PODCAST:Odd Lots
TITLE:Brad Jacobs Plans to Make Billions in the Building Supply Industry
DATE:2023-12-28 00:00:00
URL:
MODEL:gpt-4-gizmo
In this episode of the Odd Lots podcast, the hosts interview Brad Jacobs, a renowned entrepreneur and founder of several successful companies. Jacobs shares his insights on identifying and capitalizing on opportunities in logistics, waste management, and now building products distribution. He discusses his approach to business, emphasizing the importance of thinking differently and leveraging technology to optimize operations and drive growth.
Jacobs highlights the fragmented nature of the building products distribution industry, seeing it as ripe for consolidation and technological advancement. He outlines his vision for his new venture, QXO, aiming to transform the industry by increasing digital engagement, enhancing pricing methodologies through AI, automating inventory management, and optimizing delivery routes. Jacobs' strategy is not to exploit pricing power but to reduce procurement costs and pass some savings to customers while retaining a portion for the company.
Jacobs also touches upon his methods for evaluating potential acquisitions and industries, focusing on future revenue, profit, and cash flow projections. He emphasizes the significance of due diligence, including the unconventional approach of using a former CIA investigator to interview executives for potential deception.
The conversation also explores Jacobs' views on the transportation and logistics industry, noting significant technological advancements in freight brokerage. He remarks on the shift from traditional, human-dependent processes to more digital, automated systems. However, he acknowledges that certain industries and companies are slower to adopt these changes.
Jacobs reflects on the challenges and opportunities in various sectors, including energy, and the impact of environmental, social, and governance (ESG) considerations on investment decisions. He concludes by discussing his book, "How to Make a Few Billion Dollars," which offers insights into his business philosophy and approach to achieving extraordinary success.
