Id say the majority will be losers. Lets be honest; those shelling out more than $500,000 at the sale on a single horse and those shelling out 20 million on a group of yearlings are the upper class of the horse racing industry. They are spending what is pocket change to them.
While Magnier’s have built a solid business model with Coolmore and their expansive stallion rosters, Godolphin doesn’t have a strong breeding base and their forte’ is their racing stable. It’s not a money-making operation. It’s a hobby to The Sheiks. Same with many of these people spending high dollar at boutique sales. Sure its an investment, but let’s be honest, it’s a “portfolio” they have built strictly for having a hobby and a good time. You don’t go into the horse racing business with the idea that you’re going to own the next AP or Justify. That is just luck. You set aside some money that you don’t mind losing. No different than those that invest in show horses.
Sure, stallion deals can be lucrative, but how many of these colts end up having careers noteworthy enough to have a stud deal? A handful, if that??? If I had the bank to go and blow at a yearling auction I would consider investing in a decent pedigree filly. Save some money to perhaps breed her to a good sire and sell her as a bred mare when racing is complete. Seems to be the only way to have a hope at keeping the value in the animal.
