An interview with Vito Maida

When stock markets drop, the best Portfolio Managers are buyers. They don’t buy simply because prices drop, they buy because better value exists. That’s what we pay them to do – buy when others are fearful in order to produce the long-term results that our clients need to achieve their goals.

Steve: Recently you’ve purchased several companies in the VPI Value Pool and taken the equity weighting from 15% to 40%. Vito: Recent events have led to pockets of value and we’ve been buying.

BANK OF NOVA SCOTIA AND CIBC:
  • The potential return embedded in the ownership of these companies over the next five years is compelling. 
  • The banks are oligopolistic businesses operating in a friendly regulatory environment. They have pricing power and low risk mortgage portfolios insured by CMHC. The mortgages that aren’t insured have an average loan to value of 50%. The quality of these businesses is well recognized.

Dividend Yields above 5%. The valuations like we see today are rarely this attractive – there’s only one other time the yields were higher in the past 25 years
and that was during the financial crisis.

Steve: Not too long ago you sold Kohl’s and received a substantial return. Should we expect similar results from your recent purchase of Bed Bath and Beyond (BBBY)?

Vito: My analysis leads me to believe that BBBY is worth twice what it is today.

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