The original version of this article first appeared in The Business Times. Almost a decade ago, Warren Buffett famously said in an interview: “People start being interested in something because it’s going up, not because they understand it or anything else. But the guy next door, who they know is dumber than they are, is getting rich, and they aren’t.” He added: “And their spouse is saying: ‘Can’t you figure it out, too?’ It is so contagious. So that’s a permanent part of the system.” There are, however, two types of fear of missing out (FOMO).
“Get rich overnight” FOMO
In my first experience in markets during the 2008 global financial crisis, my fear of missing out crippled my first brokerage account. From being up 400 per cent to down 90 per cent, I felt a full spectrum of emotions, from arrogance to sickness. From that experience, I knew there…
