Wilmington Capital Management (TSX:WCM.B) Predictability Rank


TSX:WCM.B Wilmington Capital Management Inc TSX:WCM.B
42 GF Score
Price C$2.30
GF Value C$1.01
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Wilmington Capital Management Predictability Rank?

1 (5)

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.

Wilmington Capital Management Predictability Rank Related Terms

TSX:WCM.B
42GF Score
Wilmington Capital Management Inc TSX:WCM.B
Predictability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Wilmington Capital Management 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

Is Wilmington Capital Management (TSX:WCM.B) Overvalued in 2026?

Based on GuruFocus' analysis, Wilmington Capital Management stock appears to be overvalued. The current stock price of C$2.30 is trading 127.7% above its estimated GF Value™ of C$1.01. GuruFocus considers Wilmington Capital Management to be Significantly Overvalued.

Key valuation signals for TSX:WCM.B:

  • Predictability Rank:
  • GF Value™: C$1.01 vs. price of C$2.30 (127.7% above fair value)
  • GF Score™: 42/100 with 6 warning signs

No single metric tells the full story. See the TSX:WCM.B stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Wilmington Capital Management Business Description

Other Exchanges WCM.A:Canada
Address 3282 Ogdens Beach Road, Midland, ON, CAN, L4R 4K3
Wilmington Capital Management Inc is a Canada-based investment company. Its principal objective is to seek out investment opportunities in the alternative asset classes which provide shareholders with capital appreciation over the longer term as opposed to current income returns. The corporation invests its capital alongside partners and co-investors, in hard assets and private equity funds and manages these assets through operating entities.
42GF Score

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Predictability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

C$2.30
Price
C$1.01
GF Value