Warren Buffett ups his stake in Tesco
Tesco chief executive Phil Clarke got a vote of confidence from a key shareholder today - Warren Buffett is upping his stake in the supermarket giant.
The Sage of Omaha has expressed doubts about Tesco's American adventure - he thinks the Fresh & Easy chain is unlikely to succeed - but is otherwise a fan of the company.
Today it emerged that Buffett, perhaps the single most successful investor in history, has just bought another 34 million shares in Tesco, taking his stake from 3.2% to 3.6%.
Buffett's holding in the company went past 3% - the point at which it must be declared - back in 2007. At that time the share price was 428p. Today it was at 371p suggesting the world's second or third richest man may be sitting on a loss.
Clarke took over from Tesco legend Terry Leahy in March and seemed immediately to face a decline in UK sales.
He will report half-year figures next week, with retail analysts expecting him to report that the UK arm is down about 1%.
He has responded to this by reviewing peripheral operations - the Japanese arm will be closed or shut - and talking about a supposed "price war" to regain the initiative. It still has more than 30% of the UK grocery market.
That price war is supposed to cost £500 million, an amount that will be significantly offset by cuts to loyalty card bonus points.
Buffett has lately sparked complaints from the rich in America by suggesting they, and he, should pay more tax.
He is known for many investment bon mots, one of which is, " buy into a business that's doing so well an idiot could run it, because sooner or later, one will".
