Tesco woes: Warren Buffett says investing in the supermarket was a “huge mistake”

One of the world’s richest men, Warren Buffett, has admitted his biggest investment ever outside the US was a mistake.

That crucial investment was buying shares in Tesco in 2006, building a 5% stake in the retailer.

Buffett’s company, Berkshire Hathaway, has lost £465m just this year after the value of Tesco shares plummeted. Ouch.

“I made a mistake on Tesco,” he told CNBC. “That was a huge mistake by me.”

Britain’s largest retailer has been embroiled in an accounting scandal when its half-year profits were overstated by £250m.

Its share price took a dive after the news was revealed – however, Tesco shares have been declining steadily since 2010, and at a more rapid rate since the second half of 2013, after posting a loss.

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Readers' comments (2)

  • Anonymous

    Shopping there was a bad mistake too. So glad I discovered Aldi.

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  • Hang on a minute! Their profits were overstated by £250m, yet Buffet lost £465m? Why didn't he just buy £250m worth of Tesco Everyday Value Baked Beans to shore up the loss? I thought this bloke was supposed to be a financial genius?

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