The Blueprint for Ideal Business

This chapter examines the traits of an exceptional business, emphasizing customer loyalty through outstanding service and effective operations. It discusses the balance between purchase price and business quality in investments, stressing the need for transparency and discipline in business acquisitions. Additionally, the speaker reflects on a significant stock buyback decision that led to remarkable gains, illustrating the power of strategic capital allocation.

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My guest today is Brad Jacobs. Brad’s resumé is remarkable. He has founded seven companies, all of which are billion-dollar or multibillion-dollar businesses. He has done 500 M&A transactions and raised $30 billion dollars of debt and equity capital. Currently, he is 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 has also written a book that will be out in January, titled “How to Make a Few Billion Dollars”. 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 conversation with Brad Jacobs.

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Invest Like the Best is a property of Colossus, LLC. For more episodes of Invest Like the Best, visit joincolossus.com/episodes.

Past guests include Tobi Lutke, Kevin Systrom, Mike Krieger, John Collison, Kat Cole, Marc Andreessen, Matthew Ball, Bill Gurley, Anu Hariharan, Ben Thompson, and many more.

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Show Notes

(00:02:11) - (First question) - Identifying key factors in a market before investing

(00:05:07) - Gleaning insights from early acquisition experiences

(00:08:43) - Delving into the seller's mindset during a business sale

(00:12:51) - Weighing pre-built against organic growth strategies in acquisitions

(00:17:20) - Defining the elements of an ideal business

(00:22:49) - Engaging constructively with Wall Street

(00:24:36) - Discussing the substantial buyback of XPO shares

(00:28:16) - Ambition as a recurring theme in entrepreneurial success

(00:30:17) - Emphasizing the need to facilitate team agility

(00:32:35) - Highlighting the joys of post-acquisition integration

(00:36:09) - Drawing lessons from Ludwig Jesselson's principles