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News In Brief

Bargain hunters drive stocks higher

Paddy Hirsch Aug 11, 2011

Warren Buffett may not have led the charge, but he was in the thick of the crowd of investors taking advantage of low share prices today.

“The lower things go, the more I buy. We are in the business of buying,” he told CNN Money’s Termsheet today. He’s not the only one. The S&P 500 powered up more than 4 percent in afternoon trading, as investors piled into the market. Tech stocks were a popular buy, with Cisco Systems cranking more than 15 percent after its quarterly profit beat expectations. Bank stocks rebounded, too after a tough week.

Buffet’s interview with CNN reflected the thoughts of many economists who are convinced this week’s mayhem in the markets has little to do with the true state of the economy.

“Business has been coming back steadily, even more than the mood of the public,” he said.

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