Odd Lots Brad Jacobs on His Big Bet on Building Insulation
158 snips
Apr 21, 2026 
Brad Jacobs, serial entrepreneur and prolific dealmaker behind QXO, talks through his $17 billion TopBuild buy. He gets into why insulation is a huge building-supplies play, how data centers are boosting demand, and what makes the market attractive even in a soft patch. He also touches on acquisition discipline, financing, tariffs, trucking, and how AI helps him run companies.
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Insulation Is A Durable Bet In The AI Era
- Jacobs likes insulation because every house and office needs it, and he argues it will not be disrupted by AI or LLMs.
- Data centers add upside beyond insulation since they also need roofs, waterproofing, and lumber-related products.
Why Insulation Stays A Domestic Distribution Business
- TopBuild does not manufacture insulation; it buys product, resells it to contractors, or installs it directly.
- Jacobs says insulation is mostly made in the United States because local codes and regulations differ enough across countries to favor nearby manufacturing.
Never Buy A Company Without Management Interviews
- Always do in-person management interviews before buying a company; Jacobs calls them the most important part of diligence.
- QXO brought about 15 TopBuild executives to New York, interviewed each for roughly 90 minutes, and paired that with channel checks and customer overlap.
