How do Bogleheads cope with FOMO? [Fear Of Missing Out]

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caffeperfavore
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Re: How do Bogleheads cope with FOMO?

Post by caffeperfavore »

By waiting long enough to watch the bodies of the market timers go floating by.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by JonnyDVM »

It occurred to me the best natural defense for this is thinking that everything you do is right and everything that everyone else does is wrong. It will work out for you because you know exactly what you are doing. If it works out for them, its just luck. Reading this forum you’ll notice a lot of people with that mentality, myself included. So what you need sir is more unabashed unapologetic confidence. :beer
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by LadyGeek »

I added the FOMO acronym to the wiki and use this thread as a reference: Abbreviations and Acronyms (FOMO).

If anyone has a suggestion for better wording, post here.

Hot off the virtual press: You can lookup acronyms in the wiki in real-time by adding a bookmark to your browser. How?

See: Re: Bookmarklet to lookup selected word in wiki's abbreviation table (The post also shows how to lookup ticker symbols as a bookmark.)

Acronym suggestions can be posted in that thread (or Suggestions for the Wiki).
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Re: How do Bogleheads cope with FOMO?

Post by livesoft »

SVT wrote: Mon Sep 07, 2020 6:59 pmYes, I've still done well but cheese 'n rice livesoft!
I've been eating Snow's BBQ brisket this weekend. Mmmm-mmmm!
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Re: How do Bogleheads cope with FOMO?

Post by AlohaJoe »

arcticpineapplecorp. wrote: Mon Sep 07, 2020 11:38 am I'm assuming you're feeling missed out on tesla, apple, gold or something else that has happened to have beaten the market over some recent short term time period.

you must realize a few things:
In addition to these great points keep in mind that your friends and acquaintances are much more likely to talk about their winners than their losers. Several of my friends are not really on the Boglehead philosophy, so I hear a lot about how they bought Shopify (2.3x since January) or Zoom. But every once in a while they also drop mention of something that has lost a lot. I remember a friend back in December mentioning something they had bought had lost -60%.

It is also hard to know how much of their total portfolio is invested in something. From things friends have dropped I know a few of them have been 98% in cash since late last year. So when they mentioning their Tesla holding it sounds great until you look at their overall portfolio performance. One of my friends bought some Zoom in November or December and from time to time he talks about how well it has done. But I also am pretty sure that Zoom makes up <1% of his net worth, even after this year's gains.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by TheDDC »

Easy. Just keep investing every month like clockwork... 100% VTSAX. When you get a flash crash like we had last week you get to massage that FOMO muscle by buying in at a discount.

Consistency does it.

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Re: How do Bogleheads cope with FOMO?

Post by Sandtrap »

AlohaJoe wrote: Mon Sep 07, 2020 9:54 pm
arcticpineapplecorp. wrote: Mon Sep 07, 2020 11:38 am I'm assuming you're feeling missed out on tesla, apple, gold or something else that has happened to have beaten the market over some recent short term time period.

you must realize a few things:
In addition to these great points keep in mind that your friends and acquaintances are much more likely to talk about their winners than their losers. Several of my friends are not really on the Boglehead philosophy, so I hear a lot about how they bought Shopify (2.3x since January) or Zoom. But every once in a while they also drop mention of something that has lost a lot. I remember a friend back in December mentioning something they had bought had lost -60%.

It is also hard to know how much of their total portfolio is invested in something. From things friends have dropped I know a few of them have been 98% in cash since late last year. So when they mentioning their Tesla holding it sounds great until you look at their overall portfolio performance. One of my friends bought some Zoom in November or December and from time to time he talks about how well it has done. But I also am pretty sure that Zoom makes up <1% of his net worth, even after this year's gains.
+1
Great points and well said as always.

And, often, less than 1% of total net worth, and at Edward Jones. One fellow I run into often tells me he’s up 30% according to his Edward Jones advisor. Another senior tells me how well his tech stocks are holding up. The rat is 99.9% in retirement annuities and pensions.

