Bottom-Up is an investment approach that determines effectiveness of investments based on analysis of individual stocks. The investor taking up this approach will focus on a specific company instead of focusing on the industry/market as a whole. This approach enables individual companies to perform well despite being in an industry which isn’t doing well overall. This approach is opposite of ‘top-down investing’ where investors focus on industry as a whole.
Investors using this approach will become familiar will company products, services, finances and stability.