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Why Salomon Is So Lightly Buffeted


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WHY SALOMON IS SO LIGHTLY BUFFETED

The brokerage slump has finally caught up with Salomon. On July 6, the Wall Street giant announced that it will report a second-quarter loss of about $200 million. Salomon's stock dropped 4% on the news, to 451/2--the first real hit it has taken this year. One big reason for its strength: investor Warren Buffett. Berkshire Hathaway, Buffett's investment company, added 200,000 shares to Salomon's holdings in May, according to a Securities & Exchange Commission filing. And this May, Buffett got an O.K. from Salomon's board to up his 20% stake to 25%.EDITED BY KEITH H. HAMMONDS


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