As for “foam mow” FOMO. Compared to what and who? Thus, not a concern for DW and I.
Solution: count ones blessings and appreciate what one has works for us.
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Re: How do Bogleheads cope with FOMO?

Post by arcticpineapplecorp. »

AlohaJoe wrote: Mon Sep 07, 2020 9:54 pm
arcticpineapplecorp. wrote: Mon Sep 07, 2020 11:38 am I'm assuming you're feeling missed out on tesla, apple, gold or something else that has happened to have beaten the market over some recent short term time period.

you must realize a few things:
In addition to these great points keep in mind that your friends and acquaintances are much more likely to talk about their winners than their losers. Several of my friends are not really on the Boglehead philosophy, so I hear a lot about how they bought Shopify (2.3x since January) or Zoom. But every once in a while they also drop mention of something that has lost a lot. I remember a friend back in December mentioning something they had bought had lost -60%.

It is also hard to know how much of their total portfolio is invested in something. From things friends have dropped I know a few of them have been 98% in cash since late last year. So when they mentioning their Tesla holding it sounds great until you look at their overall portfolio performance. One of my friends bought some Zoom in November or December and from time to time he talks about how well it has done. But I also am pretty sure that Zoom makes up <1% of his net worth, even after this year's gains.
this is a very good post because as i say the devils in the details, the details matter and very few ask or even think about that.

if a coworker were bragging to me I'd definitely ask him why he's still working?

(the answer is he didn't invest ENOUGH. A huge percentage gain on a small dollar amount is not life changing. They act like they have won the lottery but haven't.)
It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by burritoLover »

There's always going to be some asset category that is killing it compared to your well-diversified portfolio. And, there's always going to be someone that is going to have higher returns than you (possibly much higher) in the short-term with their decidedly less diversified portfolio. If you can't handle that, then you need to designate a portion of your portfolio to speculate with (a fixed percentage in your IPS that you cannot exceed).
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by SmileyFace »

By knowing I am not missing out on anything.
I suppose it's by knowing those with the outsized gains only stay lucky for so long (after experiencing the late 90's).
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by firebirdparts »

Getting older is probably a good strategy, assuming you can learn from experience. Some can, and then some never learn anything ever.

I think I have a personal bent that is less susceptible to begin with. I am not very open to that particular fear. I am very interested in avoiding regret, and if you do that, you have to think honestly about just what those regrets are going to be. Future regret identification is a key skill, and any person engaging in that would be biased. I am biased in such a way that I don't regret "missing out" much.
Last edited by firebirdparts on Tue Sep 08, 2020 8:26 am, edited 1 time in total.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by tiburblium »

Gravity, and people have seen this movie before.

TSLA is down 15% in pre-market this morning. It could fall 95% to $20 and still be considered highly over valued
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Dave55 »

Ben Carlson wrote a interesting piece today, "Why Even the Best Stocks Have to Crash"
Unpacks the gravity concept mentioned by tiburblium.

https://awealthofcommonsense.com/2020/0 ... -to-crash/

Dave
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Sandtrap »

firebirdparts wrote: Tue Sep 08, 2020 8:22 am Getting older is probably a good strategy, assuming you can learn from experience. Some can, and then some never learn anything ever.

I think I have a personal bent that is less susceptible to begin with. I am not very open to that particular fear. I am very interested in avoiding regret, and if you do that, you have to think honestly about just what those regrets are going to be. Future regret identification is a key skill, and any person engaging in that would be biased. I am biased in such a way that I don't regret "missing out" much.
Well said
Thanks for posting this.

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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by flaccidsteele »

OP we had a once-in-a-century real estate crash a decade ago where homes were priced similarly to a luxury SUV. Did you have FOMO then?
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by CyclingDuo »

n00b_to_investing wrote: Mon Sep 07, 2020 11:15 am ... seriously I have been pondering over this question ... by no means this is a call to seek "alternate" strategies ... I am sticking to my guns but would love to get your thoughts (qualitative and/or quantitative).
What is it you feel you are missing out on? Individual stocks? Certain mutual funds or ETF's? Asset allocation different than the next guy/gal? Hot house in the neighborhood? Latest model of car or truck? Career or job choice? Can't sing a high C at full voice? Can't dunk a basketball through a 10' high rim?

