How should you research stocks?

In the previous story, we mentioned the characteristics of various market-cap categories. This story lays out how to research a company. Bottom-up and top-down investing are basically two different ways to pick investments. While the former directly looks at individual companies, the latter first looks at various economic indicators and industry opportunities and then picks companies. Top-down investing This requires you to examine various macroeconomic factors and/or sectoral factors to understand some cycles or trends that would benefit some sector(s) and, in turn, a few companies. These factors include but are not limited to, interest rates, inflation, commodity prices, gross domestic product, excess/shortage of supply, etc. Successful in

This article was originally published on July 29, 2022.