Wednesday, May 16, 2007

Free-agent horses: a better hobby than an investment

A few months ago, I wrote that professional sports teams return very little profit compared to other investments. My argument was that owning a team is the way for rich people to gain fame and have fun playing fantasy sports with real money.

Here's an argument from William Baldwin of Forbes that says horse racing is the same thing – a supposed business that's really just a hobby. Baldwin calculates that, across all racehorse owners, the cost of upkeep is $2 billion, but there's less than $1 billion in purses to go around. Conclusion: owners know that they stand to lose half their investment, but continue anyway because they're not in it just for the money.

Baldwin's article is actually an editor's note commenting on another article that appeared in the same issue.
That story, by Dan Seligman, talks about a horse auction where animals go for millions of dollars, a lot like promising free-agents. Seligman is one of my favorite journalists (although I haven't seen much of his work lately). He's not afraid of numbers, and he understands what they mean and what they don’t mean; I don't recall a statistical argument of his that I thought was unsound.

In this article, he does a bit of original sabermetrics, finding a correlation of 0.4 between horse "tryout camp" results and eventual sale price. I trust his findings a lot more than if he had gone out and
quoted some supposed expert somewhere.

Additionally, the article suggests that free agent horses are wildly overpaid. Of 22 horses that sold for over $1 million, only one earned back his million in purses. A lot of their income comes from stud fees -- old blue-chip horses siring young speculative horses.

If Forbes is right about the horse business, you should expect to find it all privately owned (like baseball teams and Picassos). It would be difficult to sell shares in a a business where you lose more than 50% of your capital every year.

Labels: , ,

2 Comments:

At Thursday, January 01, 2009 7:34:00 AM, Blogger sexy said...

情趣用品,情趣用品,情趣用品,情趣用品,情趣用品,情趣用品,情趣,情趣,情趣,情趣,情趣,情趣,情趣用品,情趣用品,情趣,情趣,A片,A片,A片,A片,A片,A片,情趣用品,A片,情趣用品,A片,情趣用品,a片,情趣用品

A片,A片,AV女優,色情,成人,做愛,情色,AIO,視訊聊天室,SEX,聊天室,自拍,AV,情色,成人,情色,aio,sex,成人,情色

免費A片,美女視訊,情色交友,免費AV,色情網站,辣妹視訊,美女交友,色情影片,成人影片,成人網站,H漫,18成人,成人圖片,成人漫畫,情色網,日本A片,免費A片下載,性愛

色情A片,A片下載,色情遊戲,色情影片,色情聊天室,情色電影,免費視訊,免費視訊聊天,免費視訊聊天室,一葉情貼圖片區,情色視訊,免費成人影片,視訊交友,視訊聊天,言情小說,愛情小說,AV片,A漫,avdvd,情色論壇,視訊美女,AV成人網,情色文學,成人交友,成人電影,成人貼圖,成人小說,成人文章,成人圖片區,成人遊戲,愛情公寓,情色貼圖,成人論壇


av女優,av,av片,aio交友愛情館,ut聊天室,聊天室,豆豆聊天室,色情聊天室,尋夢園聊天室,080聊天室,視訊聊天室,080苗栗人聊天室,上班族聊天室,成人聊天室,中部人聊天室,一夜情聊天室,情色聊天室,情色視訊

視訊聊天室,聊天室,視訊,,情色視訊,視訊交友,視訊交友90739,免費視訊,免費視訊聊天,視訊聊天,UT聊天室,聊天室,美女視訊,視訊交友網,豆豆聊天室,A片,尋夢園聊天室,色情聊天室,聊天室尋夢園,成人聊天室,中部人聊天室,一夜情聊天室,情色聊天室,080中部人聊天室,080聊天室,美女交友,辣妹視訊

 
At Monday, April 20, 2009 4:01:00 AM, Blogger cvxv said...

看房子,買房子,建商自售,自售,台北新成屋,台北豪宅,新成屋,豪宅,美髮儀器,美髮,儀器,髮型,EMBA,MBA,學位,EMBA,專業認證,認證課程,博士學位,DBA,PHD,在職進修,碩士學位,推廣教育,DBA,進修課程,碩士學位,網路廣告,關鍵字廣告,關鍵字,課程介紹,學分班,文憑,牛樟芝,段木,牛樟菇,日式料理, 台北居酒屋,日本料理,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,台北結婚,場地,住宿,訂房,HOTEL,飯店,造型系列,學位,SEO,婚宴,捷運,學區,美髮,儀器,髮型,看房子,買房子,建商自售,自售,房子,捷運,學區,台北新成屋,台北豪宅,新成屋,豪宅,學位,碩士學位,進修,在職進修, 課程,教育,學位,證照,mba,文憑,學分班,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,台北住宿,國內訂房,台北HOTEL,台北婚宴,飯店優惠,住宿,訂房,HOTEL,飯店,婚宴,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北結婚,場地,結婚,場地,推車飲茶,港式點心,尾牙春酒,台北結婚,婚宴場地,結婚,婚宴場地,推車飲茶,港式點心,尾牙春酒,台北結婚,場地,居酒屋,燒烤,美髮,儀器,髮型,美髮,儀器,髮型,美髮,儀器,髮型,美髮,儀器,髮型,小套房,小套房,進修,在職進修,留學,證照,MBA,EMBA,留學,MBA,EMBA,留學,進修,在職進修,牛樟芝,段木,牛樟菇,關鍵字排名,網路行銷,PMP,在職專班,研究所在職專班,碩士在職專班,PMP,證照,在職專班,研究所在職專班,碩士在職專班,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,SEO,廣告,關鍵字,關鍵字排名,網路行銷,網頁設計,網站設計,網站排名,搜尋引擎,網路廣告,EMBA,MBA,PMP,在職進修,專案管理,出國留學,EMBA,MBA,PMP,在職進修,專案管理,出國留學,EMBA,MBA,PMP,在職進修,專案管理,出國留學,婚宴,婚宴,婚宴,婚宴,漢高資訊,漢高資訊,比利時,比利時聯合商學院,宜蘭民宿,台東民宿,澎湖民宿,墾丁民宿,花蓮民宿,SEO,找工作,汽車旅館,阿里山,日月潭,阿里山民宿,東森購物,momo購物台,pc home購物,購物漢高資訊,漢高資訊,在職進修,漢高資訊,在職進修,住宿,住宿,整形,造型,室內設計,室內設計,漢高資訊,在職進修,漢高資訊,在職進修,住宿,美容,室內設計,在職進修,羅志祥,周杰倫,五月天,住宿,住宿,整形,整形,室內設計,室內設計,比利時聯合商學院,在職進修,比利時聯合商學院,在職進修,漢高資訊,找工作,找工作,找工作,找工作,找工作,蔡依林,林志玲

 

Post a Comment

Links to this post:

Create a Link

<< Home