12/09/16 What is a ‘War Chest’?

What is a War Chest?

A colloquial term for the reserves of cash set aside or built up by a company to take advantage of an unexpected opportunity. While a war chest is typically used for acquisitions of other companies or businesses, it can also be used as a buffer against adverse events during uncertain times. A war chest is often invested in liquid short-term investments, such as treasury bills and bank deposits, which can be accessed on demand.