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

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JimBeam
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Re: Need reassurance - having FOMO

Post by JimBeam »

I feel huge FOMO last weeks thanks to watching Tesla stocks price growing like crazy. Last year I was close to buying Tesla stocks worth ~10k, but I took a look at the price graph and realized, that TSLA has already took a long ride up and I have gave up the transaction. Now, looking that there could have been 100k more in my brokerage account makes me feel sick. I do own broad, global market, but TSLA is just a tiny piece of it, and that 100k would result in my portfolio getting larger by one third and retirement coming few years sooner..
paul_d_andersen
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Re: Need reassurance - having FOMO

Post by paul_d_andersen »

I have a small 'fun money' portfolio for me to dink around in. I try not to delude myself into think I can actually beat the market but it is fun and allows me to work through these sort of FOMO situations.

The simple fact is that it's highly highly unlikely you or I can beat the market over a long period of time. Just ain't gonna happen.

I've worked hard to develop conviction in my passive/indexing plan and take a zen like approach to all this noise.

My two cents are you should dink around in name's like Tesla for small money if you must but remember the bigger picture. Stick to the plan! It's hard and something I'm still working on!
Asset Allocation: Stocks 50% | Real Estate 20% | Cash 10% | VC 7.5% | Micro PE 5% | Bonds 5% | Crypto 2.5%
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hagridshut
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Re: Need reassurance - having FOMO

Post by hagridshut »

HomerJ wrote: Tue Nov 24, 2020 11:02 am The difference between "mental pressure" from a crashing stock and a crashing market is pretty big. There is a real risk with an individual stock that it will go down, and stay down, or even go bankrupt. Individual companies don't win forever.

A new competitor shows up, and your chosen stock goes down 50%, and maybe the right thing to do is sell.

So far, selling has never been the right thing to do with the broad market, but knowing when to sell a failing stock is an ESSENTIAL part of the skill of stock-picking.

It's not the "mental pressure" of "I just need to hold on and everything should be okay in the long-run". It's the "mental pressure" of "Things change for individual stocks. It may indeed be time to sell this one... Or maybe not. How to know?!!!"
I agree with this.

Owning individual stocks means having to watch that investment with great attention. That means following every bit of news, reading quarterly reports and SEC filings, and also keeping on top of industry trends and competition.

The time to sell shares in a company, I think, is when one is no longer confident in that company's ability to both innovate and stay on top of the market. An example I often use is Intel, which became stagnant in the early 2010's, and failed to capitalize on the growing market for mobile device chips and Machine Learning chips. While Intel tried to develop products and made some acquisitions to patch this weakness, they were never able to ride the wave like nVidia.

While nVidia is currently king of Machine Learning, they too, are now facing an unlikely rival in Tesla, which has developed its own Deep Learning architecture for Neural Net processing and training.

I took my tax-free gains and got out. NVDA probably bought me a substantially earlier retirement date, but I got more than a few gray hairs from the 2018-2020 slump.
First Principles: (1) Diversify (2) Low Cost (3) Stay the Course | 3-Fund Index Portfolio
Fallible
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Re: Need reassurance - having FOMO

Post by Fallible »

Jimsad wrote: Mon Nov 23, 2020 6:37 am I invest in broad index funds and have gotten about 7-8% returns over last 10 years
Have resisted the temptation to invest in individual stocks but when I hear things like 10k invested in Tesla in 2011 is now worth 850k and I see Moderna , bitcoin etc. surging, I am having second thoughts
Should I invest in individual stocks too to some extent ?
-If you have the money (i.e., enough to afford to lose);
-if you can emotionally tolerate the extra risk with patience and discipline;
-if you can take the time to research stocks and then buy low;
-if you can appreciate the enormous role luck will play in all of this;
-and if all that is sufficient to scratch the FOMO itch,
-then take 5% of your portfolio and try it.
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
aristotelian
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Re: Need reassurance - having FOMO

