BUFFETT: Investing In Tesco Was A 'Huge Mistake'

Warren buffett dairy queenAP ImagesBerkshire Hathaway CEO Warren Buffett

Warren Buffett, the chairman of Berkshire Hathaway, admitted that investing in Tesco, the largest retailer in the UK, was a terrible error.

Speaking to CNBC on Thursday, the Omaha businessman said: “I made a mistake on Tesco. That was a huge mistake by me.”

Buffett is Tesco’s fourth biggest shareholders since he started buying the supermarket’s shares in 2007. In 2013, he owned 301 million shares, about 3.7% of the company, the FT reported.

According CNBC, Buffett has lost over $US700 million on his investment.

Tesco is struggling to compete with other discounts retailers like Aldi and Lidl, and its shares are at a 11-year low. The share price dropped by 49% this year and received a further blow last month when the retailer announced it had overstated its profits by 250 million pounds.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.