I like to think of these two in terms of risk. In gambling, there are odds and there is nothing you can do to eliminate or reduce this risk. With investing, the

I like to think of these two in terms of risk. In gambling, there are odds and there is nothing you can do to eliminate or reduce this risk. With investing, there is another factor called idiosyncratic risk, which is not a systemic risk. This is a risk that you have control over and can reduce. Performing due diligence, diversification of portfolio companies, startup check-ins and report outs, second opinion, etc. These are all factors that an investor can control and can reduce the risk of an investment. Have you heard someone say "diversify your portfolio"? Its to reduce the idiosyncratic risks that are associated with individual companies. Yes, one company may struggle but another may not. It's because there is microeconomics at play for individual companies.