Mr Buffett bought Tesco shares in 2007 as it was riding high in the UK and planning expansion across the US. He spent $2.35bn amassing a 5.2 per cent stake at the peak of ......
If you are going to do business prospecting long enough, you are going to be hit by duds. That is the nature of things. It is just that Warren Buffett is held to a higher standards.
UK’s Tesco, at the time of purchase was in a funk, and if you understand how Berkshire thinks, Tesco is the sort of old school business that you would think Buffett understands and it gives you confidence to follow Buffett and put your money in.
This case study probably shows while its important to have good confidence in people that appreciate business well, its better to have your own view on things when you are investing as well.
