Warren Buffett cuts Tesco stake to below 3%

US billionaire investor Warren Buffett has reportedly lowered his stake in grocery operator Tesco to below 3% after admitting he made a “huge mistake” by investing in the UK supermarket.

Buffet owned 3.97% of Tesco in early October when he told CNBC he had second thoughts about his holding amid an investigation in the grocer’s accounting practices.

Tesco recently revealed it overstated its half-year profit expectations by £250m, which the Financial Conduct Authority is probing. Its shares fell to 11-year lows in October amid the scandal.

In 2007 Buffett bought Tesco shares when it was performing well in the UK and planning to expand its operations across the US.

At the time he paid $2.35bn for a 5.2% stake on optimism for the company.Following a January 2012, he made a final purchase.

However on Wednesday Tesco revealed Buffett's Berkshire Hathaway had taken his stake on Monday to under 3%.