Post by aristotelian »

Try picking the 5-10 stocks you would want to invest in right now. Track them for a couple months. There is a high likelihood that even with a relatively small number of stocks there will be losers to cancel out the winners. Unless you are willing to throw a lot of money at one or two stocks, you will see it is a lot of work for not much reward. If you feel like you can handle the volatility and it might be worth it, maybe throw 1% of your portfolio at it. I would be lying if I said I was invested 100% in index funds.
abc132
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Re: Need reassurance - having FOMO

Post by abc132 »

If you got 7-8% returns over the last 10 years, you didn't miss out on anything.

The plan that was "good enough" 10 years ago has done excellent.

Fear of missing out leads to fear of losing money, which leads to an average 2% under performance of your current plan.

As an investor, do you want a plan with 2% worse average returns and higher risk?
Scooter57
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Re: Need reassurance - having FOMO

Post by Scooter57 »

The issue with owning Tesla in your Total Stock Market fund is that it is less than 1% of the fund, now, when it has made that ridiculous price gain. So the $30 worth of Tesla stock your $10,000 investment in the Total Stock Market Fund bought is now worth fourteen times as much, but it is still only a gain of $390 for every $10,000 you invested.

If you bought just $5,000 worth of the individual stock it would be worth $70,000 for a gain of $65,000.

And your profits in Total Stock Market are decreased by all the oil companies and struggling retailers you bought larger shares of at the same time you bought a cheaper Tesla. So it pretty much comes out a wash.

I used to stare at the price of Amazon and think "That's just plain crazy. The company makes no profit." Now I look at the price of Tesla and think, "That's just plain crazy. All the other car makers are making EVs too, and it's too cold drive a battery powered car very far in the Winter in the snowy north." So it probably will just keep going up.
vas
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Re: Need reassurance - having FOMO

Post by vas »

Scooter57 wrote: Tue Nov 24, 2020 4:54 pm If you bought just $5,000 worth of the individual stock it would be worth $70,000 for a gain of $65,000.
... it probably will just keep going up.
So, the key is picking the one that's going to go up a lot, right?
There is nothing you can't prove if your outlook is sufficiently limited
softmax
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Re: Need reassurance - having FOMO

Post by softmax »

sjl333 wrote: Tue Nov 24, 2020 12:30 am I am no market genius, still feel like a newb, but I would pose the question - could SP500 indexing be a bit outdated?
Indexing is simply an algorithm, an adaptive one. I wouldn't call an algorithm "outdated" but there could be better ones.

The general idea of buying the haystack sounds solid to me. The only thing I'm not too sure about is whether it has to be cap-weighted, which doesn't seem to be robust to outliers.
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F150HD
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Re: Need reassurance - having FOMO

Post by F150HD »

gregwils wrote: Mon Nov 23, 2020 8:47 am AMT stayed independent and is now at $232. Yep, my position would have been about $3.5M.
5 finger gut punch there. how do ya sleep at night?
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MortgageOnBlack
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Re: Need reassurance - having FOMO

Post by MortgageOnBlack »

Definitely kicking myself for not going all in on TSLA since 2011... of course, hindsight is 2020
BNAIBOA
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Re: Need reassurance - having FOMO

Post by BNAIBOA »

The big argument for index funds is low cost. Now there is no cost transaction. Is that going to change the value of investing in index funds?
softmax
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Re: Need reassurance - having FOMO

Post by softmax »

BNAIBOA wrote: Wed Nov 25, 2020 12:44 pm The big argument for index funds is low cost. Now there is no cost transaction. Is that going to change the value of investing in index funds?
I think the major value of index funds is diversification. You could do that on your own but IMO it’s no different than becoming an active fund manager other than saving the fees. Most active fund managers can’t beat the market in the long run. Also, selling and buying shares frequently is a lot less tax efficient.
The only possibly “better” way is to hold a large amount of individual stocks without too much diversification. This can make you rich in a short period of time but can also make you work till death. Again, there are many low price unicorn stocks out there and everyone has a chance, *now*. In hindsight, there are many ways to justify the price of any stock that has been doing well.
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White Coat Investor
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Re: Need reassurance - having FOMO

