00:00

So the guy I'm gonna talk about today, his name is Brad Jacobs. Bradley Jacobs, I think he goes by, but, we're gonna call him Brad Jacobs. And this person is super inter thing because they have started,

So the guy I'm gonna talk about today, his name is Brad Jacobs. Bradley Jacobs, I think he goes by, but, we're gonna call him Brad Jacobs. And this person is super inter thing because they have started,

00:11

five companies that have either gone public

five companies that have either gone public

00:14

or

or

00:16

are worth over a billion dollars. He started twenty three. He's sixty four now. Google and Brad Jacobs. He's worth somewhere in the range of three, four, five billion dollars.

are worth over a billion dollars. He started twenty three. He's sixty four now. Google and Brad Jacobs. He's worth somewhere in the range of three, four, five billion dollars.

00:26

And he's bought or in Both he doesn't, like, invest passively like a venture check. They buy companies,

And he's bought or in Both he doesn't, like, invest passively like a venture check. They buy companies,

00:32

and he's bought something like six, seven hundred companies. And he's done it across a variety of industries, and he's done the same strategy over and over and over again in different industries. And it's incredibly interesting. And this guy,

and he's bought something like six, seven hundred companies. And he's done it across a variety of industries, and he's done the same strategy over and over and over again in different industries. And it's incredibly interesting. And this guy,

00:45

is very fascinating to me for a variety of reasons that I'm going to explain. But, Andrew, have you heard of this guy, Brad Jacobs? Do you know anything about this? Never. I don't know anything. That's kinda why he's cool. He's kind of under the radar. If you Google him, he's,

is very fascinating to me for a variety of reasons that I'm going to explain. But, Andrew, have you heard of this guy, Brad Jacobs? Do you know anything about this? Never. I don't know anything. That's kinda why he's cool. He's kind of under the radar. If you Google him, he's,

00:58

he's got, like, a bald head, and he looks like a finance guy because he wears a tie, and he's, like, pretty,

he's got, like, a bald head, and he looks like a finance guy because he wears a tie, and he's, like, pretty,

01:05

well spoken and you think that he's just, like, a private equity person. And I guess maybe he is, but he's really an entrepreneur. He's very entrepreneurial, and he's,

well spoken and you think that he's just, like, a private equity person. And I guess maybe he is, but he's really an entrepreneur. He's very entrepreneurial, and he's,

01:14

far, more interesting than just a lot of the typical New York hedge funny type of folks. And so I'm gonna give you a quick story about his background.

far, more interesting than just a lot of the typical New York hedge funny type of folks. And so I'm gonna give you a quick story about his background.

01:21

So He started five things that have been quite meaningfully sized. So the first was, it was called Amerex Oil Associates.

So He started five things that have been quite meaningfully sized. So the first was, it was called Amerex Oil Associates.

01:29

He started it when he was twenty three, and it was an oil biz. It was basically like an oil brokerage firm, which,

He started it when he was twenty three, and it was an oil biz. It was basically like an oil brokerage firm, which,

01:36

I'm not entirely sure what that entails, but I imagine it just means,

I'm not entirely sure what that entails, but I imagine it just means,

01:41

connecting

connecting

01:42

folks who created the oil to large businesses who are buying the oil. And within a very short amount of time, only about four years.

folks who created the oil to large businesses who are buying the oil. And within a very short amount of time, only about four years.

01:50

Remember, he started this when he was twenty three. So by the age of twenty seven, Amerex's oil business was doing four point seven billion dollars

Remember, he started this when he was twenty three. So by the age of twenty seven, Amerex's oil business was doing four point seven billion dollars

01:58

in gross,

in gross,

01:59

gross oil bookings, meaning he would that's how much oil they're buying and in selling. Now I imagine his company kept a tiny percent of that, like one or two or three percent, but incredibly impressive for a young guy. And after a few years, he sells that business for a billion dollars. Then only a couple months after that,

gross oil bookings, meaning he would that's how much oil they're buying and in selling. Now I imagine his company kept a tiny percent of that, like one or two or three percent, but incredibly impressive for a young guy. And after a few years, he sells that business for a billion dollars. Then only a couple months after that,

02:19

He starts this thing called Hamilton Resource,

He starts this thing called Hamilton Resource,

02:23

ham Hamilton Resource. He starts it out of,

ham Hamilton Resource. He starts it out of,

02:26

England. He convinces a French bank to give him a billion dollars line of credit, which he was quite successful already, even though he was crazy young. But, he made it happen, and he went in secured a a line of credit. And here's what he said. He goes, we moved physical cargoes of oil from one place to another.

England. He convinces a French bank to give him a billion dollars line of credit, which he was quite successful already, even though he was crazy young. But, he made it happen, and he went in secured a a line of credit. And here's what he said. He goes, we moved physical cargoes of oil from one place to another.

02:42

The eighties turned out to be a great time in the oil business, and I built Hamilton up to about a billion dollars in revenues and did business in dozens of country dozens of countries before I moved back to the states in nineteen eighty nine.

