Warren Buffett, the CEO of Berkshire Hathaway was once invited to buy a stake in Dunkin’ Donuts in 1989, but the individual declined to invest in the donut shop chain. The donut seller approached Warren Buffet urging him to buy a stake in the company to prevent the takeover by Knightsbridge Capital.
The former CEO of Dunkin’ Donuts, Robert Rosenberg described the incident in his book, “Around the Corner to Around the World: A Dozen Lessons Running Dunkin' Donuts.” He said that they considered him the best as the individual liked retail franchises with strong brands. He also described that he sent an offer to buy $35 million of convertible preferred stocks. However, Buffett quickly turned down the offer by saying that he does not buy stocks in the middle of a takeover.
Still, Dunkin’ Donuts managed to get out of Knightsbridge grasp and was acquired by Baskin- Robbins in 1990. It was sold to inspire brands for more than $11 billion in 2020.