Breaking down the stocks Mohnish Pabrai (Dalal Street) bought, sold, and held in Q3 2025, including their holdings at the end of the quarter. All data sourced from Dalal Street's 13F filed on November 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
Q3 '25 13F filed with SEC
Holdings in Q3 2025
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| HCC | Warrior Met Coal | 34.0% | Added (+0%) | $114.54M |
| AMR | Alpha Metallurgical | 25.9% | Added (+16%) | $87.3M |
| RIG | Transocean | 22.6% | NEW | $76.26M |
| VAL | Valaris | 15.4% | Trimmed (-43%) | $52M |
| NE | Noble | 2.0% | Trimmed (-86%) | $6.76M |
| AN | AutoNation | 0.0% | Exited | $-12.12M |
Current Investment Strategy
Pabrai maintained his concentrated, high-conviction value approach in Q3 2025 with just five holdings, pivoting aggressively into cyclical energy by initiating a 22.6% position in offshore driller Transocean while exiting AutoNation and trimming positions in Noble Corp and Valaris. The portfolio remained heavily weighted toward Basic Materials and Energy with approximately 60% in metallurgical coal producers Warrior Met Coal and Alpha Metallurgical Resources, reflecting his trademark bet on deeply out-of-favor commodity plays with asymmetric upside potential.
New Investments
Transocean RIG
Mohnish Pabrai bought $76.26M of Transocean in Q3 2025. The company delivered Q3 adjusted net income of $62M with a 38.7% operating margin, representing meaningful sequential improvement from Q2's $19M and 34.9% margin. While impairment charges and elevated debt levels ($4.85B) remain headwinds, improving rig utilization and a $6.7B backlog are driving operational momentum. The company faces structural challenges from energy transition risks and rig oversupply, though its $1.2B debt reduction plan and $83M annual interest savings should provide financial relief.
- Q3 adjusted net income of $62M (+226% vs Q2), with operating margin expansion of 380 basis points to 38.7%.
- Strong backlog of $6.7B and operational cash flow of $246M supporting debt reduction initiatives.
- Quick ratio of 0.4 and $4.85B long-term debt reflect liquidity and leverage concerns despite improving profitability.
Added, Trimmed, and Exited
Added
Mohnish Pabrai increased his position in Alpha Metallurgical (AMR) by 71,673 shares (+15.6%), which delivered a strong 68.6% return, while maintaining his stake in Warrior Met Coal (HCC), which returned 38.9%.
What it means: The additions to coal positions signal continued conviction in the metallurgical coal thesis despite broader energy transition headwinds. With both positions showing strong positive returns and representing high-margin, cash-generative businesses, Pabrai appears to be doubling down on cyclical commodities at what he perceives as attractive valuations. The concentration in coal alongside the new offshore drilling position suggests a portfolio increasingly tilted toward traditional energy assets trading at deep value multiples.
Trimmed
Pabrai dramatically reduced his offshore drilling exposure, slashing Noble (NE) by 86% (1.49M shares) following an 85% loss, and trimming Valaris (VAL) by 43% (818K shares) after a 34% loss.
What it means: The substantial reductions in Noble and Valaris—both suffering steep losses—coupled with the simultaneous $76M purchase of Transocean (RIG) reveals a strategic reallocation within the offshore drilling sector rather than abandonment of the thesis. This suggests Pabrai identified operational or valuation inefficiencies in his original positions and is consolidating capital into what he views as the superior risk-reward opportunity in Transocean, which offers a larger backlog ($6.7B vs competitors) and a clearer path to deleveraging.
Exited
Pabrai fully liquidated his AutoNation (AN) position, exiting 61,000 shares valued at $12.1M.
What it means: The complete exit from AutoNation marks a departure from the auto retail sector and further concentrates the portfolio toward energy and commodities. This suggests either a change in thesis on auto dealership economics (facing margin pressure from EV transition, elevated inventory costs, and slowing consumer demand) or a reallocation of capital toward higher-conviction opportunities in deeply cyclical sectors where Pabrai sees more compelling asymmetric upside.
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.
