Breaking down the stocks Mohnish Pabrai (Dalal Street) bought, sold, and held in Q1 2025, including their holdings at the end of the quarter. All data sourced from Dalal Street's 13F filed on May 14, 2025.
Who are Mohnish Pabrai and Pabrai Investment Funds?
Mohnish Pabrai is the Managing Partner of Pabrai Investment Funds and the CEO of Dhandho Funds and its parent Dhandho Holdings. As of June 30, 2025, Mohnish manages approximately $900 million in private partnership and mutual fund (the Pabrai Wagons Fund) assets through Dhandho Funds and its affiliated advisor Dalal Street LLC. Mohnish is an ardent disciple of Warren Buffett and closely follows his principles of value investing and capital allocation. He is the author of two books on value investing, The Dhandho Investor and Mosaic: Perspectives on Investing. His investment strategy is a classic value investing approach inspired by Warren Buffett and Charlie Munger, emphasizing a "few bets, big bets, infrequent bets" philosophy with a focus on asymmetric opportunities that offer limited downside and substantial upside. Pabrai focuses on undervalued, high-quality companies—often in cyclical or "old economy" sectors—that can compound intrinsic value over long periods, with strong qualitative factors like predictable cash flows, strong balance sheets, margin of safety, competent management, long-term reinvestment potential, and durable competitive advantages.
Pabraifunds.com
Chai with Pabrai
Mohnish Pabrai on X
Q1 '25 13F filed with SEC
Holdings in Q1 2025
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| HCC | Warrior Met Coal | 36.6% | Added (+6%) | $85.88M |
| VAL | Valaris | 23.9% | NEW | $56.05M |
| AMR | Alpha Metallurgical | 22.1% | Trimmed (-15%) | $51.93M |
| NE | Noble | 17.4% | NEW | $40.97M |
| CEIX | Consol Energy | 0.0% | Exited | $-63.47M |
Current Investment Strategy
Pabrai Investment Funds maintained its concentrated value investing approach in Q1 2025 with just four holdings, executing a strategic pivot toward offshore drilling by initiating positions in Valaris and Noble Corporation—which together comprised over 40% of the portfolio—while retaining core exposure to metallurgical coal producers Warrior Met Coal and Alpha Metallurgical Resources. The manager exited thermal coal producer Consol Energy entirely, reflecting his trademark "few bets, big bets" philosophy focused on energy and commodity sectors that he views as deeply undervalued with asymmetric upside potential.
New Investments
Valaris VAL
Mohnish Pabrai bought $56.05M of Valaris in Q1 2025. Valaris has demonstrated strong earnings momentum despite near-term revenue headwinds, with Q3 2025 net income surging 188% year-over-year to $187 million and EPS of $2.65 crushing consensus by 165%, though sequential revenues and EBITDA declined as fewer operating days pressured the floater and jackup fleets. The company maintains a fortress balance sheet with $676 million in cash, generated $237 million in free cash flow during Q3, and trades at a 14.7x P/E ratio below the industry average, providing relative value despite the 74.7% six-month stock rally. Q4 guidance of $495-515 million in revenues signals anticipated weakness from fleet idle time and mobilizations, suggesting the recent rally may be pricing in recovery prospects while near-term operational challenges persist.
- Net income surged 188% year-over-year to $187 million in Q3 2025, with EPS of $2.65 beating consensus estimates by 165%.
- Stock delivered 74.7% return over the past six months and is up 27.7% year-to-date, while P/E of 14.7x sits below industry average of 16.4x.
- Q3 revenues declined 3.1% sequentially to $596 million and adjusted EBITDA fell 18.9% to $163 million, with Q4 guidance expecting further revenue pressure at $495-515 million.
Noble NE
Mohnish Pabrai bought $40.97M of Noble in Q1 2025. Noble has experienced a significant deterioration over the last two quarters, posting a net loss of $21 million in Q3 2025 compared to a $43 million profit in Q2, with EPS declining from $0.27 to -$0.13. The decline reflects margin pressures and reduced rig utilization despite revenues remaining flat, causing the stock to significantly underperform with a 2.7% year-to-date decline versus the S&P 500's 15.5% gain. However, $740 million in newly secured contracts expanded backlog to $7.0 billion, positioning the company for potential recovery as deepwater utilization is expected to improve by late 2026 or early 2027.
- EPS declined from $0.27 in Q2 2025 to -$0.13 in Q3 2025, representing a 34.48% miss against consensus estimates.
- Adjusted EBITDA fell 10% from $282 million in Q2 to $254 million in Q3 2025.
- Stock has underperformed the S&P 500 by 18.2 percentage points year-to-date, declining 2.7% while the broader market gained 15.5%.
Added, Trimmed, and Exited
Added
Mohnish Pabrai added 94,910 shares to his existing Warrior Met Coal (HCC) position, increasing his stake to 1,799,580 shares despite the position declining 7.1% in value to $85.88M.
What it means: This modest addition to Warrior Met Coal while the stock was declining suggests Pabrai is averaging down on his metallurgical coal conviction, maintaining exposure to the sector even as he reshuffles his broader commodities portfolio. The small size of the add relative to his $97M deployment into two new offshore drilling positions (Valaris and Noble) indicates he's prioritizing the offshore drilling thesis over doubling down on coal, though he still sees enough value in Warrior Met Coal to incrementally add rather than trim.
Trimmed
Mohnish Pabrai reduced his Alpha Metallurgical (AMR) position by 72,635 shares (14.9% of the position), with the remaining stake valued at $51.93M after a steep 46.7% decline in value.
What it means: The significant reduction in Alpha Metallurgical following a 46.7% drawdown suggests Pabrai is either harvesting tax losses, managing position sizing after steep declines, or losing conviction in this particular metallurgical coal producer relative to Warrior Met Coal, which he added to. The trim appears to be part of a broader repositioning within the coal sector, with capital potentially being reallocated toward the offshore drilling investments that now represent nearly $97M of new deployment in the quarter.
Exited
Mohnish Pabrai completely liquidated his Consol Energy (CEIX) position, selling all 594,950 shares previously valued at $63.47M.
What it means: The complete exit from Consol Energy, combined with the trim of Alpha Metallurgical and rotation into offshore drilling names Valaris and Noble, signals a deliberate sectoral reallocation away from thermal and metallurgical coal toward offshore drilling services. This pivot suggests Pabrai sees more compelling risk-reward in the offshore drilling recovery cycle—where day rates and utilization are expected to improve through 2026-2027—than in coal, possibly due to concerns about sustained demand weakness or pricing pressure in the coal markets.
Disclaimer: All posts are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.
