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Why Buffett Is Right To Bail Out Of Tesco PLC

VIDEO: One Fool takes a closer look at Tesco PLC (LON:TSCO).

Posted by
Owain Bennallack ❯
Owain is a magpie of the investing world -- and not because he gets into a flap. Almost any style of investing might suit him, depending on the bigger picture, and he's held all sorts of companies. Paraphrasing Keynes, he says: “When the market changes, I change my mind -- what do you do?” That said, Owain is usually a buyer of equities, where he prefers lightly geared, modestly rated companies, and is increasingly on the lookout for Buffett-style intangible quality. He aspires to buy-and-hold: his best investment ideas are worth much more than he sold them for. Then again, his worst investment went bust due to management fraud!
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Some critics think Warren Buffett has abandoned his own value investing philosophy by selling his Tesco (LSE: TSCO) shares after years of declines in both the share price and the business. But that’s to misunderstand both the magnitude of the change in Tesco’s fortunes and also why Buffett invested in the company in the first place…

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Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Owain Bennallack owns shares in Tesco. The Motley Fool UK owns shares of Tesco. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

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