Monday, October 16, 2006

Recoup your investment

? How soon will a horse make back its money in the terms of original investment or cost of horse?

This totally depends on whether you have a very knowledgable person pick the horse that can make up it's cost quickly - not an easy task. No guarantee you will make any money at all back on your original investment. Worst case scenario is that a horse is injured soon after you acquire it and requires a lot of vet care and time to recover. In that case you will likely take a loss. I'd say the chance of breaking even in 6 months is about 50%, in my mind the chance of breaking even in 1 month is about 5-10%. I would advise to plan on not breaking even, that way if you do make a little profit, it's a bonus.

The goal is to pay for the horse's expenses so you can enjoy yourself without worrying about how much it costs. And it's the same as going to the track to bet or going to a casino - more fun when you make a little money or come out with as much money as you went in with.

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