Post by White Coat Investor »

Jimsad wrote: Mon Nov 23, 2020 6:37 am I invest in broad index funds and have gotten about 7-8% returns over last 10 years
Have resisted the temptation to invest in individual stocks but when I hear things like 10k invested in Tesla in 2011 is now worth 850k and I see Moderna , bitcoin etc. surging, I am having second thoughts
Should I invest in individual stocks too to some extent ?
I bought Tesla in 2011. I have enjoyed owning it ever since.

The fun part about being an index fund investor is you can say this about every winning stock there ever is. I bought it earlier and at a lower price than any of these "stock pickers."
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course
checkyourmath
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Re: Need reassurance - having FOMO

Post by checkyourmath »

Spend a week reading about Jim Simons. Your FOMO will just be replaced with fear. There is always going to be someone making more money. Jimmy was down this year significantly and he has a giant room full of Phds and some form of artificial intelligence. In 2008 he returned about 100% when people were losing their livelyhood.

I always think about it this way Lebron James is just waiting for you on the playground. First one to ten wins!
BNAIBOA
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Re: Need reassurance - having FOMO

Post by BNAIBOA »

checkyourmath wrote: Wed Nov 25, 2020 4:21 pm Spend a week reading about Jim Simons. Your FOMO will just be replaced with fear. There is always going to be someone making more money. Jimmy was down this year significantly and he has a giant room full of Phds and some form of artificial intelligence. In 2008 he returned about 100% when people were losing their livelyhood.

I always think about it this way Lebron James is just waiting for you on the playground. First one to ten wins!
Artificial intelligence had never experienced a pandemic before. It has performed poorly this year.

I used to think you can’t beat the index funds. The big change for me is the way we get information nowadays. Big news is often posted on Twitter and Reddit in a matter of seconds.
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HomerJ
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Re: Need reassurance - having FOMO

Post by HomerJ »

BNAIBOA wrote: Wed Nov 25, 2020 5:04 pm
checkyourmath wrote: Wed Nov 25, 2020 4:21 pm Spend a week reading about Jim Simons. Your FOMO will just be replaced with fear. There is always going to be someone making more money. Jimmy was down this year significantly and he has a giant room full of Phds and some form of artificial intelligence. In 2008 he returned about 100% when people were losing their livelyhood.

I always think about it this way Lebron James is just waiting for you on the playground. First one to ten wins!
Artificial intelligence had never experienced a pandemic before. It has performed poorly this year.

I used to think you can’t beat the index funds. The big change for me is the way we get information nowadays. Big news is often posted on Twitter and Reddit in a matter of seconds.
I worked for a HFT (High-Frequency Trading) firm for 5 years (as an IT guy, not a trader, but I learned a lot). They're faster than you.
A Goldman Sachs associate provided a variety of detailed explanations, but then offered a caveat, “If I’m being dead-### honest, though, nobody knows what’s really going on.”
BNAIBOA
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Re: Need reassurance - having FOMO

Post by BNAIBOA »

HomerJ wrote: Wed Nov 25, 2020 5:34 pm
BNAIBOA wrote: Wed Nov 25, 2020 5:04 pm
checkyourmath wrote: Wed Nov 25, 2020 4:21 pm Spend a week reading about Jim Simons. Your FOMO will just be replaced with fear. There is always going to be someone making more money. Jimmy was down this year significantly and he has a giant room full of Phds and some form of artificial intelligence. In 2008 he returned about 100% when people were losing their livelyhood.

I always think about it this way Lebron James is just waiting for you on the playground. First one to ten wins!
Artificial intelligence had never experienced a pandemic before. It has performed poorly this year.

