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Investment Strategy Report Portfolio Justification Bottom Up

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Week 1 – Investment Portfolio Strategy Strategy: I will be using the bottom-up approach for my investment strategy. A Bottom up approach assumes that individual companies can do well even in an industry that is not performing very well. This is the opposite of "top-down investing". Making sound decisions based on a bottom-up investing strategy entails a thorough review of the company in question. This includes becoming familiar with the company's products and services, its financial stability and its research reports. The reason I have chosen the bottom- up approach for my strategy is simply because this approach focuses on the analysis of individual stocks. This allows me (the investor) to focus my attention on a specific company rather than on the industry in which that company operates or on the economy as a whole.

The method in which I went about putting my strategy together was quite simple. I decided to familiarize myself with the different markets in the US and Europe and looked into the different denominations in each market. I then looked in the European Market at the companies in each of the Indices (FTSE 100, DAX & STOXX50) and chose companies who wore on either making a steady profit or breaking even and aspiring to make a profit soon. I also did the same for the American market and its indices (DOW, S&P 500 and NASDAQ). I focused my attention in particular to the big and well known multinationals to invest in such as Apple and Microsoft etc as I only wanted to take risk with my bonds and minimize my risk in the share investments I made. With regards to my commodities I decided to invest in sugar and cotton because they are both selling well in the markets in comparison to the precious metals and oil and gas. I invested nothing into the banks as I’m not willing to take such a big risk in this current economic situation. Report on week 1:

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