Kentucky DERBY RACEHORSE PURCHASE

YOU GET WHAT YOU PAY FOR

You get what you pay for.
That’s generally true whether you’re shopping for vacuum
cleaners or racehorses.
You can run down to the local Wal-Mart and find an upright Bis
sell vacuum for $49, and it might let you think you’re cleaning
your carpets and floors. But if you truly want a deep clean, you
might have to spend up to 10 times that amount for a high-end
Miele Classic.
Or so I’m told. I’m not in the dirt business, so what do I know
about vacuum cleaners?
Let’s look at racehorse prospects instead, where the num
bers suggest the same thing: the more you pay, the better the
chance you’ll get a superior result.
Thoroughbreds aren’t cheap, and almost anyone who has
owned one will tell you it’s a tough business. If you want to clean
up, buy a vacuum.
However, if you want to have fun, you enjoy competing, have dis
posable income and would like to have a chance to get a return
on your investment (and get some tax breaks along the way),
buying a racing prospect is a great idea.
Many statistical studies have shown that horses coming out of
2-year-old sales compare favorably to graduates of weanling or
yearling sales. It doesn’t take a rocket scientist to understand
why. A 2-year-old auction horse may be weeks or months away
from its first race, and it has shown that it can stand the rig
ors of training – something a younger horse that’s never had
a saddle on its back has yet to demonstrate. This horse has
already cleared some of the obstacles that prevent a weanling
or yearling from ever getting to the races.
The Price of a Graded Stakes Winner
By Ray Paulick
SPECIAL
April 19-20, 2016
www.PaulickReport.com
So, if you’re buying horses at a 2-year-old auction, you are
ahead of the game already. But you are paying a premium for
that edge.
How much of a premium do you pay at a 2-year-olds in training
sale? Surprisingly, it’s not that high. Let’s compare the 3-year
average and median prices of yearlings sold from 2013 to
2015 with the three-year average and median for 2-year-olds
in training during those same three years.
— From 2013 to 2015, a total 19,182 yearlings sold for an
average price of $65,115 and median of $25,000.
— From 2013 to 2015, 7,541 2-year-olds in training sold for an
average price of $71,339 and a median of $32,000.
The 2-year-old prices were 9.6 percent higher in average and
28 percent higher in median. Remember, though, that the

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