I had an email exchange with a reader who, amongst other things, asked me to elaborate on an often used phrase in my writings. I feel that his questions are pertinent and as there could be other readers who might have similar questions, publishing our exchange is probably a good idea.

Lake Ashi, Hakone, Japan.

Hello Mr AK71, .... I am an avid reader of your ASSI blog. First I want to say a big thank you for the many posts you have written, they have been extremely insightful to so many of us who are still learning about investing. Your guidance and advice is very much appreciated. I have a question regarding a piece of investing advice you gave us some time ago, I hope you can enlighten us! In several of your posts earlier this year and last year, you mentioned that we should always have a "war chest" ready should good opportunities come ......