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.…"

"If the TAM is too small, a growth-oriented company is going to run into diminishing returns pretty quickly. This devolves into battling fiercely for every percentage point of market share while increasing the risk of antitrust regulation. Competition intensifies, and the major players in the industry start chasing diminishing returns. I’d rather choose an…"