Buffett: Investing In Retail Giant Tesco Is A "Huge Mistake".

Buffett said his seven years' investment in Tesco, a British retail giant, was a "huge mistake."

Berkshire chairman Hathaway Buffett is the fourth largest shareholder of Tesco and holds 4.1% of the company's shares. "I made a mistake in Tesco, which was a huge mistake I made," he said in an interview with CNBC on Thursday.

Buffett wrote in 1989 that his own mistakes included Investment Companies that do not have a lasting competitive advantage, such as buying Berkshire Hathaway in 1965. textile company To do business with people who do not like, distrust and disrespect; and investment opportunities that are missed by tentacles.

But he has a famous saying: "as long as you don't do too many wrong things, you just need to do a couple of things in your life."

With fierce competition from discount retailers Aldi and Lidl, passenger traffic is declining. Tesco shares fell 1.1% to 11 year lows on Thursday, and the stock price has fallen by 49% this year. 　

　　 Buffett Tesco bought shares in 2007, because Tesco's performance in Britain was booming and plans to expand its territory to the US. Including the last purchase of stock after Tesco issued a profit warning in January 2012, Buffett spent $2 billion 350 million on Tesco and bought 5.2% of the shares.

According to Berkshire Hathaway's annual letter to shareholders, as of the end of last year, Buffett holds 301 million shares of Tesco, equivalent to 3.7% of the shares. These shares were bought at a price of US $1 billion 699 million. By the end of last year, they were valued at US $1 billion 666 million, which is worth 880 million 500 thousand US dollars at current stock prices and 48% of book losses.

Tesco is the only 15 heavily traded stock in Buffett who recorded a loss in 2013. The company announced last week that its profit forecast for the first half of fiscal year was overstated by 250 million pounds, requiring DDT to investigate the accounts and suspend four senior executives.

Earlier this year Tesco purchased two profit warning and replaced CEO in six weeks. On Wednesday, the FCA announced a thorough investigation of Tesco's accounting problems, further exacerbating the company's crisis.