As horse racing fans around the globe get ready every year to watch horse racing and this year 149th running of the Kentucky Derby has created a buzz.
Millions of dollars will once again be wagered on horse gambling. While gambling is part of the history of horse racing, so it is not the only option to generate profit from thoroughbreds. Investing any amount in racehorses is an extremely risky endeavour, but one that can hold riches for the few that are successful. Here’s what you should know about investing in racehorses.
Owning a Share of a Racehorse
If these high-priced costs put buying an entire racehorse not viable, there are still other alternatives to consider. Platforms like My Racehorse allow investors to buy shares in a racehorse in the same way, that online brokers do to buy fractional shares of stock. By dividing ownership into shares, it makes investing in racehorses open to more people. Beyond potential wins, you may also get special access to racetracks and get to meet trainers, jockeys, and horses. The shared approach also allows you to buy shares in racehorses and spread your money across multiple horses. Though investment is a risky game, if you do not keep all your eggs in one basket this will likely favour your success and profit.
The pros and cons of investing in a racehorse
· Lifestyle investment and lifelong hobby
· Potential for big profits
· Develop relationships with horses and people involved in training/upkeep
· Expensive to get started
· Financial success is rare and most investors lose money
· Trainers/travel/vet and management fees can be expensive for fractional interest.
To buy a share in a racehorse is always risky and most of the times it’s not profitable as well. But if horse racing is a true passion of any person and he can afford to make a lifestyle investment with a low or non-existent expected return, it can be a fun hobby. With shares of horses now available, it is quite easier now to make sound investment. There are a noticeable number of companies shown on the stock exchange that you can get in contact with to buy a share of the horseracing track. This way, though, if you are not in the state to buy a racehorse or invest a hefty amount, the risk will be less. If you go this way even a not so experienced person will gain exposure and as the company grows you will grow too. This is the prime way to erase all the risks of losing and falling. Yes, you have minimised the risk and here are more chances to keep your spirits alive.
Why Not to Risk?
Are you a top-notch fan of horse riding who has adequate knowledge and understanding of the details of investing? In such cases, before you buy a share in a racehorse, understand the risk is inevitable. Racehorse investment is a lot and you are instantly spending a big amount of money. this can cost you from a few thousand to millions of dollars and later on you cannot keep up with stable fees and training and upkeep of horses. Plus, it comes with zero warranty and you may not be able to ace the worst ride.