What is Mitesco 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.
Mitesco 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
Mitesco (Mitesco) Business Description
Traded in Other Exchanges
N/A
Address
18202 Minnetonka Boulevard, Suite 100, Deephaven, MN, USA, 55391
Mitesco Inc is a development stage company who acquires and implements technologies and services to improve the quality of care, reduce cost, and enhance consumer convenience. It is focused on developing a portfolio of companies that provide healthcare technology solutions and the team is adept at deal structures supportive of long term organizational value.
Executives
| Lonnie Allen Plunk |
director |
3525 PIEDMONT RD., NE, BUILDING 6, SUITE 700, ATLANTA GA 30305 |
| Lawrence M. Diamond |
director |
7535 EAST HAMPDEN AVENUE, SUITE 400, DENVER CO 80231 |
| Phillip J Keller |
officer: Chief Financial Officer |
2323 RING ROAD, ELIZABETHTOWN KY 42701 |
| Sheila Schweitzer |
director |
1200 CAROLINA CIRCLE, VERO BEACH FL 62962 |
| Ingrid Jenny Lindstrom |
officer: Chief Legal Officer |
1100 WILLS PLACE, GOLDEN VALLEY MN 55422 |
| Juan Carlos Iturregui |
director |
5606 ALBIA RD., BETHESDA MD 20816 |
| Faraz Naqvi |
director |
3001 HEARTHSTONE DRIVE, FORT COLLINS CO 80528 |
| Thomas Brodmerkel |
director |
7535 EAST HAMPDEN AVENUE, STE. 400, DENVER CO 80231 |
| Julie R. Smith |
director |
7535 EAST HAMPDEN AVENUE, SUITE 400, DENVER CO 80231 |
| Ron Riewold |
officer: CHAIRMAN |
37 NORTH ORANGE AVE, STE 500, ORLANDO FL 32801 |
| Douglas Cole |
director |
C/O AMERICAN BATTERY METALS CORP, 930 TAHOE BLVD, STE 802-16, INCLINE VILLAGE NV 89451 |
| James Philip Crone |
director, officer: Pres, Interim CFO, Sec, Dir |
1355 PEACHTREE STREET, SUITE 1150, ATLANTA GA 30309 |
| Morton James E Iii |
officer: President |
549 VIKINGS LANE, ATLANTIC BEACH FL 32233 |
| Deluca Louis George Jr |
officer: C.O.O. |
194 EDWARDS DR, MABLETON GA 30126 |
| Thomas W. Burnell |
officer: President and CEO |
1355 PEACHTREE STREET, SUITE 1150, ATLANTA GA 30309 |
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MITI has been successfully added to your