Could investing in a racehorse make you rich
There’s something thrilling about owning a racehorse. It’s cheaper than buying a professional sports team, and who doesn’t like wearing big hats and sipping mint juleps at the Kentucky Derby? Still, if you think owning a racehorse is a good bet, think again. It’s a gamble that probably won’t pay off.
Horses can be money pits, sucking your wallet dry with fees, taxes and vet bills. Moreover, horse racing itself is going through tough economic times. The soft economy, coupled with increased competition for gambling dollars, is hurting the sport [source: Pedulla]. Still, if you want to saddle up, here are a few key questions to consider:
How do I become a racehorse owner? Most racehorse owners belong to a partnership. Partnerships, or syndicates, sell shares in a horse, much like a Fortune 500 company. As such, most horses race regionally, where competition is less daunting. The key is to understand the advantages and pitfalls. Do your research and check with experts. Check out the next page to learn more about the horseracing biz.