Buffett Sells Shares of Tesco

Billionaire investor Warren Buffett has pared down his shares of the ailing Tesco by roughly 30%.

After reading information about Berkshire Hathaway, we learned that the investment company sold off around 115 million shares of this large retailer in 2013. This is actually 35 million shares more than previously reported. He still owns a little over 300 million shares, which equates to roughly 3.7% of the company.

Tesco is Warren Buffett’s 13th largest stock holding, behind companies like IBM, Coca-Cola and American Express. The problem is that Tesco is the only top 15 company that Buffett owns shares in that’s actually worth less than what he initially paid for it, and the shares are now valued at £990 million.

In Buffett’s letter to shareholders, he did not bring up Tesco at all. He did affirm his faith in long-term investing strategies, and advises readers to “invest in stocks as you would in a farm.”

The sale of the shares could be a further knock to the face of Tesco’s wider prospects. The firm’s CEO Philip Clark last week said that he pledges to target a 5.2% profit margin, and also said that they will open fewer stores this year.