The Greater Fool Theory

The Greater Fool Theory is an investment concept suggesting that one can buy overpriced assets with the expectation of selling them to someone else (the "greater fool") at an even higher price. Essentially, it relies on the idea that there will always be someone willing to pay more, regardless of the asset's actual value. This theory often leads to speculative bubbles, where prices soar based on hype rather than fundamentals. When the greater fool ceases to appear, however, investors can be left with significant losses when prices eventually fall.