Invest Like the Best: Brad Jacobs - Think Big and Move Fast

Episode Released: July 25, 2025

In this Classics episode of Invest Like the Best, host Patrick O'Shaughnessy sits down with Brad Jacobs, a renowned entrepreneur and executive known for founding seven companies, each scaling to billion-dollar valuations. Currently serving as the Executive Chairman of XPO Logistics, Jacobs shares his insights on building scalable businesses, mastering mergers and acquisitions (M&A), and fostering a culture of rapid yet disciplined execution.

Early Career and Business Philosophy

Brad Jacobs begins by emphasizing the importance of scalability in his business ventures. When asked about his criteria for selecting new opportunities, he succinctly responds, “In a word, scalability” [04:25]. For Jacobs, the ability to grow exponentially over five to ten years is crucial. He achieves this primarily through strategic M&A, targeting industries large enough to support companies generating tens of billions in revenue. Jacobs looks for fragmented markets with potential for consolidation, ensuring that each acquisition adds value through economies of scale and operational efficiencies.

Mastering Mergers & Acquisitions

Jacobs delves deep into his extensive experience with M&A, highlighting that while many engage in acquisitions, his edge lies in executing them more frequently and effectively. He underscores the importance of purchasing companies at lower EBITDA multiples, typically in the mid to high single digits, to ensure accretive growth [05:21]. Reflecting on his early acquisitions, Jacobs admits to numerous mistakes, particularly around integration speed and assessing talent. However, these experiences taught him the value of rapid integration and the necessity of aligning systems and processes swiftly to maintain visibility and control [06:16].

Integration and Leadership

A recurring theme in Jacobs' strategy is the speed of integration. He likens it to cutting off a band-aid quickly to minimize disruption. By standardizing systems such as CRM, HR, ERP, and dashboards across acquired entities, Jacobs ensures seamless management and operational oversight. He stresses that successful integration hinges on eliminating redundancies and fostering a unified culture. “Our goal is to fully integrate the business on every level into the rest of the company, and it's part of the family,” Jacobs states [33:45].

Capital Markets and Value Creation

Jacobs shares insights into managing relationships with Wall Street, emphasizing honesty and transparency. He explains that consistent delivery on forecasts and candid discussions about challenges build trust with investors [23:58]. A standout moment in the conversation is Jacobs' response to a short-seller attack on XPO Logistics. Faced with a 26% stock drop due to unfounded reports, Jacobs seized the opportunity to buy back $2 billion of the company’s stock, resulting in a $6 billion gain as the stock tripled in two years [25:45].

Embracing Technology and AI

Though not a technologist by training, Jacobs recognizes technology as a critical enabler of business success. He illustrates how his companies, particularly XPO Logistics, GXO Logistics, and RXO, leverage advanced technologies like AI and machine learning to drive efficiency and scalability. For instance, RXO Logistics achieved nearly 100% automation in its brokerage operations, revolutionizing traditional processes [41:43]. Jacobs advocates for using technology as an ally to stay ahead of industry disruptions and enhance operational capabilities.

Leadership and Team Management

Jacobs places immense value on having a management team adept at moving fast while maintaining discipline. He describes his approach to "electric meetings," where agendas are set democratically based on team input, fostering an inclusive and dynamic environment. “Electric meetings are where the agenda is set by the people, not the leader, creating a highly engaging and productive session,” Jacobs explains [58:31]. He believes that honest, intelligent, and collaborative team members are essential for swift execution and sustained growth.

Personal Insights and Life Lessons

Beyond business, Jacobs is dedicated to personal growth and mindfulness. He has practiced meditation consistently for over five decades, utilizing thought experiments to foster creative and out-of-the-box thinking. Reflecting on his formative years, Jacobs attributes much of his success to early educational experiences that surrounded him with highly gifted peers, enhancing his intellectual growth [57:09].

Book Insights: How to Make a Few Billion Dollars

Jacobs' upcoming book, How to Make a Few Billion Dollars, encapsulates his extensive experience in building and scaling businesses. The book is designed to provide aspiring CEOs with practical strategies and insights, emphasizing the importance of scalability, disciplined execution, and leveraging technology. It also delves into personal development, encouraging readers to dream big and utilize their limited time to achieve meaningful goals [79:54].

Closing Thoughts

In the concluding segment, Jacobs shares a heartfelt anecdote about Ludwig Jesselson, his first major business mentor, who not only provided invaluable business insights but also introduced him to his wife, illustrating the profound personal and professional relationships that have shaped his journey [37:17]. Jacobs expresses no regrets about his approach and continually seeks to refine his ability to mentor and communicate effectively with his team, aiming to unlock the full potential of his employees [65:12].

Notable Quotes

• “In a word, scalability.” – Brad Jacobs [04:25]
• “Integrity is being honest. It's doing what you say you're going to do and being straightforward about it, not playing games.” – Brad Jacobs [08:29]
• “If you overpay for an acquisition, you're in a hole.” – Brad Jacobs [20:12]
• “Move fast, things get worse, not better.” – Brad Jacobs [31:25]
• “Electric meetings are where the agenda is set by the people, not the leader, creating a highly engaging and productive session.” – Brad Jacobs [58:31]
• “Problem solving problems, that's the way you make money.” – Brad Jacobs [52:42]

Through a rich blend of strategic acumen, disciplined execution, and a passion for leveraging technology, Brad Jacobs exemplifies the ethos of "Think Big and Move Fast," making him a compelling figure in the world of business and investment.