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By Carly Barnes*
Fractionalised share ownership, a way of investing in a portion of a stock instead of in its entirety, has made buying shares much more affordable for the average South African. Instead of having to spend months saving to buy an appealing albeit expensive stock like Naspers, members of the EasyEquities community (the only online stockbroking platform which offers this feature), can invest in the share with as little as R10 or R20. That means that someone like me, who doesn’t have a ton of money to invest with, can still afford to have top stocks like Anheuser-Busch InBev and Capitec in my portfolio.
Having experienced this for himself, EasyEquities client Matt de Kock from the famous Mike de Kock Racing, had the idea to translate fractionalised ownership into another kind of investment – racehorses!
“Horseracing is a lifestyle investment and to us, the most excitement and exhilaration money can buy. Our aim is to make this the most enjoyable experience possible for any and all racing enthusiasts, especially those people who thought they didn’t have enough money – or weren’t smart enough – to own a horse. We are offering avid racing fans the opportunity to buy into a syndicated racehorse for around R3 000!”
Aside from the lifestyle and the thrill of owning real horsepower, there is money to be made in investing in racehorses. The more a horse wins, the more it’s worth and fractional ownership means that the associated costs are shared as well. Matt has found a way to make this kind of investment more accessible to all South Africans.
What it costs
| Fees in rands (14% VAT included) | Amount | Your 1% | Total | |
| Purchase price | 136 800 | 1 368,00 | Once-off | 1 368,00 |
| Entry fee for Ready-to-Run race | 9 120 | 91,20 | Once-off | 91,20 |
| Training fees, all inclusive | 11 970 | 119,70 | x 12 months | 1 436,40 |
| Vet’s bill coverage, up to R1 000 per month | 1 000 | 10,00 | x 12 months | 120,00 |
| Registration and management of syndicate | 10 000 | 100,00 | Once-off | 100,00 |
| Final total per 1% share | 3 115,60 |
The horse in question is Puget Sound, a group one two-year-old colt sired by Sail from Seattle. His mother is La Bella Donna, who was a decent racehorse in her own right, winning three races. She has produced two foals, both of which are winners. She is also sister to a group one placed mare in Brazil. “This family is bred to win,” says Matt. MDK Racing, is offering a 50% syndicated ownership in this thoroughbred that comes with all the benefits of being in a top stable. Fifty shares of 1% each are being sold for just over R3 000 each, with MDK Racing retaining the other 50%.
“Since starting my EasyEquities portfolio I have learnt that investing is easy and fun for everyone… and that’s what I want horse racing and ownership to be. Remember, no matter how small your shareholding is you will share 100% in the thrill of owning and racing a magnificent thoroughbred racehorse!”
- Carly Barnes is Brand Manager at EasyEquities
