16th October 2014
Berkshire Hathaway the investment company owned by renowned investor Warren Buffett has offloaded more than 245 million shares in troubled supermarket giant Tesco.
In a statement issued to the London Stock Exchange, Tesco announced that Buffett’s investment group Berkshire Hathaway had cut its holdings in the FTSE 100 constituent to less than 3%.
Following the announcement, by 13:49 shares in the UK’s largest retailer were down 3.55p, or 2% to 171.35p.
Buffett originally invested in Tesco back in 2006 when it was enjoying much better days and expanding its business.
Buffett had previously increased his stake in the supermarket following a profit warning but earlier this month Buffett told CNBC that he made a mistake in investing in Tesco. “That was a huge mistake by me,” he said.
Tesco has recently issued a number of profit warnings and in September revealed that it had overestimated its half-year profits by a massive £250m.
The supermarket subsequently asked three senior staff to ‘step aside’, and the City watchdog, the Financial Conduct Authority has confirmed it is investigating the matter. Over the past year its shares are down by more than 50%.