The eighties turned out to be a great time in the oil business, and I built Hamilton up to about a billion dollars in revenues and did business in dozens of country dozens of countries before I moved back to the states in nineteen eighty nine.

02:54

So between eighty three and eighty nine, he started this business,

So between eighty three and eighty nine, he started this business,

02:59

and it also was huge. I believe he ended up selling it for a billion dollar north of a billion dollars. So that's business number two.

and it also was huge. I believe he ended up selling it for a billion dollar north of a billion dollars. So that's business number two.

03:06

Business number three,

Business number three,

03:07

a little bit of a, of an odd one, was waste management.

a little bit of a, of an odd one, was waste management.

03:12

I don't think there's anyone out there doing waste management stuff now that's brand new, but there's a ton of companies that at the time started in the seventies, eighties, and nineties, like waste management, the company waste management. And what they did was

I don't think there's anyone out there doing waste management stuff now that's brand new, but there's a ton of companies that at the time started in the seventies, eighties, and nineties, like waste management, the company waste management. And what they did was

03:24

they would go out and find tons of mom and pop waste management companies because back then, that's how it was. And probably is a little bit to this day, but he started this thing called United Waste Management, which eventually became the fifth largest solid waste business in America. And it had a very, very, very simple business plan, which was by landfills and small markets by many of the local trucking companies that were serving those markets optimize the truck routes, maximize the pricings, get margins up, achieve size so that, they have the cap capability to scale. And they did that, and the strategy worked really well. And in just five years,

they would go out and find tons of mom and pop waste management companies because back then, that's how it was. And probably is a little bit to this day, but he started this thing called United Waste Management, which eventually became the fifth largest solid waste business in America. And it had a very, very, very simple business plan, which was by landfills and small markets by many of the local trucking companies that were serving those markets optimize the truck routes, maximize the pricings, get margins up, achieve size so that, they have the cap capability to scale. And they did that, and the strategy worked really well. And in just five years,

03:59

our earnings compounded annually,

our earnings compounded annually,

04:01

by fifty five percent,

by fifty five percent,

04:03

and the and he took the company public, something like eight months after starting it. And the stock price went up as well, fifty percent every single year for, like, five years.

and the and he took the company public, something like eight months after starting it. And the stock price went up as well, fifty percent every single year for, like, five years.

04:13

Eventually,

Eventually,

04:14

that company grew to three point nine billion dollars in revenue and one point two billion dollars in EBITDA with seven hundred and fifty locations and thirteen thousand employees. Is this freaking crazy? Oh, sorry. That I just gave you the numbers. I gave you the numbers for,

that company grew to three point nine billion dollars in revenue and one point two billion dollars in EBITDA with seven hundred and fifty locations and thirteen thousand employees. Is this freaking crazy? Oh, sorry. That I just gave you the numbers. I gave you the numbers for,

04:30

his next business, but the waste management grew to two point five billion dollars in revenue or sorry, two point five billion dollars and and exit to waste management Not. Right?

his next business, but the waste management grew to two point five billion dollars in revenue or sorry, two point five billion dollars and and exit to waste management Not. Right?

04:40

That's crazy. So I I I one of the most interesting things about this is, like, there I always think there's, like,

That's crazy. So I I I one of the most interesting things about this is, like, there I always think there's, like,

04:46

four different types of entrepreneurs. Right? There's the innovators. So let's just take let's take,

four different types of entrepreneurs. Right? There's the innovators. So let's just take let's take,

04:52

Chipotle as an example. Right? So there's the innovator. There's the guy who rolled the first burrito. Was like, oh, shit. This tastes really good.

Chipotle as an example. Right? So there's the innovator. There's the guy who rolled the first burrito. Was like, oh, shit. This tastes really good.

04:58

Then there's the remixer. There's the person who creates Chipotle. They take the burrito. They package it up. They create a brand around it. Then there's the scalars, the person who scales to play to a hundred locations, and then there's the optimizer, the person who just sits on top, make sure it doesn't blow up, and gets as much as possible, gets as much juice at the lemon as they can. And this guy's a great example

Then there's the remixer. There's the person who creates Chipotle. They take the burrito. They package it up. They create a brand around it. Then there's the scalars, the person who scales to play to a hundred locations, and then there's the optimizer, the person who just sits on top, make sure it doesn't blow up, and gets as much as possible, gets as much juice at the lemon as they can. And this guy's a great example

05:19

of a scaler. Someone who just takes something that already works that's already proven and just does a much better job of it and rolls it out, makes it scalable,

of a scaler. Someone who just takes something that already works that's already proven and just does a much better job of it and rolls it out, makes it scalable,

05:28

and build something massive. And it's super it's super interesting.

and build something massive. And it's super it's super interesting.

05:32

Because I'd say I I kind of fall into this camp.

Because I'd say I I kind of fall into this camp.

05:35

At the same time, I feel like What's sexy about this guy is actually how boring the businesses are. Right? They're they're so basic. These are things that are, like, undistruptible.

