Greetings again from the sunny island of Malta!

Sorry to ask a really dumb question, but if you don't ask, you'll never learn, correct?

I think I understand the caption, inasmuchas Top Down would be say, North America then Computer Software Manufacturers then Microsoft, right?  But is bottom up the reverse, ie Microsoft then Computer Software Manufacturers then North America?  What's the point of the latter?  If I wanted to invest in a IT ETF, I can see the benefits of a top down philosophy (erm, I think), but why would I want to invest in such a wide ETF as the bottom up approach would give me?

Or am I talking nonsense please?

Thanks,

Mario

bottom-up

Definition

An investment strategy in which companies are considered based simply on their own merit, without regard for the sectors they are part of or the current economic conditions. A person following this strategy will be looking very closely at the company's management, history, business model, growth prospects and other company characteristics: he or she will not be considering general industry and economic trends and then extrapolating them to the specific company. Followers of this strategy believe that some companies are superior to their peer groups, and will therefore outperform regardless of industry and economic circumstances. The purpose of bottom-up investing is to identify such companies. opposite of top-down.    -Investorwords

Chamois, a really useful reply - thanks a million!

Mario