Whitney Tilson: Be ready to act when market opens a door to opportunity

Successful value investors work hard to position themselves and their portfolios to capitalise on just such turbulent times. They buy only with what they consider a wide margin of safety in each position. They buy what is out of favour, not what is hitting new highs. They hold cash when they can’t find sufficiently great ideas to employ capital. In essence, they do their worrying well in advance of market turmoil, not after it starts to happen.