Seven FOMO Stages

A framework for understanding the emotional cycle people go through when watching others make money on trending investments, as explained through Shaan Puri's personal experience with GameStop.

The Seven Stages of FOMO

1. Initial Ignore

   • Completely disregard the investment opportunity
   • Consider it irrelevant to personal interests
   • Pay no attention to growing trends

2. Dismissive

   • Actively criticize those participating
   • Label it as "stupid" or wasteful
   • Rationalize why it won't work

3. Jealousy

   • Watch others make money
   • Feel regret for not participating earlier
   • See "dumb" decisions paying off

4. Chase/FOMO

   • Finally decide to participate
   • Buy in at potentially higher prices
   • Act based on emotional rather than rational decisions

5. Make Money or Lose Money

   • Experience the actual results
   • Feel validated or regretful
   • Question decision-making process

6. Confusion

   • Unsure about next steps
   • Question whether to stay in or exit
   • Struggle with decision-making

7. Return to Ignoring

   • Come full circle
   • Disengage from the investment
   • Move on to other opportunities

Real Example (GameStop)

• Shaan invested $100,000 during the last rally
• Made approximately 50% return
• Sold and got out
• Went back to ignoring it
• Currently resisting entering the new cycle with latest GameStop surge

Key Insight

• Even making money doesn't necessarily feel good if the decision-making process wasn't sound
• Success doesn't validate poor investment decisions
• Important to analyze decisions independent of results