The Motley Fool

What You Were Buying Last Week: Tesco PLC

One of Warren Buffett’s famous investing sayings is “be fearful when others are greedy and greedy only when others are fearful” – or, in other words, sell when others are buying and buy when they’re selling.

But we might expect Foolish investors to know that, and looking at what Fools have been buying recently might well provide us with some ideas for good investments.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

So, in this series of articles, we’re going to look at what customers of The Motley Fool ShareDealing Service have been buying in the past week or so, and what might have made them decide to do so.

Tesco: Rising Like A Phoenix?

 The FTSE 100’s favoured scapegoat these last few months, Tesco (LSE: TSCO) has reversed its downwards trend in recent days, climbing by around 4% in Monday’s trading after a wave of positive sentiment over the weekend (now when was the last time we could say that?).

One analyst — Bruno Monteyne at Bernstein Research — stated his belief that new chief executive Dave Lewis’s price- and cost-cutting plans ought to plug many of the group’s problematic areas and arrest leaking profits, upgrading Tesco to ‘outperform’. He also thought it was now less likely that the supermarket would need a rights issue to raise funds, with a cash call seemingly being priced in to the shares’ current valuation.

Elsewhere, rival Sainsbury’s lost an appeal against Tesco’s Price Promise scheme, further boosting the latter’s investment appeal (and in turn lessening the former’s, sending Sainsbury’s shares lower on the day). The concern was that it is “misleading” to compare prices of own-brand and fresh food, as they may contain different ingredients and have different origins, or whether they were Fairtrade. As it stands, Tesco can boast that nine out of 10 of its Price Promise baskets are cheaper than Sainsbury’s.

Buffett’s Bare Basket

The tail end of last week brought news on just how much Buffett lost on his Tesco investment in the third quarter: a staggering £427.2m. 

But if Buffet’s oft-quoted mantra about fear and greed is correct, with the market so fearful, now could be the right time to buy. And that’s exactly what a lot of customers of the Motley Fool’s ShareDealing service have been doing. They put Tesco firmly in the number 1 spot in the latest “Top Ten Buys” list*, with almost three times as many investors buying the supermarket’s shares as selling.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Sam Robson has no position in any shares mentioned. The Motley Fool UK owns shares of Tesco. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

* based on aggregate data from The Motley Fool ShareDealing Service.

Where to invest £1,000 right now

Renowned stock-picker Mark Rogers and his select team of expert analysts at The Motley Fool UK have just revealed 6 "Best Buy" shares that they believe UK investors should consider buying NOW.

So if you’re looking for more top stock ideas to try and best position your portfolio in this market, then I have some good news for your today -- because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply enter your email address below to discover how you can take advantage of this.

I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement.