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MFM #169: How One Man Has Built 5, Billion Dollar Companies

From My First Million · Published Jul 5, 2021 · Watch on YouTube

TL;DR

Sam Parr and Andrew profile two billionaires: Brad Jacobs (built five billion-dollar companies via roll-up of fragmented industries) and Dan Gilbert (built Quicken Loans, revitalized Detroit, owns a diverse portfolio including sports teams, Dictionary.com, and StockX).

Key insights

  • Brad Jacobs repeatedly executed the same playbook: find massive, fragmented industries populated by small, profitable businesses lacking capital, then acquire and roll them up while optimizing routes,
  • Jacobs raised money aggressively – he convinced a French bank for a billion-dollar line of credit at age 27 and took companies public within months of founding (United Rentals IPOed seven months after
  • Jacobs values software integration: his best acquisition was “Rental Man,” a politically incorrect name, which enabled hundreds of acquisitions in the rental space.

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