A Program for New Racehorse Owners
When the Costigan family started investing in thoroughbreds we found the environment, with its unique way of life and terminology, to be unlike any we had previously experienced, despite the fact that we had attended races from an early age. Horse people, while wonderful when you get to know them, are notoriously reticent and secretive. There is no book to help new owners understand this world; it is similar to immigrating to a new country with strange customs and unfamiliar policies. In this environment, a new owner, due to lack of information, is often reluctant to ask relevant questions, and is left with no option but to hope things will work out.
Like none other, this industry is one that makes you pay to learn. The old saying "we will take your money and our experience, and turn it into our money and your experience", sadly like the investment industry in many cases, has become a reality for many inexperienced racehorse owners. The result, of course, is that many new owners leave the sport disillusioned before they have a chance to understand the way it works. At Arravale Racing we are endeavouring to lift the veil on this secretive world and allow you to take advantage of what we have learned as owners ourselves since 1995.
We have developed a system that has enabled us to acquire gifted "athletes", i.e. racehorses, at reasonable costs. Our methods of analysis have been confirmed through racehorse performance since 1995. We or our representatives will attend most of the world's major auctions where we will physically examine the prospects and do a detailed analysis of pedigree. We will endeavour to acquire young prospects at attractive prices.
Unlike most investing in traditional instruments such as stocks, bonds, or real estate, investing in speculative racehorses comes with many unique challenges. Surprisingly, price is one of the least reliable indicators of a horse's future success on the racetrack. As the saying goes "When you throw a saddle on your new horse investment, the horse is blissfully unaware of how much was paid for it".
Year after year, million dollar yearlings have proven to be very poor investments. We will endeavour to invest in the $50,000 - $400,000 range, as this is where we see the most significant opportunity. One might think that a $2,500,000 yearling has ten times the likelihood of success as the $250,000 yearling, but this is not necessarily the case. With unproven young prospects one needs to be disciplined in initial outlay of funds. Arravale Racing is disciplined in its approach through physical and pedigree analysis, and if we feel the price is not fair we walk away. We evaluate the investment before the horse enters the sales ring and we stick to our price target.