Future of tesco, morrisons

Minrich

hyposmurf wrote: »

Warren Buffett: Tesco shares 'a huge mistake

http://www.bbc.co.uk/news/business-29457053

Huge mistake he admits, but I doubt he'll sell at the moment. As much as I'd like Tesco to improve their position I have suspicion that more problems will unravel.

I , on the other hand think there is good news around the corner

Glen_Clark

hyposmurf wrote: »

Warren Buffett: Tesco shares 'a huge mistake

http://www.bbc.co.uk/news/business-29457053

Huge mistake he admits, but I doubt he'll sell at the moment. As much as I'd like Tesco to improve their position I have suspicion that more problems will unravel.

Its refreshing to see a boss take responsibility, although I wonder if WB is taking the rap for someone else
But he has got 14 winners in his top15, so he can afford one loser.

Scarpacci

I think when Buffett it's his mistake, he means it. Although it's by no means the largest such stake (Wells Fargo, Coca Cola and Amex, among others, are significantly larger), it's too big to have been one of the few other people at Berkshire Hathaway who actually manage investments. I'm not even sure the investing "deputies" were there in 2006, when he first bought Tesco.

hyposmurf

Tesco confirms delivery of Gulfstream jet worth £30m
http://www.bbc.co.uk/news/business-29488777
Strange they were buying a £30m jet less than 2 years ago. Either they didn't realise the financial problems they were facing or someone had their fingers in their ears and were irresponsibly buying lavish assets.

Steve_xx

hyposmurf wrote: »

Tesco confirms delivery of Gulfstream jet worth £30m
http://www.bbc.co.uk/news/business-29488777
Strange they were buying a £30m jet less than 2 years ago. Either they didn't realise the financial problems they were facing or someone had their fingers in their ears and were irresponsibly buying lavish assets.

One has to wonder why they were buying a £30m jet?

Thrugelmir

Steve_xx wrote: »

One has to wonder why they were buying a £30m jet?

That's what Companies do when they they become complacent and believe themselves to be Masters of the Universe.

2010

Wow

---

been away for a week.
Looks like my pencilling in of 185p was too generous.
NAV @ 135p makes 150p fair value.

Who posted earlier there wouldn`t be a price war? Seems Morrisons are leading the pack.
Every time T comes out with an update the price will fall.
Hold onto your hats on the 23rd when there`s an update of the "fiddling".

Don`t try to catch a falling knife.

Scarpacci

Steve_xx wrote: »

One has to wonder why they were buying a £30m jet?

In fairness to Tesco, a private jet for a company whose operations span the world, in Eastern and Central Europe, stretching as far a field as Thailand and South Korea, doesn't seem all that unreasonable. The arguments to support four jets, as I read they had, seem lacking. Lavish spending on jets and fancy headquarters has often preceded a downfall, but at least Tesco's Cheshunt offices are unlikely to be described as lavish!

To bring it back to Warren Buffett, at least he had the honesty to name his private jet The Indefensible.

2010 wrote: »

Wow

---

been away for a week.
Looks like my pencilling in of 185p was too generous.
NAV @ 135p makes 150p fair value.

Who posted earlier there wouldn`t be a price war? Seems Morrisons are leading the pack.
Every time T comes out with an update the price will fall.
Hold onto your hats on the 23rd when there`s an update of the "fiddling".

Don`t try to catch a falling knife.

I think ASDA led with the price cuts, really, and they have been very good at advertising it. There's a benefit to not facing investors directly, as a subsidiary of Walmart. I suspect, outside of the discounters, ASDA would get most credit for "honest" pricing.

Morrisons' new loyalty + price discount card could fall flat on its face. It's seems to be the sort of complicated and opaque promotion that people hate about the big supermarkets. As confusing offers and promotions are often the thing people cite about their decision to switch to the discounters, I don't know how much it will help. It hasn't worked wonders for the other major supermarkets, though Morrisons are the first to include Aldi/Lidl.

Still, Morrisons latest market share did show somewhat of a turnaround in fortunes, perhaps the result of their earlier and less complicated price cuts.

hyposmurf

Warren Buffett cuts his stake in the supermarkets firm to less than 3%
http://www.thisismoney.co.uk/money/markets/article-2795380/warren-buffett-cuts-stake-tesco-3.html

Hopefully I'll find another interesting thread soon that's more positive for this thread.

brightonman123

If & when morrisons / aldi start doing online sales, the 'big' stores better be really worried.