Below is a link to The Bottom-Up Economist Q3 2018 Report. Q3 was a very interesting quarter with some operating trends continuing, while others taking a noticeable turn. Although the report is a very thorough analysis of Q3, given the recent decline in asset prices and hints of a slowdown in certain industries, I’m very alert to possible changes in trends and outlooks in upcoming quarters.
This will be our last quarter publishing The Bottom-Up Report (BUE). My good friend and colleague who was working on the report with me accepted an opportunity that will require significant time and focus. The BUE report includes a tremendous amount of company-specific information — it’s very labor intensive to accumulate and organize. Because of its time requirement, we’ve decided it will be necessary to place BUE in hibernation at this time. We plan to leave the website up and running for those interested in the practice of bottom-up economics, or viewing the economy through the eyes of business.
I continue to believe bottom-up economic analysis is a viable alternative for investors and economists dependent on top-down data. While it won’t be as organized and detailed as the BUE report, I plan to continue providing a quarterly update on the economy based on the operating results and outlooks of my opportunity set (300 name possible buy list).
I’m looking forward to Q4 2018 – it should be a very informative quarter. Will the recent increase in financial instability affect demand and cause corporations to alter their 2019 investment plans and expectations? While it’s too early to know for certain, things are clearly becoming more interesting! As a patient absolute return investor, I’m encouraged and looking forward to learning more.