At the same time, I feel like What's sexy about this guy is actually how boring the businesses are. Right? They're they're so basic. These are things that are, like, undistruptible.

05:43

And when you build them, it's like a hundred year business something, which I think is really cool. Whereas what we do is, like, five you gotta think in five year, chunks.

And when you build them, it's like a hundred year business something, which I think is really cool. Whereas what we do is, like, five you gotta think in five year, chunks.

05:52

I completely agree. And if you scroll up to this document that we have open, and you click source.

I completely agree. And if you scroll up to this document that we have open, and you click source.

05:57

The source that I'm using for a lot of this, and this is so interesting.

The source that I'm using for a lot of this, and this is so interesting.

06:02

So we're on business number three. I'll I'll get to four and five in a second. But when he what this guy does and then when I wrap up all five, I'll explain to you what my lessons, learned from this guy are. But I'll tell you one of them right now, which is what this guy does is he raises money like a madman.

So we're on business number three. I'll I'll get to four and five in a second. But when he what this guy does and then when I wrap up all five, I'll explain to you what my lessons, learned from this guy are. But I'll tell you one of them right now, which is what this guy does is he raises money like a madman.

06:18

And It's not like a ridiculous amount. I mean, I

And It's not like a ridiculous amount. I mean, I

06:21

saying you're raising tens of millions of dollars, I guess, for the for the average show. Yeah. That is a ridiculous amount, but he's got a track record and he turns them into multi billion dollar things. But,

saying you're raising tens of millions of dollars, I guess, for the for the average show. Yeah. That is a ridiculous amount, but he's got a track record and he turns them into multi billion dollar things. But,

06:31

so so kinda tens of millions of dollars is not that much money.

so so kinda tens of millions of dollars is not that much money.

06:36

But If you click that source thing, what what does that take you to?

But If you click that source thing, what what does that take you to?

06:40

To the SCC.

To the SCC.

06:42

Okay. I found this file on the SCC, and I don't really know what this is. But I don't even remember how I came across it, but this is what interested me. It's a Q and A session of him having written it out, and he basically lays out the strategy of his fourth and fifth business. And so what this appears to be is Q and A that he prepared, and they show this to a ton of potential investors, a ton a ton of potential banks, and they decide to invest in him. And I think this was before the company even started. Is that what that is? So you're saying this is what he raised on? Like, there's no deck there's nothing. It's just this is the thing. He goes out and he says, read this document

Okay. I found this file on the SCC, and I don't really know what this is. But I don't even remember how I came across it, but this is what interested me. It's a Q and A session of him having written it out, and he basically lays out the strategy of his fourth and fifth business. And so what this appears to be is Q and A that he prepared, and they show this to a ton of potential investors, a ton a ton of potential banks, and they decide to invest in him. And I think this was before the company even started. Is that what that is? So you're saying this is what he raised on? Like, there's no deck there's nothing. It's just this is the thing. He goes out and he says, read this document

07:19

and you can invest.

and you can invest.

07:22

I'm not entirely sure, but I think

I'm not entirely sure, but I think

07:24

That is part of it. I I it's called this is called a schedule fourteen a, which I I'm not an expert in the SEC. I believe that is something that you have to answer

That is part of it. I I it's called this is called a schedule fourteen a, which I I'm not an expert in the SEC. I believe that is something that you have to answer

07:35

before a board of directors at a publicly traded company,

before a board of directors at a publicly traded company,

07:39

raises

raises

07:42

money.

money.

07:43

But I'm not entirely sure. But it's interesting, though, because he writes in wonderful, straightforward, simple English and you could read his entire strategy, which I'm gonna go through in a second.

But I'm not entirely sure. But it's interesting, though, because he writes in wonderful, straightforward, simple English and you could read his entire strategy, which I'm gonna go through in a second.

07:55

But skim that while I bring while I I'll I'll summarize the next two businesses that he did. So he started, I told you he started two oil things, but based those were oil brokerage businesses.

But skim that while I bring while I I'll I'll summarize the next two businesses that he did. So he started, I told you he started two oil things, but based those were oil brokerage businesses.

08:06

Then he started,

Then he started,

08:07

well, waste management business. Now his fourth one is called United Rentals. Now I don't know if you see this in Canada, but if you pay attention to this now and if you're listening to this and you live in America, Go on a drive in downtown the downtown city wherever you live and look at the big box trucks and look at the rental equipment. So look at, like, caterpillars or the Bob cats or the the the construction equipment as well as the

well, waste management business. Now his fourth one is called United Rentals. Now I don't know if you see this in Canada, but if you pay attention to this now and if you're listening to this and you live in America, Go on a drive in downtown the downtown city wherever you live and look at the big box trucks and look at the rental equipment. So look at, like, caterpillars or the Bob cats or the the the construction equipment as well as the

08:31

portal potties and anything involving construction or trucking. Go and look at those things, and I guarantee you on a lot of them, you're gonna see United Rentals. Well, that is the fourth company that he started. And he started it with the idea of the same thing of way of voice management. He wanted to go out and he wanted to find a a massive industry that was highly segmented

portal potties and anything involving construction or trucking. Go and look at those things, and I guarantee you on a lot of them, you're gonna see United Rentals. Well, that is the fourth company that he started. And he started it with the idea of the same thing of way of voice management. He wanted to go out and he wanted to find a a massive industry that was highly segmented

08:52

by small businesses where that were profitable and great, but they didn't have enough capital to grow, and they were kinda bad at sales. And that's what he did. And so he founded it and in just five years,

by small businesses where that were profitable and great, but they didn't have enough capital to grow, and they were kinda bad at sales. And that's what he did. And so he founded it and in just five years,

09:03

five years, it grew to

five years, it grew to

09:05

four billion in revenue and one point two billion in EBITDA.

four billion in revenue and one point two billion in EBITDA.

