Make Money by Owning Shares in a Racehorse

Personally, I didn’t know this was even a thing until my father became one of over 5,000 shareholders of the racing horse, Authentic earlier this year. Amazingly, Authentic wound up winning this year’s 146th Kentucky Derby and my father earned a small windfall in the form of dividends. When I learned how many people compound these dividends by buying more shares in more race horses, I realized what a clever way it was to create a new passive income stream completely uncorrelated to traditional markets. This article will show you to get into this wonderful subculture and make some money in the process.

The Business of Racing Horses

For those of you who aren’t familiar with the Kentucky Derby, it’s the most famous horse race in the country. It is also the first and biggest race of the Triple Crown, which is an award given to thoroughbred horses who can win the Kentucky Derby, Preakness Stakes (the second leg of the Triple Crown) and the Belmont Stakes (the third leg of the Triple Crown) in the same year. Authentic is owned by Zayat Stables, which is owned by brothers Ahmed and Moshin Zayat. Other horses owned by Zayat Stables (all named after family members), include fractions of shares in American Pharoah, California Chrome and Bodemeister.