What is Faraday Future Intelligent Electric 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.
Faraday Future Intelligent Electric 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
Faraday Future Intelligent Electric (Faraday Future Intelligent Electric) Business Description
Traded in Other Exchanges
Address
18455 S. Figueroa Street, Gardena, CA, USA, 90248
Faraday Future Intelligent Electric Inc is a global shared intelligent mobility ecosystem. It is poised to break the boundaries between the Internet, IT, creative, and auto industries with product and service offerings that integrate new energy, AI, Internet, and sharing models. FF 91 is its first production vehicle and flagship model.
Executives
| Lev Peker |
director |
US AUTO PARTS, 16941 KEEGAN AVENUE, CARSON CA 90746 |
| Jonathan Maroko |
officer: Interim CFO |
18455 S. FIGUEROA STREET, GARDENA CA 90248 |
| Li Han |
director |
18455 S. FIGUEROA STREET, GARDENA CA 90248 |
| Ke Sun |
director |
18455 S. FIGUEROA STREET, GARDENA CA 90248 |
| Jie Sheng |
director |
18455 S. FIGUEROA STREET, GARDENA CA 90248 |
| Xuefeng Chen |
officer: Global Chief Exec. Officer |
C/O FARADAY FUTURE INTELLIGENT ELECTRIC, INC., 18455 S. FIGUEROA STREET, GARDENA CA 90248 |
| Chad Chen |
director |
C/O FARADAY FUTURE INTELLIGENT ELECTRIC, 18455 S. FIGUEROA STREET, GARDENA CA 90248 |
| Yun Han |
officer: CAO & Interim CFO |
1449 HAMPTON ROAD, SAN MARINO CA 91108 |
| Xin He |
director |
32000 AURORA ROAD, SUITE B, SOLON OH 44139 |
| Rebecca A Roof |
officer: Interim Chief Financial Office |
C/O LORDSTOWN MOTORS CORP., 2300 HALLOCK YOUNG ROAD, LORDSTOWN OH 44481 |
| Walter Mcbride |
officer: Chief Financial Officer |
FIRST CONSULTING GROUP, PO BOX 22676, LONG BEACH CA 90801-5676 |
| Kruse Robert A Jr. |
officer: Senior VP, Product Execution |
18455 S. FIGUEROA STREET, GARDENA CA 90248 |
| Hong Rao |
officer: Vice President, I.A.I. |
18455 S. FIGUEROA STREET, GARDENA CA 90248 |
| Benedikt Hartmann |
officer: Senior VP of Supply Chain |
18455 S. FIGUEROA STREET, GARDENA CA 90248 |
| Chui Tin Mok |
officer: Exec. VP, Head of User Ecosys. |
18455 S. FIGUEROA STREET, GARDENA CA 90248 |
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FFIE has been successfully added to your