As the financial crisis continues to spin, the unthinkable may happen. Goldman Sachs, the proudest of the investment banks, may be forced to sell.
As this post on the Freakonomics blog notes, this isn’t because Goldman is poorly run, or is a bad business. It’s simply that it’s nearly impossible for anyone to obtain short term financing in the current market climate.
If Goldman has to sell, I think that the most logical buyer is Warren Buffett and Berkshire Hathaway.
Think about it–BRK has one of the strongest balance sheets in the world. And Buffett knows that the underlying business (and most important, the management team) is the best in the industry.
It would violate Warren’s dictum to avoid investing in i-banks (a hard lesson he learned from his Salomon Brothers adventure), but Warren is certainly capable of taking such a broad stroke.
And for Goldman, it would represent the best possible option. The proud partners at Goldman don’t want to sell out to some megabank and take orders from retail or commercial bankers. Buffett would let them focus on doing what they do best: minting money.
Remember, if it happens, you heard it here first!