Companies Ranked by Business Predictability

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What is Predictability Rank & List of Stocks with Predictability Rank 5 Stars


GuruFocus recently conducted a back test study of Warren Buffett's strategy "buy good companies at fair prices" for the years 1998-2008. We focused on the companies that Warren Buffett likes, which are the companies that have predictable and proven earnings. For details, go to: GuruFocus Research: What worked in the market from 1998-2008? Part I: Introduction of Predictability Rank .

From this study we have developed the concept of Predictability Rank of businesses. We have found strong correlations between the Predictability of Businesses and the long term return of stocks, 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
Average Annualized Gain (Jan. 1998- Aug. 2008) 12.1% 10.6% 9.8% 9.3% 8.2% 7.3% 6.0% 1.1% 3.1%
% that are in loss with 10-year holding period 3% 10% 8% 9% 11% 18% 16% 45% 37%

We can clearly see that companies with higher Predictability Rank had much better stock performances. The possibility of losing money with long term holding period is also greatly reduced.
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Ticker
Company
Predictability Rank
10-Year Operating Income Growth Rate (Per Share)
5-Year EBITDA Growth Rate (Per Share)
1-Year Operating Income Growth Rate (Per Share)
Market Cap ($M)
PE Ratio
PEG Ratio
Current Price
Intrinsic Value: DCF (FCF Based)
Dividend Yield %
New Stocks (Real-time updates, sidebar count may differ.)
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LIMIT
52.90
45.50
-8.70
2,061.17
59.88
1.05
$95.39
61.40
0
LIMIT
LIMIT
7.80
6.90
10.10
87,367.88
10.81
1.50
$1.00
0.74
3.35
LIMIT
LIMIT
7.00
6.40
-5.30
12,924.87
10.37
1.90
$64.90
114.49
6.87
LIMIT
LIMIT
2.50
1.80
-4.10
4,149.44
23.37
13.81
$786.72
826.69
4.84
LIMIT
LIMIT
1.00
5.40
0.40
2,853.78
16.21
2.89
$1.31
1.12
2.59
New Stocks End
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LIMIT
67.00
64.10
15.20
17,811.33
14.65
0.24
$86.55
249.82
3.29
LIMIT
LIMIT
67.00
64.10
15.20
17,786.88
14.57
0.24
$86.11
249.82
3.31
LIMIT
LIMIT
15.50
15.20
-18.90
10,191.44
24.88
1.16
$199.30
148.47
0
LIMIT
LIMIT
12.30
14.30
19.80
82,845.88
14.69
1.06
$327.07
563.01
0.79
LIMIT
LIMIT
15.00
12.90
-0.10
23,938.22
21.96
1.45
$179.63
308.81
1.39
LIMIT
LIMIT
14.70
17.30
1.90
1,066.96
31.32
1.81
$15.00
34.83
2.56
LIMIT
LIMIT
16.40
15.90
9.50
57,027.16
22.71
1.39
$869.02
125.12
0.76
LIMIT
LIMIT
25.60
17.10
9.10
56,533.76
12.45
0.71
$397.61
837.94
0
LIMIT
LIMIT
9.60
8.70
6.90
46,972.92
15.32
1.77
$2.65
1.38
4.02
LIMIT
LIMIT
9.60
8.70
6.90
47,105.01
15.66
1.80
$27.00
13.76
3.12
LIMIT
LIMIT
8.20
9.00
0.60
47,440.73
41.20
4.58
$82.81
44.27
1.89
LIMIT
LIMIT
19.20
17.90
3.60
35,383.18
41.67
2.20
$432.11
275.28
0
LIMIT
LIMIT
12.50
12.10
8.70
123,691.69
32.40
2.66
$303.57
174.43
1.85
LIMIT
LIMIT
22.50
18.50
-6.20
13,642.07
31.24
1.21
$240.51
308.00
0
LIMIT
LIMIT
20.60
23.00
3.40
13,898.98
44.48
1.93
$15.30
17.48
0.63
LIMIT
LIMIT
10.40
10.50
22.60
13,316.34
36.03
3.43
$70.61
44.16
0.80
LIMIT
LIMIT
10.40
10.50
22.60
13,062.16
35.13
3.35
$34.43
22.09
0.81
LIMIT
LIMIT
20.40
17.90
-8.20
165.29
11.18
0.52
$34.00
-44.25
0
LIMIT
LIMIT
9.10
9.50
15.20
14,622.55
24.31
2.37
$128.79
20.62
0.74
LIMIT
LIMIT
9.10
9.50
15.20
14,578.55
24.34
2.37
$12.90
2.06
0.36
LIMIT
LIMIT
12.90
16.80
-5.20
5,724.91
34.77
2.15
$25.00
39.92
1.26
LIMIT
LIMIT
15.10
10.80
2.80
10,929.99
27.31
2.53
$48.33
42.73
4.20
LIMIT
LIMIT
11.20
11.90
9.10
544.39
23.40
1.97
$9.95
13.97
2.19
LIMIT
LIMIT
13.70
12.20
-3.60
426,500.24
29.17
2.36
$429.35
350.21
2.11
LIMIT
LIMIT
20.90
18.70
21.50
9,924.44
80.81
4.20
$116.02
63.51
0
LIMIT
LIMIT
17.50
16.20
5.80
5,336.34
8.15
0.50
$92.00
929.13
4.52
LIMIT
LIMIT
17.50
16.20
5.80
5,328.45
7.97
0.49
$45.00
464.58
4.64
LIMIT
LIMIT
13.70
13.60
-0.10
556,983.69
39.43
1.65
$605.23
383.05
1.31
LIMIT
LIMIT
14.80
14.80
14.30
482,944.33
39.80
2.54
$526.18
330.26
0.50
LIMIT
LIMIT
17.60
14.50
26.10
85,356.16
20.32
1.29
$85.14
144.52
0
LIMIT
LIMIT
7.80
6.60
25.20
30,699.31
54.09
5.64
$351.05
121.40
0
LIMIT
LIMIT
4.60
17.00
20.80
1,053.22
83.23
1.74
$27.80
11.32
1.32
LIMIT
LIMIT
14.80
10.30
8.00
2,226.04
19.74
1.14
$51.32
62.81
0
LIMIT
LIMIT
20.50
17.70
0
59,970.01
43.83
2.48
$62.24
31.81
0
LIMIT
LIMIT
6.70
14.10
24.70
17,534.82
26.70
1.87
$19.52
42.66
1.39
LIMIT
LIMIT
6.70
14.10
24.70
16,584.60
24.53
1.72
$2.00
4.28
1.37
LIMIT
LIMIT
44.00
21.30
17.20
7,200.67
91.71
2.70
$191.67
108.75
0
LIMIT
LIMIT
7.90
7.40
0.10
8,228.25
51.09
6.90
$709.00
309.89
1.32
LIMIT
LIMIT
22.60
23.90
16.70
28,076.98
15.74
0.72
$9.99
24.56
2.99
LIMIT
LIMIT
22.60
23.90
16.70
27,934.21
15.64
0.72
$248.53
613.72
3.01
Total 1634
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