P.R.E. Horses: the  Perfect "Touchable" Investments

by Kim Shogren. Added 12/12/07.

At a recent company holiday party, several co-workers were discussing investment opportunities. The discussion eventually led to horses as “touchable investments,” particularly the future of the Andalusian breed as the “crème de la crème” for the lucrative competitive Dressage market. As a fairly new equine enthusiast and owner of several investment horses, I naturally gave a perspective that non-equine investors could relate to.

I was careful to state that buyers should have the understanding that there is no “safe” investment in terms of return on investment (ROI) within the equine world. All sorts of “what ifs” can happen to the horse itself, not to mention external economic factors that of course cannot be helped. I recommended that preparation of those challenges would include the educated prospecting of correct “investment” horses, maintaining insurance levels and forecasting of trends.

Following that gathering, I received several serious inquiries requesting guidance into our beloved breed from an investment point of view (POV). At this point, I defer to the saying that it’s easier to spend someone else’s money than to spend your own. It’s that very statement that I had the most challenges with when giving recommendations.

Knowing what I know now, through the school of hard knocks in my own equine endeavors, I would of course advise anyone interested in the Andalusian horse to purchase quality PRE stock with proper paperwork in tact. To take that one step further, I would advise against the “bargain” deals that are often advertised. Though I am sure that there are exceptions, more often than not, there are hidden “catches” that make these horses more risky investments.

Investments should be looked at through long term lenses. With the initial investment of “quality” PRE foals in the price range of $12k - $15k, investors would be waiting for at least three to four years before seeing any ROI on the sales of stock produced from the initial investment on fillies. However, with the proper breeding plans, the sales of two foals could easily pay back for the mare and then some!

That’s great advice for those investors who have the disposable funds readily available to spend and are willing to wait. However, is there room in the market for potential enthusiasts/investors who can’t afford the initial investment on a PRE foal? Are there stepping stones along the way so that investors can take baby steps? Are bank loans a viable means to pay for the best stock available? Are there mentors/services available to assist novice investors in making purchases?

In this four part series focusing on Andalusians as an investment, those particular frequently asked questions will be addressed. 

Skyhorse Ranch - Andalusian horse breeder in Texas with Andalusian horses for sale. Breeders of PRE Pura Raza Espanola horses with cartas from Spain. Selling black, grey, and bay Andalusians. Recommend Andalusian stallions at stud. Pictures, history, facts, and info. Spanish Andalusian horse farm. Bloodlines from Spain in the USA.

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