Burgandy Asset Management: Top-Down vs. Bottom-Up

Top-Down vs. Bottom-Up by Joe Rooney, Burgandy Asset Management

There are two common categories of investors: “top-down” and “bottom–up.” These terms refer to an investor’s starting point when approaching a potential investment. Top-down investors begin by evaluating the macroeconomic environment, while bottom-up investors start by researching individual companies.

The debate between top-down versus bottom-up investing is not new and there is strong conviction on both sides. Burgundy has been a bottom-up investor since the day we opened our doors and this will not change. It is part of our philosophy and has contributed to an investment process that is both consistent and repeatable, which are key factors in adding value for our clients over time.

The common misconception is...