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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by meowcat »

FOMO is not the fear of missing out on some high flying stock. We all know the risk. The fear comes when we have a very close friend or family member getting rich from a high flying stock. The fear, in that case, is very, very real.
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Re: How do Bogleheads cope with FOMO?

Post by firebirdparts »

phxjcc wrote: Mon Sep 07, 2020 5:42 pm
newyorker wrote: Mon Sep 07, 2020 12:24 pm I didnt and I got burned with AAPL
You young whippersnapper

Bought 1 month’s salary of DEC options.
“Can’t miss”

Bought at 10
sold at 1/16.
You should have held for the VT100 intro press release.
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Re: How do Bogleheads cope with FOMO?

Post by JnyVuko »

Stinky wrote: Mon Sep 07, 2020 11:27 am
FiveK wrote: Mon Sep 07, 2020 11:21 amMO on what?
+1
+1
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Re: How do Bogleheads cope with FOMO?

Post by JnyVuko »

Elysium wrote: Mon Sep 07, 2020 11:24 am Determine what is needed, then create a plan and stick to it. What other choices do you have?

Here is how you look at it: Say you need 6% return from your portfolio for next 20 years to reach your goals, then you look at what asset mix is needed today for you to produce that given your annual contribution rates and current estimated returns (reasonable assumptions). Then you calibrate that periodically to see where you are and how far still you are from the goals. There is no FOMO. Just what you need to do. For me equities are a necessary evil, I do not enjoy risk, but risk is what I need to be exposed to in order to get there. Once you get there, you re-calibrate, even then you need a certain exposure to different types of risks to keep your purchasing power.
Well said. TY
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by InvestorNewb »

I recently watched a documentary about Worldcom and it reminded me why investing in individual stocks is dangerous.
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Re: How do Bogleheads cope with FOMO?

Post by JoeRetire »

LilyFleur wrote: Mon Sep 07, 2020 5:18 pm But by classifying my individual stock purchase as "play money," I get to remain a Boglehead :mrgreen:

I appreciate conversations with my 23-year-old. That way I know terms like FOMO, and I can feel like a somewhat cool 60-year-old.
With enough creative mental accounting, you can do anything and still remain a Boglehead (and cool, I guess). :mrgreen:
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Re: How do Bogleheads cope with FOMO?

Post by mak1277 »

nisiprius wrote: Mon Sep 07, 2020 11:32 am By sticking to a number of personal principles, that not everybody shares, but that I really do hold.
  • "Satisficing," not optimizing.
  • Knowing my personal goals, and measuring everything in an absolute way against my own goals.
  • Being in this for me, not to beat somebody else.
To some extent this runs against the cultural norm of consumerism. The main way a company can get you to switch to what they sell is by claiming that their product is better. That means they need to convince you of three things, not just one.
  1. My product is better.
  2. The difference actually matters.
  3. You must choose the best.
What do Coke and Pepsi agree on? They both agree that you need to decide which tastes best, and if it's the other one, switch.

Think about #3 long and hard. Why must you choose the best?

Quite apart from the difficulty of identifying the best, you can live a perfectly good life just saying "No thanks, I am perfectly happy with choices that probably aren't the best." If that shocks you, think about it just a little bit more. And, no, I don't mean anything about subtle personal criteria. I don't mean some intangible thing that makes the seemingly less good better for you. I mean not caring. I mean not sweating the small stuff.

If you see a penny on the sidewalk, you can choose not to pick it up. Not because you have made some interior calculation of the time it will take or the risk of overextending your shoulder and having it hurt. Just because you just don't care.

The whole goal of 99% of what you read about investing is to get you to care about and act on stuff that doesn't matter much.

