Kraft Foods rallied by 6.9 percent to close at $31.33, the day after Warren Buffett's Berkshire Hathaway revealed it has accumulated an 8.6 percent stake in the company, becoming Kraft's largest shareholder. That's the biggest one-day percentage gain ever for Kraft, which began trading on the NYSE in 2001.
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Buffett's Kraft Foods stake also helped push other food stocks higher in what one portfolio manager calls a "bit of a halo effect" for the sector that often accompanies news of a Berkshire buy. Bullish forecasts and earningsfrom H.J. Heinz , Hormel Foods and Campbell Soup also point to better pricing power for the industry, which has been hit by rising agricultural commodity costs.