WARREN BUFFETT, the US investor known as the Sage of Omaha for his stock-picking prowess, has given Tesco his vote of confidence by raising his stake in the embattled supermarket, which shocked markets last week with its first profit warning in 20 years.
Buffett’s investment vehicle Berkshire Hathaway has snapped up about £350m worth of shares, a regulatory filing showed yesterday, increasing his firm’s holding in the supermarket giant from 3.21 per cent to 5.08 per cent.
In November, Buffett – who first bought shares in Tesco in 2006 – pledged to buy up more stock in the retailer if its share price fell.
He has stayed true to his word after Tesco posted weak Christmas trading figures last week, sending its share price plunging 16 per cent.
Chief executive Philip Clarke admitted the firm needed to spend “hundreds of millions” of pounds on revamping its UK stores. It is also trying to revive its Big Price Drop campaign by offering new vouchers in its stores.