I used to think you can’t beat the index funds. The big change for me is the way we get information nowadays. Big news is often posted on Twitter and Reddit in a matter of seconds.
I worked for a HFT (High-Frequency Trading) firm for 5 years (as an IT guy, not a trader, but I learned a lot). They're faster than you.
If they are faster (and I am assuming better), then why are they struggling this year?
michaeljc70
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Re: Need reassurance - having FOMO

Post by michaeljc70 »

As others said, there is probably not much harm in giving it a try with a small percent of your portfolio.

The problem becomes when do you buy and when do you sell? Tesla has a PE of 1100 now. The problem I've had (other than picking some bad performing stocks) is selling the good ones too early. When a stock doubles in a short period of time, I think a bird in the hand. I cannot imagine I would have ever held Tesla from 2011 to now. I sold Netflix and Apple years ago. I don't buy individual stocks anymore. Yes, if you hit a moonshot stock and hold it a long time, it will have a big impact on your portfolio. If you invest 5% in individual stocks and they do a little better than the indexes it won't make a dent in performance.

I sleep much better not having to think about which stocks to buy and when to sell them. Selling a stock if you make 300% and then it goes on to go up 800% more doesn't make you feel good even though you picked a winner. And that isn't accounting for losers.
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cheese_breath
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Re: Need reassurance - having FOMO

Post by cheese_breath »

For those who missed out on Tesla did you also miss out on Enron, WorldCom, Global Crossing, and many others?
The surest way to know the future is when it becomes the past.
UpperNwGuy
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Re: Need reassurance - having FOMO

Post by UpperNwGuy »

Many people like to gamble. Some of them win. More of them lose. I don't like to gamble, so I stick to index funds. I don't worry about missing out.
Silverado
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Re: Need reassurance - having FOMO

Post by Silverado »

BNAIBOA wrote: Wed Nov 25, 2020 5:42 pm
HomerJ wrote: Wed Nov 25, 2020 5:34 pm
BNAIBOA wrote: Wed Nov 25, 2020 5:04 pm
checkyourmath wrote: Wed Nov 25, 2020 4:21 pm Spend a week reading about Jim Simons. Your FOMO will just be replaced with fear. There is always going to be someone making more money. Jimmy was down this year significantly and he has a giant room full of Phds and some form of artificial intelligence. In 2008 he returned about 100% when people were losing their livelyhood.

I always think about it this way Lebron James is just waiting for you on the playground. First one to ten wins!
Artificial intelligence had never experienced a pandemic before. It has performed poorly this year.

I used to think you can’t beat the index funds. The big change for me is the way we get information nowadays. Big news is often posted on Twitter and Reddit in a matter of seconds.
I worked for a HFT (High-Frequency Trading) firm for 5 years (as an IT guy, not a trader, but I learned a lot). They're faster than you.
If they are faster (and I am assuming better), then why are they struggling this year?
You seem to just want to start some sort of argument. Are you saying that since 'they' are struggling this year, that you are better because you have a Twitter account?

It’s been said over and over in this thread, some win, most lose.
stimulacra
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Re: Need reassurance - having FOMO

Post by stimulacra »

I have a "fun account" for individual stocks. I still get FOMO. There's always something better you didn't choose or the "sure thing" that tanked.

Mostly the fun account makes me thankful that I'm mostly invested in index funds.
BNAIBOA
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Re: Need reassurance - having FOMO

Post by BNAIBOA »

Silverado wrote: Wed Nov 25, 2020 7:13 pm
BNAIBOA wrote: Wed Nov 25, 2020 5:42 pm
HomerJ wrote: Wed Nov 25, 2020 5:34 pm
BNAIBOA wrote: Wed Nov 25, 2020 5:04 pm
checkyourmath wrote: Wed Nov 25, 2020 4:21 pm Spend a week reading about Jim Simons. Your FOMO will just be replaced with fear. There is always going to be someone making more money. Jimmy was down this year significantly and he has a giant room full of Phds and some form of artificial intelligence. In 2008 he returned about 100% when people were losing their livelyhood.

