“The incentives are different depending on if you plan to sell or race a horse. If breeders raced their own horses instead of selling them, they might pair two different mares and stallions to breed. Selling well takes having the right pedigree and characteristics of a sprinter, both of which encourage in-breeding, but maximizing the odds of producing a good horse is more complicated. Ideally, breeders would match the male and female characteristics, balancing out weaknesses.”Allison Schrager
What’s remarkable about Schrager’s description is the homogeneity of breeding. If outperforming in investing is about being different and being right there’s not a lot of being different at the track.
And this kind of makes sense. There’s better ways to “WIN BIG” than racing horses, where the returns probably aren’t financial but social.
To sell well, a horse shouldn’t just be (lineage) fast but it should look fast too. Like Munger’s fisherman, sales is a question of incentives, metrics, and framing.
Tracking Tom Update.
Tom Brady passed for a paltry 196 yards this weekend and is now only ahead of pace by 36 yards. However, the combined record of the remaining teams on the scheduled is 13-24 (Lions and Falcons).
Bad teams plus a rigid playoff picture means that our framework seems to be holding: more unknowns will inhibit rather than enhance Tom Brady’s passing yards for the season.