The 12 worst investments of 2014, #5: Tesco

Tesco shares almost halved in value in the last year, as it faced competition from discount supermarkets and suffered the mother of all accounting scandals.

141228-tesco

Decline in 2014: Tesco shares almost halved in value

See all 12of 2014's worst investments here

What happened?

a strategy to overhaul the business

Subscribe to MoneyWeek

Become a smarter, better informed investor with MoneyWeek.

Right Side

For him, the convenience of Lidl and Aldi posed too much of a challenge. In June, Tesco released some dire sales figures. A few weeks later, Clarke threw in the towel. Unilever veteran Dave Lewis was parachuted in to save the day but he did not have long to settle in.

Advertisement
Advertisement - Article continues below

The coming of autumn brought with it the mother of all accounting scandals. Four senior managers were suspended and shares plunged 12% in a day. The Daily Telegraph reported that the "Tesco black hole may be larger than feared".

Who are the losers?

a huge mistake

Who are the winners?

What happens next?

Bengt Saelensminde got out one of his favourite tools Bollinger bands in April, but couldn't bring himself to tip it. And nor could Ed Bowsher check out his video from the summer. MoneyWeek's number-cruncher Phil Oakley is not writing off the shares falling below a pound.

What have we learned?

See all 12of 2014's worst investments here

Advertisement

Recommended

Visit/519447/tesco-should-keep-its-asian-assets
Stock markets

Tesco should keep its Asian assets

The £7bn that Tesco could get for its Tesco Lotus business in Asia looks enticing. But holding on to it would be smarter, says Matthew Lynn.
15 Dec 2019
Visit/517688/the-british-equity-market-is-shrinking
Stock markets

The British equity market is shrinking

British startups are abandoning public stockmarkets and turning to deep-pocketed Silicon Valley venture capitalists for their investment needs.
8 Nov 2019
Visit/516758/beyond-the-brexit-talk-the-british-economy-isnt-doing-too-badly
Economy

Beyond the Brexit talk, the British economy isn’t doing too badly

The political Brexit pantomime aside, Britain is in pretty good shape. With near-record employment, strong wage growth and modest inflation, there is …
17 Oct 2019
Visit/514373/tesco-cashes-out-of-the-mortgage-business
Stock markets

Tesco cashes out of the mortgage business

Tesco Bank has left the mortgage market by selling its £3.7bn loan book. Its 23,000 customers will be moved to the Halifax, a subsidiary of Lloyds.
5 Sep 2019

Most Popular

Visit/economy/inflation/600799/federal-reserve-inflation-money-printing
Inflation

Here’s why the Federal Reserve might print more money before 2020 is out

The Federal Reserve wants to allow US inflation to run “hot” for a while. But that’s just an excuse to keep interest rates low – and possibly print mo…
10 Feb 2020
Visit/investments/investment-strategy/600804/the-secret-to-avoiding-being-panicked-out-of-your-portfolio
Investment strategy

The secret to avoiding being panicked out of your portfolio

With the coronavirus continuing to occupy headlines, investors still aren’t sure how to react. But the one thing you mustn’t do is panic. Tim Price ex…
11 Feb 2020
Visit/investments/investment-strategy/600772/just-five-assets-matter-for-investors-portfolio-asset-allocation
Investment strategy

Just five assets matter for investors. Here's what they are

Every investor’s needs are different – but most can be met by the right combination of five investments
11 Feb 2020
Visit/investments/commodities/600729/the-rare-earth-metal-that-wont-be-a-secret-for-long
Sponsored

The rare earth metal that won't be a secret for long

SPONSORED CONTENT – You can’t keep a good thing hidden forever; now is the time to consider Pensana Rare Earths and the rare earth metals NdPr.
31 Jan 2020