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Bottom_up Stock Selection

Bottom_up Stock Selection - The opposite of a bottom-up...

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BX2031:03 Personal Portfolio Management Bottom-up Stock Selection The process of structuring an equity portfolio based upon the relative attractiveness of individual companies and the analysis of their stocks. The process involves approaching investment decisions by focusing on individual securities, and picking those which are undervalued, whether in absolute terms or relative to their sector.
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Unformatted text preview: The opposite of a bottom-up strategy is the top down strategy, which focuses on the analysis of economic, sector, and market cycle data to guide stock selection. Using such a bottom-up approach implies that an investor is attempting to outperform the market, but it does not mean neglecting diversification, and requires discipline to ensure that a bottom up portfolio is well diversified....
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