waterhouse was a specialist in the stamps of the United States of which he formed and sold two award-winning collections. There were no children from either marriage.