Sharing Economy International (Sharing Economy International) Predictability Rank

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What is Sharing Economy International 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.

Sharing Economy International 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

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Sharing Economy International (Sharing Economy International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Sharing Economy International Inc (OTCPK:SEII) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

No.85 Castle Peak Road, Castle Peak Bay, Tuen Mun, N.T, Hong Kong, HKG

Website

https://www.seii.com

Sharing Economy International Inc is engaged in the development of sharing economy platforms and related rental businesses. Its digital platforms handle transactions that offer access over ownership through renting, lending, subscribing, reselling, swapping, or donating.

Executives

Chan Pak Hei Jefferson	10 percent owner, officer: Chief Executive Officer	HOUSE 20 OF MERRY GARDEN, 628 POK WAI, YUEN LONG, HONG KONG K3 00000
Ecinteract Co Ltd	10 percent owner	ROOM K, 2/F, BLOCK 4, GREENWOOD TERRACE, CHAI WAN K3 9999999999
Tin Chi Chan	10 percent owner	VILLA CORNWALL, NO. 85 CASTLE PEAK ROAD, CASTLE PEAK BAY, NEW TERRITORIES K3 9999999999
Parkson Yip	officer: Chief Operating Officer	FLAT C5, 26F, TML TOWER, 3 HOI SHING ROAD, TSUEN WAN, NT K3 00000
Ysk 1860 Co., Ltd	10 percent owner	CORNWALL CENTER, NO.85 CASTLE PEAK ROAD, COFFEE BAY, TUEN MUN, N.T. K3 00000
Yuen Deborah Wai Ming	10 percent owner	CORNWALL CENTER, NO.85 CASTLE PEAK ROAD, COFFEE BAY, TUEN MUN, N.T. K3 00000
Ping Kee Lau	director	FLAT C5, 26/F, TML TOWER, 3 HOI SHING ROAD, TSUEN WAN, NT K3 00000
Adam C Wasserman	officer: CFO	1643 ROYAL GROVE WAY, WESTON FL 33327
Ming Zhao	director	1ST FLOOR, YUZHENG PLAZA, NO. 76, YUHUANGSHAN ROAD, HANGZHOU, ZHEJIANG PROVINCE F4 00000
Jianhua Wu	director, 10 percent owner, officer: CEO	NO.9, MIDDLE YANYU ROAD, QIANZHOU TOWN, HUISHAN DISTRICT, WUXI, JIANGSU F4 000000
Fernando Liu	officer: Chief Financial Officer	BLDG 387, 2199 GUIDAI ROAD, MINHANG DISTRICT, SHANGHAI F4 201100
Tianxiang Zhou	director	152 LIUTAN'ER VILLAGE, APT 501, BEITANG DISTRICT, WUXI F4 214046
Xuezhong Hua	director	C/O DENGXIANG, QIANZHOU TOWN, HUISHAN DISTRICT, WUXI JIANGSU F4 214181
Ying Teresa Zhang	officer: Chief Financial Officer	NO. 9 YANYU MIDDLE ROAD, QIANZHOU VILLAGE, HUISHAN DISTRICT, WUXI JIANGSU F4 214181
Megan J Penick	director	C/O PENICK & ASSOCIATES LLC, 300 CARROLL CLOSE, TARRYTOWN NY 10591