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October 3, 2007

First Thing We Do … Let’s Buy All the Lawyers

October 1, 2007. Mark the day in your It Had to Happen Calendar!  The Australian law firm of Slater & Gordon—the first law firm to be the subject of an IPO—became the first publicly traded law firm (appearing on the Australian Securities Exchange).

How is S&G rated as an investment? According to Motley Fool, with a P/E multiple of just 15, S&G compares favorably on price to similar businesses that you can buy in the U.S. although earnings growth has averaged a mere 10% per year over the last two years.

Ethical Implications? Let's not even think about them. After all, can a law firm sue a company that’s one of its major shareholders? What about when various law firms’ shares are acquired as a group—Small Cap Personal Injury Mutual Fund, anyone? Indexed Asbestos Plaintiff's Firms? We may be seeing the future but like they say, past performance is no guarantee … etc.