Warren Buffett has sold 245m of his shares in ailing grocer Tesco, leaving the legendary investor’s Berkshire Hathaway firm with a stake of less than 3%.

Buffett’s disposal came just a few weeks after he described the decision to invest in Tesco as a colossal error.

“I made a mistake on Tesco,” he said then. “That was a huge mistake by me.”

Buffett’s sale preceded Tesco’s interim results, which will be released next Thursday after being postponed in the wake of a profits overstatement.  

The day is likely to be a test of confidence in Tesco’s new boss Dave Lewis, who was parachuted in early to address the retailer’s underperformance.

Investors will seek reassurance that the accounting issues occurred over a limited period and hope for a sense of purpose being restored at the retailer.