Whale Watching: Warren Buffett

Wednesday, 1 Oct 2008 | 6:22 PM ET

You can’t say Warren Buffett doesn’t have “imagination at work.” The billionaire investor is putting his money behind one of the largest companies on the planet.

On Wednesday, the “Oracle of Omaha” revealed that he’s buying $3 billion worth of General Electric preferred shares, even as the diversified conglomerate is preparing to sell at least $12 billion worth of common stock to the public.

Whale Watching: Warren Buffett
Discussing Berkshire Hathaway's purchase of $3 billion in perpetual preferred stock from General Electric, with the Fast Money crew.

"Frankly these markets are offering opportunities that weren't available six months or a year ago," Buffett told us, “so we're putting money to work."

"General Electric is the backbone of American industry," he added. “They’ve got some marvelous businesses... They’re going to be around 5 or 10 or 100 years from now.”

Traders, what do you think?

"Buffett is smarter than you, he’s richer than you and he’s a mean SOB,” exclaims Jeff Macke, "and I say that with admiration."

I like that Buffett is finding opportunities in GE as well as Goldman and Wells Fargo . I think that takes the market higher, adds Joe Terranova.

I don’t think you can equate Wells Fargo which he bought for valuations to Goldman and GE which were bought under completely different circumstances, counters Guy Adami.

It suggests to me a bailout will get done, adds Pete Najarian. I think it benefits the regional banks.

What do you think? We want to know!

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Trader disclosure: On Oct.1, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Macke Owns (MSFT), (WMT), (HAS), (UUP); Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (WB); Najarian Owns (AAPL) And (AAPL) Puts; Najarian Owns (BIIB) Calls; Najarian Owns (GS) Call Spread; Najarian Owns (MS) And (MS) Puts; Najarian Owns (NCC) Calls; Najarian Owns (XLF) Call Spread; Terranova Owns (MA), (AAPL), (EOG), (FCX), (FTO), (GS), (KOL), (NOV), (POT), (X), (VLO), (YHOO); Terranova Owns (MS) And Is Short (MS) Call; Terranova Owns (AIG) And (AIG) Puts

Terranova Is Chief Alternatives Strategist Of Virtus Investment Partners, Ltd.; Virtus Investment Partners Owns More Than 1% Of (ABD), (ARE), (BIG), (CNW), (OFC), (DLM), (DRH), (DLR), (EPR), (EXR), (FL), (SLB), (LNET), (MAC), (DBC), (DBV), (SKT), (UA), (BLV), (VV), (CLB), (GWX), (IGE), (FSMXX); Virtus Investment Partners Owns More Than 1% Of Shares Of Incitec Pivot Ltd.; Virtus Investment Partners Owns More Than 1% Of Shares Of Essex Property Trust Inc.; Virtus Investment Partners Owns Seagate Tax Refund Rights; Virtus Investment Partners Owns Seagate Technology Tax Refund Rights

Terranova Is Co-Portfolio Manager Of The Virtus Diversifier PHOLIO; Virtus Diversifier PHOLIO Owns (IGE), (DBC), (DBV)

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