Are we seeing a new boom in thoroughbred horse investment?

[Breeder 607]

Looking at the results of the MMillion Filly & Mare sale this week, the Weanling sale earlier and with the big increases in the yearlings sales through out Australasia this year, it would appear there is no shortage of money around for horses. The big prices for mares indicates many see the future of the breeding industry to be rosy. For those involved I hope the indications are right.

[Nasrullah 180]

Totally agree.

It is the best time in years to be breeding with some upside.

However one should always be prudent in what stallion they choose.

Not for me to comment on which ones but there are a few stallions with progeny racing out there that have had a fair chance and have not done enough.

It is very wise to breed for what the Australian market wants.

[bazach 133]

Hopefully it will be good news if you have the right mare! However, without wishing to sound negative, calling any financial interest in horses as an 'investment' is 'drawing a long bow' in my view.

[Insider 3,932]

The Chittick Family would see it differently! 

[bazach 133]

Where do you think their money has come from? The Chitticks, Camrbridge Stud, Windsor Park, and maybe Rich-hill have made fortunes - from the poor buggers (90%+ of small time breeders)who pay the exorbitant stud fees to their 'next best thing' stallion. I have to admit the aforementioned studs have a great eye for a good horse to make a good stallion, but even a good stallion would only have a small percentage of its stock actually turn a profit on the track.

[Nasrullah 180]

Bazach... I don't know why you mention turning a profit on the track.

I race horses but I also breed to sell. I know the odds of turning a profit on the track but I still race horses.

It is the best time in years to breed to sell.

'Selling' out of the paddock,weanling sales ,yearling sales, RTR sales, trials, and races.

While prize money in NZ is flat there is very good money on offer in Australia. Especially at our strength for 1600 to 2400m horses.

There are a few stallions out there with upside.

Tavistock went from $7,000 to $15000 to this seasons $65,000. Plenty of profit for us 'poor buggers'.

High Chaparral went from $12,000 to AUS $88,000. Plenty of profit for us 'poor buggers'.

I say there are stallions at $5,000 to $10,000 that offer upside.

 

[Behind the 8 Ball 46]

1 hour ago, Nasrullah said:

It is the best time in years to breed to sell.

 

did you nose grow just a wee bit when you wrote that!!!

[Behind the 8 Ball 46]

14 hours ago, Insider said:

The Chittick Family would see it differently! 

I recon that Gary actually has just play his hand better most.... often he has advised (other than having a great tax lawyer/accountant) that for most they are better off  if they understand you should be in it for the fun first off... a profit is only there for a small few... many suffer because their  personal 'entitlement' quota is just to high... and gets smacked by the reality of playing with Horse'$

 

[Behind the 8 Ball 46]

On 4/06/2016 at 0:11 PM, Breeder said:

 it would appear there is no shortage of money around for horses. The big prices for mares indicates many see the future of the breeding industry to be rosy. For those involved I hope the indications are right.

by this 'many' that you talk about? I presume you are talking the 1%er's

[Nasrullah 180]

There is demand for NZ thoroughbreds. Compare this years weanling sale average to last year and clearly it shows we are on the way up.

And now to your 1% comment. We have approx. 4000 mares breeding in NZ . In 2014 Tavistock served 197 mares (211 last year) at $7,000. Is this your 1% calculator?

 

 

[Behind the 8 Ball 46]

2 hours ago, Nasrullah said:

And now to your 1% comment. We have approx. 4000 mares breeding in NZ . In 2014 Tavistock served 197 mares (211 last year) at $7,000. Is this your 1% calculator?

(a posting from Left Field)

No... I was wondering/asking, where the " it would appear there is no shortage of money around for horses. "??? was coming from?  the new wealth of the Chinese?

I was more referring  (the 1%) to the likes of http://www.theguardian.com/money/2015/oct/13/half-world-wealth-in-hands-population-inequality-report

or a NZ insight... http://www.inequality.org.nz/understand/

to me, the NZ article gives the best insight into why NZ Racing (betting) Industry continues to go down and down...  'falling real wages' etc has never been understood by most in leadership positing in the nz industry...  I bring this up as if the actual 'race day' experience of the 'average' breeder is providing less excitement then that must overflow in the breeding side of things.

'Breeding'  has done better (or not suffered as much) as there are all the Tax breaks in place for 'breeders'...   sigh, all us punters seem to have got is increase taxes.....

[Swoopa 281]

The  NZB weanling sale was up because demand  was high (which can only be good for the industry ).The average  % was high (compared to last year) because last year's average  was a pathetic  4k (or so).Over  all the sale is heading in the right direction for the  industry

BT8B, have a look at the MM sale,that's your benchmark (60k average  I think) a really tough sale for buyers.My contacts in Victoria  and Queensland were at the sale and would normally buy 4 to 6 weanlings  between  them .Agents were buying a lot for trainers to cut out the mark up for a yearling and paying silly money . One of  them managed to  buy one for good money.The point is at the moment  there is money to be made for breeders as the demand is high.If they do  there homework (even the small breeders) just need a little luck and two bidders.Imo every investment sector  has there highs and lows,it seems the Aus investors are Dipping their toes back into the thoughbred industry with the weanlings and mares seen as future  investments.

BT8B, are you a breeder or a punter?