Bottom Up Investing
Bottom-up investing is a stock selection approach that prioritizes the detailed analysis of individual companies and their shares over broader factors like the economy, market trends, or industry conditions. This strategy focuses on a company’s fundamentals—such as financial health, management quality, and growth potential—to identify undervalued or high-performing stocks. Rather than relying on macroeconomic forecasts or sector-wide patterns, bottom-up investors build portfolios from the ground up, emphasizing the unique merits of each business. It’s a meticulous, company-centric method aimed at uncovering opportunities regardless of the larger market environment.
Related Terms
Delivery Trading
Delivery trading involves buying/selling a security and settling it by taking/giving delivery. Unlike intraday trading,...
Futures and Options
Futures and options are both types of derivative contracts, meaning their value is derived from...
Acceptance Credit
Acceptance Credit is a method where buyers authorize the transfer of funds to sellers on...
Free Cash Flow
Free cash flow (FCF) in accounting and earnings reports represents the cash a company retains...
Identifiable Asset
An identifiable asset is a tangible or intangible asset that can be separately identified and...
Interest Rate Futures
Interest rate futures are derivative contracts based on interest-bearing instruments, such as bonds or loans....
