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Tag: valuation approaches

Two investors passing a speculative bubble in a metaphorical game, symbolizing the greater fool theory

Understanding the Greater Fool Theory: A Risky Investment Strategy

November 22, 2024 FinanceFacts101 Business Finance

Introduction to Greater Fool Theory The Greater Fool Theory, also known as ‘Greater Idiot Theory’ or simply ‘Fool Theory,’ is a risky investment approach based on the belief that investors can make profits by buying overvalued securities. According to this theory, you can sell these securities to an even more

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