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National Oilwell Varco: Horrible Short-Term Outlook, Creates Long-Term Buying Opportunity

Warren Buffett is attracted to businesses with high returns on invested capital, durable competitive advantages and a clear path for long-term growth. Importantly, this type of company must be available at a "fair" price. Buffett likes to leverage his company's financial strength to roll-up an industry via tuck-in acquisitions, so an industry offering reinvestment opportunities is also important. The recent depression in energy prices has created as attractive of an opportunity as we have seen, since the Financial Crisis, to pick up companies that meet these desired characteristics. I believe that National Oilwell Varco, Inc. (NYSE:NOV) would be an ideal acquisition candidate for Buffett's Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B). Although I don't believe NOV would sell anywhere near current prices, non-control investors such as individuals have the opportunity to buy the stock at a true bargain…