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The Oracle of FOMOha

The Oracle of FOMOha

| February 23, 2024

FOMO is an abbreviateon for The Fear of Missing Out. The Cambridge Dictionary says it best, “abbreviation for "fear of missing out": a worried feeling that you may miss exciting events that other people are going to, especially caused by things you see on social media.”

Warren Buffet is often times called the Oracle of Omaha. His investment style and sage advice is effective over long time periods and promoted by advisors and pundits alike. He’s lauded as the father of Buy and Hold. This value-based approach focuses on buying quality companies at a discount and ignoring hot trends.

One of my favorite quotes by Warren Buffet is, “The stock market is a device for transferring money from the impatient to the patient.”

It’s as though the Oracle of Omaha has no fear of missing out. Perhaps we should call him the Oracle of FOMOha. It’s catchy. Here’s a graphic depiction of Buffet’s patience over time.

Source

Keep in mind, Buffet’s investment style fits his risk tolerance and time horizon. It may not be right for you. The point I’m making is that a fair amount of Buffet’s cash has not participated in the recent 12 month rise in the markets. He invests with a patient set of rules that often miss out on the short term upside especially at the extremes. If you’d like to know how this can apply to your situation, click here.