Between 2001 and 2009 I got lucky.
Some of my racehorses started to generate a great deal of income.
I got four and five-digit checks almost weekly.
As my capital grew I began investing in high priced two-year olds,
who would hopefully be eligible for bigger purses.
The big money that you see for the better races, comes from staking your horses.
This involves large monthly payments for any stock that may be
able to compete with the best ones.
When a horse is very young you try to decide if he or she is stakes
material, and to determine the best races available.
These payments may be small initially, but they get larger closer
to race dates.
I often found myself writing checks close to $10,000 in February and
March for stock who had never even seen a starting gate.
The vast majority of the horses staked to the biggest ones never
make it to these races. If you own multiple stakes stock, these payments can be draining.
You tend to lose sight of your daily money management and budgets.
🔷🔷🔷
Who cares if I go to an expensive restaurant?
It’s only another $200.
Why not get the nicer car?
The payment will only be an extra $225/month.
Let’s take this a little further.
Your stock is developing nicely, has made some money in early
starters, and now qualify for some lucrative races.
I’ve had horses start for close to half a million dollars, which meant
that if my horse won, I would be almost $300,000 dollars richer!
🔷🔷🔷
One evening, I had a semi-favorite running for $475k.
I took everyone I knew to the track, paid for their hotel rooms, meals & drinks.
Heck, even a 4th place finish, would cover my mortgage for over a year.
Ten minutes before the race we all went track side, to prepare
for our trip to the winner’s circle.
Most of the guys bragged about how much they had just wagered on my entry.
The gates opened, and we got away 3rd to last. I told myself,
“That’s OK, the race really hasn’t started yet”.
Then around the half mile marker she pulled away from the rail and started
to advance, stalled a little, moved forward again, and then did something I initially
had trouble processing.
She began dropping back, and back, eventually finishing 2nd to last.
🔷🔷🔷
My fan club looked like they had just been lobotomized.
My gratuitous expenditures prior to the race, cost me thousands.
I had spent money before it was ever made.
That experience turned out to be my best education in money management,
and has kept me grounded ever since.
If you haven’t earned it:
a) Don’t spend it.
b) Don’t overextend yourself.
c) Don't risk what you can’t afford to lose.
This is equally important for football.
DO NOT:
1) Expose too much of your monetary position.
2) Get too high after a winning streak.
You may be good, but losing streaks will happen.
3) Increase bet size after a loss.
(I know this sounds foolish, but many do.)
4) Weigh recent events too heavily.
(they're already built into the line.).
5) Bet on a "feeling".
Emotion should be reserved until game time.
6) Believe self proclaimed and undocumented pundits
who couldn't spell win if you spotted them the "w" and the "i".
-John Rothschild