09:09

And, is he growing via acquisition, or is he just rolling this out and crushing competition across the country?

And, is he growing via acquisition, or is he just rolling this out and crushing competition across the country?

09:16

We're gonna talk about that. But what he said was we got there partly through acquisitions,

We're gonna talk about that. But what he said was we got there partly through acquisitions,

09:20

partly through organic growth developed by developing greenfield locations.

partly through organic growth developed by developing greenfield locations.

09:26

He goes, we grew by using the same strategy at United Waste. So we bought about two thirds of the branch locations and Cold started another third from scratch. I actually prefer cold starts is what he said. The business plan for United Rentals was to become the largest equipment rental company in the world and leverage our purchasing power, branding, and other advantages of size. Within thirteen months, we became number one, leap blogging, fleet frogging hurts, which had become the equipment rental, which was the number one equipment rental business in nineteen sixty five. Another thing we did was we went fast we went public fast. We formed the company on Labor Day weekend, and we were trading on the New York Stock Exchange by December. Labor Day weekend is in May, I think. Right?

He goes, we grew by using the same strategy at United Waste. So we bought about two thirds of the branch locations and Cold started another third from scratch. I actually prefer cold starts is what he said. The business plan for United Rentals was to become the largest equipment rental company in the world and leverage our purchasing power, branding, and other advantages of size. Within thirteen months, we became number one, leap blogging, fleet frogging hurts, which had become the equipment rental, which was the number one equipment rental business in nineteen sixty five. Another thing we did was we went fast we went public fast. We formed the company on Labor Day weekend, and we were trading on the New York Stock Exchange by December. Labor Day weekend is in May, I think. Right?

10:09

Mhmm. So they started the company in May and

Mhmm. So they started the company in May and

10:13

five months. Is that

five months. Is that

10:15

seven months. That's seven months later, they were public. Merrill Lynch said it was the fastest growing or the fastest IPO they have ever seen. And I stepped down,

seven months. That's seven months later, they were public. Merrill Lynch said it was the fastest growing or the fastest IPO they have ever seen. And I stepped down,

10:25

and so he stepped down of United Rentals in two thousand seven. This is only

and so he stepped down of United Rentals in two thousand seven. This is only

10:32

five years after starting

five years after starting

10:34

and

and

10:35

to start the next company. But when he stepped down United Rentals, if you look it up now, I believe their market cap is

to start the next company. But when he stepped down United Rentals, if you look it up now, I believe their market cap is

10:42

twenty five billion dollars. So he spent five years on this company and it's worth twenty five billion dollars. It's crazy.

twenty five billion dollars. So he spent five years on this company and it's worth twenty five billion dollars. It's crazy.

10:48

So listen to what he did after this.

So listen to what he did after this.

10:52

After I stepped down, I began looking for my next big thing. I studied tons of industries, and I ended concentrating on transportation and logistics.

After I stepped down, I began looking for my next big thing. I studied tons of industries, and I ended concentrating on transportation and logistics.

11:00

It's larger and more fragmented than the industries I've been I've previously been involved in. It's a thirteen billion dollar

It's larger and more fragmented than the industries I've been I've previously been involved in. It's a thirteen billion dollar

11:08

a, sorry, a thirteen trillion dollar industry. And here's what this guy says. This guy at the time is already multi billionaire.

a, sorry, a thirteen trillion dollar industry. And here's what this guy says. This guy at the time is already multi billionaire.

11:15

But let me see if I, I have he wrote out what he does, which was basically

But let me see if I, I have he wrote out what he does, which was basically

11:21

he basically spends three months He reads tons of reports, and then he calls a hundred experts in each industry. And he just goes and he sits down with them and he just ask them questions. It might as well be a podcast. All that's, like, exactly how he learned. So he's this multi billionaire. He's this big shot. He's done all this amazing stuff. And he calls these people and he just sits down and he listens. That's all he does. It's pretty amazing.

he basically spends three months He reads tons of reports, and then he calls a hundred experts in each industry. And he just goes and he sits down with them and he just ask them questions. It might as well be a podcast. All that's, like, exactly how he learned. So he's this multi billionaire. He's this big shot. He's done all this amazing stuff. And he calls these people and he just sits down and he listens. That's all he does. It's pretty amazing.

