National Oilwell Varco, Inc (NOV)

[Timothy Smith]

National Oilwell Varco (NOV) is one of Warren Buffett's newest additions to his portfolio.

NOV has a growth by acquisition strategy. It acquired about 300 businesses over the past 15 years. It completed nine acquisitions just in the first half of the year.

The company has a staff dedicated to the process of acquiring new companies. NOV has the knowledge and experience to scope out good companies and to effectively integrate them into its business.

Mr. Buffett knows a good value when he sees it. NOV is clearly undervalued with a forward PE ratio of 11.27, a PEG of 0.79, and a price to book ratio of 1.73. It looks like a good time to start a position in the stock (if you haven't already) for the long-term.