Warren Buffett in Tesco's Admit One Great Investment



Not forever, seasoned investor world, Warren Buffet, jelly kissing investment opportunities. He has also been misplaced funds. One of them in Tesco Plc. 

Do not want to lose money, Buffett began to sell its stake in the British retail company. Now, the share ownership Buffet at Tesco, has been reduced below 3 percent. 

According to a report in The Telegraph last week, Buffett sold some of its shares in Tesco on October 13, 2014. Prior to selling these shares, through his holding company, Berkshire Hathaway Inc., Buffett has a 3.97 percent stake in Tesco. Sale of the shares of Berkshire Hathaway disclosed to the London Stock Exchange. 

When the announcement was released, the market welcomes direct negative. At the end of trading, Tesco's share price fell 1.6 percent and cause the market value of Tesco dropped to 14.2 billion dollars. 

The decision was taken to sell shares Buffett, not long after she admitted one invests in Tesco, in an interview with CNBC, some time ago. "I made ​​a mistake (invest) in Tesco. It was the biggest mistake," said Buffett was quoted as saying by The Telegraph. 

In response to Buffett's decision, the management Tesco declined to comment. However, the Chief Executive Officer (CEO) of Tesco, Dave Lewis claims will present the company's performance this week. 

Just a reminder, Buffett became Tesco's shareholders as of 2006. Buffett's shareholding at that time no more than 5 percent, or more precisely at 4.98 percent. 

The financial statements of disability 

After more than seven years flanking, Buffett decided to release some of the shares of Tesco from 4.98 percent to 3.97 percent in October 2013. This was done because at the same time, Tesco was caught inflating management reports operating profit of 250 million pounds. 

British capital market authorities immediately conduct examinations, which welcomed Tesco share price drop by 12 percent in one day. Because of such cases, Buffett's investment in Tesco shrinkage of about 750 million US dollars to 1.7 billion US dollars. Apesnya again, Tesco's performance also decreases. 

This is also reflected in the decline in Tesco's share price throughout 2014. Bloomberg noted, throughout this year, Tesco prices up to 49 percent landslide. The pressure comes from the decline in sales, market share, and turnover number of directors.

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