By JP Roukis
With the price of horses higher than ever, more people are wondering if there’s a way to turn horse ownership into a profitable venture. When people ask me how I approach horse investment, I try to be as honest and transparent as possible. I hope that buyers will feel informed and investors will better understand the risks involved.
While it’s not the sexy answer people expect to hear, being educated and having a plan are key. Understanding where you can add value and what the costs are to add that value is the simplest explanation. And no, the plan of buying a horse and putting a higher price on the horse is not a plan. While this sometimes works and luck plays a factor, it is this kind of oversimplified business plan that often leads to disappointment. It would be like someone saying, ‘I’m going to buy a stock and sell it for more.’
Here are some common plans that can lead to an increase in value:
Training: More training equals more money, right?
When it works
When a rider with the appropriate experience trains a horse with the appropriate ability, the horse can become significantly more valuable. Picking the right horse to work with and knowing your strengths as a rider or trainer are key. In Europe, where the carrying costs are significantly lower, this is a very popular and successful model. The other scenario where this can be viewed as successful is a rider with a limited budget buys a young or green horse and trains it to be to the level they want. While it may not be profitable in terms of dollars and cents, the process can be a lot of fun and it may be more desirable than being horseless waiting to save up for a ready-made model.
When it doesn’t work
Horses, especially in the United States, are extremely expensive to keep, making it very difficult to have the increase in value outweigh the cost associated with that training. Also, we are dealing with an animal with its own mind. We have no certainty of how that animal will take to the training. Lastly, training can be somewhat subjective. In some scenarios, I see a rider spend significant time on training only to find that buyers don’t value or see the improvement.
Location, location, location
When it works
When a horse is moved from somewhere inconvenient for buyers to somewhere highly convenient, the horse is likely to be sold for more. Moving a horse to Florida in the winter months can make the horse more valuable and easier to sell because a majority of buyers are in Florida or come to Florida. The same can be true for importing from Europe or South America. For example, if the horse is suitable for equitation, having the horse in the United States could increase the value since there are more potential buyers.
When it doesn’t work
Moving locations is assuming the new location holds buyers wanting this type of horse. Sometimes this isn’t necessarily true. Or sometimes, many owners had the same ideas and there becomes more available horses than buyers in one location. Also, changing locations doesn’t guarantee the horse will be better or even the same quality in the new location. Buying off a video from Europe, or anywhere for that matter, with the expectation that importing alone will make the horse more valuable is a risky plan. Having a fuller understanding about the horse being purchased and its suitability for the training program its entering and coming from are crucial.
Pro Tip: The globalization of the equestrian sport has changed the assumption that horses are automatically worth more once imported to America. Buyers from Asia, the Middle East, and within Europe, are now contending with Americans for both top level and amateur level horses. Tariffs and the weakening of the dollar have increased the price to import a horse from the European Union to the United States by 30% from October 15th 2022 to July 1st 2025.
Changing Disciplines
Michael Jordan was obviously a very good basketball player, but not such a good baseball player. Had he only played baseball, he would not have been nearly as valuable as he was as a basketball player. The same is true for the equestrian disciplines.
When it works
A horse may perform poorly as a show jumper but be very valuable as a hunter or vice versa. Buying a horse to do one discipline and converting the horse to another discipline can be very profitable. Or even changing a horse’s job description within disciplines can be profitable. A horse jumping 1.40 m with two rails down a class may not be valuable. But the same horse keeping a novice rider safe at 1.10 m may be extremely valuable. Having a strong understanding of the disciplines and what to look for in a horse is key to making a profit using this technique.
When it doesn’t work
It takes a tremendous amount of foresight to be successful using this plan, and no one is right 100% of the time. The industry is littered with jumpers that someone thought would be a hunter, only to realize the horse’s original career path as a jumper was more suitable.
Make a plan. Make a plan. Make a plan.
Getting help and advice from a professional who has experience making a profit the way you are intending to is always a good idea. The most important thing when I look to invest in a horse is to identify what I am going to do to make this horse more valuable. Making a horse sounder, easier, better behaved, more convenient, prettier, or stronger are all ways to make a horse more valuable.
This takes a complex understanding of what buyers put value in, an intricate understanding of horse training, and an honest assessment of one’s strengths and weaknesses. This full picture is what leads to some individuals and sales programs having continued success, and some people being hit or miss investors.
At the end of the day, profit isn’t just about picking the right horse—it’s about making the right decisions every step of the way.
There’s no guarantee in horse investing, but having a well-defined plan for each horse has been my secret to success.
JP Roukis is the head trainer at Treasure Coast Stables LLC. In addition to running a large import and sales business, his horses and students have enjoyed USEF Horse of the Year titles, WEF circuit championships, success in Grand Prixs, Hunter Derbies, and equitation finals. JP also holds a “R” judging license for Hunters and Hunt Seat Equitation and is a member of the Society of Equine Appraisers.
