Difference between bottom up and top down

1, the concept: bottom-up is the method of stock selection from individual stocks to the board, while top-down is the method of stock selection from the board to individual stocks.

2, investment method: bottom-up is a short-term stock selection method, suitable for short-term investors, top-down is a long-term stock selection method, suitable for long-term investors.

3. Strategy: Bottom-up investment strategies rely on individual stock-based investment strategies, while top-down investment strategies usually place less emphasis on balancing assets across sectors.

4, the problem-solving approach: bottom-up in the problem solving without an initial outline, first solve the local problem, and then in the combination of various local solutions to solve the final problem. Top-down is first outlined to solve the problem of the outline, and then according to this outline in the problem is subdivided, and gradually solve the problem.