I always think about it this way Lebron James is just waiting for you on the playground. First one to ten wins!
Artificial intelligence had never experienced a pandemic before. It has performed poorly this year.

I used to think you can’t beat the index funds. The big change for me is the way we get information nowadays. Big news is often posted on Twitter and Reddit in a matter of seconds.
I worked for a HFT (High-Frequency Trading) firm for 5 years (as an IT guy, not a trader, but I learned a lot). They're faster than you.
If they are faster (and I am assuming better), then why are they struggling this year?
You seem to just want to start some sort of argument. Are you saying that since 'they' are struggling this year, that you are better because you have a Twitter account?

It’s been said over and over in this thread, some win, most lose.
This is 2020. Everyone can get fast, updated information. You will be surprised at not only the speed of information but also the analysis of information. What information does a banker have that you don’t have? He is staring at a computer screen, just like you.
snailderby
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Re: Need reassurance - having FOMO

Post by snailderby »

Jimsad, I hope you don't take this the wrong way, because I'm talking to myself too, but recently, I've come to realize that a lot of my "FOMO" is nothing more than greed. I have enough already. I just want more. Maybe you're different. But just throwing that out there for what it's worth.
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F150HD
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Re: Need reassurance - having FOMO

Post by F150HD »

Gordon Gekko - "Greed is good" :moneybag
simba1
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by simba1 »

I FOMO'd today.

I can't believe it. All of my friends have been showing me their stocks of $TSLA or having "DIAMOND HANDS"

I thought my portfolio allocation was off or I was not doing something right (I'm 100% Vanguard - split between VTI / VT).

I was just fed up with seeing a bunch of zero profit companies going up 2x on fluff news. They were many times I paper traded EV stocks or whatever "hot flavor stock there was" and said if only I put 50K I would be up to 100K in 1 day. I then remembered all my other losses over the last 10+ years and always refrained myself from doing so. This Monday, another stock I "paper traded" went up another 2x. I just had enough of it.

To hell with risk management, portfolio allocation, and high quality stocks I told myself.

I decided to buy $ZM pre-market, and doubled down 4x as I told myself I had "diamond hands".

Lost $600 in about 5 minutes. Sold at a loss (did not diamond hand and thankfully saved myself from digging myself into a much bigger financial hole)

Immediate immediate immediate regret as the price pierced through my mental stop loss and I quickly sold first thing at open.

I then quickly looked at top movers and bought 1000 shares of another trendy stock. I was realizing I was on tilt and immediately got out of the position.

I realized I don't have diamond hands after all. I also don't have the temperament for individual stocks (I was pretty comfy in March with a -34% dip in the Index).

Lesson learned.
retire2022
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Re: Need reassurance - having FOMO

Post by retire2022 »

op

there is a similar discussion here viewtopic.php?f=10&t=324928
barnaclebob
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Re: Need reassurance - having FOMO

Post by barnaclebob »

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Last edited by barnaclebob on Tue Dec 01, 2020 12:35 pm, edited 2 times in total.
newguy123
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Re: Need reassurance - having FOMO

Post by newguy123 »

nguy44 wrote: Mon Nov 23, 2020 8:10 am
Jimsad wrote: Mon Nov 23, 2020 6:37 am I invest in broad index funds and have gotten about 7-8% returns over last 10 years
Have resisted the temptation to invest in individual stocks but when I hear things like 10k invested in Tesla in 2011 is now worth 850k and I see Moderna , bitcoin etc. surging, I am having second thoughts
Should I invest in individual stocks too to some extent ?
Always remember that the "winners" will be heavily publicized and bragged about by those who got lucky, but no one (which is a larger group) will ever brag about losing large amounts in individual stocks.

