What is Madison Square Garden Entertainment 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.
Madison Square Garden Entertainment 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
Madison Square Garden Entertainment (Madison Square Garden Entertainment) Business Description
Traded in Other Exchanges
N/A
Address
2 Pennsylvania Plaza, New York, NY, USA, 10121
Madison Square Garden Entertainment Corp provides live entertainment, delivering unforgettable experiences while forging deep connections with diverse and passionate audiences. The company's portfolio includes a collection of world-renowned venues - New York's Madison Square Garden, The Theater at Madison Square Garden, Radio City Music Hall, and Beacon Theatre; and The Chicago Theatre - that showcase a broad array of sporting events, concerts, family shows, and special events for millions of guests annually. In addition, the company features the original production, the Christmas Spectacular Starring the Radio City Rockettes, which has been a holiday tradition for 89 years.
Executives
| Madison Square Garden Entertainment Corp. |
10 percent owner, other: See Remarks |
TWO PENNSYLVANIA PLAZA, NEW YORK NY 10121 |
| Thomas Charles Dolan |
other: Member of 13(d) Group |
BAKER BOTTS L.L.P., 30 ROCKEFELLER PLAZA, NEW YORK NY 10112 |
| Donna Coleman |
director |
2 PENNSYLVANIA PLAZA, NEW YORK NY 10121 |
| Martin Bandier |
director |
TWO PENNSYLVANIA PLAZA, NEW YORK NY 10121 |
| Quentin F Dolan |
director |
11 PENNSYLVANIA PLAZA, NEW YORK NY 10001 |
| Charles P Dolan |
director |
2 PENN PLAZA, NEW YORK NY 10121 |
| Ryan Thomas Dolan |
director |
TWO PENNSYLVANIA PLAZA, NEW YORK NY 10121 |
| Paul Joseph Dolan |
other: Trustee of 13(d) Group Member |
TWO PENNSYLVANIA PLAZA, NEW YORK NY 10121 |
| Mary S Dolan |
other: Trustee of 13(d) Group Member |
BAKER BOTTS L.L.P., 30 ROCKEFELLER PLAZA, NEW YORK NY 10112 |
| Ryan Dolan 1989 Trust |
other: Member of 13(d) Group |
BAKER BOTTS L.L.P., 30 ROCKEFELLER PLAZA, NEW YORK NY 10112 |
| Tara Dolan 1989 Trust |
other: Member of 13(d) Group |
BAKER BOTTS L.L.P., 30 ROCKEFELLER PLAZA, NEW YORK NY 10112 |
| Charles F. Dolan Children Trust Fbo Kathleen M. Dolan |
other: Member of 13(d) Group |
BAKER BOTTS L.L.P., 30 ROCKEFELLER PLAZA, NEW YORK NY 10112 |
| Charles F. Dolan Children Trust Fbo Deborah Dolan-sweeney |
other: Member of 13(d) Group |
BAKER BOTTS L.L.P., 30 ROCKEFELLER PLAZA, NEW YORK NY 10112 |
| Charles F. Dolan Children Trust Fbo Thomas C. Dolan |
other: Member of 13(d) Group |
BAKER BOTTS L.L.P., 30 ROCKEFELLER PLAZA, NEW YORK NY 10112 |
| Charles F. Dolan Children Trust Fbo Marianne Dolan Weber |
other: Member of 13(d) Group |
BAKER BOTTS L.L.P., 30 ROCKEFELLER PLAZA, NEW YORK NY 10112 |
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