What is Asset Entities 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.
Asset Entities 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
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
Asset Entities (Asset Entities) Business Description
Traded in Other Exchanges
N/A
Address
100 Crescent Court, 7th Floor, Dallas, TX, USA, 75201
Asset Entities Inc is a technology company providing social media marketing and content delivery services across Discord, TikTok, and other social media platforms. It also designs, develops, and manages servers for communities on Discord. Its services consist of Discord investment education and entertainment, social media and marketing, and AE.360.DDM services are based on the effective use of Discord as well as other social media including TikTok, Twitter, Instagram, and YouTube.
Executives
| Michael Gaubert |
director, 10 percent owner, officer: Executive Chairman |
100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201 |
| James Sheldon Fairbanks |
10 percent owner |
3612 SUNSET VIEW DRIVE, FORTUNA CA 95540 |
| Kavous Sarkhani |
10 percent owner |
13470 BLACK HILLS ROAD, SAN DIEGO CA 92129 |
| Elham Nejad |
10 percent owner |
13470 BLACK HILLS ROAD, SAN DIEGO CA 92129 |
| Jennifer Joan Fairbanks |
10 percent owner |
3612 SUNSET VIEW DRIVE, FORTUNA CA 95540 |
| Richard Alfred Burton |
director |
100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201 |
| Scott Kelley Mcdonald |
director |
100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201 |
| Kd Holdings Group, Llc |
10 percent owner |
4313 OAK KNOLL DRIVE, PLANO TX 75093 |
| Asset Entities Holdings, Llc |
10 percent owner |
100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201 |
| Richard Benavides |
10 percent owner |
5934 WALNUT HILL ROAD, DALLAS TX 75230 |
| Arshia Sarkhani |
director, 10 percent owner, officer: CEO and President |
100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201 |
| Matthew Krueger |
10 percent owner, officer: CFO, Treasurer and Secretary |
100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201 |
| Kyle Fairbanks |
director, 10 percent owner, officer: Executive Vice-Chairman |
100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201 |
| Arman Sarkhani |
10 percent owner, officer: Chief Operating Officer |
100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201 |
| Jack John A Ii |
director |
100 CRESCENT CT., 7TH FLOOR, DALLAS TX 75201 |
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