Racehorse owning

Discussion in 'Other Investments' started by mmm....shiney!, Sep 22, 2018.

  1. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Bought a share in a 2yo filly from a top bloodline under the mirunners scheme.

    Among some of the objectives for investing in the scheme as outlined in the PDS are to win prize money as well as having the satisfaction of owning a premium thoroughbred trained by a top trainer.

    I bought a share in this girl for $275 + $15/month ongoing costs to be trained by Tony Gollan. She's been nominated for the 2019 Golden Slipper so I'm looking forward to seeing her race in the coming months, hopefully even getting a chance to watch her in person at one of the big meets.

    It's an interesting scheme with a potential upside not normally attainable for small time investors in racehorses. Horses with this type of breeding are generally the playthings of the wealthy. The risks are spread amongst a large group of people but also so are the rewards. Naturally if you're not into horse racing or horse sports an investment like this has less appeal.

    Screen Shot 2018-09-20 at 9.59.07 pm.png
     
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  2. raven

    raven Well-Known Member Silver Stacker

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    You might be having a "Eureka moment" mate !
    :)
     
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  3. jultorsk

    jultorsk Well-Known Member Silver Stacker

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    Pretty filly and an interesting activity to be involved in. Great trainers, too. So the Scheme is estimated to run for 3-4 years @ 180/yr.. which is very reasonable cost for a hobby of any caliber. I might be a tad worried about the disclaimers in the PDS part 2 which state if any of the other owners of the miRunners horses defaults on their payments, the remaining solvent owners may need to pick up the shortfall.

    "However, if a Class [=any other horse in the Scheme] other than Class C [=your filly] performs poorly, or a significant number of Unit Holders default, resulting in their [sic] being insufficient money to meet miRunners Scheme liabilities, it is possible that the Class C Unit Holders [=you] will be required to bear and pay a proportion of the shortfall."

    Given the woeful attention span and planning/budgeting capability of some humans, the fact that most people do not tend to read the fine print, and that there are other disclaimers (e.g., "the estimate of fees and costs does not include any race entry fees, surgery or extraordinary veterinary expenses" and more) I'd wager the risk of defaults is not neglible.

    That said, I hope she grows up to be a winner, might even bet on her at the Slipper race! :)
     
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  4. Ag bullet

    Ag bullet Well-Known Member

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    if i ever owned a racehorse i'd call it, 'Myface'.

    just so i could listen to all the pretty dressed up girls yelling, "come on Myface!!"
     
  5. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    ^ that’s an oldie but it’s a goodie
     
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  6. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    There’s a competition to name her on Facebook open to anyone so when we’ve voted on the name of our choice I’ll let you know. The best one I’ve seen so far which I like is Sheeza Melody.

    Let’s hope she gets to the Slipper, there’s over 2400 nominations so it would be a monumental achievement to line up at Rosehill at the end of March. She looks strong so fingers crossed she’s got Dad’s speed. Gollan has 20 others nominated as well.
     
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  7. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    I usually make my investments on horses, not in them.
    Been thinking about buying a share of something in a setup like this but in Vic. Many top trainers including D. Weir, Matt Cumani and the Payne family all have stables 15 mins from home.
    Not sure about buying into a 2yo filly based in Qld but it hasn't cost a fortune and when it runs all owners get to hang out on course in the members.
    D. Weir is unreal, most winners in Aus the last 2 seasons. Today at Caulfield had 5 winners, 3 seconds and a third to kick off the spring carnival.
     
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  8. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Weir has a terrible record with 2yo, id never invest in a 2yo with him. Same with Waller.

    Price, Waterhouse, Hawkes, Snowden are quality trainers of 2year olds, Gollan and Baker are in the top ten.
     
  9. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    Weir hasn't raced many 2yo he reckons there's too many potential issues with them. He's had a lot of success with 3yo and also with imports from Europe and Japan.

    Waller is ordinary I reckon he has handfuls of runners in some races and still doesn't win. He had 10 of 11 runners in a Sydney race a few weeks ago and failed to win.
     
