Michael Behrens started MyRacehorse.com because he thought the business of owning race horses was unnecessarily opaque.
I started writing this blog because I thought the business of owning race horses was unnecessarily opaque.
Opaque is a fancy word for “not transparent’.
Mr. Behren’s solution was to build a business that could promote horse ownership through the viral magic of social media. My solution was to figure out what someone should pay for an obscure daughter of Tonalist that worked 10.2 at the Ocala sale.
Early indications are that Mr. Behrens idea will make more money.
I learned the myracehorse.com by listening to this interview:
My first impression is that that Mr. Behren’s “heart is in the right place”. He says the right things about education and disclosure. He is a former advertising executive, so to analytical folks, like me, he is always going to seem a little promotional.
It is my intention to judge Myracehorse.com on the horses they select at the sales going forward. This is exactly how I will judge West Point, Eclipse, Donegal, Ten Strike, and 30 other partnerships going forward. Who will pick the best horses?
The only difference is that MyRacehorse will offer ownership percentages much lower than the more established partnerships. In general I think that is a good plan, but it also creates problems. If Mr. Behrens delivers on his promise of education and disclosure, I think he will be good for the industry.
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I think it is important to look at the Authentic situation as a “once in a lifetime” deal that deserves to be evaluated as a separate investment that will not have that much of an effect on the future of MyRacehorse.com.
Buying .0001% of Authentic for $200+ was a complex investment in the future stallion prospects of Authentic. MyRacehorse. com was only able to make that investment because Mr. Hughes of Spendthrift Farm wanted to help “disrupt” the industry. Such an opportunity may never occur again. Will the $200 investors make money on their investment? There are so many variables that effect the breeding business that it will take years to evaluate.
At worst the Authentic deal can be seen a “publicity stunt” that attracts attention. Now MyRacehose.com need to develop a solid product by buying good horses.
At best Mr. Behrens might generate 100,000 (his estimate) new “owners” over the next year.
My old boss in the investment business had the chance to have dinner with Warren Buffett. He asked Mr. Buffett what was the most important lesson he had learned in investing. Buffett said:
“Educate your clients”
Mr. Behrens please continue to educate your new clients.
Buying A Race Horse 