TAM Size as Growth Ceiling

“Before I look at growth trends, fragmentation, economies of scale, or technology, I first look at an industry’s size. Without a large enough total addressable market (TAM), it’s nearly impossible to create the revenue growth…”

“With QXO, our sights are set on building a $50 billion business, so that eliminated industries with TAMs of $25 billion or even $100 billion. We focused on analyzing big trends in industries that have at least hundreds of billions of dollars of total market size—ideally closer to a trillion.…”