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Sally Jones
Sally Jones
Articles (580) 

Warren Buffett's Berkshire Hathaway Keeps Buying NOV

March 28, 2013 | About:

Ranked 184th on this year’s Fortune 500 list of America’s largest companies, National Oilwell Varco, Inc. (NYSE:NOV) also ranks on Warren Buffett’s keeps-buying list as one of the stocks with the highest average 10-year EBITDA growth rate of 28.4%. With a portfolio weighting of 0.48% as of Dec. 31, 2012, Berkshire Hathaway lists 5,294,800 NOV shares, valued around $361.8 million, but a fraction of the portfolio. The current NOV share price is $70.60, with a change from average down 2%. Last year on this day, stock was $78.21.

Berkshire Hathaway (NYSE:BRK.A) (NYSE:BRK.B) last added to its NOV position by 26.46%, quarter ending Dec. 31, 2012. In that same quarter, Gurus John Burbank, Chuck Royce and Bruce Kovner sold out. Other Gurus buying or adding to their NOV position that same quarter are: T. Boone Pickens, David Rolfe, Jim Simons, Robert Olstein, Paul Tudor Jones and John Rogers.

Competing with other Fortune 500s, Halliburton, 118th on the list, and Baker Hughes, 141st on the list, and others in the oil and gas equipment services arena, Houston-based National Oilwell Varco, Inc., is a giant among providers of oil and gas drilling equipment and components. The company has operations in over 900 locations across six continents.

The company has a market cap of $30.23 billion. The P/E ratio is 12.2, and the P/S ratio is 1.5063. National Oilwell Varco (NYSE:NOV) 12-month growth rate is 36.1%, annual rate per share.

Here’s Warren Buffett’s NOV holding history:

Last month National Oilwell Varco, Inc. completed its $2.5 billion all-cash acquisition of Robbins & Myers, Inc., a supplier of application-critical equipment and systems in global energy, chemical and other industrial markets. According to Rigzone, the combination of the two companies’ manufacturing infrastructure and technology portfolio would allow NOV to further advance its presence in oil and gas markets. Pete Miller, Chairman, President and CEO of National Oilwell Varco, stated, “Robbins & Myers has many complementary products with those National Oilwell Varco currently offers the industry…I am particularly enthusiastic about the prospect of incorporating their downhole tools, pumps and valves into National Oilwell Varco Petroleum Services & Supplies and Distribution & Transmission segments.”

Here’s a detailed financial history of NOV performance.

For Warren Buffett’s top buys, top sales, and top holdings, take a look:

Here is the complete portfolio of Warren Buffett.

Also check out:

1. Warren Buffett's Undervalued Stocks

2. Warren Buffett's Top Growth Companies

3. Warren Buffett's High Yield stocks

4. Stocks that Warren Buffett keeps buying

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.7/5 (9 votes)


Aleks1981 - 4 years ago    Report SPAM
Quality company and quality earnings. Rig replacement cycle is starting and will last 5-10 years. Adding to my NOV position as it gets below $70. This stock will double within 3 years once the market sees the full potential growth.

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