It is find to set aside some money (in my opinion 1%-5%, depending on your level of risk tolerance) to play with invest stocks. But better to look at it as "gambling money", and assess how would you feel if you lost all or most of it. If you can tolerate that, fine.

My individual stocks are about 1.5% of my investments.
I lost 30% of my net worth this year and I talk about it. More so because if I don't, I feel like the money lost would be worth nothing to me. It is a expensive lesson that I would like to share imo
Would I rather relax and make money or make money and relax ?
Firemenot
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Firemenot »

There’s been a lot of these FOMO threads of late. What gives? I’m personally quite happy with how much my index portfolio has appreciated in recent days.
simba1
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by simba1 »

Firemenot wrote: Tue Dec 01, 2020 12:20 pm There’s been a lot of these FOMO threads of late. What gives? I’m personally quite happy with how much my index portfolio has appreciated in recent days.
Because all the novice investors are flocking to $TSLA and diamond handing stocks with no positive cash flow / earnings and making a killing.

Literally Tesla 1-year returns is up more than the S&P 500 over the last 25 years.
barnaclebob
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Re: Need reassurance - having FOMO

Post by barnaclebob »

vas wrote: Tue Nov 24, 2020 10:12 am
sjl333 wrote: Tue Nov 24, 2020 12:30 am The very simple argument that I would make on why the SP500 index could be possibly outdated is simply this: The pace of technological innovation is occurring at such a rapid rate, we have EVs, Self-driving, AI/Machine learning, Space Exploration, Gene Editing / CRISPR as well as other high-tech fields coming into play, creating new industries (e.g. EVs) and disrupting the old way of doing things. The companies that innovate the fastest will tend to dominate the market (e.g. Tesla / Nio / NVIDIA / AMD), while leaving the companies that do not innovate in the dust.
This is eerie; are you actually me in 1998?
Are you my great great grandpa in the 1920's?
newguy123
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Re: Need reassurance - having FOMO

Post by newguy123 »

barnaclebob wrote: Tue Dec 01, 2020 12:24 pm
vas wrote: Tue Nov 24, 2020 10:12 am
sjl333 wrote: Tue Nov 24, 2020 12:30 am The very simple argument that I would make on why the SP500 index could be possibly outdated is simply this: The pace of technological innovation is occurring at such a rapid rate, we have EVs, Self-driving, AI/Machine learning, Space Exploration, Gene Editing / CRISPR as well as other high-tech fields coming into play, creating new industries (e.g. EVs) and disrupting the old way of doing things. The companies that innovate the fastest will tend to dominate the market (e.g. Tesla / Nio / NVIDIA / AMD), while leaving the companies that do not innovate in the dust.
This is eerie; are you actually me in 1998?
Are you my great great grandpa in the 1920's?
Are you my uncle buying 8 houses with 0 income in 2007?
Would I rather relax and make money or make money and relax ?
simba1
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Re: Need reassurance - having FOMO

Post by simba1 »

sjl333 wrote: Tue Nov 24, 2020 12:30 am The very simple argument that I would make on why the SP500 index could be possibly outdated is simply this: The pace of technological innovation is occurring at such a rapid rate, we have EVs, Self-driving, AI/Machine learning, Space Exploration, Gene Editing / CRISPR as well as other high-tech fields coming into play, creating new industries (e.g. EVs) and disrupting the old way of doing things. The companies that innovate the fastest will tend to dominate the market (e.g. Tesla / Nio / NVIDIA / AMD), while leaving the companies that do not innovate in the dust.

The S&P 500 is an index - and that is all.

It's not outdated.

If you want tech exposure you can buy the Nasdaq 100 or buy some derivative of this.

They'll be plenty of index that outperform the S&P 500 going forward.

Having had a career in finance, I can tell you that valuation still matters. This whole market is valuing companies on P/S...

It can't last forever. Eventually cash flow is king, and companies with no cash flow (or companies that will never make cash flow) will be re-rated lower. Investors will lose.

