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VLATU (Valor Latitude Acquisition) Predictability Rank


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What is Valor Latitude Acquisition 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.

Valor Latitude Acquisition 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

Valor Latitude Acquisition Predictability Rank Related Terms

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Valor Latitude Acquisition Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Financial Services » Diversified Financial Services » Valor Latitude Acquisition Corp (NAS:VLATU) » Definitions » Predictability Rank
Comparable Companies
HWKZ PGSS OSI LHAA LDHA VELO ZWRK IXAQ ITQ GNAC GSHN PSTH XAMS:EPIC ASZ CCYC CVII KAHC DWAC IPOF PBAJ
Traded in Other Exchanges
N/A
Address
Ugland House, PO Box 309, Grand Cayman, CYM, KY1-1104
Website
https://www.valorlatitude.com
Valor Latitude Acquisition Corp is a blank check company.
Executives
Phoenix Spac Holdco Llc 10 percent owner 600 BRICKELL AVENUE, SUITE 2650, MIAMI FL 33131
Softbank Group Corp 10 percent owner 1-7-1 KAIGAN, MINATO-KU, TOKYO M0 105-7537
Sbla Latin America Fund Llc 10 percent owner 200 S. BISCAYNE BLVD., 19TH FLOOR, MIAMI FL 33131
Sla Investments Iv Llc 10 percent owner 200 S. BISCAYNE BLVD., 19TH FLOOR, MIAMI FL 33131
Sbla Investments Ii Llc 10 percent owner 200 S. BISCAYNE BLVD., 19TH FLOOR, MIAMI FL 33131
Sbla Holdings (cayman) L.p. 10 percent owner 200 S. BISCAYNE BLVD., 19TH FLOOR, MIAMI FL 33131
Sb Global Advisers Ltd 10 percent owner 69 GROSVENOR STREET, LONDON X0 W1K 3JP
John G Bruno director
Ricardo Knoepfelmacher director C/O 1875 EXPLORER STREET, SUITE 1000, RESTON VA 20190
J. Douglas Smith officer: Chief Financial Officer 10 E 53RD ST., NEW YORK NY 10022
Helio L. Magalhaes director 10 E 53RD ST., NEW YORK NY 10022
Scott Sobel director UGLAND HOUSE, PO BOX 309, GRAND CAYMAN E9 KY1-1104
Valor Latitude Llc 10 percent owner UGLAND HOUSE, PO BOX 309, GRAND CAYMAN E9 KY1-1104
Mello Freire Neto Mario director, officer: Chief Executive Officer 10 E 53RD ST., NEW YORK NY 10022
Linda Rottenberg director 1805 29TH ST, STE 2050, BOULDER CO 80302