Warren Buffett, the 'Sage of Omaha', has upped his stake in Tesco, in a tacit sign that he supports the supermarket retailer's succession plans.
Mr Buffett's Berkshire Hathaway investment conglomerate raised its stake in Tesco to 3.02pc, following a recent share purchase.
A disclosure to the London Stock Exchange by Berkshire disclosed that it recently bought 1.85m shares, taking its total holding to 242m shares.
Tesco shares rose 3½ to 400.8p on the news that the world's third richest man – Forbes estimates Mr Buffett's fortune to be $47bn – has faith in the company's strategy.
The increase comes just two weeks after Sir Terry Leahy announced plans to step down in March next year, to be replaced by Phil Clarke, the retailer's international chief, in one of smoothest succession plans seen at a FTSE100 company in some time.
Although the regulatory statement did not contain any comment by Berkshire or Mr Buffett, it is thought that he must approve of the supermarket group's strategy and must also feel that Tesco's shares are undervalued in order to top up his holding.
Berkshire first appeared on Tesco's share register in May 2006, when it took a 1pc stake, and has been increasing it gradually since then.
Although perhaps better known for his investment in the insurance and financial services sector – not least the canny bets he made on Goldman and General Electric during the financial crisis – Mr Buffett has a quite the passion for retailers and consumer-focussed companies.
One of the companies he holds dearest to his heart is Coca-Cola - maker of his beloved Cherry Coke – which is Berkshire's single largest investment.
Berkshire also controls Dairy Queen, the iconic American ice cream chain of whose low-cost desserts Mr Buffett is a regular indulgee.
Other consumer investments include Kraft, the chief executive of which Mr Buffett lambasted at Berkshire's annual meeting in May for pulling off a "dumb deal" in buying Cadbury, the British confectioner.
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