Australians Can Trade Horse Shares at G1X
We love horse racing, in our business at Knightsbridge we have a focus on breeding and bloodlines, but there is a new business in Australia trading Australian Race Horse shares online, we have already signed up and if you are in the market for a horse it would behoove you (pun intended) to do the same.
I started life in the racing industry, moved over to equity trading and am now back in racing as well. For us their is very little difference.
We value horse shares the same way we value equities, a cold hard look at the fundamentals, the calculation of future earnings and the popularity of the bloodline. We are strictly commercial, not trying to hit home runs just making sure we do not lose money, if your interested in investing in that at a global level email me [email protected]
If your focus is Australia, G1X is a great place to start.
So as a helpful guide based purely on my opinion with no guarantee of success, this is how I value a horse.
Lets break down the model:
Geldings, no residual value.
Colts, you need a black-type well bred horse for it to have any residual value, if it is a champion then the return could be phenomenal.
Fillys, much easier, good breeding and some race performance and you can make money breeding.
Race Winnings, this can be huge, mostly it is not, but the industry in Australia is strong so it is one of the best markets to be in for winnings.
Breeding, for us this is the big money and our safety net on racing.
What to look for
Racing, I won’t even attempt to answer that, you have a form guide, barrier trials and breeding my only advise is read it well and try not to get too excited.
Breeding, commercial bloodlines, yep you may breed a champion from and obscure line, but you will not get rich breeding and selling unless you are at the cutting edge of commercial viability (that is our expertise).
If you love racing then you will love owning a race horse, the whole horse or 1 share of 50 makes no difference, the excitement and the thrill is not diminished, in fact, it is even more exciting when there are a few owners.
So after you have researched your horse, calculate a racing value and a stud value, divide that by the number of shares in the horse and enter your bid at G1X.
If you need help G1X have great people you can call and talk to about your planned investment.
Buying shares in a thoroughbred is an exciting experience for most horseracing enthusiasts.
It gives individuals an opportunity to enjoy the benefits of horse ownership, including free entry onto the racecourse, raceday privileges, and the excitement of backing your own horse on the track, without the hefty price tag of being a sole owner.
But for most, ownership of shares in racehorses is a new experience. And like involvement in other investments, it helps to have a clear understanding of the process.
Below are answers to some frequently asked questions on the buying process. For further enquiries and assistance, visit the G1X Contact Us
page to get in touch.
Why should I get involved in trading?
Participants typically get involved for the love of the sport, and the unique excitement of supporting an owned horse at the races. By buying a share in a racehorse, you can experience all the benefits of full ownership including free racecourse entry, members’ passes, parking, and access to owners’ facilities, without the steep price tag associated with owning the whole horse. You get to share the journey with your fellow owners, and you also share in the prize money if your horse wins.
What are the risks involved in owning a horse?
Investment in thoroughbred horses must be considered to be of a speculative nature. There are inherent risks associated with investing in thoroughbred horses. The investment is not recommended for buyers who are unable to risk the initial outlay of the cost of the share and the ongoing commitment of paying their share of the expenses of maintaining and training the horse, and any extraordinary expenses incurred in respect of the horse.
How do I pick a share?
Just like choosing who to place a bet on, each person will have their own personal methodology for the selection process. Typically, a potential buyer would select or shortlist shares based on factors such as their knowledge of the horse, the horse’s pedigree, the historical performance of the horse and its parents and siblings, the horse’s upcoming race nominations and it’s prospects, and the amount of shares available and their price.
I’ve submitted a bid. What do those status categories mean?
After you have submitted a bid, you will be notified by a member of the G1Xchange team if there is a seller with shares to offer that closely match your bid. You can be notified by e-mail or phone.If you are a registered user, your bid will be added to your Portfolio, which you can access by logging in to the G1Xchange. In this area, your bid may be listed with any of the following statuses:
- Unverified Bid: A bid has been submitted; however, you must provide a copy of your identification to verify your profile and bid.
- Verified Bid: An unverified bid is changed to a verified bid once you have verified your identity. As stated above, this can be completed by simply uploading a copy of identification, such a your driver’s licence or Medicare card. A verified bid allows G1Xchange to communicate with the buyer to assist the buyer in securing a share in the horse that they are after.
The transaction status will be shown as one of the following, which means:
- In negotiation: There is a verified owner that is looking to sell within +/- 20% of the Buyer’s specified value.
- Under Offer: Once the price of the share has been agreed to, both parties will be asked to confirm their intent to purchase. The buyer and seller will receive the contract of sale and a transfer of ownership form, which must be completed before the next stage of the transaction.
- In escrow: Upon completion of the “Under Offer” stage, the buyer will be provided with bank transfer details, to deposit the agreed amount into an escrow account managed by CheckVault.
- Sold/Bought: This status is displayed when signed contracts have been received and money has been released from escrow.
What do I do once I own a horse?
Horse owners are able to access a range of benefits, including free entry to racecourses on days when their horse races, access to Members Only enclosures, and other raceday privileges. Owners also share in the prize money won by their horse which is distributed amongst the owners in proportion to their shareholding after deduction of the trainer’s and jockey’s portions.
Owners are responsible, in proportion to their shareholding, for all costs associated with training, stabling and caring for their horse, including veterinary fees and fees paid for race entry and to jockeys. Your trainer will invoice you for these fees. You may also receive separate invoices from the horse’s veterinarian. You will need to ensure that these invoices are paid in full. If not, the trainer may be able to sell your share to recover any amounts outstanding.
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Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.