Talking Shop with Mr. M

Vitali joined TDAM in 2015 making an instant impact. In his current role, Vitali is responsible for setting the strategic direction of the TDAM's research agenda to support the firm's objective of investment excellence. As a member of the Fundamental Equities Team, he is responsible for providing investment recommendations on the Technology sector.

Vitali previously provided coverage of the Canadian Energy Infrastructure and Telecommunication industries and also has experience covering the Precious Metals sector as a Research Associate at a leading Canadian financial services firm. Vitali holds a B.B.A. from the University of Toronto and is a CFA and a CPA.

We caught up with Vitali and chatted about his path to Vice President & Director, Co-Lead of Research at TDAM and to get his current thoughts on investing in the equity markets today.

My introduction to the markets was as a teenager. I still recall fondly that innocent fascination with the notion – shocking at the time – that one could become the partial owner of a global company and see their investment re-priced by 20%, 30%, even 50% in a matter of years! What drove these fluctuations? It felt daunting until Peter Lynch's famous book One Up on Wall Street really made me feel that this was within reach.

I actually went on to study accounting and worked as an auditor for a number of years for a mid-size accounting firm. It was a great training ground for developing analytical rigor and having a keen eye for detail.

The markets were tempting sirens, however, and after some time I knew my calling was not in verifying the transactions of the past but forecasting the future. I moved on to working at a large Canadian bank as an associate for two top-ranked mining analysts which gave me exposure to Bay Street. After two years of gaining valuable experience writing reports, creating financial forecasts, interviewing management teams – in other words, understanding what turns the gears of finance – I wanted to move closer to my goal of making investment decisions. I was very fortunate to join TDAM 10 years ago. I've been even more fortunate to be surrounded by extremely intelligent and diligent colleagues that have been with me every step of the way.

I think we'll all keep talking about the wonder of technology for as long as we're alive. The fact of the matter is that a continuous stream of scientific discovery and technology innovation have been changing the world for going on 200 years. The pace of change is only accelerating and with it I think the magnitude of impact. Sure, sometimes we don't call it "technology" but "pharmaceutical" or "industrial" businesses, but the essence is the same. Human-made progress.

Now, the markets will always put a specific wrapper or attitude on that change. There's be period of exuberance and financial bubbles, and there will be periods of depressed valuations. Regarding the present set-up with market concentration and the phenomenon of the "Mag 7", we'll wait and see. We're forecasters and not sightseers. But if you ask me, the combination of cloud computing, burgeoning progress in AI, nascent but visible progress in augmented reality and virtual reality (so-called metaverse), and abundant but disciplined capital available to the Big 7 is going to make for remarkable change in the next 20 years. And I think we're underestimating it at present, by a wide margin.

These days, it's almost cliché to say that people are our biggest strength. But it's absolutely true and with every year of experience I am growing more convinced of it.

We're about 20 research analysts across four cities on two continents but we're very much one strong, motivated team. We come from all walks of life and bring unique perspectives and experiences into a rigorous yet creative research approach. We know what's at stake – the hard-earned savings of millions of Canadians that have put their trust in us – and we take this responsibility seriously.

I think it was Einstein that said that "in the middle of difficulty lies opportunity". And I believe that hard times are the greatest teachers as during challenging times we gain valuable insights, adapt the quickest, and emerge stronger and wiser.

The COVID-19 Pandemic was the pinnacle of those times. The extreme volatility and rapid decline in the markets were unprecedented, providing a real-time lesson in crisis management and the importance of adaptability. This period taught me the significance of staying calm under pressure while reminding me of the benefits of being adaptable while balancing a long-term perspective in navigating a crisis. Just look at the panic that the pandemic sowed in the market and the remarkable occasion it turned out to buy the world's best companies at a steep discount.

Outside of the office, my time is primarily devoted to my family. My wife, Akiko, and I have a two-year-old son named Theodore, who is at such an exciting age of growth and discovery. We enjoy spending our weekends exploring parks and museums in Toronto, engaging in outdoor activities, and creating lasting memories. I like to stay active with an occasional jog – a colleague twisted my arm into doing a half-marathon in October – and getting out for a swim at the Gus Ryder Sunnyside pool. If there's any free time left over, it goes over to reading good fiction.

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