11:45

And he did this, and then he's in this with this new thing, it's called

And he did this, and then he's in this with this new thing, it's called

11:50

XPO Logistics.

XPO Logistics.

11:51

Have you heard of this? I have I have heard of this. I think it's a, delivery and logistics company, like a competitor to FedEx. At least that's my understanding.

Have you heard of this? I have I have heard of this. I think it's a, delivery and logistics company, like a competitor to FedEx. At least that's my understanding.

12:00

Well, we'll put this in the show notes, but in that document, top. That is the document from where he was raising money for XPO logistics. And then plain English It looks like it's it looks like it's like supply chain. So it's like getting people things they need that are critical.

Well, we'll put this in the show notes, but in that document, top. That is the document from where he was raising money for XPO logistics. And then plain English It looks like it's it looks like it's like supply chain. So it's like getting people things they need that are critical.

12:12

On time?

On time?

12:14

Well, in there, he, in that document that I sent you, he I didn't I I I couldn't study the whole thing, but in plain English, he explains kinda what they did. And his reasoning for getting into it. And he just says, well, I just studied loads of industries. This one seemed industry interesting. I went in,

Well, in there, he, in that document that I sent you, he I didn't I I I couldn't study the whole thing, but in plain English, he explains kinda what they did. And his reasoning for getting into it. And he just says, well, I just studied loads of industries. This one seemed industry interesting. I went in,

12:32

interviewed a hundred people who are experts on it. I hired really good people, and we're gonna do x y and z. And that x y and z is exactly what he's done. In his,

interviewed a hundred people who are experts on it. I hired really good people, and we're gonna do x y and z. And that x y and z is exactly what he's done. In his,

12:43

last,

last,

12:44

businesses.

businesses.

12:45

And now I wanna wrap up by by giving you guys incredibly detailed

And now I wanna wrap up by by giving you guys incredibly detailed

12:51

stats or,

stats or,

12:53

incredibly detailed strategy on what he does.

incredibly detailed strategy on what he does.

12:56

So his first thing that he does He looks for huge industries with lots of fragmentation that are small and profitable, but don't have capital to

So his first thing that he does He looks for huge industries with lots of fragmentation that are small and profitable, but don't have capital to

13:04

to scale. So here's what he says. He was in a nutshell

to scale. So here's what he says. He was in a nutshell

13:07

This is how you ramp up a business. You buy a brokerage or some type of small business with thirty million dollars in revenue, and you add thirty to forty bodies to it, and you double revenue in time. I've looked into companies that have executed this plan, but most of them don't have the capital to sustain it. I try to find those businesses, and I bring all the capital to do it.

This is how you ramp up a business. You buy a brokerage or some type of small business with thirty million dollars in revenue, and you add thirty to forty bodies to it, and you double revenue in time. I've looked into companies that have executed this plan, but most of them don't have the capital to sustain it. I try to find those businesses, and I bring all the capital to do it.

13:26

The second thing that he does is he hires salespeople.

The second thing that he does is he hires salespeople.

13:29

So he says, I like to hire hungry, talented salespeople at a low base but big upside for incentives. I fund their training for a few months, and it's not that hard for the winners to build a million dollar book after a year or so.

So he says, I like to hire hungry, talented salespeople at a low base but big upside for incentives. I fund their training for a few months, and it's not that hard for the winners to build a million dollar book after a year or so.

13:43

It's a business where you have to make ninety nine calls a day and do one or two deals. You have to hire people who are Psycho I I actually don't know the sword. What's this? We have to hire people who are psychochromatically

It's a business where you have to make ninety nine calls a day and do one or two deals. You have to hire people who are Psycho I I actually don't know the sword. What's this? We have to hire people who are psychochromatically

13:54

test high on the need to win scale and low on the need to be liked scale. A salesperson will have a base of twenty five thousand or thirty five thousand, but can make many times that amount through an incentivize,

test high on the need to win scale and low on the need to be liked scale. A salesperson will have a base of twenty five thousand or thirty five thousand, but can make many times that amount through an incentivize,

14:05

a really good incentive program. Once you get the right people in the system and integrate them on the right IT, it can be really powerful. And finally, speaking of IT, when someone asks Tim, what was the best acquisition of all time they ever made? He said they made a powerful software acquisition

a really good incentive program. Once you get the right people in the system and integrate them on the right IT, it can be really powerful. And finally, speaking of IT, when someone asks Tim, what was the best acquisition of all time they ever made? He said they made a powerful software acquisition

14:21

with a politically incorrect name called rental man. And we used that to integrate all of our rental businesses we rolled up into that company. We couldn't have made the hundreds of acquisitions we did without rental man. And that was his best acquisition all the time. And that,

with a politically incorrect name called rental man. And we used that to integrate all of our rental businesses we rolled up into that company. We couldn't have made the hundreds of acquisitions we did without rental man. And that was his best acquisition all the time. And that,

14:37

my friend,

my friend,

14:38

is Brad Jacobs. And I can go on.

is Brad Jacobs. And I can go on.

