What is the investment strategy below up?
The investment strategy from the bottom up is an example of an investment approach that is based on a very close focus. The application of this type of investment strategy is usually based on considering only such factors as the business model for the company, as well as the current configuration of the management team and the company's historical performance. Occasionally, aspects of society's growth can also be taken into account, although this is not the case. While the company's business model is being considered, it is not assessed in relation to models used by the main competitors of the corporation, or with any comparison with what is considered to be the usual business model for this particular sector. Similarly, the quality of the current managerial team is examined with regard to their performance WV of their current positions, without research in previous roles or in relation to peers in similar societies. When evaluating the performance of the company is the main focus of the investment strategy below up on how well the company made profitsA consistent foundation, but there is no attempt to compare this performance to competitors of similar size during the same time frames.
Proponents of investment strategy below usually work, assuming that there are companies that are inherently better than other companies in the same line or business and that comparison with external factors is not necessary to accurately evaluate the investment opportunity. However, the investment based on the quality of internal efficiency, past performance and general quality will gain an attractive return.
Opponents from bottom tostrategie Estment points out that this approach does not provide analysis of industry trends that could affect future performance. Also, the investment strategy from the bottom up does not require an evaluation of obsolescence for the type of products, and general economic trends that could limit the interest in goods and services provided by the company. Ofteno Investors consider these factors necessary in determining the viability of investment in any corporation.