Buffett buys stake in Kraft Foods

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Billionaire US investor Warren Buffett has built up an 8.6% stake in Kraft Foods, worth $4.32bn (£2.2bn), making him its largest individual shareholder.

The shares were bought last year, according to the customary filing lodged with the Securities and Exchange Commission, the US financial watchdog.

It was also revealed that Mr Buffett has spent $76m on shares in UK drugs firm GlaxoSmithKline.

Mr Buffett's investments are closely watched by analysts.

Brand name focus

His investment in Kraft is being seen as a vote of confidence in the firm, which only last month posted a 6% decline in quarterly profits after it was hit by higher raw material costs.

Kraft's best-known products include its eponymous cheese, Maxwell House coffee and Oreo cookies.

"Mr Buffett likes brand names with good franchises and clearly Kraft has a number of those," said Jerry Bruni, a portfolio manager at JV Bruni and Co in Colorado Springs.

Mr Buffett bought the shares through his Berkshire Hathaway investment vehicle.