IPSC has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
IPSC has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
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.
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 ValuationsThank you for viewing the detailed overview of Century Therapeutics's Predictability Rank provided by GuruFocus.com. Please click on the following links to see related term pages.
Adrienne Farid | officer: Chief Operations Officer | C/O CENTURY THERAPEUTICS, INC., 3675 MARKET STREET, PHILADELPHIA PA 19104 |
Douglas Carr | officer: VP of Finance and Operations | C/O CENTURY THERAPEUTICS, INC., 3675 MARKET STREET, PHILADELPHIA PA 19104 |
Daphne Quimi | director | C/O AMICUS THERAPEUTICS, INC., 1 CEDAR BROOK DRIVE, CRANBURY NJ 08512 |
Gregory Russotti | officer: Chief Technology Officer | C/O CENTURY THERAPEUTICS, INC., 3675 MARKET STREET, PHILADELPHIA PA 19104 |
Luis Borges | officer: Chief Scientific Officer | TWO CORPORATE DRIVE, C/O FIVE PRIME THERAPEUTICS, INC., SOUTH SAN FRANCISCO CA 94080 |
Timothy P Walbert | director | 1033 SKOKIE BOULEVARD, SUITE 355, NORTHBROOK IL 60062 |
Versant Venture Capital Vi, L.p. | 10 percent owner | ONE SANSOME STREET, SUITE 1650, SAN FRANCISCO CA 94104 |
Joseph Jimenez | director | ADITUM BIO, 1111 BROADWAY, STE. 1300, OAKLAND CA 94607 |
Eli Casdin | director | 1350 AVENUE OF THE AMERICAS, SUITE 1140, NEW YORK NY 10019 |
Cynthia M Butitta | director | 3165 PORTER DRIVE, PALO ALTO CA 94304 |
Kimberly Blackwell | director | C/O ZENTALIS PHARMACEUTICALS, LLC, 530 SEVENTH AVENUE, SUITE 2201, NEW YORK NY 10018 |
Rizzuto Carlo | director | ONE SANSOME STREET, SUITE 1650, SAN FRANCISCO CA 94104 |
Alessandro Riva | director | C/O CENTURY THERAPEUTICS, INC., 3675 MARKET STREET, PHILADELPHIA PA 19104 |
Hyam Levitsky | officer: President of R&D | C/O ANTIGENICS INC., 162 FIFTH AVE., SUITE 900, NEW YORK NY 10010 |
Osvaldo Flores | officer: Chief Executive Officer | C/O CENTURY THERAPEUTICS, INC., 3675 MARKET STREET, PHILADELPHIA PA 19104 |
From GuruFocus
By Stock market mentor Stock market mentor • 02-01-2023
By Marketwired • 09-26-2023
By Value_Insider Value_Insider • 11-22-2022
By Marketwired • 05-10-2024
By Marketwired • 06-03-2024
By Value_Insider Value_Insider • 11-11-2022
By GuruFocus Research • 03-09-2024
By Marketwired • 04-11-2024
By sperokesalga sperokesalga • 04-12-2023
By Marketwired • 04-23-2024
Disclaimers: GuruFocus.com is not operated by a broker or a dealer. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. This investment adviser does not provide advice to individual investors. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.