Brad Jacobs

It likes to have easy to understand stories.

Typical sell side analyst, for example, covers 32 stocks.

So they don't have the luxury of time to really go deep studying stuff.

We divided the company up into one company that was primarily LTL, which is XPO.

Another company that was primarily brokerage, truck brokers, non-asset, which is RXO.

And a third company, which we were talking about before, which is the supply chain business, was GXO.

And now each of those companies gets EBITDA multiples of 11, 12, 13 times.

It's a big change.

So we unleashed the value from getting multiple expansion by dividing the company up into smaller companies.

So the multiple you get from Wall Street matters because it goes back to what we were talking about a few minutes ago, where you have your cost of capital, what you can raise money at.

And to put it in more simple terms, what multiple you can raise money at.

And then you have businesses that you can buy, acquisitions that you can do at a lower multiple.

So there has to be a spread.

And when you look at all the ways that you create value, and there's dozens and dozens of levers in the business plan, that often is the most important lever.

Sometimes it's one of the top three, but the differential, the disagio between, the delta between what you can raise capital at, what the market will give you money at, and where you can deploy it at in acquisitions, that's a big value creator.

And it's very easy.

They want to make money.

It's as simple as that.

They've never bought my stock because I'm handsome or I have a full set of hair, anything like that.

They bought my stock and supported me because we created Alpha and we outdid the competition and we were a great investment, made a lot of money for investors.