Founders #335 How To Make A Few Billion Dollars: Brad Jacobs
Embrace Problems
- Get used to problems, because business is all about finding and solving them.
- View problems as opportunities to improve and get closer to success.
How to Lose $500 Million
- Brad Jacobs lost $500 million on road rental companies after misjudging government spending.
- He accepted the loss and moved on, demonstrating radical acceptance.
How to Make $4 Billion
- When XPO's stock plunged after a short report, Brad Jacobs bought back $2 billion worth of stock.
- This move, despite being unconventional, yielded a $4 billion profit.
What I learned from reading How To Make A Few Billion Dollars by Brad Jacobs.
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(0:01) I'm what's called a moneymaker. I've started five companies from scratch—seven if you include two spin-offs and turned them all into billion dollar or multibillion-dollar enterprises.
(2:00) I love working with outrageously talented people to deliver outsized returns for shareholders in public stock markets.
(5:00) All of the successful people I know have rearranged their brains to prevail at achieving big goals in turbulent environments where conventional thinking often fails.
(5:00) The single most powerful pattern I have noticed is that successful people find value in unexpected places and they do this by thinking about business from first principles. — Zero to One: Notes on Startups, or How to Build the Future by Peter Thiel (Founders #335)
(7:00) So much of success in business comes from keeping your head in a good place.
(8:00) I'm an ambitious person by nature and a dealmaker by inclination.
(9:00) Episode #295: I Had Dinner With Charlie Munger
(13:00) Listen to Think Big and Move Fast: Brad Jacobs on Invest Like the Best
(14:00) Setting the Table: The Transforming Power of Hospitality in Business by Danny Meyer. (Founders #20)
(15:00) If you want to make money in the business world, you need to get used to problems, because that's what business is.
(20:00) I am not surprised when things don’t go perfectly. That is the nature of the universe.
(21:00) Listen to this incredible conversation between Charlie Munger and John Collison on Invest Like The Best.
(28:00) Invest in technology. The savings compound, it gives you an advantage over a slower moving competitor, and can be the difference between a profit and a loss. (Lesson from Andrew Carnegie)
(31:00) How Larry Gagosian Reshaped The Art World by Patrick Radden Keefe. (Founders #325)
(36:00) While the rental industry overall was slow to computerize, the larger regional players were more tech-savvy. By 1997, nearly all of them were running on software developed by a company called Wynne Systems.
I bought Wynne.
Owning Wynne accomplished two things.
We had an industry-best platform that we could continue to develop internally for our own use, and the acquisition gave us access to aggregated, anonymized data on macro-trends across the industry.
This gave us a high-level view of emerging market trends, such as equipment gluts or shortages in the making. We could proactively adjust our pricing and asset management, while the rest of the industry was being reactive.
(40:00) The deals I've avoided have contributed more to my success than the deals I've done.
(42:00) I love these questions for a business and a family:
“What's your single best idea to improve our company?"
and
"What's the stupidest thing we're doing as a company?"
(47:00) There are few mistakes costlier than hiring the wrong person. An empty seat is less damaging than a poor fit.
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Come and build in-person relationships at the Founders Only conference
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“I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested, so my poor wallet suffers.” — Gareth
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“I have listened to every episode released and look forward to every episode that comes out. The only criticism I would have is that after each podcast I usually want to buy the book because I am interested so my poor wallet suffers. ” — Gareth
Be like Gareth. Buy a book: All the books featured on Founders Podcast