Breaking down the stocks Mohnish Pabrai (Dalal Street) bought, sold, and held in Q1 2026, including their holdings at the end of the quarter. All data sourced from Dalal Street's 13F filed on May 14, 2026.
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 '26 13F filed with SEC
Holdings in Q1 2026
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| Warrior Met Coal | 39.9% | Added (+1%) | $168.68M | |
| Transocean | 32.0% | Trimmed (-25%) | $135.2M | |
| Alpha Metallurgical | 28.1% | Added (+7%) | $119M | |
| VAL | Valaris | 0.0% | Exited | $-23.14M |
Current Investment Strategy
Mohnish Pabrai closed out the first quarter of 2026 running an ultra-concentrated, roughly $423 million U.S. equity book split across just three names—Warrior Met Coal, Transocean, and Alpha Metallurgical Resources—reflecting his classic Buffett-inspired "few bets, big bets" approach centered on deeply cyclical metallurgical coal and offshore drilling plays offering wide margins of safety. During the quarter he trimmed his Transocean stake while fully exiting Valaris, a move that narrowed rather than diversified his offshore-drilling exposure and underscored his willingness to concentrate capital further into the names he views as offering the most asymmetric upside within the sector.
New Investments
Dalal Street did not open any new positions during Q1 2026.
Added, Trimmed, and Exited
Added
Dalal Street increased its stake in Alpha Metallurgical by roughly 36,738 shares (up ~6.8%), growing that position's value from $108.5 million to $119.0 million. The firm also nudged up its Warrior Met Coal holding slightly, adding 11,000 shares, with the position's value rising from $158.7 million to $168.7 million—now the largest position in the portfolio.
What it means: These modest additions to Alpha Metallurgical and Warrior Met Coal suggest Pabrai continues to lean into met coal producers, doubling down on cyclical, "old economy" businesses that fit his classic value investing framework. Rather than dramatic new bets, these incremental adds reflect conviction in existing theses as commodity prices or fundamentals evolve favorably.
Trimmed
Dalal Street significantly trimmed its position in Transocean, cutting shares by 6,647,461 (about a 24.6% reduction) from 27.04 million to 20.39 million shares. Despite the large share reduction, the position's value actually rose from $111.7 million to $135.2 million, reflecting a strong ~21% return on the remaining stake.
What it means: This large trim, paired with a strong price appreciation, likely represents partial profit-taking after a significant run-up in Transocean shares. Pabrai may be locking in gains while still maintaining meaningful exposure to the offshore driller, balancing conviction with risk management as the position's value increased despite fewer shares held.
Exited
Dalal Street fully liquidated its position in Valaris (VAL), selling all 459,098 shares valued at approximately $23.1 million as of the prior filing.
What it means: The complete exit from Valaris suggests Pabrai may have found better risk/reward opportunities elsewhere in the offshore drilling space—particularly as he simultaneously trimmed but retained substantial exposure to Transocean. This could reflect a view that Valaris's thesis has played out or that capital is being reallocated toward higher-conviction names within the same sector.
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.
