The Greater Fool Theory
Written 2/18/2024.
While I was at the You Powered Symposium, David Salzman mentioned the “Greater Fool Theory” whereby someone is always willing to pay a higher price for an already overpriced good.
There are dozens of examples from reality, one of the earliest being the tulip debacle in Holland in the 1630s to dot.com bubbles and many more. The art world had been called this, when a person overpays for an already overvalued piece of art.
The question is where am I “overpaying” in my own life? Is there something that I’m holding on to where my perceived value is actually more than it’s worth?
I don’t know.
Are you pursuing something because others want it or because it resonates with you?