Does anything beat buy & hold on Berkshire Hathaway (BRK-B)?
Every setup we tested on Berkshire Hathaway (BRK-B) — ranked out-of-sample, corrected for multiple testing, and forward-tracked in public from the day this page published. The honest answer is the headline.
No setup beat simply holding once tested honestly. We say so plainly.
Its best setup only beat buy-and-hold in one window — a regime artifact, not a strategy. Buy-and-hold benchmark: +10.5% CAGR over 30.5 years (+12.0% CAGR in the out-of-sample window).
Educational research from historical backtests — not investment advice. Past performance does not predict future results.
BRK-B: we tested 744 setups and none beat simply holding Berkshire Hathaway
For Berkshire Hathaway (BRK-B), we ran 744 indicator configurations against a plain buy-and-hold benchmark, and none of them earned the right to replace it. Individual stocks carry idiosyncratic risk — earnings surprises, guidance changes, sector rotation — that indicators built on price history cannot see coming. The best-looking setup, Zero-Lag LSMA on the weekly timeframe, ranked at the top in-sample but delivered an out-of-sample Sharpe of 0.98, short of our hurdle of 1.2. Buy-and-hold returned +10.5% annualized over the test period; the top strategies mostly captured pieces of that same move while adding trading friction.
How to read this honestly: when you test 744 setups and keep the best one, something will always look impressive by chance alone. That is why we require the survivor to clear 1.2 out of sample. Zero-Lag LSMA managed 0.98, with out-of-sample alpha of +0.7% across 9.2 years and 110 trades, and only 0.5% of everything we tested beat the benchmark on unseen data — roughly what luck would produce. None of this predicts anything: the regime that generated these numbers can shift, and single stocks shift faster than most. Treat this page as a record of what failed under honest testing, not a forecast.
Every figure above is computed from our own backtests — nothing is estimated or invented. Hypothetical results; not investment advice.
The least-bad setups — shown with their failure numbers
Nothing here earned a verdict — these are the best of a losing field, published so you can see exactly how "best" still failed.
Zero-Lag LSMA
What it is: A trend-following rule: it holds while a smoothed trend reference is pointing up and goes flat when it turns. Long/flat only — no leverage, no shorting. The parameters we tested are not published.
How it was tested: signals evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side. Same engine, same cost model, same out-of-sample split as every other number on this site.
Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.98 · alpha +0.7% · 27 trades over 9.2 yrs.
Historical Volatility Regime
What it is: A volatility-regime filter: it only takes exposure while realised volatility says the tape is calm enough to trust. Long/flat only — no leverage, no shorting. The parameters we tested are not published.
How it was tested: signals evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side. Same engine, same cost model, same out-of-sample split as every other number on this site.
Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.96 · alpha -1.5% · 16 trades over 9.2 yrs.
Volatility Regime (VIX-style)
What it is: A volatility-regime filter: it only takes exposure while realised volatility says the tape is calm enough to trust. Long/flat only — no leverage, no shorting. The parameters we tested are not published.
How it was tested: signals evaluated at weekly-bar close, the position changes on the NEXT bar, 0.08% cost per side. Same engine, same cost model, same out-of-sample split as every other number on this site.
Out-of-sample (last ~30% of the window, never used to pick this setup): Sharpe 0.87 · alpha -2.6% · 14 trades over 9.2 yrs.
Since publication — including if it loses
Buy-and-hold is ahead so far — we publish that too. That is the point. Marked to market nightly from real prices, rules frozen at publication, as of 2026-10-26. Currently LONG.
We tested 744 setups (indicator × parameters × timeframe) on Berkshire Hathaway (BRK-B). Only setups with ≥30 trades qualify (662 did). Setups are ranked by out-of-sample Sharpe — the last ~30% of history, which standard-parameter rules never saw during selection. Because picking the best of 744 tries mines even the holdout, the VALIDATED verdict additionally requires the top setup’s OOS Sharpe to clear a selection hurdle of 1.2 (√(2 ln N)/√T) AND positive alpha in both windows. Of the eligible setups, 0.5% had positive out-of-sample alpha (median OOS Sharpe 0.33) — the table below is truncated, but this summary covers all of them. How we test: methodology. The scoring contract is published in full; the parameters of each individual setup are not.
