In the large buy out space, which is where we (Kohlberg Kravis Roberts) focus our efforts, there are relatively few firms with the capital, experience, infrastructure and networks to compete effectively with the large complex companies that we seek to acquire.

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

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.

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.

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.

Any fool can buy a company; just pay enough

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