What is Diamond S Shipping 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.
Diamond S Shipping 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
Diamond S Shipping (Diamond S Shipping) Business Description
Traded in Other Exchanges
N/A
Address
33 Benedict Place, Greenwich, CT, USA, 06830
Diamond S Shipping Inc provides seaborne transportation of crude oil and refined petroleum and other products in the international shipping markets. It is the owner and operator of modern medium range, or MR, product tankers. It operates through two reportable segments, Crude Tankers and Product Carriers.
Executives
| Anoushka Kachelo |
officer: General Counsel |
33 BENEDICT PLACE 2ND FLOOR GREENWICH CT 06830 |
| Bart Veldhuizen |
director |
ROSEMARY COTTAGE, IDLE HILL, KENT X0 TN14 6JN |
| George Cambanis |
director |
33 BENEDICT PLACE, 2ND FLOOR GREENWICH CT 06830 |
| Alexandra Kate Blankenship |
director |
33 BENEDICT PLACE, 2ND FLOOR, GREENWICH CT 06830 |
| Malone Iii Harold L |
director |
33 BENEDICT PLACE 2ND FLOOR GREENWICH CT 06830 |
| Gerasimos G Kalogiratos |
director |
33 BENEDICT PLACE 2ND FLOOR GREENWICH CT 06830 |
| Nadim Z Qureshi |
director |
575 MARYVILLE CENTRE DRIVE, ST. LOUIS MO 63141 |
| Stevenson Craig H Jr |
director, officer: CEO, President |
C/O OMI CORP, ONE STATION PL, STAMFORD CT 06902 |
| Sanjay Sukhrani |
officer: Chief Operating Officer |
C/O DIAMOND S MANAGEMENT LLC 33 BENEDICT PLACE GREENWICH CT 06830 |
| Michael G Fogarty |
officer: Senior VP - Commercial |
C/O DIAMOND S MANAGEMENT LLC 33 BENEDICT PLACE GREENWICH CT 06830 |
| Kevin M Kilcullen |
officer: Chief Financial Officer |
C/O PRINCIPAL MARITIME MGMT, LLC 3530 POST ROAD SOUTHPORT CT 06890 |
| Gerasimos Ventouris |
director |
33 BENEDICT PLACE 2ND FLOOR GREENWICH CT 06830 |
| Invesco Wlr Iv Associates Llc |
10 percent owner |
1166 AVENUE OF THE AMERICAS, NEW YORK NY 10036 |
| Wlr Recovery Associates Iv Dss Aiv, L.p. |
10 percent owner |
C/O WL ROSS & CO. LLC 1166 AVENUE OF THE AMERICAS NEW YORK NY 10036 |
| Wlr Recovery Associates V Dss Aiv Gp, Ltd. |
10 percent owner |
C/O WL ROSS & CO. LLC 1166 AVENUE OF THE AMERICAS NEW YORK NY 10036 |
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