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Capacity Quote by Seth Klarman

“Excess capacity in people, machines, or property will be quickly absorbed.” quote by Seth Klarman
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“Excess capacity in people, machines, or property will be quickly absorbed.”

Seth Klarman

About This Quote

Source Book: The Intelligent Investor’s Guide to Value Investing, 2023

Excess capacity in any resource is quickly utilized, driving efficiency and growth.

In simple terms: Unused resources get used up fast.

Key Takeaway

Manage capacity to avoid waste.

Themes

economics resource management efficiency

Mood

analytical pragmatic

Type

advice principle

When to use this quote

  • business planning
  • production scaling
  • inventory control

Key Concepts

supply and demand utilization market dynamics

Questions to Reflect On

  • How do you balance capacity with demand?
  • When should you reduce excess resources?
A Different Perspective

Overcapacity can lead to waste if demand falls.

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