Bottom-up investing

bottom-up investing

Making investment decisions by first focusing on individual companies. Industry analysis and economic forecasts are considered after companies of interest have been identified. Compare top-down investing.

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Bottom-up investing. When you use a bottom-up investing strategy, you focus on the potential of individual stocks, bonds, and other investments.

Using this approach, for example, means you pay less attention to the economy as a whole, or to the prospects of the industry a company is in, than you do to the company itself.

If your investing method is bottom up, you read research reports, examine the company's financial stability, and evaluate what you know about its products and services in great detail.