So the distinction, to me, between an investment and a bet, is that an investment actually affects the subject. Placing a bet, notionally, has no impact on the

So the distinction, to me, between an investment and a bet, is that an investment actually affects the subject. Placing a bet, notionally, has no impact on the event the bet covers; the fact you have entered into a bet over the outcome of a horse race is completely independent of the outcome. On the other hand, if you put your money into training a horse, and win back a share of its prize money, or stud value, or whatever, that is an investment, because your money contributed to the overall realization of value. Insurance, I'll grant, is a bet, but it's a bet where you have skin in the game - a bet against yourself, to hedge against loss outside your control. A bet you want to lose.