Let $P(n)$ be the statement "all horses in a set of n horses are of the same colour."
Basis Step: Clearly, $P(1)$ is true.
Inductive Hypothesis: Suppose that $P(k)$ is true for some arbitrary integer $k\geq 1$; that is, all horses are of the same colour.
Inductive Step: We now prove that $P(k+1)$ is true.
Consider any $k+1$ horses. Number these horses as $1,2,3,...,k+1$. By the inductive hypothesis, horses $1,2,...,k$ have the same colour. Also, by the inductive hypothesis, horses $2,3,...,k+1$ have the same colour. Because the set of the first $k$ horses and the last $k$ horses overlap, all $k+1$ horses must be of the same colour and we have shown $P(k+1)$ is true.
Therefore, all horses in a set of $n$ horses are of the same colour, for all integers $n\geq1$.