Legendary investor Warren Buffett has increased his stake in supermarket group Tesco and now holds just over 3% of the grocer’s shares.

Buffett, dubbed the sage of Omaha for his investment prowess, bought another 1.85m Tesco shares through his Berkshire Hathaway vehicle and now holds 242m.

The buying was taken as a vote of confidence for Phil Clarke, who will succeed the highly regarded Sir Terry Leahy as chief executive of Tesco next March.

Berkshire Hathaway began buying into Tesco in 2006 when it took a 1% stake. Buffett, the world’s third-richest man, is now Tesco’s fifth biggest shareholder.

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