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By Olla Posfir
April 1, 2004

Berkshire Hathaway (NYSE: BRK.A) Chairman Warren Buffett is back in a buying mood, and apparently prefers Krispy Kreme (NYSE: KKD).

The legendary superinvestor, known for generating outstanding returns over the decades, was spotted last Friday in the Krispy Kreme store on 120th Street in his hometown of Omaha, Neb. According to a Motley Fool source, Buffett ordered one hot-glazed donut with rainbow sprinkles and a small coffee, then took a load off in one of the nearby booths.

The purchase comes as a surprise to many Buffett watchers, as the Oracle of Omaha has stated on many occasions that there are no compelling values in the marketplace today. And at $0.75 and 12 grams of fat per donut, Krispy Kremes are considered too rich by many experts.

However, assuming inflation continues at its current modest pace, Krispy Kremes are priced at only $0.47 per donut in 2021 dollars. Therefore, with a forward dollars-to-donuts multiple of 15.5, it appears that Buffett once again has his shareholders' eyes "glazing" over with another tasty buy.

Asked by a passerby what prompted him to make the purchase, Buffett winked and smiled wryly. "A man cannot live on DQ Blizzards alone." 

Mmmmmm.... donuts.

Mr. Buffett is rumored to read the Fool from time to time, so let him know what you think of his purchase.