Nearly a month back, I wrote about how one way to Analyze how good a system is, is by comparing the returns to Buy & Hold returns (Measuring Performance). Its hence nice to see similar thoughts echoed by the Oracle of Omaha in his 2013 Annual Report
While Buffett writes his thought based on he being a fund manager, if you are running money, you are your own fund manager and the benchmark to beat would be the Index returns regardless of the methods you use.