Wal-Mart Stores, Inc. (WMT), Tesco PLC (TSCO): Is The Worst Over for Warren Buffett-Backed Grocer?

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Bottom line
The worst may be behind Tesco PLC (LON:TSCO). Fresh & Easy stores will be sold off or shut down (the company is writing down $1.8 billion for the bad investment), and a new, more cost-efficient online grocer effort will become the front-and-center segment to watch.

In the meantime, there are rumors that Buffett is looking to up his holding to 10% — a vote of confidence that is second to none in the investment world.

Keep an eye on a profit turnaround and the sales figures for the Express stores in the coming quarters, and as always, only invest in that which you are comfortable and knowledgeable.

The article Is the Worst Over for This Buffett-Backed Grocer? originally appeared on Fool.com and is written by Michael Lewis.

Fool contributor Michael Lewis has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Berkshire Hathaway and Tesco.

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