Portfolio Spotlight ($QXO) | Brad Jacob's Next Empire Begins

Portfolio Update #10 | Why I’m betting on Brad Jacobs for the next decade with QXO.

Hey All 👋

Welcome back to 📉 DeepValue Capital 📈

Each week I share an update on one of my current holdings in a Portfolio Spotlight. Why I own it, what’s changed, and where I see it going next.

Today’s spotlight QXO. A $12 stock most investors have never heard of that could 10x or more over the next decade.

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• My Step-by-Step Guide to Outperformance

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🔍 What Is QXO?

QXO is a newly formed company targeting one of the most fragmented, outdated industries in the U.S. and Europe, building products distribution.

It’s a $800B+ market that still runs on fax machines and phone orders.

QXO’s strategy is simple:

Buy great, established building supply companies → modernize them with tech → roll them up with similar acquisitions to drive cost savings and scale.

Their first move? A big one:

• In April 2025, QXO will close its acquisition of Beacon Roofing Supply for ~$11B

• Beacon did $9.76B in annual revenue in 2024

• 80% of its business comes from non-discretionary remodeling & repair

• 97% of revenue is U.S.-based with US sourced materials, minimizing tariff exposure

(Green) US Revenue, (Blue) Canada Revenue

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👔 Who Is Brad Jacobs?

You may not know his name but his track record is ridiculous.

Brad Jacobs has built three separate companies from scratch into billion-dollar-plus successes. Every one of them used the same playbook. Find a fragmented industry, acquire and integrate the best players. Upgrade operations with technology and process discipline.

I’ve learned the hard way that big visions are great but without the right operator, they rarely play out. That’s why Jacobs is the game changer here.

Here’s what he’s done:

• United Waste Systems (UWS): Founded in 1989. Went public in 1992.

  • Sold in 1997 for $2.2B to USA Waste (now Waste Management).

  • Delivered 55% CAGR and 5.6x S&P 500 returns.

• United Rentals (URI):Founded in 1997. Went public at ~$14/share.

  • Today: North America’s largest equipment rental firm.

  • Long-term return 50x+

• XPO Logistics: Took control in 2011 when it was a $150M company. Built it into a supply chain juggernaut, then split it into XPO, GXO, and RXO.

  • Combined value today $17.6B+

  • Return on original capital ~115x

Now he’s doing it again, this time in building supply. And with $5B in cash already raised.

This is a classic DeepValue setup. Low awareness, high potential, clear operator edge.

💡 Here’s where the setup gets interesting. Lets get into the key catalysts, valuation upside, and how I’m playing it.