I would add one note about fear of missing out. The really deadly mistake is staying out through prudence and good judgement, then getting tired of watching your friends getting rich (or saying they are getting rich) and finally giving up and jumping in.
I feel like you could post this in 75% of the threads on this board (and many other boards covering many topics). I love it!

Think how much energy and time is wasted by people who have to have the absolute best [insert thing]. Yikes. "Optimization" is such a trap.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by RootSki »

Anyone experiencing TSLA FOMO today? :mrgreen:

Lol, it’s down 20%. I’m glad I’m not tempted by such shiny objects.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by mickeyd »

FOMO? FOMO? OMG something else trying to interrupt my nap!!!

STC simplicity.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by hagridshut »

meowcat wrote: Tue Sep 08, 2020 9:19 am FOMO is not the fear of missing out on some high flying stock. We all know the risk. The fear comes when we have a very close friend or family member getting rich from a high flying stock. The fear, in that case, is very, very real.
I don't think people really know the risks.

The fear on Reddit was very real, with NEW retail investors piling into TSLA last week and being demolished after the bubble (and possible short squeeze) ended. Today was full of severe angst on the part of people who bought the stock out of FOMO and lost big: https://www.reddit.com/r/teslainvestors ... r_08_2020/

TSLA was down 21% today. It's down about 35% from highest close. A lot of people learned hard lessons this past week.

Owning TSLA means subjecting oneself to the mental equivalent of being kicked in the head repeatedly, and then stomped on until puking one's guts out and begging for mercy. And then being hit with sticks and rocks. In early 2019, the stock lost 50% of its value in a bad week.

Shareholders never know if Elon Musk will do something crazy. His tweet early in 2020 that the TSLA stock price was "too high" sent share prices into a nosedive and many people cracked and panic sold. The aftermath of his 2018 "420" tweet also shocked many shareholders.

Very few people can withstand this for many years. The volatility and pressure is too much for the average investor.

A lot of Redditors let TSLA and FOMO screw with their heads, and many paid a heavy price.

Let that be a warning.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Normchad »

meowcat wrote: Tue Sep 08, 2020 9:19 am FOMO is not the fear of missing out on some high flying stock. We all know the risk. The fear comes when we have a very close friend or family member getting rich from a high flying stock. The fear, in that case, is very, very real.
This is really it, isn’t it? I never thought about it this way, but I’m certain this is right. We don’t want to lose out, compared to others we know.

I’ll add this to my list of very good reasons to never discuss these things with people I actually know.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by lostdog »

hagridshut wrote: Tue Sep 08, 2020 7:28 pm
meowcat wrote: Tue Sep 08, 2020 9:19 am FOMO is not the fear of missing out on some high flying stock. We all know the risk. The fear comes when we have a very close friend or family member getting rich from a high flying stock. The fear, in that case, is very, very real.
I don't think people really know the risks.

The fear on Reddit was very real, with NEW retail investors piling into TSLA last week and being demolished after the bubble (and possible short squeeze) ended. Today was full of severe angst on the part of people who bought the stock out of FOMO and lost big: https://www.reddit.com/r/teslainvestors ... r_08_2020/

TSLA was down 21% today. It's down about 35% from highest close. A lot of people learned hard lessons this past week.

Owning TSLA means subjecting oneself to the mental equivalent of being kicked in the head repeatedly, and then stomped on until puking one's guts out and begging for mercy. And then being hit with sticks and rocks. In early 2019, the stock lost 50% of its value in a bad week.

Shareholders never know if Elon Musk will do something crazy. His tweet early in 2020 that the TSLA stock price was "too high" sent share prices into a nosedive and many people cracked and panic sold. The aftermath of his 2018 "420" tweet also shocked many shareholders.

Very few people can withstand this for many years. The volatility and pressure is too much for the average investor.

A lot of Redditors let TSLA and FOMO screw with their heads, and many paid a heavy price.

