Warren Buffett Likes Tesco

Warren Buffett Invests in Tesco

Warren Buffett has acquired 3% of UK retailing giant Tesco, thu giving it a massive vote of confidence, despite the challenges it is facing in the US with its Fresh and Easy stores.

Berkshire Hathaway now owns 3.02% of Tesco – worth £242m and as Warren Buffett likes long-term holdings and re-investing dividends, you may want to follow his example if you are prepared to hold for the long-term.

The charts however are not looking good in the short-term and it may be possible to get a better price in a few days' or weeks' time. Warren Buffett of course is not at all interested in charts and may not even know what they are.

Tesco 3 year Chart with 50 and 200 day moving averages forming a nasty ' death cross ' at the end



Warren Buffett is also not afraid of buying British, although Tesco obviously has nothing to do with BP.

Tesco has more than 4,800 stores worldwide and is one of the largest retailers in the world. The chain recorded record profits last year, with a pretax increase of over 10% to 3.4 billion British pounds. Tesco will also soon be increasing its workforce by 16,000 to 472,000.

Tesco's rollout of Fresh & Easy stores fell somewhat flat and after the recession bit, Tesco slowed its roll-out and limited openings to Southern California, Arizona and Nevada.

This week Tesco announced it will be acquiring 2 Sisters Food Group and Wild Rocket Foods to cohabit with its own California distribution facility and improve its fresh food and meals-to-go offerings.

All in all if Warren Buffett is willing to put £242 million into Tesco then there is a good chance that the retailer has a promising future.

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