Asset Asset Management (LSE: LIO) offers 19 % huge expected profit distributions.

If it is good, it may turn 10,000 pounds in the investor today to 11,900 pounds per year. If it continues this rate over the next ten years, we may end up with an amount of 56,900 pounds, with stock profits redispoint. This is the type of magic that the compound returns can weave.

Good instinct and the idea of ​​”lack of lunch” will indicate that this is an unlikely scenario. Do not care about the fact that the profits are never guaranteed, as we may already see that this is one that is scheduled to fall. Analysts’ expectations show a decrease by 2027 – but to only 14 %. This is still, well … wow! We need to dig deeper.

Great picture

The share price scheme is already drawing a more depression, as Assad’s share price decreased by 86 % since the peak in 2021. The profit returns have been strengthened today. But anyone who bought in the peak should expect only 2.8 % this year for what they paid in 2021.

Even so, the expected money will not be about to cover it with expected profits. So, what might be at the beginning seems to be an irrational purchase that turned into one to keep the waging cage?

The company seems to think its shares are very cheap. In March, I completed the re -purchase of an arrow of 5 million pounds. So more money was returning over these big profits. It comes from … well, I am not completely sure where.

Calpical investors

One of the problems is that the past few years of high interest rates have transformed many investors on the stock market. Cash savings can be more attractive, and we only look at the place where gold and bitcoin went.

At such times, I expect smaller investment companies from external flows more than the largest players. Liontrust has a market value of only 235 million pounds. The assets subject to the administration amounted to 22.6 billion pounds on March 31, and declined.

Compare it with a company like M & G. in FTSE 100. The maximum market there reaches 6.1 billion pounds. She had 346 billion pounds in assets under management in the last census.

What next?

In April, the CEO of Liontrust John Eyon said.He feels that during the past few years, the only certainty was the uncertainty“I know what it means.

He told us: “The improvements we have made to work, our strong ability to invest, brand service and customers, and the strong operation model gives us confidence we can get out of the current turbulent environment and help our customers do so as well.“

I see that the stock market investing is due to the strength as the economy improves and low interest rates. This is what the shares and shares of the United Kingdom have done for more than a century now. In the long run, they remained in height and they have easily overcome cash investments.

Optimism in exchange for uncertainty

If the optimism of the CEO is in a good position, we may look for the opportunity to buy now. But so that I can really understand where the money distributions will be transferred from. The results of the full year are due on June 25.