Charles Esther
At the Milken Institute Global Conference in Los Angeles on Monday, George Roberts and Henry Kravis, the billionaire cofounders of KKR, shared key advice for young investors.
The two private equity moguls, who founded KKR nearly 50 years ago, discussed the importance of “softer skills” for young investors, emphasizing the value of relationship-building and risk-taking.
The Importance of Emotional Intelligence
Roberts and Kravis noted that while younger investors often have strong analytical skills, they might struggle with the “softer skills” that are essential for success in the business world.
Roberts encouraged young investors to “go out and meet people” and develop emotional intelligence. He explained that building relationships is critical, stating that many younger investors avoid personal interaction due to a fear of rejection.
“Younger people have great analytical skills,” Roberts said. “But it’s really the softer skills I try to encourage young people to do.”
The Need for Relationship-Building
When the pair started KKR in 1976, the private equity industry was still in its infancy. Both Kravis and Roberts emphasized that their success came from the willingness to build relationships and take risks.
“Go out and build relationships,” Kravis said. “You’ve got to be willing to take risks.”
Maintaining Strong Partnerships
Throughout the conversation, Kravis and Roberts also discussed the strength of their long-standing partnership. The cousins met when they were just two years old and have maintained a strong, collaborative relationship ever since.
“This relationship is so much more important than anything else,” Roberts said, reflecting on their ability to work together over several decades.
The pair’s advice underscores the importance of emotional intelligence, relationship-building, and risk-taking for aspiring investors.
