The Greater Fool

The "Greater Fool" concept refers to a mindset in investing where individuals buy overvalued assets not because they believe in their true worth, but with the hope that someone else (a "greater fool") will buy them for a higher price later. It relies on the idea that, even if an asset is overpriced, its price can still increase temporarily as long as there's someone willing to pay more. This approach can lead to bubbles and crashes, since it depends on the continued availability of those willing to overpay, rather than the intrinsic value of the asset.