Buffett says Tesco investment was 'a huge mistake'

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Billionaire investor Warren Buffett said his investment in Tesco was a "huge mistake," as the British supermarket leader's share price remains close to an 11- year low amid declining sales and an accounting probe.

"I made a mistake on that one," Buffett, 84, said in an interview with CNBC Thursday. "That was a huge mistake by me."

Buffett's Berkshire Hathaway Inc. has held Tesco shares since March 2006, when it acquired a stake for $328.7 million. By 2012, the holding had reached 5.08 percent of the grocer's shares, worth about $2.1 billion. More recently, Buffett has been cutting the stake, owning 3.7 percent of the shares as of Dec. 31, according to Berkshire Hathaway's annual report.

The holding's value has slumped in the past year as Tesco has lowered its profit outlook amid a shift by shoppers toward discount and upscale chains. The shares are down 49 percent in the past 12 months, slumping 17 percent last week after new Chief Executive Officer Dave Lewis started a probe of accounting practices and suspended four executives after finding that Tesco overstated first-half profit estimates.

Berkshire Hathaway remains Tesco's fourth-biggest shareholder, based on the investor's most recent filing.