Zhejiang Taimei Medical Technology Co (HKSE:02576) Predictability Rank

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What is Zhejiang Taimei Medical Technology Co 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.

Zhejiang Taimei Medical Technology Co 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

Zhejiang Taimei Medical Technology Co Predictability Rank Related Terms

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Zhejiang Taimei Medical Technology Co Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Healthcare Providers & Services » Zhejiang Taimei Medical Technology Co Ltd (HKSE:02576) » Definitions » Predictability Rank

Comparable Companies

Traded in Other Exchanges

N/A

Address

36 Changsheng South Road, 3rd Floor, Building 9, Smart Industry Innovation Park, Zhejiang, Jiaxing, CHN

Website

https://www.taimei.com

Zhejiang Taimei Medical Technology Co Ltd is a digital solution provider focused on the pharmaceutical and medical device industry in China, It designs and delivers industry-specific software and digital services that facilitate the research and development (R&D) as well as the commercialization of pharmaceuticals and medical devices. The software It offers is cloud-based, allowing users to access it from various devices at any time over the internet, without the need for software installation and maintenance on their devices. These cloud-based software covers critical use cases in R&D and commercialization of innovative drugs and medical devices.

Executives

Zuo Lingye	2201 Interest of corporation controlled by you
Shang Hai Jing Wei Gu Quan Tou Zi Guan Li You Xian Gong Si	2201 Interest of corporation controlled by you
Hang Zhou Jing Wei Yuan Chuang Tou Zi Guan Li He Huo Qi Ye You Xian He Huo	2201 Interest of corporation controlled by you
Jing Wei Chuang Teng Hang Zhou Chuang Ye Tou Zi He Huo Qi Ye You Xian He Huo	2101 Beneficial owner
Shen Zhen Shi Teng Xun Rui Tou Qi Ye Guan Li You Xian Gong Si
Teng Xun Ke Ji Shen Zhen You Xian Gong Si
Chen Yihai	2202 Interest of your spouse
Shang Hai Chen Xi Chuang Ye Tou Zi Zhong Xin You Xian He Huo	2101 Beneficial owner
Shang Hai Yuan Pan Qi Ye Guan Li Zi Xun He Huo Qi Ye You Xian He Huo	2201 Interest of corporation controlled by you
Xue Qiong	2201 Interest of corporation controlled by you
Ma Huateng
Lin Zhi Teng Xun Tou Zi Guan Li You Xian Gong Si
Shen Zhen Shi Teng Xun Chan Ye Tou Zi Ji Jin You Xian Gong Si
Oriental Power Holdings Limited
Shen Zhen Shi Teng Xun Rui Jian Tou Zi You Xian Gong Si

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