Mogo Launches “Buffett Mode” to Combat FOMO-Driven Trading

Mogo, a prominent Canadian brokerage firm, has announced the launch of “Buffett Mode,” a new feature designed to address the prevalent issues in today’s retail trading environment, which is heavily influenced by gamified platforms that encourage FOMO (fear of missing out)-driven investment behavior.

The company aims to reduce losses among investors who engage in frequent and speculative trading, a trend that has been exacerbated by the self-directed investing industry.

David Feller, Founder and CEO of Mogo, highlighted the issues with current investment trends: “The meme stock craze is a clear example of the problem we’re tackling. Investors are misled into believing that a FOMO-driven approach will yield high returns, which is far from the truth. In reality, many investors lose money, and the majority would benefit more from investing in the S&P 500. Most trading apps resemble gambling platforms because they profit more from encouraging frequent trades. ‘Buffett Mode’ is designed to gamify patient, long-term investing based on Warren Buffett’s principles.”

Key Features of the Mogo App

Inspired by Warren Buffett’s investment strategy, this feature aims to help users invest by buying shares below their intrinsic value. “Buffett Mode” encourages users to reduce trading and speculation, focusing on making more thoughtful decisions when buying or selling stocks.

The app leverages behavioral science to promote long-term investing and minimize speculative behavior. It includes a “Build Your Legacy” calculator to motivate investors to focus on long-term wealth-building strategies rather than quick-profit schemes.

Mogo has intentionally omitted features that drive speculation, such as margin and options trading, to help users improve their investment returns.

Reflecting Warren Buffett’s belief that “The more you learn, the more you earn,” the app integrates educational content to enhance users’ investment knowledge.

Inspired by Charlie Munger’s philosophy, “show me the incentive and I’ll show you the outcome,” Mogo offers a $15/month subscription model that aligns the company’s economic interests with user success. This model includes zero commission fees and no added FX charges, regardless of the number of trades made.

Mogo users contribute to replanting Canadian forests affected by wildfires. To date, the community has planted approximately 3 million trees, reflecting Warren Buffett’s philanthropic spirit.