setting up a competition stud

There's a saying in the US that probably is said over here, too. "The best way to make a million <dollars/pounds> with horses is to start with TWO million". Think that probably says it all.

Finding the right stock sometimes is a mixture of being in the right place at the right time, spending a fortune, searching high and low, importing, etc etc etc....doing LOTS of research and going to shows/races and knowing good conformation, knowing bloodlines by heart. And being an expert on what your competing studs have -- and being friends with them -- is also a good start.
 
There's another saying: Fools breed horses for wise men to ride.
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