Horses Are An Investment You Can Ride
By: Jessica Rao, |Special to CNBC.com
Although in this light, breeding may sound as if it has more potential than racing, Cobitz recalls a race horse, K.J.’s Appeal, which he acquired for an owner as a two-year old for $125,000 with three races behind it. The owner raced him for two years, earned in excess of $500,000 through stake-quality purses, and then sold him for seven figures to someone in the Middle East.
“It doesn’t happen often, but it does happen," says Cobitz.
If you want to make money on horses, you have two options: racing or breeding. Either way, seek out someone who knows the thoroughbred business, develop a plan and don’t be afraid to sell after you win a race.
