Who shoulders the losses on young stock?

Those who regularly buy foals for re-sale as yearlings, as well as yearlings for sale at the breeze-ups, realize that some of their purchases may fail to make a profit. The 'big-hitters' will get it right enough times to absorb the occasional dud. A small-time player, on the other hand, must ensure they pay 'realistic' prices. NO ONE will get it right every time.

Another not obvious fact is that 110k foal might actually not have been sold (even if that amount has gone through the sales house books the net 'loss' is only commission).  The 55k yearling then seems a bargain but might have been more than it would have been worth as foal.  Cynical but heyho.   In general though it is a very up and down business - you'd need to be trading many foals over a few year period to ride that sort of loss

I have sold stock Brian that has gone on and plummeted and I have sold stock that has soared. Win lose or draw though it has all been exactly as it appears on paper and I suspect that is how it is in the majority. Yer ma is right though some people are just trying their luck at every stage and still believe there may be a better result around the corner. Dont even get us started on the massive 'profits' that are manufactured at some poor suckers expense.
The top pinhookers are really good judges though and get to even things out when it goes wrong.

It is a game that keeps a constant turnover of protagonists though because that sexy profit sure does look sexy and it is a way into the industry that requires the minimum of investment and perhaps facilities, so it appeals from that angle too.
Failure is very real but there is usually someone new to give it a go!

Failure is very real but there is usually someone new to give it a go  - I think they are getting fewer.

Yes truehonch that was a bit of a glib last sentence for sure.

I think that the problems we are facing are very much for real too.

In reality if you are dealing in decent quality (as I know you are Potm) there are enough buyers out there.

The big losers are the ones that die or can't ever be sold for some reason. I suppose most are insured. I was only ever involved with one mare that my brother and I bought in foal to Bustino and bred 2 more foals from so very little experience.