What Ron would say is when you hold on to assets, you give the entrepreneur the CEO some real

time to make improvements and to really grow the company, but you also have two other

great advantages.

One you can avoid taxes because if you're not selling you don't have a taxable income

and secondly you can compound a bigger amount of money.

So if you're not selling you're therefore don't pay taxes, you're compounding on a bigger

corpus.

I'm Chris Hill and that's David Rubenstein.

He's a co-founder and co-chairman of the Carlyle Group, a global investment firm that

happens to run one of the biggest private equity funds out there.

He's also the author of How to Invest, Masters on the Craft.

It's a book about what the most successful investors have in common.

The full senior analyst John Ratante caught up with Rubenstein to talk about what makes

a realistic rate of return and the common themes among great investors like Larry Fink,

Stan Druckenmiller and Warren Buffett.

So I want to jump into the interviews you conducted for the book, but first I have a

few questions about your own investing and business career.

Carlyle has generated 26% annualized returns in its private equity funds over a more than

30 year period.

That's truly incredible.

What are Carlyle's investment criteria and what are the secrets to your firms investing

success?

...