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
Expense Ratios Direct
Direct mutual fund plans have a lower expense ratio compared to regular plans because they...
Donchian Channels
A Donchian Channel is a technical indicator showing the range between an upper band (highest...
Leverage In Stock Market
Leverage is a loan provided by a broker, enabling traders to hold larger positions with...
Commodity Options
A commodity option is a type of derivative contract that gives the buyer or seller...
Dividend Per Share
Dividend per share (DPS) measures the dividend amount distributed per share, calculated as DPS =...
Deferred Tax Liability
Deferred tax liabilities stemming from temporary differences—when an liability is recorded on the balance sheet...
