Sublime

“profit per partner” should be viewed as the professional firm equivalent of “return on equity.” The time and efforts of the partners (who have a claim on the profits of the firm) can be seen as the firm’s equity investment (often called “sweat equity”).

Many factors play a role in bringing these goals into harmony, but one has a preeminent position: the ratio of junior, middle-level, and senior staff in the firm’s organization, referred to here as the firm’s leverage.

A company’s health—not its shareholders’ wealth—should be the primary concern of those who manage corporations.

The point is that underlying technologies change, but, after a point, technology market shares don’t change and so they’re highly predictable.