14:42

I I let I both love and and,

I I let I both love and and,

14:45

find these guys kinda mysterious. And I kinda wonder, like, what the thing that's missing in all this is, like, what keeps him going? What's his purpose?

find these guys kinda mysterious. And I kinda wonder, like, what the thing that's missing in all this is, like, what keeps him going? What's his purpose?

14:53

How do you how does he use his money? And and, like, why does he do this? Right. What's the driving force?

How do you how does he use his money? And and, like, why does he do this? Right. What's the driving force?

15:01

I researched him, and

I researched him, and

15:03

the guy looks like a Wall Street stiff. Did you look up what he looks like? Yeah. He looks kind of like, there's like a character actor that he looks like. I'll try and find a photo of him. He's kinda like a generic nerdy bulb, like Steve Balmer looking kinda guy. Yeah. He looks like he would be, like, in Biden or Trump's cabinet.

the guy looks like a Wall Street stiff. Did you look up what he looks like? Yeah. He looks kind of like, there's like a character actor that he looks like. I'll try and find a photo of him. He's kinda like a generic nerdy bulb, like Steve Balmer looking kinda guy. Yeah. He looks like he would be, like, in Biden or Trump's cabinet.

15:22

Yeah. Yeah. But I've actually seen interviews with him. He's very endearing, and I think that he's not actually just a stiff, like, Wall Street, like, just milk all the numbers out. I actually think that he,

Yeah. Yeah. But I've actually seen interviews with him. He's very endearing, and I think that he's not actually just a stiff, like, Wall Street, like, just milk all the numbers out. I actually think that he,

15:34

just This is his bill. This is his urge. He just loves to bill. And and and and he constantly talks about integrity. He goes, the common denominator

just This is his bill. This is his urge. He just loves to bill. And and and and he constantly talks about integrity. He goes, the common denominator

15:43

of everything we buy. Is the people who we buy from have to have high integrity. And also one of our motes is we take care of the people of the businesses who work for the businesses that we're inheriting.

of everything we buy. Is the people who we buy from have to have high integrity. And also one of our motes is we take care of the people of the businesses who work for the businesses that we're inheriting.

15:55

In fact, the biggest risk of our plan is that the people who we buy companies from, they leave. And so we treat them all really, really well. And so I don't think this is actually bullshit because when I got his energy from interviews, I actually believed that he was a good dude, and this was just his art.

In fact, the biggest risk of our plan is that the people who we buy companies from, they leave. And so we treat them all really, really well. And so I don't think this is actually bullshit because when I got his energy from interviews, I actually believed that he was a good dude, and this was just his art.

16:12

What do you think though? What do you think he does with his money that is that kind of public? Does he do need philanthropy or or anything? Because I always find it so interesting. I mean, there's two ways to look at, like, doing good in the world. It's like, okay. You you do capitalism. Right? You employ a whole bunch of people. You make an industry more efficient.

What do you think though? What do you think he does with his money that is that kind of public? Does he do need philanthropy or or anything? Because I always find it so interesting. I mean, there's two ways to look at, like, doing good in the world. It's like, okay. You you do capitalism. Right? You employ a whole bunch of people. You make an industry more efficient.

16:27

You add to global GDP, you know, good things happen because he does this. Right? But on the flip side, like, what's driving, make more money? And maybe it is just continually maniacally going industry by industry and improving them and optimizing them. That's his, like, gift or whatever.

You add to global GDP, you know, good things happen because he does this. Right? But on the flip side, like, what's driving, make more money? And maybe it is just continually maniacally going industry by industry and improving them and optimizing them. That's his, like, gift or whatever.

16:44

But, but the guy I'm gonna talk about next is really interesting because

But, but the guy I'm gonna talk about next is really interesting because

16:48

he basically

he basically

16:49

uses all his money to do crazy good things. Right? Which is really fascinating. I'll talk about him in a minute. But do you have any sense of what this guy does, like No. With his money? Like, does he, like, he's very much jets? Like, I I don't I cannot figure it out, but I will I can wrap this up by saying there's a few things that I've learned from this person. The first is like taking the red pill, which is like

uses all his money to do crazy good things. Right? Which is really fascinating. I'll talk about him in a minute. But do you have any sense of what this guy does, like No. With his money? Like, does he, like, he's very much jets? Like, I I don't I cannot figure it out, but I will I can wrap this up by saying there's a few things that I've learned from this person. The first is like taking the red pill, which is like

17:12

Have you heard I I don't know. Someone just used that phrase to me there today, and I'm and I'm picking it up. You should be careful. It's, associated with all sorts of

Have you heard I I don't know. Someone just used that phrase to me there today, and I'm and I'm picking it up. You should be careful. It's, associated with all sorts of

17:21

Not so,

Not so,

17:22

not so positive connotations. Oh, well, I didn't know that. What I mean is, like, I guess his,

not so positive connotations. Oh, well, I didn't know that. What I mean is, like, I guess his,

17:27

like,

like,

17:28

When you look at what this person's capable of doing, you think, or when you read what he's done, if you didn't know it was true, you would say, that's impossible. No one can do that. But the person has done it repeatedly over and over and over again. And he seems pretty nonchalant about that. And so my what I'm learning from him is that

When you look at what this person's capable of doing, you think, or when you read what he's done, if you didn't know it was true, you would say, that's impossible. No one can do that. But the person has done it repeatedly over and over and over again. And he seems pretty nonchalant about that. And so my what I'm learning from him is that

17:46

you can create these amazing things, and it's hard, but it maybe could be kind of simple.

you can create these amazing things, and it's hard, but it maybe could be kind of simple.

