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Kandi Technologies Group (Kandi Technologies Group) Predictability Rank


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What is Kandi Technologies Group Predictability Rank?

1 (5)

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.

Kandi Technologies Group 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

Kandi Technologies Group Predictability Rank Related Terms

Thank you for viewing the detailed overview of Kandi Technologies Group's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.

Kandi Technologies Group (Kandi Technologies Group) Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Vehicles & Parts » Kandi Technologies Group Inc (NAS:KNDI) » Definitions » Predictability Rank
Comparable Companies
CVGI HYZN MPAA CPS CYD HYLN STRT CAAS SUP INVZ TSE:6902 MBLY TSE:5108 XPAR:ML APTV XTER:CON TSX:MG XKRX:012330 ISX:ASII SHSE:600660
Traded in Other Exchanges
K8A:Germany K8A:Germany
Address
Jinhua New Energy Vehicle Town, Zhejiang Province, Jinhua, CHN, 321016
Website
http://www.kandivehicle.com
Kandi Technologies Group Inc is engaged in the development, production, and distribution of electric vehicle (EV) products, EV parts, and off-road vehicle products, primarily in the Chinese market. Other product offerings include all-terrain vehicles, go-karts, utility vehicles, battery packs, motor vehicles, controllers, and air conditioning systems. It generates revenue through EV parts and off-road vehicles. The company generates the majority of its revenue from China, and it also exports Overseas.
Executives
Xueqin Dong director, officer: Chief Executive Officer JINHUA NEW ENERGY VEHICLE TOWN, JINHUA F4 321016
Henry Yu director JINHUA CITY INDUSTRIAL ZONE, JINHUA, ZHEJIANG PROVINCE F4 321016
Lin Wang director C/O KANDI TECHNOLOGIES GROUP, INC., JINHUA NEW ENERGY VEHICLE TOWN, ZHEJIANG PROVINCE F4 321016
Chenming Sun director C/O KANDI TECHNOLOGIES GROUP, INC., JINHUA NEW ENERGY VEHICLE TOWN, ZHEJIANG PROVINCE F4 321016
Jehn Ming Lim officer: Chief Financial Officer FLAT E,7/F, BLOCK 3 ,BANYAN MANSION, WHAMPOA GARDEN,HUNG HOM, KOWLOON, HONG KONG K3 00000
Xiaoming Hu director, 10 percent owner, officer: President and CEO C/O KANDI TECHNOLOGIES GROUP, INC., JINHUA NEW ENERGY VEHICLE TOWN, ZHEJIANG PROVINCE F4 321016
Feng Zhu director JINHUA CITY INDUSTRIAL ZONE, JINHUA F4 321015
Yi Lin director JINHUA CITY INDUSTRIAL ZONE, JINHUA F4 321015
Excelvantage Group Ltd other: Sole Director JINHUA CITY INDUSTRIAL ZONE, JINHUA CITY, ZHEJIANG PROVINCE F4 321016
Cheng(henry) Wang officer: Chief Financial Officer C/O JINHUA CITY INDUSTRIAL ZONE, JINHUA, ZHEJIANG PROVINCE F4 321016
Bing Mei officer: Chief Financial Officer 42800 RIDGEWAY DR., ASHBURN VA 20148
Jingsong Qian director JINHUA CITY INDUSTRIAL ZONE, JINHUA ZHEJIANG PROVINCE F4 321016
Xiaoying Zhu director, officer: Chief Financial Officer C/O JINHUA CITY INDUSTRIAL ZONE, JINHUA, ZHEJIANG PROVINCE F4 321016
Liming Chen director JINHUA CITY INDUSTRIAL ZONE, JINHUA ZHEJIAN PROVINCE F4 321016
Guangzheng Ni director JINHUA CITY INDUSTRIAL ZONE, JINHUA ZHEJIANG PROVINCE F4 321016