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. A war chest that has swelled up too much can sometimes be viewed as an inefficient way of deploying capital.