  10. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    On an interesting note, I was reading a news article from a Vet School at a NSW University that cited research of over 10 years of racing in Australia. It found that horses raced as two year olds are less prone over the duration of their careers to injury than those that start their racing careers later. I couldn’t download the research but from the abstract the research suggested that beginning training early helps build the horses strength and condition early.

    As far as Victorian trainers go I’m a fan of Price and Jusofovic, the latter has got a nice little prospect in Mrs O’Malley. And I respect Weir’s talents.
     
    Last edited: Oct 1, 2018
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  11. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    Shiney ive started a private conversation with you. Tips for Geel in 5 mins.
     
  12. willrocks

    willrocks Well-Known Member Silver Stacker

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    So horses are valued at approx $275,000. A monthly maintenance fee of between $5,000 to $15,000.

    They cost more than my wife!
     
  13. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    They’re more valuable than wives. And in Australia you can have more than 1 horse.
     
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  14. Eureka Moments

    Eureka Moments Well-Known Member Silver Stacker

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    Any stats on the average number of races they have over their careers or for strike rates and returns to owners. Or how they perform on the breeding side of things?
     
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  15. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    I’ll look into it
     
  16. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    @Eureka Moments, are you after info specifically about 2yo’s or race horsing in general? The study to which I linked is a paid for subscription, I can only read the abstract. I’ll see if my daughter can access it or there may be someone here who has research privileges and can get a copy for us, I’ll look for the link when I get home.

    It’s a veterinary journal article so it probably will only deal with animal health issues rather than strike rates etc.

    This is an interesting read which contains broad facts and figures about racehorse ownership. The author says that unlike most other asset classes, there are no benchmark low risk/low return, moderate risk/moderate return or high risk/high return assets (horses) in the industry. This means you can’t balance a racehorse portfolio in order to maximise profit whilst also minimising losses - you can’t hedge as you can with say shares or property. In general, profits will come from less than 15% of the entire racing population, it’s these (if you’re lucky to own one) that pay the way for the 65-70% of the racing population that don’t pay their way.

    https://cuffelinks.com.au/economic-reality-breeding-owning-racehorses/

    Another interesting piece of data is that the number of racehorses being bred in Oz has been declining over time. From an animal welfare perspective this is welcome news.
     
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  17. Shaddam IV

    Shaddam IV Well-Known Member Silver Stacker

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    If I ever get one I think I’ll call her Stormy Horse Face.
     
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  18. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    A little update, our filly has a small jump out in the morning. Following that the trainer (Tony Gollan) will make a decision whether to have another small jump out, a longer jump out or a trial. I’ll post some vision if I can.

    I can’t see her being prepped for a Magic Millions run given the time frames but then I’m no trainer. She’s not being hurried at least.

    Just a heads up, Not a Royal Doubt (also a Mirunner’s horse) is racing at Ballarat on Saturday. If anyone is keen she may be worth a $ or 2. She is aiming at the MM and her trainer Gai Waterhouse has had this race at Ballarat in her sights for a number of weeks. She’s the fave, Sportsbet and BetEasy are offering their usual promos as well. I prefer SB because you can split the bonus should the horse come 2nd or 3rd.
     
  19. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Quick update from the trainer this morning, he was pleased she entered the barrier quietly, upon the gate opening she hesitated slightly which was what he expected, was given a little squeeze then she got going and made some nice ground over the 400m.

    Probably setting her for a longer trial over the grass in a few weeks.
     
  20. mmm....shiney!

    mmm....shiney! Well-Known Member Silver Stacker

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    Just received some news that the trainer is likely to bring forward her preparation. He was initially considering another jump out in a few weeks and then trialling her but it is likely she will trial over 840m next week. Bit scary really because this will give us a good look at what we’ve bought, hopefully her fat arse has got plenty of horsepower in it.

    Tony Gollan has also completed the first acceptance for the Magic Millions on the Gold Coast in January on the 12th, so she may get a race depending upon the trial’s outcome in December some time I would guess.

    We’ll get official notification of her trial on Monday I think, as the trial could be on the Tuesday.

    I’m nervous. Lol.
     
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