Top 20 of 662 eligible setups
Ranked by out-of-sample Sharpe. Full + out-of-sample columns, costs included. Hypothetical.
| # | Setup | TF | Total ret | Sharpe | Max DD | Win | Trades | α vs B&H | OOS Sharpe | OOS α | OOS trades |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Zero-Lag LSMA | Weekly | +201.6% | 0.32 | -58.8% | 58.2% | 110 | -6.8% | 0.98 | +0.7% | 27 |
| 2 | Historical Volatility Regime | Weekly | +619.1% | 0.64 | -27.3% | 63.6% | 44 | -3.8% | 0.96 | -1.5% | 16 |
| 3 | Volatility Regime (VIX-style) | Weekly | +374.2% | 0.53 | -32.2% | 55.1% | 49 | -5.3% | 0.87 | -2.6% | 14 |
| 4 | Ehlers Reflex | Weekly | +759.6% | 0.53 | -47.3% | 63.6% | 55 | -3.2% | 0.77 | -2.0% | 16 |
| 5 | Least Squares MA | Weekly | +62.5% | 0.18 | -70.4% | 50.7% | 144 | -8.9% | 0.76 | -2.0% | 36 |
| 6 | Parabolic SAR (fast) | Daily | +146.8% | 0.27 | -42.0% | 44.9% | 537 | -7.6% | 0.74 | -2.8% | 163 |
| 7 | Aroon | Weekly | +792.4% | 0.54 | -32.5% | 58.5% | 53 | -3.0% | 0.73 | -2.1% | 16 |
| 8 | FRAMA 10/30 Cross | Weekly | +300.8% | 0.38 | -41.1% | 58.0% | 131 | -5.8% | 0.73 | -2.1% | 38 |
| 9 | Aroon Oscillator | Weekly | +792.4% | 0.54 | -32.5% | 58.5% | 53 | -3.0% | 0.73 | -2.1% | 16 |
| 10 | FRAMA 30 Trend | Weekly | +268.6% | 0.37 | -47.0% | 49.7% | 167 | -6.1% | 0.73 | -2.4% | 48 |
| 11 | Intraday Momentum Index | Daily | +568.2% | 0.47 | -41.4% | 72.0% | 82 | -4.2% | 0.72 | -1.5% | 30 |
| 12 | QQE | Daily | +642.3% | 0.42 | -57.6% | 45.4% | 458 | -3.8% | 0.7 | +0.2% | 133 |
| 13 | Hull MA 30 Trend | Daily | -12.6% | 0.03 | -74.3% | 41.9% | 516 | -11.1% | 0.7 | -4.7% | 146 |
| 14 | Ease of Movement | Weekly | +383.6% | 0.41 | -53.7% | 54.1% | 85 | -5.2% | 0.68 | -2.7% | 21 |
| 15 | LSMA 10/30 Cross | Weekly | +353.8% | 0.41 | -54.2% | 55.7% | 70 | -5.4% | 0.68 | -3.3% | 18 |
| 16 | Random Walk Index | Weekly | +666.5% | 0.51 | -33.3% | 48.0% | 75 | -3.6% | 0.67 | -2.5% | 26 |
| 17 | Random Walk Index | Weekly | +666.5% | 0.51 | -33.3% | 48.0% | 75 | -3.6% | 0.67 | -2.5% | 26 |
| 18 | LSMA 10/30 Cross | Daily | +39.6% | 0.15 | -68.2% | 46.4% | 330 | -9.6% | 0.66 | -4.1% | 94 |
| 19 | Projection Bands | Weekly | +530.6% | 0.53 | -29.4% | 64.7% | 51 | -4.3% | 0.66 | -5.0% | 14 |
| 20 | Vortex | Weekly | +631.9% | 0.5 | -33.3% | 50.7% | 75 | -3.7% | 0.65 | -3.1% | 26 |
Hypothetical backtests with 0.08%/side costs. Not investment advice — see the full disclaimer.
These are historical backtests of mechanical rules. They are educational research, not investment advice, not a recommendation, and not tailored to you. Educational information only — not investment advice. Hypothetical backtested results; past performance does not guarantee future results. Trading involves risk of loss.