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Winthrop Realty Trust (Winthrop Realty Trust) Predictability Rank


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What is Winthrop Realty Trust 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.


Winthrop Realty Trust 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

Winthrop Realty Trust Predictability Rank Related Terms

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


Winthrop Realty Trust (Winthrop Realty Trust) Business Description

Traded in Other Exchanges
N/A
Address
Winthrop Realty Trust Inc is a real estate investment trust (REIT), is an unincorporated association in the form of a business trust organized in Ohio under a Declaration of Trust dated August 1, 1961. The Company conducts its business through its wholly owned operating partnership, WRT Realty L.P., a Delaware limited partnership. The Company is engaged in the business of owning real property and real estate related assets which it categorize into three reportable segments: (i) the ownership of investment properties including wholly owned properties and investments in joint ventures which own investment properties, which it refer to as operating properties; (ii) the origination and acquisition of senior loans, mezzanine loans and debt securities collateralized directly or indirectly by commercial and multi-family real property, which it refer to as loan assets; and (iii) the ownership of equity and debt interests in other real estate investment trusts (REITs), which it refer to as REIT securities. Its primary sources of income are rental income and tenant recoveries from leases of its operating properties, interest income and discount accretion from its loan assets, and interest and dividend income and appreciation from its investments in REIT securities. The Company competes with many other companies, including other REITs, insurance companies, commercial banks, private investment funds, hedge funds, specialty finance companies and other investors. Its operations and properties are subject to various federal, state and local laws.
Executives
Michael L Ashner director, officer: Chairman & CEO C/O WINTHROP FINANCIAL ASSOCIATES, TWO JERICHO PLAZA WING A, JERICHO NY 11753
Carolyn Tiffany director, officer: President C/O WINTHROP FINANICAL ASSOCIATES, 7 BULFINCH PLACE, SUITE 500, BOSTON MA 02114
Howard Goldberg director
King Street Capital Mgmt Llc 10 percent owner 299 PARK AVENUE, 40TH FLOOR, NEW YORK NY 10171
Brian J Higgins 10 percent owner 65 EAST 55TH STREET, 30TH FLOOR, NEW YORK NY 10022
Biondi O Francis Jr 10 percent owner 65 EAST 55TH STREET, 30TH FLOOR, NEW YORK NY 10022
Talton R Embry director C/O MAGTEN ASSET MANAGEMENT CORP, 410 PARK AVENUE, NEW YORK NY 10022
Bruce R Berkowitz director C/O FAIRHOLME CAPITAL MANAGEMENT, L.L.C., 4400 BISCAYNE BOULEVARD, 9TH FLOOR, MIAMI FL 33137
William A Ackman other: Former 10% Owner 787 - 11TH AVENUE, 9TH FLOOR, NEW YORK NY 10019
Gotham Partners Lp /ny/ other: Former 10% owner 888 SEVENTH AVENUE, 29TH FLOOR, NEW YORK NY 10019
Section H Partners L P other: Fomer 10% Owner 110 EAST 42ND STREET 18TH FL, NEW YORK NY 10017
David P Berkowitz other: Former 10% Owner 110 EAST 42ND STREET 18TH FL, NEW YORK NY 10017
Gotham Parners Iii L P other: Former 10% Owner 888 SEVENTH AVENUE, 29TH FLOOR, NEW YORK NY 10019
Gotham International Advisors Llc other: Former 10% Owner 888 SEVENTH AVENUE, 29TH FLOOR, NEW YORK NY 10019
Karenina Corp other: Former 10% Owner 110 EAST 42ND STREET 18TH FLOOR, NEW YORK NY 10017

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