Midlands Foal Syndicate 2

What can you expect from your Investment?

The appropriate answer is ‘almost anything’. Where thoroughbred race horses are concerned, the market can do virtually anything at any given time. There are no guarantees with pinhooking but this type of partnership can be a gamble that can result in enormous profits, or reasonable profit but sometimes substantial losses (for some of the yearlings), or anything in between.

The main target is to buy a minimum of 14 youngsters each year and our mission is to buy horses that we feel are undervalued in order to enhance any potential profit. Sometimes we spend days combing the sales to buy the weanlings we feel show future potential, and we want them at a price that we feel is value for money.

Once purchased, you should bear in mind that these magnificent animals can get injured or sick just like humans. On the plus side, significant injuries and sickness are not common occurrences. But we also insure the horses for the initial purchase price in the event of death. Insurance is included as part of the partnership expenses. The only guarantee we can offer is an honest effort. We invest in each of our offerings. We believe in our chances for success and do everything in our power to make a profit for the partnership. The number of 14 foals purchased is also a good number which is a significant guarantee of success.

What does it cost and how are the funds used?

 
 

The amount of the investment is R 3,100,000
This will be spent as follows:

1) The purchase of the foals
(including shipping and 5% commission)
Average price (R 150,000) = R2,250,000
2) Boarding fees, vet, Insurance, company running costs    
  Boarding: (including: blacksmith - vitamins) R 672,000
  Insurance: 3% on the purchase price R 63,000
  Veterinary Fees: (estimation) R 40,000
  Administration of the company R 35,000
  Provision for not estimated expenses R 40,000
  Total R 3,100,000
NB. As at 24 February 2014 R3,100,000 equals :
EUROS € = 205,500 1 share = R77,500 €5,140
AUS $ = 315,150 1 share = R77,500 $7,872
US $ = 283,100 1 share = R77,500 $7,069