Warren Buffett sells more Tesco shares

Warren Buffett

Berkshire Hathaway has further reduced its stake in Tesco after the investment group’s boss, Warren Buffett, admitted buying into the troubled supermarket group was a “huge mistake”.

In a statement to the stock exchange, Tesco revealed that Berkshire Hathaway reduced its holding on 13 October to less than 3% – one of the thresholds at which a company must inform the market. Tesco did not say how big Berkshire Hathaway’s remaining stake was.

Buffett, the world’s richest investor, held a 4.1% stake in Tesco through Berkshire Hathaway at the start of this month when he acknowledged that he had made an error.

“I made a mistake on Tesco. That was a huge mistake by me,” he said. Tesco was the only share in his top 15 picks that recorded a loss last year.

He was Tesco’s third-biggest investor after first buying the shares in 2006 and steadily increasing his stake. The so-called Sage of Omaha, whose investments are followed worldwide, increased his stake from 3.2% to more than 5% in January 2012 after the supermarket group issued a profit warning.

Tesco has since published a series of further profit warnings and ousted its chief executive as UK sales have fallen. The company is being investigated by the Financial Conduct Authority over a £250m overstatement of expected first-half profits and has suspended a group of senior managers over the scandal.

Powered by Guardian.co.ukThis article was written by Sean Farrell, for The Guardian on Thursday 16th October 2014 09.38 Europe/London

guardian.co.uk © Guardian News and Media Limited 2010

 

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