"Everybody gets excited, they go hyperbolic about it, but it's not that big of a number," Chris Bloomstran said of Buffett's $189 billion cash pile.

Warren Buffett’s Berkshire Hathaway disclosed a major stake in the insurance company Chubb, finally revealing the investment he has kept under wraps since last year.

It's hard to argue with the S&P 500's (SNPINDEX: ^GSPC) historical performance. In the past 20 years, the broad index has produced a total return of 610%, translating to an annual average of 10.3%. If you're someone who likes to pick individual stocks, then I'd assume the goal is to try to outperform the S&P 500 over the long term.