This literally happens every year. Looks like the new RH crowd is in for a treat.
Firemenot
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Firemenot »

simba1 wrote: Tue Dec 01, 2020 12:23 pm
Firemenot wrote: Tue Dec 01, 2020 12:20 pm There’s been a lot of these FOMO threads of late. What gives? I’m personally quite happy with how much my index portfolio has appreciated in recent days.
Because all the novice investors are flocking to $TSLA and diamond handing stocks with no positive cash flow / earnings and making a killing.

Literally Tesla 1-year returns is up more than the S&P 500 over the last 25 years.
I haven’t done the calculation but since 70 percent of my investments are in total US market index funds I bet I’ve made a lot of money off Tesla. Good enough for me.
H-Town
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by H-Town »

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).
.... I never have FOMO ...

100% invested in a carefully crafted AA and investment planning.

No regrets.
No fear.
Just pure enjoyment when plan is coming together.
retire2022
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Re: Need reassurance - having FOMO

Post by retire2022 »

newguy123 wrote: Tue Dec 01, 2020 12:19 pm
I lost 30% of my net worth this year and I talk about it. More so because if I don't, I feel like the money lost would be worth nothing to me. It is a expensive lesson that I would like to share imo
I commiserate your lost. I too lost 600K on paper, but the 32 years of experience having gone through several crashes, I have white knuckled it for dear life and always come out on top.

Since March 23, 2020 I have recovered that lost.

I used the power of compound interest and time, which I have on many occasions, my total contributions is approximately 600K, between 457 and Roth IRA currently puts me in the 2 comma club.

I have a safe government job with benefits and still working, which allows me to take greater risk.

The point is do nothing works if one is in accumulation stage and long on investing, good luck.
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Re: Need reassurance - having FOMO

Post by newguy123 »

retire2022 wrote: Tue Dec 01, 2020 12:41 pm
newguy123 wrote: Tue Dec 01, 2020 12:19 pm
I lost 30% of my net worth this year and I talk about it. More so because if I don't, I feel like the money lost would be worth nothing to me. It is a expensive lesson that I would like to share imo
I commiserate your lost. I too lost 600K on paper, but the 32 years of experience having gone through several crashes, I have white knuckled it for dear life and always come out on top.

Since March 23, 2020 I have recovered that lost.

I used the power of compound interest and time, which I have on many occasions, my total contributions is approximately 600K, between 457 and Roth IRA currently puts me in the 2 comma club.

I have a safe government job with benefits and still working, which allows me to take greater risk.

The point is do nothing works if one is in accumulation stage and long on investing, good luck.
Thanks, wow congrats, I am still trying to do an active portfolio, giving it one more year before I turn in the badge and will go passive with a boglehead portfolio.
Would I rather relax and make money or make money and relax ?
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Re: Need reassurance - having FOMO

Post by cheese_breath »

simba1 wrote: Tue Dec 01, 2020 12:31 pm
sjl333 wrote: Tue Nov 24, 2020 12:30 am ....They'll be plenty of index that outperform the S&P 500 going forward....
Some that do and some that don't.
The surest way to know the future is when it becomes the past.
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Re: Need reassurance - having FOMO

Post by retire2022 »

newguy123 wrote: Tue Dec 01, 2020 12:53 pm
Thanks, wow congrats, I am still trying to do an active portfolio, giving it one more year before I turn in the badge and will go passive with a boglehead portfolio.
If you are patient it all "regress to the mean", which is the key to Burton Malkiel Random Walk on wall street, the father of passive indexing.

see link video:

https://www.investopedia.com/terms/r/ra ... theory.asp
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by LadyGeek »

I moved Jimsad's thread into the on-going discussion. The combined thread is in the Investing - Theory, News & General forum (general discussion)
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Re: Need reassurance - having FOMO

Post by Carol88888 »

checkyourmath wrote: Wed Nov 25, 2020 4:21 pm Spend a week reading about Jim Simons. Your FOMO will just be replaced with fear. There is always going to be someone making more money. Jimmy was down this year significantly and he has a giant room full of Phds and some form of artificial intelligence. In 2008 he returned about 100% when people were losing their livelyhood.

