"Top-down" and "Bottom-up"

There is a saying in the Book of Changes: "Like in nature, it takes shape in the ground." "Metaphysics" means "Tao". "Image" dominates all "shapes" and "devices" on the ground. "Physical", called "device", represents everything in the world.

The "top-down" stock selection method mainly starts with the analysis of macro-economy, and makes a choice through the overall market cycle and the characteristics of the industry. This choice is not only a simple choice of listed companies, but more importantly, the position ratio of entering the market. If the macro-economy is not good, even good companies will not buy it, and it seems to be more in line with the operating ideas of trend investors! In 28, the fund managers who adopted this stock selection method completely outperformed the general trend and made positive returns.

The "bottom-up" stock selection method is to choose from specific listed companies. As long as a good company is found, it will buy it immediately and hold it for a long time, regardless of short-term market fluctuations. It is mainly necessary to analyze the gross profit margin, return on net assets, price-earnings ratio and so on of listed companies, and at the same time, it is necessary to examine the company's business model and development space.