Let that be a warning.
I read through this discussion. Ouch!
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by 9-5 Suited »

I think there’s something to acknowledging that some people engage is riskier strategies than you are truly comfortable with, and sometimes that pays off very well for them. Boglehead principles are very logical and suit my temperament well. But for many others that’s not the case, and some of those people will end up crushing your level of wealth and others will fall well short and even end up in desperate straits. It’s not always easy to tell who is which, either. But just assume both will exist at all times. You won’t be the most successful person you know, and it’s not really an issue. It’s so easy in retrospect to know what we should have done, unfortunately.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by FrugalInvestor »

All we "miss out" on are the wild ups and downs and the expenses, and we typically come out ahead. I find that very doable.
Have a plan, stay the course and simplify, but most importantly....Ignore the Noise!
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Yinks »

I cope 3 ways:

1) Play money in a separate account less than 1% of my portfolio i can go chase after any "flavor of the day" stock. More often than not its a reminder to myself that I can't beat the market.
2) reminding myself that the top 10 holdings in Fido's total market fund account for 22% of the fund and 6 of these are FAANG. So I'm already holding tens of thousands in fancy tech stocks.
3) reminding myself that others bragging about a great stock pick they made and got rich off of is just like any other social media. You only hear from the showoffs, not "i lost my shirt" people.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Kelrex »

You can also reframe the question with respect to what it is you think you are missing out on by not having these big wins.

What is it you are wanting these missed-out-on big wins to buy for you?

Fear of missing out implies a certain degree of dissatisfaction with the present. What's missing that makes you fear missing out on what you don't have, and are there things you can do *now* to feel more satisfied?

FOMO isn't usually a rational worry about missing out on the important things in life, it's usually a warning signal that something is off and you are fearful of missing the opportunities to make your life better.

Reflect on the why of the FOMO, not so much how to squash it.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Badger1754 »

I re-read the story about the Dutch Tulip bubble...
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by ccf »

I get fomo sometimes and I have 3 strategies

1. Think about how the amount of money that I'd be willing to gamble would be so small that even a big win would not be that exciting and would definitely not be anywhere near life changing.

2. Calculate the amount of the stock that I already own (inside of total market funds) and realize that I already own enough, see #1.

3. I have a Folio account that is separate from all my other money that has a very small sum in it. It's sort of like "build your own fund" thing, I set market cap weights and and I can tinker with adding/removing individual stocks for fun.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by flaccidsteele »

Kelrex wrote: Wed Sep 09, 2020 5:46 am You can also reframe the question with respect to what it is you think you are missing out on by not having these big wins.

What is it you are wanting these missed-out-on big wins to buy for you?

Fear of missing out implies a certain degree of dissatisfaction with the present. What's missing that makes you fear missing out on what you don't have, and are there things you can do *now* to feel more satisfied?

FOMO isn't usually a rational worry about missing out on the important things in life, it's usually a warning signal that something is off and you are fearful of missing the opportunities to make your life better.

Reflect on the why of the FOMO, not so much how to squash it.
+1 this
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Re: How do Bogleheads cope with FOMO?

Post by David Jay »

nisiprius wrote: Mon Sep 07, 2020 11:32 am By sticking to a number of personal principles, that not everybody shares, but that I really do hold.
  • "Satisficing," not optimizing.
  • Knowing my personal goals, and measuring everything in an absolute way against my own goals.
  • Being in this for me, not to beat somebody else.
To some extent this runs against the cultural norm of consumerism. The main way a company can get you to switch to what they sell is by claiming that their product is better. That means they need to convince you of three things, not just one.
  1. My product is better.
  2. The difference actually matters.
  3. You must choose the best.
What do Coke and Pepsi agree on? They both agree that you need to decide which tastes best, and if it's the other one, switch.

Think about #3 long and hard. Why must you choose the best?

Quite apart from the difficulty of identifying the best, you can live a perfectly good life just saying "No thanks, I am perfectly happy with choices that probably aren't the best." If that shocks you, think about it just a little bit more. And, no, I don't mean anything about subtle personal criteria. I don't mean some intangible thing that makes the seemingly less good better for you. I mean not caring. I mean not sweating the small stuff.

