What is the Greater Fool Theory？

What is The Greater Fool Theory? And how to avoid being a greater fool? Find out in this video. The Greater fool theory is a popular theory in the investing world which many people follow ‘unknowingly’. This theory states that it is possible to make profits by purchasing assets (which may be over-priced) and selling it to another person (a bigger or greater fool) who is willing to pay even a higher price for that asset.