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MDRR (Medalist Diversified REIT) Predictability Rank


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What is Medalist Diversified REIT 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.


Medalist Diversified REIT 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

Medalist Diversified REIT Predictability Rank Related Terms

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Medalist Diversified REIT Business Description

Traded in Other Exchanges
N/A
Address
P.O. Box 8436, Richmond, VA, USA, 23226
Medalist Diversified REIT Inc is engaged to acquire, reposition, renovate, lease, and manage income-producing properties with a focus on commercial properties, including flex-industrial and retail properties, multi-family residential properties, and hotel properties. The company operates as a UPREIT and owns properties through its subsidiary, Medalist Diversified Holdings, LP. Its reportable segments were retail center properties, flex center properties, and STNL properties.
Executives
Winn Charles Brent Jr. officer: Chief Financial Officer 9601 CRAGMONT DRIVE, RICHMOND VA 23229
Benjamin Ore other: Senior Accountant 12215 HAMPTON VALLEY TURN, CHESTERFIELD VA 23832
Frank Kavanaugh director, 10 percent owner 3419 VIA LIDO, SUITE 470, NEWPORT BEACH CA 92663
Timothy Patrick O'brien director 7504 HACKAMORE DRIVE, POTOMAC MD 20854
Neil P Farmer director 7 SHADOW LANE, RICHMOND VA 23229
Emanuel D Neuman director C/O MEDALIST DIVERSIFIED REIT, INC., PO BOX 8436, RICHAMOND VA 23226
David Lunin director C/O MEDALIST DIVERSIFIED REIT, INC., PO BOX 8436, RICHMOND VA 23226
Elliott Colin other: Vice President 2915 MONUMENT AVE., RICHMOND VA 23221
Alfred Lee Finley 10 percent owner 2800 GOLDEN TRIANGLE BLVD, FORT WORTH TX 76177
Thomas E Messier director, officer: See Remarks 11 S. 12TH STREET, SUITE 401, RICHMOND VA 23219
Alf Operating Partners, Ltd. 10 percent owner 2800 GOLDEN TRIANGLE BLVD, FORT WORTH TX 76177
Susan Finley 10 percent owner 2800 GOLDEN TRIANGLE BLVD, FORT WORTH TX 76177
Alf Acquisitions Company, Llc 10 percent owner 2800 GOLDEN TRIANGLE BLVD, FORT WORTH TX 76177
Bitnile Holdings, Inc. 10 percent owner 11411 SOUTHERN HIGHLANDS PARKWAY, SUITE 240, LAS VEGAS NV 89141
Dianna Raedle director 240 CENTRAL PARK SOUTH, APT 6B, NEW YORK NY 10019

Medalist Diversified REIT Headlines

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