I always think about it this way Lebron James is just waiting for you on the playground. First one to ten wins!
And he's down over 30% this year. Just shows you how difficult this game is to beat year in and year out. If Jim Simons can't do it, can you?
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Re: Need reassurance - having FOMO

Post by checkyourmath »

Carol88888 wrote: Tue Dec 01, 2020 3:28 pm
checkyourmath wrote: Wed Nov 25, 2020 4:21 pm Spend a week reading about Jim Simons. Your FOMO will just be replaced with fear. There is always going to be someone making more money. Jimmy was down this year significantly and he has a giant room full of Phds and some form of artificial intelligence. In 2008 he returned about 100% when people were losing their livelyhood.

I always think about it this way Lebron James is just waiting for you on the playground. First one to ten wins!
And he's down over 30% this year. Just shows you how difficult this game is to beat year in and year out. If Jim Simons can't do it, can you?
Of course I can beat Jim I have better artificial intelligence at my house and I have all my friends sign an NDA before we start working everyday. I know that is a bad joke but I don't feel like I need to participate right now if the greatest manager of all time is getting slaughtered. I am fine with watching and waiting especially since inflation is 0.06%. I missed out on an amazing bull run during the worse recession of my life, my parents' lives, and my grandparents' lives. I think it is better to just have fear right now than FOMO.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by JD2775 »

I never have FOMO, I consider myself lucky. I would be really, really upset I think if I tried to pick stocks and lost a bunch of money. I'd probably try and double down on some other stock to make up for it and would lose even more money..... I would consider that 100% self-inflicted. If I lose a bunch of money in my index funds, oh well, it's not my fault. I just ride along with it, knowing it will eventually go up again.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by rockstar »

I have 5% fun money put into TQQQ. It's good enough for me.
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by Random Musings »

Even if you get in early, the reality is that even the big winners like AAPL, AMZN etc.. have serious downside moves at times. So, if you hold a serious position in one of those stocks, it takes fortitude to hold on to the entire position during a large correction. It is also mentally difficult to hold the entire position as gains become tremendous and not sell some, or all, of the position.

When you look at Tesla, I wonder what the average holding period is for that stock during the run up?

RM
I figure the odds be fifty-fifty I just might have something to say. FZ
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Re: How do Bogleheads cope with FOMO? [Fear Of Missing Out]

Post by abuss368 »

It has become easier over the years. I tune out the market noise and “experts” and simply own total market index funds.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Need reassurance - having FOMO

Post by abuss368 »

retire2022 wrote: Tue Dec 01, 2020 12:41 pm
newguy123 wrote: Tue Dec 01, 2020 12:19 pm
I lost 30% of my net worth this year and I talk about it. More so because if I don't, I feel like the money lost would be worth nothing to me. It is a expensive lesson that I would like to share imo
I commiserate your lost. I too lost 600K on paper, but the 32 years of experience having gone through several crashes, I have white knuckled it for dear life and always come out on top.

Since March 23, 2020 I have recovered that lost.

I used the power of compound interest and time, which I have on many occasions, my total contributions is approximately 600K, between 457 and Roth IRA currently puts me in the 2 comma club.

I have a safe government job with benefits and still working, which allows me to take greater risk.

The point is do nothing works if one is in accumulation stage and long on investing, good luck.
:sharebeer
John C. Bogle: “Simplicity is the master key to financial success."
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Re: How do Bogleheads cope with FOMO?

Post by abuss368 »

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 would think a technology focused sector fund has stressed many investors in terms of missing out. The past 10 years have been all about US technology.
John C. Bogle: “Simplicity is the master key to financial success."
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