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GOCO (GoHealth) Predictability Rank


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What is GoHealth 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.


GoHealth 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

GoHealth Predictability Rank Related Terms

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


GoHealth Business Description

Traded in Other Exchanges
N/A
Address
222 W Merchandise Mart Plaza, Suite 1750, Chicago, IL, USA, 60654
GoHealth Inc is a health insurance marketplace and Medicare-focused digital health company whose purpose is to compassionately ensure consumers' peace of mind when making healthcare decisions so consumers can focus on living life. It offers Medicare plans, including, but not limited to, Medicare Advantage, Medicare Supplement and prescription drug plans. Its proprietary technology platform leverages modern machine-learning algorithms, powered by over two decades of insurance purchasing behavior, to reimagine the process of matching a health plan to a consumer's specific needs.
Executives
Vijay Kotte officer: Chief Executive Officer C/O R1 RCM INC., 401 N. MICHIGAN AVENUE, SUITE 2700, CHICAGO IL 60611
Mike Hargis officer: Chief Operating Officer 222 W. MERCHANDISE MART PLAZA, SUITE 1750, CHICAGO IL 60654
Jason Schulz officer: Chief Financial Officer C/O GOHEALTH, INC., 214 WEST HURON STREET, CHICAGO IL 60654
Karolina Hanna Hilu director 214 W HURON ST, CHICAGO IL 60654
Cb Blizzard Holdings C, L.p. 10 percent owner C/O CENTERBRIDGE PARTNERS, 375 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10152
Ccp Iii Cayman Gp Ltd. 10 percent owner C/O CENTERBRIDGE PARTNERS, L.P., 375 PARK AVENUE, 12TH FLOOR, NEW YORK NY 10152
Cb Blizzard Lower Holdings A, L.p. 10 percent owner 375 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10152
Cb Blizzard Lower Holdings Gp B, Llc 10 percent owner 375 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10152
Cb Blizzard Lower Holdings Gp A, Llc 10 percent owner 375 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10152
Cb Blizzard Lower Holdings B, L.p. 10 percent owner 375 PARK AVENUE, 11TH FLOOR, NEW YORK NY 10152
Christopher Litchford director 214 WEST HURON ST.,, CHICAGO IL 60654
David Fisher director 39 SOUTH LASALLE STREET, SUITE 220, CHICAGO IL 60605
Vance Cushman Johnston officer: Chief Financial Officer 1 N BRENTWOOD BLVD, ST LOUIS MO 63105
Nvx Holdings, Inc. 10 percent owner C/O GOHEALTH, INC., 214 WEST HURON STREET,11TH FLOOR, CHICAGO IL 60654
Clinton P. Jones director, 10 percent owner, officer: Chief Executive Officer GOHEALTH, INC., 214 WEST HURON STREET, CHICAGO IL 60654