Breaking down the stocks Mohnish Pabrai (Dalal Street) bought, sold, and held in Q2 2025, including their holdings at the end of the quarter. All data sourced from Dalal Street's 13F filed on August 13, 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
Q2 '25 13F filed with SEC
Holdings in Q2 2025
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| HCC | Warrior Met Coal | 30.4% | Added (+0%) | $82.48M |
| VAL | Valaris | 29.2% | Added (+32%) | $79.33M |
| AMR | Alpha Metallurgical | 19.1% | Added (+11%) | $51.78M |
| NE | Noble | 16.9% | $45.9M | |
| AN | AutoNation | 4.5% | NEW | $12.12M |
Current Investment Strategy
Pabrai maintained his concentrated, high-conviction value investing approach in Q2 2025, deploying capital aggressively into cyclical "old economy" sectors with the $272 million U.S. portfolio split across just five positions—led by Warrior Met Coal (30%) and Valaris (29%)—while dramatically expanding his offshore drilling exposure by 32% and initiating a new position in AutoNation. The Buffett disciple's strategy reflected his belief that metallurgical coal, offshore drilling services, and automotive retail represent deeply undervalued, cash-generative businesses positioned for significant upside as these cyclical industries recover, with nearly half the portfolio now concentrated in offshore drilling through Valaris and Noble Corporation.
New Investments
AutoNation AN
Mohnish Pabrai bought $12.12M of AutoNation in Q2 2025. AutoNation delivered strong Q3 2025 results with adjusted EPS of $5.01, exceeding consensus by 3.51%, and revenue of $7.04 billion, up 7% year-over-year, demonstrating robust operational execution across all segments. The company achieved 25% adjusted EPS growth and 16% net income growth versus the prior year, with record profits in After-Sales and Customer Financial Services offsetting near-term market headwinds. Despite investor caution on Q4 normalization, AutoNation has delivered 23.5% one-year total shareholder returns and 84.8% three-year returns, reflecting market confidence in management's capital-efficient strategy.
- Adjusted EPS grew 25% year-over-year to $5.01, beating consensus by 3.51%.
- After-Sales margin expanded 100 basis points to 48.7% with profit growth of 7%, while record CFS profit increased 12%.
- One-year shareholder return reached 23.5% with 3% share repurchase in Q3.
Added, Trimmed, and Exited
Added
Mohnish Pabrai initiated a new position in AutoNation (AN) worth $12.12M and significantly increased his stakes in Valaris (VAL) by 456,213 shares (+32%) and Alpha Metallurgical (AMR) by 45,711 shares (+11%). Warrior Met Coal (HCC) remained essentially flat with only 165 shares added.
What it means: Pabrai doubled down on his cyclical value thesis, particularly in energy and resources. The substantial addition to Valaris—which delivered a 41.5% return—suggests he's backing winners in the offshore drilling recovery. Adding to Alpha Metallurgical despite its slight negative return demonstrates conviction in the coal thesis rather than chasing momentum. The AutoNation purchase expands his portfolio into automotive retail, another capital-efficient, cash-generative business trading at what he likely views as a significant discount to intrinsic value. This cluster of moves reinforces his strategy of concentrating capital in undervalued, "old economy" businesses with strong cash flows and cyclical tailwinds.
Trimmed
Mohnish Pabrai did not reduce any existing positions during Q2 2025.
Exited
Mohnish Pabrai did not fully liquidate any positions during Q2 2025.
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.
