Henry Kravis Quotes

Powerful Henry Kravis for Daily Growth

About Henry Kravis

Henry Kravis, born on February 19, 1944, in Flushing, Queens, New York, is a renowned American business magnate, investor, and co-founder of Kohlberg Kravis Roberts & Co. (KKR), one of the world's most influential private equity firms. Kravis was influenced by his father, a successful entrepreneur, who instilled in him a strong work ethic and entrepreneurial spirit from an early age. After graduating from Columbia University with a Bachelor of Arts in Economics, Kravis pursued a Master of Business Administration (MBA) at Harvard Business School. In 1976, Kravis co-founded KKR alongside Jerome Kohlberg and George Roberts. The firm revolutionized the private equity industry by popularizing leveraged buyouts, a practice that involves buying companies using large amounts of borrowed money. This approach allowed KKR to acquire RJR Nabisco in 1988, one of the largest leveraged buyouts in history at the time. Over his career, Kravis has been involved in over $200 billion worth of transactions. He is known for his aggressive deal-making strategies and keen understanding of financial markets. In recognition of his achievements, Kravis was awarded the Global Finance Award for Lifetime Achievement in 2014. Kravis serves on numerous boards and is actively involved in philanthropy. He has donated substantial funds to institutions such as Columbia University, Harvard Business School, and Mount Sinai Hospital. Despite his business success, Kravis remains a private individual, shunning the limelight that often accompanies such high-profile positions. Henry Kravis' impact on both finance and philanthropy continues to resonate, leaving an indelible mark in the world of business and beyond. His legacy serves as an inspiration for aspiring entrepreneurs worldwide.

Interpretations of Popular Quotes

"The key to successful investing is risk differentiation, not risk aversion."

This quote by Henry Kravis implies that successful investing is not about avoiding risk altogether but rather identifying and managing risks in a way that generates superior returns compared to similar investments with higher or lower levels of risk. Instead of shying away from all risks, a strategic investor seeks opportunities where the potential reward outweighs the perceived risk. This strategy allows investors to capitalize on market inefficiencies and generate superior long-term results.

"Capital is like cotton: it grows nothing unless you put seed in it."

Henry Kravis' quote, "Capital is like cotton: it grows nothing unless you put seed in it," emphasizes the importance of active management in investing or using capital resources. Just as cotton requires seeds for growth, capital must be actively invested with a clear strategy (the 'seed') to generate returns. Merely having access to capital (cotton) is not sufficient; it needs guidance and effort to produce results. This quote underscores the principle that successful investment outcomes depend on both the capital and the strategies employed to maximize its potential.

"We have two basic rules when we invest: 1) Don't forget rule number one and 2) Never forget rule number one."

Henry Kravis emphasizes the importance of maintaining a single, crucial principle in investing, which he underscores twice for emphasis: never lose sight of the fundamental rule. This quote suggests that there is an essential piece of wisdom every investor should always keep in mind to be successful, and that they must constantly remind themselves of this critical factor throughout their investment journey. The exact nature of rule number one can vary depending on individual investment strategies, but it likely involves principles like thorough research, risk management, diversification, and patience.

"Success in business requires more working capital than brains or even talent."

This quote by Henry Kravis suggests that financial resources, or 'working capital', are critical for success in business. While intelligence, skills, and talent are undoubtedly important, they can only take a venture so far without the necessary funds to sustain operations, grow, and navigate potential challenges. Therefore, to achieve success in business, one must not underestimate the role of financial resources alongside brainpower and talent.

"Business is not a game without rules, but it is a game with very different rules from the traditional ones taught in the classroom."

This quote by Henry Kravis suggests that while business may seem to operate within established norms, its underlying dynamics often diverge significantly from conventional academic teachings. In essence, he's saying that real-world business is a complex, intricate game with unique rules that one can only truly understand through experience and practical application of knowledge. The classroom setting, with its generalized and theoretical approach, may not fully prepare individuals for the nuances and challenges they will encounter in the actual business world.

I thought at the time that I wanted to go into institutional sales, selling stocks and bonds to institutions. In those days, which was the 1960s, the institutional salesman was making about $100,000 a year. I thought that was just an enormous amount of money.

- Henry Kravis

Thought, Year, About, Institutions

I always like to refer managers in corporate America as the renters of the corporate assets, not the owners.

- Henry Kravis

Always, Like, Assets, Refer

Look, don't congratulate us when we buy a company, congratulate us when we sell it. Because any fool can overpay and buy a company, as long as money will last to buy it.

- Henry Kravis

Will, Last, Buy, Congratulate

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.

- Henry Kravis

Love, Work, Very, Managers

In the '70s and '80s, what private equity did is it changed corporate America. It started holding companies accountable, and for the first time managers started thinking like owners.

- Henry Kravis

Like, Private, Accountable, Managers

It used to be that you would go in to see a CEO, and you would ask them, 'Is your company for sale?' and if they said 'No, we have no interest in selling,' that was sort of the end of the conversation.

- Henry Kravis

Go, Them, No Interest, Conversation

One, 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.

- Henry Kravis

Love, Capital, Appropriate, Structure

The trouble, in my opinion, with corporate America today, is that everything is thought of in quarters.

- Henry Kravis

Today, Thought, Corporate, Quarters

It's not just buying the company. Sure, we picked the right companies, and we picked the right management and, most importantly, we've given them the right incentive to perform.

- Henry Kravis

Sure, Given, Importantly, Incentive

I have, in my partner George Roberts, a person who is the most wonderful man in the world to me. He's like a brother to me. Creating with him, being side by side with him, in whatever we try to do, is a real pleasure to me.

- Henry Kravis

Pleasure, Like, Side, Roberts

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.

- Henry Kravis

Want, Will, Though, Stand Up

I've been in a hurry all my life. I've been in a hurry to succeed, and in a hurry to prove myself.

- Henry Kravis

My Life, Prove, Been, All My Life

Quite frankly, the financial community has to improve its image. The financial community has to be much more transparent than it is.

- Henry Kravis

Financial, Image, Frankly, Quite Frankly

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.

- Henry Kravis

Nothing, Buy, Really, Ethical

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.

- Henry Kravis

Business, Crumble, Then, Ethical

If we can just take a few companies, and use those as models, as examples, to show the rest of corporate America how they can become more competitive, that's what I'd like to do and that's what I hope to do.

- Henry Kravis

Rest, Like, Models, Examples

If you have something at risk, you think differently.

- Henry Kravis

Think, You, Differently, Risk

I was an economics major in college, and every summer after school, I would drive my car from California, from Claremont men's college at the time, to New York. And I worked on Wall Street.

- Henry Kravis

Summer, College, New, Wall

So I picked a field where I had a little exposure. Where I thought I could have an enormous challenge, and have a chance to really do some good, to be a pioneer in an area, and not just be like everyone else.

- Henry Kravis

Chance, Some, Area, Pioneer

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 do it.

- Henry Kravis

Want, Right, Back, Giving Back

It's one of the most important things at the end of the day, being able to say no to an investment.

- Henry Kravis

The Most Important, Important Things

You only have one thing to sell in life, and that's yourself.

- Henry Kravis

Yourself, Only, One Thing, Sell

As I said there is nothing wrong with failing. Pick yourself up and try it again. You never are going to know how good you really are until you go out and face failure.

- Henry Kravis

Nothing, Going, Again, Failing

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