TIP822: QXO (QXO): Can One of the World's Best Consolidators Strike Lightning Again? w/ Kyle Grieve & Shawn O'Malley
View Transcript
Episode Description
Kyle Grieve and Shawn O’Malley analyze QXO, the ambitious building-products distribution company led by serial industry consolidator Brad Jacobs, a man who has turned multiple boring industries into extraordinary wealth-creation machines throughout his career. Tune in as they debate whether Brad Jacobs' unparalleled track record as a capital allocator is enough to justify investing in a business that is still very much a work in progress.
IN THIS EPISODE YOU’LL LEARN: (00:00:00) Intro (00:02:03) How Brad Jacobs built multiple billion-dollar companies from scratch (00:05:49) The structure QXO used to go public fast (00:07:05) How Beacon Roofing was acquired despite a poison pill defence (00:11:26) What Kodiak added to QXO's geography and product mix (00:14:43) Why the TopBuild deal is a game-changer for margins (00:23:54) How QXO plans to unlock synergies across its portfolio (00:43:27) Why Jacobs' approach to dilution mirrors Henry Singleton's playbook (00:59:00) The thickness of QXO's competitive moat (01:08:51) The three biggest risks that could derail QXO's vision (01:11:57) What bull, base, and bear cases reveal about fair value (01:19:33) Intrinsic value of QXO (01:20:13) Portfolio decision
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community.
- Track The Intrinsic Value Portfolio.
- Brad Jacob’s first book, How to Make A Few Billion Dollars.
- Brad Jacob’s follow-up book, How to Make A Few More Billion Dollars.
- Listen to Brad Jacob’s interview with David Senra.
- Follow Kyle on X and Linkedin.
- Follow Shawn on X and Linkedin.
- Ad-free episodes on our Premium Feed.
NEW TO THE SHOW?
- Get smarter about valuing businesses through The Intrinsic Value Newsletter.
- Check out The Investor’s Podcast Starter Packs.
- Follow our official social media accounts: X | LinkedIn | Facebook.
- Try our tool for picking stock winners and managing our portfolios: TIP Finance.
- Enjoy exclusive perks from our favorite Apps and Services.
- Learn how to better start, manage, and grow your business with the best business podcasts.
SPONSORS Support our free podcast by supporting our sponsors:
References to any third-party products, services, or advertisers do not constitute endorsements, and The Investor’s Podcast Network is not responsible for any claims made by them.
Learn more about your ad choices. Visit megaphone.fm/adchoices
Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm