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Is this a reasonable purchase for a man of Buffett's...ahem..."stature?" It's up in the air if the risk/reward of this acquisition will pay off for him this time.

What do you think?

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Hey Bogus - that was a cool gag! Happy Fool day to all you wacky TMFs :)
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From the picture it is clear that the price is at least 25% below the intrinsic value of the donut.
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I saw the headline and I thought, "What the... I just sold KKD a day earlier! What am I missing?"

I was missing a great joke. I laughed out loud as I perused the article and picture. Thanks for the laugh.

Steve


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...must be April's Fool

EJ
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~sigh~ He should have gone with Duncan Donuts. Just look at the price to sprinkle ratio on that one!
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Hi Bogey,

I think that Krispy Kreme's valuation is currently somewhat rich. Berkshire may also have problems digesting another food acquisition. But then again, Berkshire has lots of dough :)

Best,

Lleweilun Smith
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Is this a reasonable purchase for a man of Buffett's...ahem..."stature?" It's up in the air if the risk/reward of this acquisition will pay off for him this time.

What do you think?


Two words: Low carb. I do believe the Oracle of Omaha has done a different kind of face plant this time.

;-)

Prof
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I'm thinking, "Warren, listen to your doctor - that crap is NOT healthy for you!"
But, then he has a history of following his own rules about investing, and his portfolio is the fattest thing about him.

There are only two rules:

1. Don't Lose Money.
2. Don't Forget Rule #1.

I follow his rules religeously and they actually work quite well.
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There are only two rules:

1. Don't Lose Money.
2. Don't Forget Rule #1.


Will Rogers said, "Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. "


TW
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Good one, "Olla."
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Good donuts, probably alright. We should expect to see an additional 20 pounds though!
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We should expect to see an additional 20 pounds though!

Of course you should expect to see pounds, he already said he was investing in foreign currencies.


TMFFCCTester!
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Oh man you got me...I was ready to buy a few more shares just reading the headline. I started to get p***ed off reading the article but then I remembered what day it is...hehe, okay... =P
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Considering Mr. Buffet's participation in the growth (by virtue of his simply holding them in his portfolio) of many firms - Coca-Cola, P&G, etc. which have directly contributed to the ever-increasing American waistline (having led to surging sales in elastic-waistband pants, extra-wide door frames, and Rush Limbaugh), it seems only fitting that he may soon fall victim to a slow killer that is partially of his own design. I see nothing wrong with placing 7-8% of the total blame for the creation of a culture that accepts 80-lb infants and Krispy Kreme (Canadian spelling: "Crispy Cream," or alternatively, "Schlock") on Mr. Buffet's shoulders.

Give me Tim Horton's or give me death (via artherosclerosis)!
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I started to get p***ed off reading the article

Many thanks for editing your post to fall within the new Foolish Guidelines.


TMFFCCTester!
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BEST DONUTS EVER... NOW WE HAVE A FUND RAISER CARD THAT LETS US BUY ONE DOZ.GET ONE FREE...THROUGH OUR SENIOR CENTER...OF COURSE WE WALK TO THE NEAREST KRISPY KREME OUTLET...OR DRIVE THROUGH...
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From the picture, there appears to be something "holy" about that donut he was holding. :-)


Nice story!

LeBean :-)
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April FOOL !!
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Is this a reasonable purchase for a man of Buffett's...ahem..."stature?" It's up in the air if the risk/reward of this acquisition will pay off for him this time.


I think Buffet made a great purchase with Krispy Kreme. I only wish I had purchased KK when Motley Fool recommended it. They are doing great in Europe, too.

I have yet to taste one of their donuts, but plan to do that soon. Don't usually eat sweets.
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From the picture, there appears to be something "holy" about that donut he was holding. :-)

No, a holy donut doesn't come from Krispy Kreme see:

http://www.holyducttape.com/ttr/truth.jpg


TW
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Is this a reasonable purchase for a man of Buffett's...ahem..."stature?" It's up in the air if the risk/reward of this acquisition will pay off for him this time.

What do you think?


If he holds onto it for 30 years and sells it to somebody for $100, then I'll be impressed.
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Another coup for Warren! Obvious link to increased spending on Homeland Security. All those new cops on the beat...
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This is better April Fool's joke than Google email...which wasn't a joke!
Headline caught my attention: when Warren Speaks, Fools buy. LOL
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Buffett is a dollar late and a donut short...we bought shares in KK when they first went public.
The only better share currently is stocks in the Nascar industry.

Or pharmaceuticals. Have you seen the drugstore parking lots lately?

Good Luck
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Everyone Out There,
I wish this email came before 2:00. I made the decision to buy ERTS
instead of KK. I hope Dave & Tom gave me the right doughnut!

Jermad
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I think Krispy Kreme is a well run organization and makes great donuts. I've bought the stock and put my money where my mouth was........on a donut! I couldn't care less if Buffett or anyone else likes them or not, I do. To me quality, service and taste means a lot in todays market and very few companies offer that anymore. This is the only stock I've bought in a long time.
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> I have yet to taste one of their donuts, but plan to do that soon. Don't usually eat sweets.

Honestly, they taste like a donut. :-) Nothing special, as far as I can tell. More research may be required.
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We knew Buffett was taking positions in foreign currencies--now we know it was pounds. But if anyone can spot a hole in a deal, it's WB, so I'm following his lead on this one even if it makes my eyes glaze over.
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With the rich valuation of Krispy Kreme this story seems to have a lot of holes in it. Sure, you can sugar coat it, or sprinkle this story to analyst but I have to believe it would take a lot or grease to open WEB's wallet to purchase Krispy Kreme. I do not care how hot this stock is, you have to be nuts to purchase it now.
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If Buffett bought the best tasting donuts out here. Then more power to him. I am glad I bought the shares I did when it went IPO. Now, I am really sure. Hairjd,Florida.
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Happy April
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Well, the first thing I though was the old sage has lost his touch. Then I thought that even if he has lost it, his touch is still better than mine. So, let them eat cake!

Ernie
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Mr. Buffet

How can I hold you up as an example to my kids if you are going to gorge yourself on super sweet, fat rich Krispy Kreme doughnuts?
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Yes, it is a very good move.
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I HAVE HELD BRK.B STOCK FOR QUITE A WHILE AND HAVE NEVER REGRETTED BUYING IT ONE BIT. STICK WITH HIM AND U WILL FIND THE ORACLE KNOWS WHAT HE IS DOING--BUY BRK.B
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Good pick. I own KKD.
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ROFL....you guys are STILL killin me!!! There are too many HOLES in his investment....he's really gonna EAT IT on this one!!! Happy "Fools" Day to everyone!
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I don't believe that Mr. Buffett's taste for the product will translate to his taste to buy shares in the company since it remains overvalued let alone anethema to any semblance of health consciousness.
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Hey,

Alittle decadence now and then doesn't hurt...especially when its in the form of a fresh, warm donut! You go Warren!!!
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I think it is a great buy. The stock is running middle of the ground from it's high, but due to it sales and profits, it is sure to make Buffet a load of money in the long run.

Those are my two cents!
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Don't be fooled, Warren is doing his due diligence...he is scoping out -tasting- his way to his next aquisition. Isn't that the way he decided to buy Dairy Queen and shares of Coke :).
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ARE YOU KIDDING ME??.....the only research needed on this stock is to have JUST ONE HOT GLAZED(when the neon sign is lit)DONOUT and you'll realize some how some way....they will make it,and make it BIG....low carb fad or NOT,they are simply too good for ANYBODY to mess this product up......if you havent had one you CANNOT understand
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Memo to self: Re. April 1, 2005

Put following note in next year's planning calendar on April 1st -

Don't believe anything published by Motley Fool today.

