The Daily Buffett

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The Pursuit of Quality

November 7th

We set no volume goals in our insurance business generally—and certainly not in reinsurance—as virtually any volume can be achieved if profitability standards are ignored.

Warren Buffett

In business, the temptation to prioritize sheer scale is ever-present. This seduction is particularly prevalent in booming markets where ambition can easily outpace sensibility. It's a pitfall that businesses across sectors often find themselves succumbing to, not just in insurance - the lure of impressive numbers over substantial profit.

However, this principle extends beyond just business strategy; it reflects a life doctrine. Like a company compromising profitability for volume, we have a tendency to chase the tangible and quantifiable in life - more wealth, more assets, more experiences - at the expense of depth, value, and sustainability.

This mindset shift, from seeking more to seeking better, applies as much to business as it does to personal life. It's about efficiency and effectiveness, not merely accumulation. The true measure of success, in a company or a life well-lived, is quality. It's about optimizing what you have, rather than simply gathering more for the sake of it.

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