What is Greenland Technologies Holding Predictability Rank?
Not Rated
Warren Buffett said many times that the companies he likes are:
1. Simple businesses that he understands
2. that have predictable and proven earnings and
3. with economic moat
4. those can be bought at a reasonable price.
It is hard to quantify "simple businesses that he (Buffett) understands", so we will focus on the other three characteristics instead. In GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank, we will show that the businesses that have predictable and proven earnings are usually also simple businesses that an average person could understand.
GuruFocus conducted a back test study of Warren Buffett's strategy of "buying good companies at fair prices" for the years from 1998-2008.
Greenland Technologies Holding Predictability Rank Calculation
In our database there are 2403 stocks that have been traded from Jan. 2, 1998 to Aug. 31, 2008. We have the complete 10-year financial data and trading prices of these companies for this period. We rank the predictability of these companies based on the consistency of their revenue per share and EBITDA (earning before interest, tax, depreciation and amortization) per share over the past ten fiscal years, and study the correlation between the stock performances and the predictability of the business.
Our study may be subject to these biases and assumptions:
Dividend yields are not counted for investment returns
Effects of price changes due to spin-offs may not be fully adjusted
Study is subjected to survivorship bias due to de-listing, bankruptcy, LBO, M&A, etc.
The correlation between business predictability and investment returns of a company is showed below.
Correlation Between Business Predictability and Investment Returns
| Predictables | Non-Predictable | All stocks |
|---|
| Total Number of stocks | 570 | 1833 | 2403 |
| Total Lost Money | 61 | 830 | 891 |
| Total Lost More Than 50% | 18 | 412 | 430 |
| Total Lost More Than 90% | 4 | 86 | 90 |
| Average Gain | 260.6% | 100.0% | 138.1% |
| Median Gain | 150.0% | 13.0% | 39.0% |
| Maximum Gain | 2852.0% | 11483.0% | 11483.0% |
| Maximum Loss | -100.0% | -100.0% | -100.0% |
| Annualized Average Gain | 12.7% | 6.7% | 8.4% |
| Annualized Median Gain | 8.9% | 1.1% | 3.1% |
For the 570 predictable companies, we have seen strong correlation between the predictability of businesses and the stock performances over the past 10 years, regardless of the valuation of business at 1998. Accordingly, we have ranked the business predictability from 5-star to 1-star, as shown in this table.
| Predictability Rank | 5-Star | 4.5-Star | 4-Star | 3.5-Star | 3-Star | 2.5-Star | 2-Star | 1-Star (non-predictable) | Average among all |
|---|
| % Out of All 2403 Stocks |
3.3% |
2.9% |
3.7% |
3.3% |
3.3% |
3.7% |
3.3% |
76.3% |
100% |
| % that are in Loss (10y) |
3% |
10% |
8% |
9% |
11% |
18% |
16% |
45% |
37% |
| Average Gain (10y) |
364.6% |
330.9% |
278.0% |
235.1% |
243.5% |
227.8% |
154.8% |
100.0% |
138.1% |
| Median Gain (10y) |
238.5% |
193.5% |
171.0% |
159.0% |
132.5% |
113.5% |
87.0% |
13.0% |
39.0% |
| Maximum Gainer |
2228.0% |
2547.0% |
2452.0% |
2852.0% |
2432.0% |
1892.0% |
1807.0% |
11483.0% |
11483.0% |
| Maximum Loser |
-82.0% |
-53.0% |
-67.0% |
-100.0% |
-83.0% |
-100.0% |
-78.0% |
-100.0% |
-100.0% |
| Annualized Average Gain |
15.4% |
14.6% |
13.2% |
12.0% |
12.2% |
11.7% |
9.1% |
6.7% |
8.4% |
| Annualized Median Gain |
12.1% |
10.6% |
9.8% |
9.3% |
8.2% |
7.3% |
6.0% |
1.1% |
3.1% |
For detailed information about each predictability rank, please go to GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank
Also read:
Part II: What worked in the market from 1998-2008? Part II: Role of Valuations
Part III: Intrinsic Value, Discounted Cash Flow and Margin of Safety
Greenland Technologies Holding (Greenland Technologies Holding) Business Description
Traded in Other Exchanges
N/A
Address
50 Millstone Road, Building 400, Suite 130, Zhejiang, East Windsor, NJ, USA, 08512
Greenland Technologies Holding Corp is a developer of innovative and quality solutions in the material handling industry. It is a transmission and drivetrain systems provider for material handling equipment such as forklift trucks for industrial and logistic applications. Geographically, the company has its presence in Domestic and International markets and earns majority of the revenue from Domestic Sales.
Executives
| Raymond Z Wang |
officer: CEO and President |
STE 906, TOWER W1. ORIENTAL PLAZA NO. 1, DONGCHENG DISTRICT BEIJING F4 100006 |
| Peter Wang |
director, 10 percent owner |
|
| Jing Jin |
officer: Chief Financial Officer |
STE 906, TOWER W1. ORIENTAL PLAZA NO. 1, DONGCHENG DISTRICT BEIJING F4 100006 |
| Ming Zhao |
director |
1ST FLOOR, YUZHENG PLAZA, NO. 76, YUHUANGSHAN ROAD, HANGZHOU, ZHEJIANG PROVINCE F4 00000 |
| Bo Shen |
director |
11-F, BUILDING 12, SUNKIN PLAZA, GAOJIAO ROAD, HANGZHOU, ZHEJIANG F4 311122 |
| Charles Athle Nelson |
director |
11-F, BUILDING 12, SUNKING PLAZA, GAOJIAO ROAD, HANGZHOU, ZHEJIANG F4 311122 |
| Min Zhang |
director |
STE 906, TOWER W1. ORIENTAL PLAZA NO. 1, DONGCHENG DISTRICT BEIJING F4 100006 |
| Everett Xiaolin Wang |
director |
STE 906, TOWER W1. ORIENTAL PLAZA NO. 1, DONGCHENG DISTRICT BEIJING F4 100006 |
| Liu Yanming |
director, 10 percent owner |
SUITE 906 TOWER W1 ORIENTAL SQUARE, BEIJING F4 100006 |
| Lei Chen |
officer: Chief Scientist |
STE 906, TOWER W1. ORIENTAL PLAZA NO. 1, DONGCHENG DISTRICT BEIJING F4 100006 |
| Greenland Asset Management Corp |
10 percent owner |
WEST WING, YONGDA INTERNATIONAL TOWER, NO. 2277 LONGYANG ROAD, PUDONG SHANGHAI F4 100006 |
| Hong Liang Lu |
director |
C/O UTSTARCOM INC., 1275 HARBOR BAY PARKWAY, ALAMEDA CA 94502 |
| Cui Shan |
director |
SUITE 906 TOWER W1 ORIENTAL SQUARE, BEIJING F4 100006 |
| Tao Tang |
director |
SUITE 906 TOWER W1 ORIENTAL SQUARE, BEIJING F4 100006 |
| Jerry Zheng |
officer: COO |
SUITE 906 TOWER W1 ORIENTAL SQUARE, BEIJING F4 100006 |
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