
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
Demat Account
A Dematerialized (Demat) account is an electronic account used to store shares, exchange-traded funds (ETFs),...
Investment Guidance Regular
One of the main advantages of regular mutual fund plans is the investment guidance provided...
Interest Rate Risk
Interest rate risk is the potential drop in a fixed income security’s value due to...
Beta Coefficient
The Beta coefficient measures a stock’s volatility relative to the market, aiding investors in assessing...
Dividend Per Share
Dividend per share (DPS) measures the dividend amount distributed per share, calculated as DPS =...
Income Statement
An income statement is a key financial document detailing a company’s profit, loss, revenue, expenses,...