Warren Buffett, the legendary investor and chairman and chief executive of Berkshire Hathaway, has cut the company’s stake in U.K. supermarket Tesco.
Buffett told CNBC just a few weeks ago that buying into Tesco, which has since admitted that it overstated its first-half earnings to the tune of £250 million, was a “huge mistake.”
Berkshire, which used to own close to 5 percent of Tesco shares after Buffett bet on the grocer’s return to strength, despite a series of disappointing results, now holds less than 3 percent, according to a stock market filing on Thursday.
Tesco’s share price has nearly halved in value this year. The grocer will announce the results of an internal investigation into a £250 million ($400 million) profits over-statement next Thursday, along with its quarterly results. It has already suspended eight senior executives over the over-statement.