I didn't believe the one about the Fool shutting down, but you got me on this one. Although considering how some people (including my Dad) can hardly drive by a Krispie Kreme without buying some, it does have a pretty good moat around it. :-)

Cathy
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Professor Buffett,

I think you've found another way to make your stockholders happy. With the profits KKD is creating after such a short life and the stock plummeting over the last year as it has while the rest of the market has risen so well, I think you've done a marvelous job of timing the market with such a surprising acquisition. Way to Go!

I find gret humor in observing AOL's Personal Finance quotes on KKD. Under their News & Editorials were the following:
6:59 PM (April 1) Buttett Buys Krispy Kreme - The Motley Fool
3/31/04 - Atkins Does It Again - The Motley Fool
3/31/04 - Interstate's Deflated Dividend - The Motley Fool
3/30/04 - California Dreamy - The Motley Fool
3/29/04 - Buying What You Hate - The Motley Fool

Yes, we all need to diet after eating the Krispy Kremes
That will help deflate you.
Doesn't it sound dreamy to be sitting in the CA sun with a Kreme?
Buying what you hate -- or ate?
Is anyone else writing for AOL?

Thanks. I'm looking forward to the returns.
joe Butts
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I think Buffetts purchase of KK is a great idea. He could make money selling cow patties, it will be interesting to see what happens next.
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I don't believe Warren Buffett was buying the donut...but rather making the investment in the donut hole. After all, there's where the profit is! Any "FOOL" buys a KKD donut, eats the product and what is left? THE HOLE! The hole, being the sum of the parts (the donut, itself) is where the real ROA..ROE, EPS, etc.is! In other words, eat the donut, buy the stock and watch your investment go down the hole. 'Might as well enjoy your donut listening to Sirius while investing in the same. We investors need to get serious (Sirius), and forget about such as KKD AND SIRI, and leave those stocks to FOOLS!
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Mr. Buffett. A sweet deal, indeed.
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Personally I think that it was a great acquisition. First, from my experience the possibilities of one-time sales is almost nill, in other words, a constant and renewable source of enjoyment. Second, this particular acquisition has sprinkles, and frankly this adds not only a little spice to what might have been only a normal purchase, but it also shows that even the power players can be enticed into purchasing something that has a little flare and artistic value. The risk is the high P/E ratio (Purchase to Exercise). If you get to many purchases like these into your portfolio, believe me, you'll pay for it in the long run, but in an acquisition of this size I think that the risk is worth it.
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Reasonable, yes!
I guess, Mr Buffet has senn chickens flying in, and Dougnuts flying out the USA.
Just the other day, my brother's family came by and after spending a good time flew out with six dozens, take out USA boxes. Bye bye dougnuts. However, promotions should be advertise more visually at airport.

To be continued
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What a SWEET! purchase! KKD with continue to thrive. You can't stop people from indulging, even with all the "fat talk" on TV. An extra hour on the cardio machine, is worth it for that delicious treat! Go Warren!

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Me thinks this is an April Fool's Day joke!
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very wise decision. i wanted to buy a franchise and was told that it was sold by the region and had already been purchased.
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Good buy, Go MR. BUFFET.
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Buying Krispy Kreme is a wise decision.
Krispy Kreme (KK) can not survive by following an identical SB coffee shop model (by installing a KK on every street corner).
With Warren Buffet's support, KK can grow slowly and focus on the importance of the Krispy Kreme 'experience'.
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DabNabit!
I just got this lame joke after reading all the posts. I just spent 2 hours thinking about how to rewrite my final exam paper. I only read the article and last posting. :( glad I reread.
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Whew!!!

That'll learn ya.

Glad at least one newbie gets the joke.

Welcome to the Fool!

eastender (friendly)
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With the number of obese people in this country, and all the health
experts recommending cutting out or eliminating sugar and saturated fats
in our diet, I think he could have chosen a healthier food company.
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