17:52

Well, it's so inspiring. Right? You basically go find an industry that has let's let's look at the restaurant industry in general. Right? Restaurants are disorganized.

Well, it's so inspiring. Right? You basically go find an industry that has let's let's look at the restaurant industry in general. Right? Restaurants are disorganized.

18:01

They're very difficult businesses. They're very low margin.

They're very difficult businesses. They're very low margin.

18:05

People have done this essentially in restaurants by building fast food chains. Right? So you go in, you build systems, you do training, you incentivize people the right way,

People have done this essentially in restaurants by building fast food chains. Right? So you go in, you build systems, you do training, you incentivize people the right way,

18:13

And you can make a lot of money doing that, but you can't make a lot of money usually in an individual restaurant. So what he has done is he's gone out and fa he finds these fragmented

And you can make a lot of money doing that, but you can't make a lot of money usually in an individual restaurant. So what he has done is he's gone out and fa he finds these fragmented

18:22

disorganized industries like, you know, waste management or logistics,

disorganized industries like, you know, waste management or logistics,

18:26

and he goes, okay, I'm gonna do the fast food chain,

and he goes, okay, I'm gonna do the fast food chain,

18:30

except for that industry.

except for that industry.

18:32

It's yeah. And and it's really, really cool. The second thing that that I learned is he actually does the same thing as you. Well, I actually don't know your numbers, but I bet you they're similar. He likes to buy companies between five and ten times earnings,

It's yeah. And and it's really, really cool. The second thing that that I learned is he actually does the same thing as you. Well, I actually don't know your numbers, but I bet you they're similar. He likes to buy companies between five and ten times earnings,

18:44

and that's, like, his number.

and that's, like, his number.

18:46

That's what I looked at. Yeah. I'd say I love to buy businesses for that,

That's what I looked at. Yeah. I'd say I love to buy businesses for that,

18:51

that valuation or whatever.

that valuation or whatever.

18:53

But the problem the problem with buying a business at that valuation is, like, you're buying kind of a crappy business often if it's gonna be that low. Well, these are trash companies. What he's doing yeah. Exactly. What he's doing is kind of building a platform where Like, I just need one so I can build the systems, and then I can go and acquire a whole bunch more.

But the problem the problem with buying a business at that valuation is, like, you're buying kind of a crappy business often if it's gonna be that low. Well, these are trash companies. What he's doing yeah. Exactly. What he's doing is kind of building a platform where Like, I just need one so I can build the systems, and then I can go and acquire a whole bunch more.

19:12

And the final thing, and then we can move on is

And the final thing, and then we can move on is

19:15

The guy loves debt.

The guy loves debt.

19:17

And oftentimes that ends bad,

And oftentimes that ends bad,

19:20

but I personally have zero debt in my life, and I've never really had debt. And I actually think, though, that not having debt or not having some type of leverage is silly. And I read articles about him, and he talks about it very

but I personally have zero debt in my life, and I've never really had debt. And I actually think, though, that not having debt or not having some type of leverage is silly. And I read articles about him, and he talks about it very

19:33

unemotionally.

unemotionally.

19:34

Like, he seems like a really charismatic emotional guy, but he's like, yeah, look, like, this makes total sense because I can grow this business at thirty percent

Like, he seems like a really charismatic emotional guy, but he's like, yeah, look, like, this makes total sense because I can grow this business at thirty percent

19:41

therefore, the cost if I look at the cost of capital, I should allocate capital to this, and it just makes sense. And I hear that. I'm like, yeah. Everything you're saying makes total sense. I'm just so fearful, and it's really cool that you don't seem to have that fear. And I think that's interesting.

therefore, the cost if I look at the cost of capital, I should allocate capital to this, and it just makes sense. And I hear that. I'm like, yeah. Everything you're saying makes total sense. I'm just so fearful, and it's really cool that you don't seem to have that fear. And I think that's interesting.

19:55

Yeah. And I think that that's it goes back to, like, not having

Yeah. And I think that that's it goes back to, like, not having

19:59

fatal potential

fatal potential

20:02

blow ups in your life. Right? So I've heard everything from, like, you know, I was talking to a guy and he was saying, I'm super rich guy, and he goes, I've paid off my house in full. And never have a mortgage or whatever. And it just gives him that sense of security. Maybe this guy has he's so rich. He's already made a whole bunch of money on other stuff that he can take a little more risk or he knows how to structure debt or whatever it is.

blow ups in your life. Right? So I've heard everything from, like, you know, I was talking to a guy and he was saying, I'm super rich guy, and he goes, I've paid off my house in full. And never have a mortgage or whatever. And it just gives him that sense of security. Maybe this guy has he's so rich. He's already made a whole bunch of money on other stuff that he can take a little more risk or he knows how to structure debt or whatever it is.