If you see a penny on the sidewalk, you can choose not to pick it up. Not because you have made some interior calculation of the time it will take or the risk of overextending your shoulder and having it hurt. Just because you just don't care.

The whole goal of 99% of what you read about investing is to get you to care about and act on stuff that doesn't matter much.

I would add one note about fear of missing out. The really deadly mistake is staying out through prudence and good judgement, then getting tired of watching your friends getting rich (or saying they are getting rich) and finally giving up and jumping in.
How do I fit all that into my signature line? :confused

I think this is your second best post ever, right behind the “risk premium” one (see my signature for snippet)
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
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David Jay
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Re: How do Bogleheads cope with FOMO?

Post by David Jay »

n00b_to_investing wrote: Mon Sep 07, 2020 11:42 am Missing out on outsized gains by not indulging in the mania (FANG, Tesla, Zoom etc) and sticking to index funds
I “miss out” on the outsize gains of Powerball and Mega-Millions. The CAGR is amazing (if one wins).

Go read the Nisiprius post. If you read it, read it again (And again. Until you actually get it.)
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius
softmax
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Re: How do Bogleheads cope with FOMO?

Post by softmax »

deltaneutral83 wrote: Mon Sep 07, 2020 11:20 am By recalling what happened to big tech stocks in 2000-2001. Winning a bunch can and has gotten wiped out in one swoop before and will again. Good luck.
I was 8 at that time so unfortunately didn't have the "luck" to experience that.

How would you compare today's market to dotcom bubble?
Robot Monster
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Re: How do Bogleheads cope with FOMO?

Post by Robot Monster »

David Jay wrote: Wed Sep 09, 2020 10:54 am
nisiprius wrote: Mon Sep 07, 2020 11:32 am By sticking to a number of personal principles, that not everybody shares, but that I really do hold.
  • "Satisficing," not optimizing.
  • Knowing my personal goals, and measuring everything in an absolute way against my own goals.
  • Being in this for me, not to beat somebody else.
To some extent this runs against the cultural norm of consumerism. The main way a company can get you to switch to what they sell is by claiming that their product is better. That means they need to convince you of three things, not just one.
  1. My product is better.
  2. The difference actually matters.
  3. You must choose the best.
What do Coke and Pepsi agree on? They both agree that you need to decide which tastes best, and if it's the other one, switch.

Think about #3 long and hard. Why must you choose the best?

Quite apart from the difficulty of identifying the best, you can live a perfectly good life just saying "No thanks, I am perfectly happy with choices that probably aren't the best." If that shocks you, think about it just a little bit more. And, no, I don't mean anything about subtle personal criteria. I don't mean some intangible thing that makes the seemingly less good better for you. I mean not caring. I mean not sweating the small stuff.

If you see a penny on the sidewalk, you can choose not to pick it up. Not because you have made some interior calculation of the time it will take or the risk of overextending your shoulder and having it hurt. Just because you just don't care.

The whole goal of 99% of what you read about investing is to get you to care about and act on stuff that doesn't matter much.

I would add one note about fear of missing out. The really deadly mistake is staying out through prudence and good judgement, then getting tired of watching your friends getting rich (or saying they are getting rich) and finally giving up and jumping in.
How do I fit all that into my signature line? :confused

I think this is your second best post ever, right behind the “risk premium” one (see my signature for snippet)
This is the direct link,
viewtopic.php?p=5482011#p5482011

Now you can drop that link into any thread with wild abandon.
"Happiness comes from being connected in the right ways to: other people, your work, something larger than yourself."
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Stef
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Stef »

There is no FOMO if you are fully invested according to your risk tolerance. Everything is obvious in hind-sight. If I was into stocks, why should I have picked Tesla over Wirecard 6 months ago?
deltaneutral83
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Re: How do Bogleheads cope with FOMO?

