In 2006, Warren Buffett was looking to diversify his holdings outside the U.S. and settled on the U.K. supermarket chain Tesco, where he eventually became the company’s third-largest shareholder. Five years later, he declared TSCDY to be his top pick, explaining to CNBC that “if the price came down some ... I’d buy some more.”
It was a decision that he later regretted.
Like its counterparts in the U.S., Tesco faced increased competition. An accounting scandal sent shares into a tailspin, forcing BRK.A to take a massive $678 million write-down in 2014. Buffett declared the investment to be a “huge mistake” and has since exited it.
Although TSCDY earnings are improving, its latest results lagged analysts' expectations.
Source: InvestorPlace
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