By Roberto Pedone
Posted on Nov. 5, 2009

The traders on CNBC’s “Fast Money” told their viewers what they must know after Warren Buffett announced on Tuesday his largest-ever takeover of railroad company Burlington Northern Santa Fe (BNI) for $26 billion. “It’s an all-in wager on the economic future of the United States,” Buffett said in a statement. Tim Seymour said Buffett’s move is a long-term play that won’t change anyone’s short-term trading strategies.

Joe Terranvoa told viewers that Buffett’s move is a signal to investors that he’s bullish on transports, energy and infrastructure. He thinks this means good times are in store for FedEx (FDX). Pete Najarian mentioned the deal makes another of Buffett’s big holdings, Union Pacific (UNP), attractive because of its exposure to coal. He pointed out that the Burlington deal moved up stocks in the grain, coal and fertilizer sectors.

The traders spoke to Peter Schiff, president of Euro Pacific Capital, to find out what he thought about the Buffett takeover. Schiff said the deal was basically a way for Buffett to make a big bet on commodities. He explained that if oil prices continue to move higher, trucking becomes less competitive, thereby making railroads the best choice to move raw materials. Schiff said Buffett is just trying to get out of cash and invest in inflation hedges.

The “Fast Money” crew has recently highlighted trading ideas that play off Warren Buffett’s takeover of Burlington Northern, stocks to buy and sell off the swine flu pandemic and stocks with unusual options activity. Here are some highlights from over the past week as aggregated from the show.

Louis Navellier’s 4 Mojo Stock Picks: The traders spoke with Louis Navellier, chief investment officer for Navellier & Associates, who offered up four stocks he said will do well without any help from the government stimulus. On last Thursday’s “Fast Money” show, Navellier told viewers: “Medifast (MED) is in the diet business. It’s a very well-run company, with earnings up over 100%.” The Louis Navellier’s 4 Mojo Stock Picks portfolio includes Tessera Technology (TSRA) and Southwestern Energy (SWN).

Fast Money’s Warren Buffett Trades: Warren Buffett made his biggest-ever acquisition at $26 billion of Burlington Northern Santa Fe in what he called a bet on the U.S. economy. How should you trade this news? On Tuesday’s “Halftime Report” segment, Pete Najarian told viewers: “I’d look downstream at mining equipment makers such as Bucyrus (BUCY) and JoyGlobal (JOYG). Although both stocks have already run, the P/E levels look cheap to me.” The Fast Money’s Warren Buffett Trades portfolio includes Genco Shipping & Trading (GNK) and Patriot Coal (PCX).

Fast Money’s 3 Buys & 4 Sells Off the Swine Flu: Who is going to benefit from the swine flu fears, and who might lose? Morgan Stanley put together a list of five buys and four sells off the swine flu pandemic. On Monday’s “Fast Money” show, Joe Terranova told viewers: “What stands out to me is Amazon.com (AMZN). It suggests if swine flu is worse than expected there will be a surge in cocooning.” The Fast Money’s 3 Buys & 4 Sells Off the Swine Flu portfolio includes BioCryst Pharmaceutical (BCRX) and Expedia (EXPE).

Fast Money’s Options Action: The traders have noticed some unusual options activity in a number of stocks. On last Thursday’s “Fast Money” show, OptionMonster Jon Najarian told viewers: “I’m watching unusual options action in Intel (INTC). There’s been aggressive call buying that suggests the stock could move higher.” The Fast Money’s Options Action portfolio includes Advanced Micro Devices (AMD) and Gold Fields (GFI).

Fast Money’s Failing Tech Trades: Technology stocks helped take the market lower after Morgan Stanley downgraded the entire sector to cautious from attractive. What’s the trade? On Tuesday’s “Fast Money” show, Pete Najarian told viewers: “I’m more focused on Cisco Systems (CSCO). I’m bullish.” The Fast Money’s Failing Tech Trades portfolio includes NetApp (NTAP) and Broadcom (BRCM).