QXO > $4.5 Billion

Yes, if you didn’t read the documents from Brad Jacobs’ private equity firm JPE then you might have bought QXO at much higher prices.

Today, the firm is traded below its net cash. With one of the best executives ever to do it at the helm, QXO is going to be a great long-term business and it hasn’t even made an acquisition yet.

If you don’t know the story behind it visit qxo.com. From JPE.com “QXO’s strategy is to become a tech-forward leader in the $800 billion building products distribution industry. The company is targeting tens of billions of dollars of annual revenue in the next decade through accretive acquisitions and organic growth, with the goal of creating outsized shareholder value.”

Jacobs made billions ($4.1 give or take) by rolling up boring industries. USA Waste to United Rentals to XPO… Brad is a monster when it comes to focus and execution. He put out a book “How to make a few billion dollars” earlier this year and was making the rounds to talk about his new venture QXO, which he believes could be a $50 billion company.

For context, at the time of this writing, United Rentals is a $46 billion company. XPO is a $14 billion company. Jacobs thinks QXO will be bigger than both. It’s really a no brainer with the only derailment risk coming from regulatory or death. Once the company starts turning the engine, the market will also likely front run any future profit.

In closing, Jacobs believes that QXO should be doing over $1 billion in the next few years and $10’s of billions by the end of the decade. Only time will tell, but I wouldn’t be against him.