QXO

"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.…"

"When I was evaluating potential industries for QXO in 2022 and 2023, several caught my attention but ultimately fell short. Exchange-traded funds (ETFs) initially looked appealing. I thought I could roll up dozens of smaller ETFs—$500 million of assets under management here, a billion dollars there—and create an ETF juggernaut with $50 billion to $100 billion of assets. But when I got deeper into due diligence, it became clear that the economics weren’t on my side. The acquisition multiples for the larger targets…"