When you think of patient capital, the first thought tends to be institutional in nature for it tends to mean long term thinking and a steady dependable stream of income being added to the fund. However Tom Bradley of Steadyhand Investment Funds believes you are perfectly positioned to be have patient capital as long as you believe you will be living for more than 10 years. If the doctor has given you weeks to live, it is different story – the best advice is to ensure your will is up to date which will allow for a reasonable easy transformation for your heirs. If you expect to live, you will need to exhibit some of the traits of the patient capital proponents. The second thing to do is ensure those in your investment process buys into the program.

The traits we all have which start with an independent view. We all believe our country was formed with an independent view, if everyone else is doing it, do you have to? Another trait is buy when opportunities present themselves, not when the money is available. Cash does not burn a hole in their pocket. When they buy assets, in their reasoned opinion, the assets will eventually be worth more than they are able to purchase them for. The key word is eventually.

The picture is patient capital is focused on the long-term value creation. It is comfortable being out of the sync with the popular trends and it does not get distressed by market dislocations, it gets excited by the great opportunities to be had.

The next part of the process is to make sure everyone who touches your money buys into what you are doing. You do not need to be a great investor – but you can hire and fire people who do follow your philosophy.

Patient capital is not about day trading or rotating the portfolio to catch the latest trend. Your advisors should not be phoning you about quick tips or short term results. If you buy you are looking for a 5 year hold. The reason you buy and hold is the stock is lower priced and in 5 years the price will be much higher.

Linking to dividend paying companies, there is always a trading range in dividend paying stocks. The idea for you is to buy them on the downfalls and as they reclaim their market share you benefit from a higher stock price. The dividend ensures the company is still making money, attracting great talent and can do a rebound. All stocks go through set backs, it is the patient money that knows what it is looking for and grabs the bargains which turn out successful in the long run.

There are more questions than answers, till the next time – to raising questions.