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Bigger Fool TheoryThe bigger fool theory or "greater fool theory" is the belief held by one who makes a questionable investment, with the assumption that he/she will be able to sell it later to "a bigger fool"; in other words, buying something for no other reason than the belief that you will be able to sell it to some other sucker for a higher price. It is a valid method of making money in the stock market -- however, the market participants eventually realize that the price level has just gotten too outrageous and the speculative bubble pops.
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