Billionaire investor Warren Buffett has said that investing in Tesco was a “huge mistake” after shares slup 45%.

Buffett, speaking to CNBC, said: “I made a mistake on Tesco. That was a huge mistake by me.”

Tesco shares have slumped 45% this year after a series of profit warnings and the revelation it had overstated its profits by £250m.

Buffett, known as the sage of Omaha and one of the world’s richest people, is Tesco’s third-largest shareholder through his Berkshire Hathaway venture with a 4.1% stake, has seen the value of his investment fall by around £465m this year.

Buffett first invested in Tesco in 2006 and steadily increased his holding, even raising his stake after the company’s first profit warning in 20 years.

Tesco was the only stock in his top 15 picks that recorded a loss last year.