Warren Buffett: I made a mistake on Tesco

Abigail Stevenson
Warren Buffett: Tesco was a 'huge mistake'

Warren Buffett said he was wrong when it came to investing in Tesco

"With Tesco, we definitely made a mistake. I made a mistake on that one more than anybody else made a mistake ... That was a huge mistake by me," the billionaire told "Squawk Box" on Thursday.

The U.K. supermarket retailer has seen its shares fall more than 48 percent year to date. Buffett's investment firm Berkshire Hathaway is now nursing losses of more than $700 million. According to Berkshire's annual letter to shareholders, Buffett has 301,046,076 Tesco shares.  

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Warren Buffett
Adam Jeffery | CNBC

Tesco stock plunged after the admission by the popular retailer that it overstated its first-half earnings forecast by £250 million ($400 million). Macquarie has downgraded the stock to "neutral," and Standard & Poor's has put it on a negative stock watch in the wake of the event and until Tesco announces its interim results that are anticipated for late October.  

Berkshire purchased the shares for $1.699 billion, and Buffett has always had a "buy and hold" mentality to investing. This guiding principle has led Berkshire to be prosperous for the past four decades. 

"I'm going to make mistakes, but I'm not going to make a mistake because I like to buy businesses I like as they go down in price. I'm just going to be wrong about the facts," Buffett said.

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