Lessons from Henry Kravitz from KKR

Henry Kravis, a towering figure in the world of finance and co-founder of the global investment firm KKR & Co. Inc., has left an indelible mark on the landscape of private equity. His career, spanning over five decades, is a masterclass in investment strategy, corporate leadership, and philanthropic endeavor. Through his numerous interviews, speeches, and public appearances, Kravis has shared a wealth of knowledge that offers valuable lessons for investors, entrepreneurs, and leaders alike.

On Integrity and Character

"If you don't have integrity, you have nothing. You can't buy it. You can have all the money in the world, but if you are not a moral and ethical person, you really have nothing." [1][2]
"You only have one thing to sell in life, and that's yourself." [1][2]
"If you build that foundation, both the moral and the ethical foundation, as well as the business foundation, and the experience foundation, then the building won't crumble." [1][3]
"Your word is your bond. If you say something, to someone you're speaking on behalf of KKR, whether you've been here 6 weeks or you've been here 30 years. It's your obligation to stand behind what you say." [4]
"I'm looking for people that are bright, have the highest ethical standards, will not compromise one iota for that." [5]

On Investment Philosophy and Strategy

"Don't congratulate us when we buy a company. Congratulate us when we sell it and when we've done something with it and created real value." [1][3]
"Any fool can overpay and buy a company, as long as money will last to buy it." [5][6]
"If you have something at risk, you think differently." [1][3]
"Our job really begins the day we buy the company, and we start working with the management, we start working about where this company is headed." [5][7]
"We thrive at KKR on uncertainty. We like the time when markets are out of kilter." [8]
"I always like to refer to many managers in corporate America as the renters of the corporate assets, not the owners." [5]
"To make an LBO work you can't have a trace of sentimentality. You have to be able to slash and burn." [6]
"We're always trying new things and that is really important. Our scientific approach to investing is throw enough stuff up, something will stick." [9]
"Kravis' success can be attributed to his unique investment strategies, which involve buying undervalued companies, improving their operations, and selling them at a profit." [2]
"The trouble, in my opinion, with corporate America today, is that everything is thought of in quarters." [10]
"Going public is not a business plan." [3]
"It's one of the most important things at the end of the day, being able to say no to an investment." [1][3]
"We can invest anywhere in the capital structure, whether it be through the debt stack from bank loans all the way through special situations." [11]
"When those managing the capital have their own money on the line, investors win." [12]
"You buy a company the same way you buy stocks, if you don't like it you just sell it." [5]

On Leadership and Building a Business

"I want people who will stand up to me. People who are not afraid to say exactly what's on their minds, even though that's probably not what I want to hear. That's what I want." [1][10]
"A real entrepreneur is somebody who has no safety net underneath them." [1][2]
"When you're an entrepreneur you have to decide you're going to either get through the wall, or over the wall, but there'll always be a wall there, and you've got to be prepared to accept rejection." [3]
"Culture is the most important thing in any organization." [13]
"We wanted a culture where everybody participated in everything you did...we'll get much more out of everybody." [8]
"You rarely hear anybody at KKR use the words 'me' or 'I'. Nobody is raising their hands to say, 'That is my idea. That is my deal.' It is a team effort." [11]
"If you don't worry about who gets credit for something, it's amazing what you can accomplish." [13]
"Arrogance Kills." [1] (A frame with these words sits on his desk)
"People do business with people they like and trust." [1]
"We pay everyone off the balance sheet. You're not paid in your silo, you're paid off the balance sheet." [9]

On Learning and Curiosity

"No one in my mind can be a great investor unless you're curious, and that means thinking about how to connect the dots." [14]
"Without curiosity, 'you're basically doing something that's already been done by someone else'." [11][14]
"If there's anything that I want to know more about, I have the opportunity. It's right in our portfolio. I can spend time at the factory or with the management and learn as much as I want. You can't get bored doing that." [1][6]
"Continuous learning is key. He advises young professionals to stay curious and adapt to changing circumstances." [5]
"I've been in a hurry all my life. I've been in a hurry to succeed, and in a hurry to prove myself." [1][10]

On Failure and Resilience

"As I said there is nothing wrong with failing. Pick yourself up and try it again." [1][2]
"You never are going to know how good you really are until you go out and face failure." [2][10]
"I think a woman should be wooed and chased, but maybe I'm old fashioned for thinking that." [15] (This quote, from a GQ interview, sparked some controversy).

On Philanthropy and Legacy

"Giving back is something that comes from the heart to me. It's not that I do it because it's the right thing: I do it because I want to do it." [2][10]
"My father...taught me something that's very, very important. And that was give back to society what you've taken out of it." [5]
"Some of the most important moments in my life and moments that have given me the most pleasure have clearly been the times that I've been able to make a major contribution in money or time and effort to those less fortunate." [5]
"Henry Kravis established the Henry Kravis Prize for Leadership, which recognizes innovation and leadership in nonprofits." [15]
"His contributions to the private equity industry and his philanthropic efforts demonstrate a commitment to making a positive impact in the world." [16]
"He has inspired a new generation of investors and entrepreneurs, emphasizing the importance of ethical investing and corporate responsibility." [16]

On Life and Perspective

"Whales who come up and spout off get harpooned." [1][3]
"I feel today like I'm on the beach. Sunny, nice out, but I've read there's a tsunami coming or some sort of a major storm. I don't see it, but it's coming." [17]
"Don't worry about what the other person is doing...If you're worrying about what other people are doing, you're not doing it yourself." [5]
"Life can only be understood backwards; but it must be lived forwards." [11] (While a Søren Kierkegaard quote, it's one Kravis has referenced).
"I love the creativity. I love the ability to create a capital structure that is appropriate for a company, no matter what field it happens to be in." [10]
"I love the ability to work with very good managers, and to provide the right incentives for them, and truly become a partner with that management, and make that management take a long view." [1][10]

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