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Why Tesco plc may be hit hard by fast-rising inflation

VIDEO: One Fool isn’t so confident on Tesco plc (LON:TSCO) right now — here’s why.

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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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The Bank of England has warned that inflation will rise sharply following Brexit and its Bank Rate cut, but so far the impact on headline inflation seems limited. However dig into the latest ONS figures and the picture already looks gloomy for certain sectors — most notably Tesco (LSE: TSCO) and the supermarkets.

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 of Tesco. The Motley Fool UK has no position in any of the shares mentioned. 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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