20:24

You hear both things. And the problem is you only hear the stories about the guys who levered up and did really well. There may be a whole bunch of other Brad Jacob types who went out levered up and it totally fucked them. They hit a speed bump. They lost all the money. So the the interesting thing about this though,

You hear both things. And the problem is you only hear the stories about the guys who levered up and did really well. There may be a whole bunch of other Brad Jacob types who went out levered up and it totally fucked them. They hit a speed bump. They lost all the money. So the the interesting thing about this though,

20:41

the and the difference between what we do in this guy is this guy is essentially starting a new business.

the and the difference between what we do in this guy is this guy is essentially starting a new business.

20:47

And what we like to do is find a business that's already working where we can actually just leave it and make it, you know, maybe we'll help plug in a new CEO or something like that. But we're actually not messing with it. We're not changing the DNA. This guy's like modifying the DNA. He's doing, like, crisper on these businesses. He's working. He's working them. He's working them and turning that he's working really hard. Right? So I don't like to work hard. I get really excited when I hear about people like this. I'm so glad they exist, but I'm like, oh my god, this is a big lift. I I don't wanna do this. It's a big lift, but it does seem cool. It's cool.

And what we like to do is find a business that's already working where we can actually just leave it and make it, you know, maybe we'll help plug in a new CEO or something like that. But we're actually not messing with it. We're not changing the DNA. This guy's like modifying the DNA. He's doing, like, crisper on these businesses. He's working. He's working them. He's working them and turning that he's working really hard. Right? So I don't like to work hard. I get really excited when I hear about people like this. I'm so glad they exist, but I'm like, oh my god, this is a big lift. I I don't wanna do this. It's a big lift, but it does seem cool. It's cool.

21:21

It's

It's

21:22

this is like corn rows or sleeve tattoos. I think they're cool. I just don't want it.

this is like corn rows or sleeve tattoos. I think they're cool. I just don't want it.

21:27

They're cool for certain people, and it works great for them. Exactly.

They're cool for certain people, and it works great for them. Exactly.

21:31

Base tattoos. Not for me. Great for some people. That too. It's pretty sick that someone else has it, but I don't know if I want it. Totally. Totally. Yeah. And I I I I think again, going back to, like, this guy does make the world better.

Base tattoos. Not for me. Great for some people. That too. It's pretty sick that someone else has it, but I don't know if I want it. Totally. Totally. Yeah. And I I I I think again, going back to, like, this guy does make the world better.

21:44

Because he employs a lot of people in industries where, you know, people aren't getting laid off because of this guy. Right? Cause he's managed this business better. He can probably pay people better, give them more opportunity.

Because he employs a lot of people in industries where, you know, people aren't getting laid off because of this guy. Right? Cause he's managed this business better. He can probably pay people better, give them more opportunity.

21:57

He's not gonna lay them off because he's got this global business. So it's very it's very positive, but what I would wanna understand is What's the guy do with the money? What's driving him? Like, is he like a sad empty hole where he's like, I have to keep doing this all the time? Or is he, like, you know, donating it all to charity or views this as super philanthropic in and of itself? I'm super curious about that.

He's not gonna lay them off because he's got this global business. So it's very it's very positive, but what I would wanna understand is What's the guy do with the money? What's driving him? Like, is he like a sad empty hole where he's like, I have to keep doing this all the time? Or is he, like, you know, donating it all to charity or views this as super philanthropic in and of itself? I'm super curious about that.

22:21

I don't know. I I, like, the only thing that I saw is that he has a good glass door rating,

I don't know. I I, like, the only thing that I saw is that he has a good glass door rating,

22:27

which I actually

which I actually

22:28

That's huge. Everyone dismisses glassdoor,

That's huge. Everyone dismisses glassdoor,

22:31

but I'm like, yeah. It there is, like, I got made fun of from the Michael Taylor podcast because I brought that up. I'm like, yeah. It's not, like, facts, but it's like there's a signal that you can learn a little bit from. It's the glass door. People only go on glass door when they really hate you. So it's like the voices of the people who hate you most. And if the people who hate you most are saying good things or at least okay things, that's a really good sign. Right.

but I'm like, yeah. It there is, like, I got made fun of from the Michael Taylor podcast because I brought that up. I'm like, yeah. It's not, like, facts, but it's like there's a signal that you can learn a little bit from. It's the glass door. People only go on glass door when they really hate you. So it's like the voices of the people who hate you most. And if the people who hate you most are saying good things or at least okay things, that's a really good sign. Right.

22:58

I feel like I can rule the world, I know I could be what I want to.

I feel like I can rule the world, I know I could be what I want to.

23:02

I put my all in it like a day's off on a road. Let's travel never looking back.

I put my all in it like a day's off on a road. Let's travel never looking back.

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