The "bottom-up" stock selection method is to select mainly from specific listed companies. As long as you find a good company, buy it immediately and hold it in the medium and long term, regardless of short-term market fluctuations!

Its advantage is that after all, when we buy stocks, we are buying companies, not entirely buying the general trend. This kind of stock selection method was extremely brilliant in my country's bear market from 2001 to 2005 because it selected stocks such as Suning Appliances and Kweichow Moutai. !

It has become the stock selection method for many public and private equity fund managers!

Mr. Buffett's stock selection method that everyone is familiar with and admired is the "bottom-up" method!

Stick to value investing!

It’s been like this for decades!

Got a lot of rewards!

The bottom-up stock selection method mainly requires analyzing the gross profit margin, return on net assets, price-earnings ratio, etc. of listed companies, and at the same time examining the company's business model and development space.

The "top-down" stock selection method mainly starts from analyzing the macro economy and makes selections through the overall market cycle and industry characteristics. This kind of selection is not only a simple selection of listed companies, but more importantly, the selection of future stocks.

Regarding the position ratio of the market, if you think that the macroeconomic situation is not good, you will not buy even good companies and stick to the short position strategy, which seems to be more in line with the operating ideas of trend investors!

Fund managers who adopted this type of stock selection method completely outperformed the general trend in 2008 and achieved positive returns!

As the name suggests, "up" refers to a wider range of industries, while "down" naturally refers to more specific companies. Fund research will start from fundamentals. Only those industries and companies with profitability and prospects will eventually enter the stock pool.

When the stock market ebbs, we see simultaneous rises, but top-down stock selection (mainly large industries) performs better because it attracts more attention. When the stock market ebbs, it can show its true management capabilities.

of good companies (belonging to various small industries), it makes more sense to choose from the bottom up.

Bottom-up stock picking can also circumvent the "valuation pressure problem."

Investors do not need to look for the valuation center and valuation with Chinese characteristics from the macro perspective.

As long as investors look for and judge the company's profitability and management level, and then decide whether they should hold it, the stock they finally choose will have Chinese characteristics and be consistent with universal investment principles.

If you choose a large-type company, you must consider changes in profit margins, capital expenditures, new production capacity and other factors. Such companies will gain higher profits, status and advantages in the upward cycle.

For many consumer goods companies and small industries, they choose companies with management capabilities and competitive advantages.

However, bottom-up stock selection is contrary to our traditional concepts, which requires investors to be able to endure loneliness.

Because we all subconsciously have the desire to chase fashion.

Nowadays, the Chinese calendar is very popular abroad, and it is also particularly popular in the stock market. For example, Feng Shui masters say that in the "Year of the Golden Pig", you should not invest in stocks related to "gold", such as metals and finance, and in the Year of the Snake, it is unlucky to invest.

Year etc.

In addition, every once in a while, different stocks, concepts and stories are always popular in the market. For example, sometimes the Tianjin sector concept is hyped, sometimes the Olympic concept is hyped, sometimes Internet stocks are sought after, and sometimes the military industry concept occupies the front page of the media.

Most investors are also willing to follow the trend.

You can become a fashion figure by chasing fashion, but it is difficult to succeed in chasing fashion in the stock market. Being an investor does not mean chasing fashion, nor does it have to choose a certain industry. It is about understanding the ways and being able to endure loneliness.