Brad Jacobs - Think Big and Move Fast - [Invest Like the Best, REPLAY]
episode
Invest Like the Best with Patrick O'Shaughnessy
1h 25m
2 speakers
8 chapters
transcribed 27 days ago
Transcript
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Transcript generated automatically by AI and may contain errors.
What criteria does Brad Jacobs use to spot high‑growth, scalable industries for M&A?
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So we are replaying this hugely popular episode. He's on to his next big endeavor, QXO, which we allude to in this conversation. This is one that I'll study for years to come. Please enjoy. Hello and welcome everyone. I'm Patrick O'Shaughnessy and this is InvestLike the Best. This show is an open-ended exploration of markets, ideas, stories, and strategies that will help you better invest both your time and your money. Invest Like the Best is part of the Colossus family of podcasts, and you can access all our podcasts, including edited transcripts, show notes, and other resources to keep learning at joincolossus.com.
Patrick O'Shaughnessy is the CEO of Positive Sum. All opinions expressed by Patrick and podcast guests are solely their own opinions and do not reflect the opinion of Positive Sum. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions. Clients of Positive Sum may maintain positions in the securities discussed in this podcast. To learn more, visit psum.vc.
My guest today is Brad Jacobs. Brad's resume is remarkable. He's founded seven companies, all of which are billion-dollar or multi-billion dollar businesses. He's done 500 MA transactions and raised $30 billion of debt and equity capital. Currently, he's the executive chairman of XPO, a commercial trucking company that he started in 2011 and has grown into one of the largest logistics businesses in the world. He's also written a book that will be out in January. titled How to Make a Few Billion Dollars. What a title. Brad's energy is infectious and our conversation unpacks his strategies for M ⁇ A, his propensity for speed, and methods for earning team buy-in. Please enjoy my great conversation with Brad Jacobs.
So, Brad, it's hard to know where to begin this conversation because you have built so many interesting businesses across so many different industries. So maybe the uniting thread is what are you looking for when searching for the next opportunity? Because there's definitely through lines to what you've done, but there's also you've made pretty big jumps. I think maybe you'll make another jump and maybe you'll never stop. What is it that you're looking for in an industry or a market or an area as you're sussing out what to do next. In a word, scalability.
The only way I know to create huge value is to create a company that five and ten years after you start it is much, much larger. And the easiest way to do that is through MA. Of course you have to have organic growth as well. But I look for an industry where it's large enough. If I want to create a company that's tens of billions of dollars in revenue, then I have to do an industry that's hundreds of billions of dollars in revenue. If If I want to consolidate an industry, there has to be things to buy. There have to be things to buy on accretive terms. There has to be things that we can buy at lower multiples than what we're going to trade at. I look for industries where there's synergy as you get bigger, there's economies of scale, there's benefits of size, that as you buy things and get bigger, you just don't get bigger, you get better.
You spread your SA out more, you get better technology, you get a better sales force. You get better training.
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Chapters
8 chapters
1
What criteria does Brad Jacobs use to spot high‑growth, scalable industries for M&A?
0:00–13:37
2
How does Brad evaluate the seller’s mindset and integrity before a deal?
13:37–25:22
3
What lessons did Brad learn from his early acquisition mistakes and integration challenges?
25:22–36:32
4
How does Brad balance speed and discipline when executing large‑scale acquisitions?
36:32–47:17
5
What role does capital‑raising strategy play in Brad’s ability to seize opportunities?
47:17–59:33
6
How did the massive XPO share‑buyback create billions of shareholder value?
59:33–1:11:17
7
What is Brad’s approach to embedding technology and AI across his businesses?
1:11:17–1:22:57
8
How does Brad cultivate high‑performing teams and run “electric” meetings?
1:22:57–1:24:37
Speakers
2 identifiedMore from Invest Like the Best with Patrick O'Shaughnessy
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