Issues with Shine's business and accounting, page-6

See my more detailed answer to Buffet above but, in short, although I acknowledge that you think they should be able to estimate their core business well, that is not always as straight-forward as it may seem.

E.g. Say SHJ estimated 100 car accidents to be worth $1,000,000 in fees. 12 months later it could just as easily turn out to be worth only $800,000 OR it could be worth $1,200,000 depending on how things pan out.

I.e. a $400,000 change in expected earnings could occur without any fault whatsoever of any of the lawyers involved. Obviously, these variables should be factored in to their accounting practices, and investors should be aware of the fact that huge discrepancies can occur. However, as long as you know the "worst case scenario" is still enough to cover the overheads and leave the firm in the black, it's a question of growth vs faster growth. A little profitable or a lot profitable.