Post by deltaneutral83 »

softmax wrote: Wed Sep 09, 2020 11:08 am
deltaneutral83 wrote: Mon Sep 07, 2020 11:20 am By recalling what happened to big tech stocks in 2000-2001. Winning a bunch can and has gotten wiped out in one swoop before and will again. Good luck.
I was 8 at that time so unfortunately didn't have the "luck" to experience that.

How would you compare today's market to dotcom bubble?
Let's see, putting your money under a mattress has been a better ROI than Cisco sine Y2K. Microsoft, one of the FAANGM darlings, and most successful companies of the last generation, didn't outpace it's large cap peers until the second half of 2018 from monies invested Y2K. My dates are of course cherry picked for horror. Valuations then were even more astronomical than they are today, but AMZN is well over 100x PE, and Tesla has yet to turn a profit. And yes, Microsoft has gone parabolic the last 24 months but it did encounter an 18.5 year stretch of market underproduction for those unlucky enough to get in at the worst time.

I am fine to assume the risk of the overall market and defer the lion's share of the risk to the Gates', Zuckerbergs',and Bezoz' (and the thousands others that went bust) of the world to catch a crumb or too off their collective hard work and the true innovation of the few that made it. Any more risk is not for me, total market provides plenty.
Last edited by deltaneutral83 on Wed Sep 09, 2020 11:28 am, edited 1 time in total.
BrooklynInvest
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by BrooklynInvest »

Three words -

Pets. Dot. Com.
flaccidsteele
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Re: How do Bogleheads cope with FOMO?

Post by flaccidsteele »

softmax wrote: Wed Sep 09, 2020 11:08 am
deltaneutral83 wrote: Mon Sep 07, 2020 11:20 am By recalling what happened to big tech stocks in 2000-2001. Winning a bunch can and has gotten wiped out in one swoop before and will again. Good luck.
I was 8 at that time so unfortunately didn't have the "luck" to experience that.

How would you compare today's market to dotcom bubble?
It was an awesome opportunity

Today feels similar but that’s not saying much

Booms are exciting because they’re followed by busts

Those who buy during booms are the ones who sell to me during the following busts
The US market always recovers. It’s never different this time. Retired in my 40s. Investing is a simple game of rinse and repeat
rixer
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by rixer »

To be completly honest, I do get jealous of a friend who has made millions of dollars from a 100k investment in Amazon. But I am not comfortable buying in now. I will just stick with my balanced fund and watch my friend remodel his lake house..... But yes, I'm jealous and wish I had done the same thing. :oops:
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FrugalInvestor
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by FrugalInvestor »

BrooklynInvest wrote: Wed Sep 09, 2020 11:27 am Three words -

Pets. Dot. Com.
And Enron.....
https://www.investopedia.com/updates/en ... l-summary/
Have a plan, stay the course and simplify, but most importantly....Ignore the Noise!
flyphotoguy
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by flyphotoguy »

Sticking to my guns and having a small % of "play" funds that would scratch that itch. I had a couple of holdings that did go to 0 and also paid for our car (cash) in those funds. This period kinda got lucky in a couple of holdings coz they both went 200% in just a year and a bit of holding but I'm not selling since we don't need the money anyways.

Learned a bit of lesson from my uncle during the Dot Com bust while I was just starting my career. He was in the market buying stocks (enron, worldcom, Sun micro, tons of Dot Com etc.) and waiting/hoping to get to 4Mil and retire, he had at least 1mil already at that point. Then the market crashed, he didn't have a plan and he was wiped out. He's still working now even at retirement age.

My thinking is, slow and steady wins the race but a bit of jog along the way might help.
Last edited by flyphotoguy on Thu Sep 10, 2020 10:07 am, edited 1 time in total.
Carol88888
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Carol88888 »

By putting 10% in what I think will do especially well. This allows me to feel I have a chance for superior returns. But my real money is indexed because I realize I could be wrong.
DesertDiva
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by DesertDiva »

I wrote an IPS and I stick to it. Then I concern myself with other activities.
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