Warren Buffett increases stake in Tesco

<p> </p><p>The US investor Warren Buffett has given a boost to the embattled Tesco chief executive, Phil Clarke, by increasing his stake in the supermarket chain, which last week issued a shock profit warning. Buffett's Berkshire Hathaway investment firm increased its stake in the world's third biggest retailer from 3.21% to 5.08%, a regulatory filing showed on Thursday . Dated 13 January, the filing came a day after Tesco warned that trading profit for 2012/13 would be flat as the firm stepped up investment in its home market following its worst underlying Christmas sales performance for decades. Tesco shares fell by as much as 19% on 12 January and hit a 34-month low of 311p on Monday. The shares were up 6p to 327p at the close on Thursday. Share dealings by Buffet – nicknamed the Sage of Omaha after a string of investments made him among the world's three richest people – are closely watched in financial markets. After buying into Tesco in 2006, he has gradually increased his holding. Last year he caused a stir by saying the companyfirm should "look hard" at its loss-making Fresh & Easy chain in the US, although he said he remained supportive of the business. On a trip to Japan in November, he said the global financial crisis was creating opportunities in European equities, adding: "We bought Tesco earlier. I can think of a dozen euro stocks that are attractive … there are stocks I like and wonderful businesses. I could buy more Tesco if the price came down." Tesco shares had dropped earlier on Thursday after a negative note from Goldman Sachs, which warned that there would be further pressure on the sector's profitability.</p>

Warren Buffett increases stake in Tesco

  The US investor Warren Buffett has given a boost to the embattled Tesco chief executive, Phil Clarke, by increasing his stake in the super...

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