A common question newer investors wonder as they start to get their hands dirty: How big of a War Chest should I build before I enter the market? The War Chest of a company in the corporate world is no different from the individual investors’. For a company, it could either refer to the cash reserves set aside to take advantage of unexpected opportunity (e.g. acquisitions of other companies or businesses) or crisis (e.g. buffer against adverse events). Be Greedy when everyone else is Fearful and be Fearful when everyone is Greedy For a investor, it largely refers to cash reserves built up for opportune use in a bear market or crash. During such times, prices get lower and investment instruments become undervalued. In other words, investors who pounced during these times not only lower their average cost of acquisitions, but also pose themselves for maximum gain during...