Investment bank stocks have soared this year--with one big exception: On July 11, Salomon forecast a $65 million second-quarter loss. Shares fell 9%, to 371/4. Still, Solly is trading near the top of its historic price-to-book ratio. That could change if the aura of 20% shareholder Warren Buffett dissipates. "If the Buffett factor wears off, the stock could trade as low as the mid- to high 20s," says Sanford C. Bernstein analyst Guy Moszkowski.

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