Buffett: Buying Tesco was ‘a huge mistake’
Speaking to CNBC today, the owner of Berkshire Hathaway offered little support for the beleaguered supermarket despite holding a stake in the business.
“I made a mistake on Tesco. That was a huge mistake by me,” Buffett (pictured) told the broadcaster.
Berkshire Hathaway has owned Tesco since 2006, but bought in heavily at the start of 2012, before raising its stake further that January after the company’s first profit warning in 20 years.
Tesco shares have almost halved since that warning over two years ago, and are currently down 46 per cent year-to-date following further earnings disappointments.
A £250m accounting error last month rocked shares yet again, with one-day losses of over 10 per cent, with the supermarket now being investigated by the FCA over the blunder.
Buffett’s stake, which stood at over 5 per cent at its peak, has been sold down by the company in recent months.
But Berkshire continues to hold around 4 per cent of the supermarket, making it the third largest shareholder, according to Bloomberg data.