Bottom-up investing

Bottom-up investing is a strategy that overlooks the significance of industry or economic factors and instead focuses on the analyses of individual stocks and companies.

The approach assumes that individual companies can perform well in an industry that isn’t doing well. If the company is strong, then macroeconomic concerns are thought to be of relatively little importance.

The bottom-up strategy therefore relies on extensive research and analysis of stocks and companies. Some investors look for firms with low p/e ratios and high earnings growth, while others look for financial stability, or seek to become familiar with the company’s products and services.

• See Tim Bennett’s video tutorial: Six numbers that every investor should know.

MoneyWeek magazine

Latest issue:

Magazine cover
In the balance

How May 2015 could hit your pocket

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Russell Napier: deflation is coming – hold on to your cash

Financial historian Russell Napier talks to Merryn Somerset Webb about the next deflationary bust – why it's coming, what it means for you, and how you can survive it.


Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


27 November 1924: Macy's first Thanksgiving Day parade

On this day in 1924, New York department store Macy's held its first Thanksgiving Day parade. It would soon become a city institution, kicking off the run-up to Christmas.