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Getty Images Holdings (Getty Images Holdings) Predictability Rank


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What is Getty Images Holdings 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.


Getty Images Holdings 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

PredictablesNon-PredictableAll stocks
Total Number of stocks57018332403
Total Lost Money61830891
Total Lost More Than 50%18412430
Total Lost More Than 90%48690
Average Gain260.6%100.0%138.1%
Median Gain150.0%13.0%39.0%
Maximum Gain2852.0%11483.0%11483.0%
Maximum Loss-100.0%-100.0%-100.0%
Annualized Average Gain12.7%6.7%8.4%
Annualized Median Gain8.9%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 Rank5-Star4.5-Star4-Star3.5-Star3-Star2.5-Star2-Star1-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

Getty Images Holdings Predictability Rank Related Terms

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Getty Images Holdings (Getty Images Holdings) Business Description

Traded in Other Exchanges
N/A
Address
605 5th Avenue South, Suite 400, Seattle, WA, USA, 98104
Getty Images Holdings Inc is engaged in the core mission of bringing the world's creative and editorial visual content solutions to its customers to engage their audiences. the company has developed market enhancements across e-commerce, content subscriptions, user-generated content, diverse and inclusive content, and proprietary research alongside investment in its technology platform, which includes artificial intelligence and machine learning-driven search functionality and image editing and integrated APIs, to become a trusted industry leader in the visual content. Geographically the company operates in the Americas, Europe, the Middle East, Africa, and Asia-Pacific, out of which a majority of its revenue is generated from the Americas.
Executives
Jonathan Gear director C/O IHS MARKIT LTD., 4TH FLOOR, ROPEMAKE, 25 ROPEMAKER STREET, LONDON X0 EC2Y 9LY
Chinh Chu director, officer: Chief Executive Officer THE BLACKSTONE GROUP, 345 PARK AVENUE, NEW YORK NY 10154
James Quella director C/O CATALENT, INC., 14 SCHOOLHOUSE ROAD, SOMERSET NJ 08822
Jason K Giordano officer: Executive VP, Corp. Develop. 345 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10154
Joel Alsfine director 2905 PREMIERE PARKWAY, SUITE 300, DULUTH GA 30097
Matthew Skurbe officer: Chief Financial Officer C/O CC NEUBERGER PRINCIPAL HOLDINGS II, 200 PARK AVE, 58TH FLOOR, NEW YORK NY 10166
Douglas Newton officer: Executive VP, Corp. Develop. 1701 VILLAGE CENTER CIRCLE, LAS VEGAS NV 89134
Charles Kantor director C/O NEUBERGER BERMAN, 1290 AVENUE OF THE AMERICAS, NEW YORK NY 10104
Cc Neuberger Principal Holdings Ii Sponsor Llc 10 percent owner C/O CC CAPITAL, 200 PARK AVENUE, 58TH FLOOR, NEW YORK NY 10166