Bottom-Up Investing is an investment strategy, whose main goal is, as in the case of Top-Down investing, to find the best performing companies on the market. The big difference between these two theories is in the approach to the strategy.
Bottom-Up Investing will degrade the importance of economic as a whole and focus only on individual stocks and companies.
The theory is based on the belief that one company can generate profits for the stockholders, even if the industry sector it is in is not performing well on the market. In order to successfully admeasure single stocks, fundamental analysis must be thoroughly done, and all of the information about the companies management, earnings, products and services must be gathered. Investor than must set acquired knowledge against fundamental information of other companies in order to find the best performing stocks to invest in.
