When we spend money in the stock market we call it 'investing in stocks', but when we spend money on a horse race we call it' placing a bet "or" play "and for me there is very little difference between the two. In fact, I believe there is a much better chance of winning and making a profit, with horse racing compared to the stock market. Not only is this true, but the percentage return (yield) of horse racing can leave the yield of dead stocks in the water, over the same time period.
With the stock market, we are investing in something that is “market driven” and that can be manipulated in many ways, especially by investors with significant capital, as well as by people with inside information. With the horse racing scene, it's not market driven, just like a sports race isn't market driven, nor is a baseball game. These events will always have a predetermined outcome, and that outcome is that someone or something is going to win the event. This is usually based on their ability, stamina, or combination of things, not market trends.
On average, the stock market will typically return between 10% and 20% profit each year. However, pack the brokerage fees and commissions, any decrease in the dollar's value, and the actual return may actually be a point or two below. Remember, this is an 'annual' return and an average accepted by many leading equity investors. Compared to that, some professional racing investors will tell you that they regularly earn 1% per day or more! Think about it for a second …
If these professionals attend the races only 3 days a week and save the other 4 days for family and social activities, they still earn 372% compound interest over the 12 month period. (156 investment days) Calculate it for yourself, starting with a bank (investment) bet of $ 1000 and investing only 3 days a week for a return of only 1% of profit per day! Of course, on the first day your profit is only $ 10, but on the last day of your working year, your profit is now $ 46.75 (almost 5 times your first day profit). Over the year, your profits would be $ 3,722.00! Compare that with even a 30% return from the stock market. $ 300.00 doesn't come close to $ 3,722.00.
Really the only people who will insist on telling you that horse racing can't turn a profit are (a) people who couldn't win at races, and (b) people who don't understand horse racing. The horse racing industry, or (c) people trying to defend much lower returns by justifying the safety of their investment choices. Each of these groups of people is of course entitled to their opinion, but just because they think this way doesn't mean they're right.
A lot of people have made a lot of money from the fact that few others know the secrets of continued success when combined with the horse racing industry. Just like the stock market or any other form of investment or business, the fewer people who have the same knowledge, the better! As an example, it can help to understand that over 95% of all horse racing bettors lose their money. The remaining 5% of people who bet on horses share these losses as winning wins. I am convinced that if you have the chance you would love to be a member of this "5% club".