Breaking down the stocks Mohnish Pabrai (Dalal Street) bought, sold, and held in Q4 2025, including their holdings at the end of the quarter. All data sourced from Dalal Street's 13F filed on February 13, 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
Q4 '25 13F filed with SEC
Holdings in Q4 2025
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| HCC | Warrior Met Coal | 39.5% | $158.69M | |
| RIG | Transocean | 27.8% | Added (+11%) | $111.68M |
| AMR | Alpha Metallurgical | 27.0% | Added (+2%) | $108.53M |
| VAL | Valaris | 5.8% | Trimmed (-57%) | $23.14M |
| NE | Noble | 0.0% | Exited | $-6.76M |
Current Investment Strategy
Mohnish Pabrai's Buffett-inspired "few bets, big bets" value approach remained firmly anchored in deeply cyclical energy and materials plays at the end of Q4 2025, with his ultra-concentrated U.S. portfolio of just four stocks—topped by Warrior Met Coal—heavily weighted toward metallurgical coal producers and offshore drilling contractors trading at depressed valuations. The self-described value investor exited his position in offshore driller Noble Corp during the quarter, further consolidating his $402 million disclosed portfolio around asymmetric bets on out-of-favor "old economy" sectors tied to global steel demand and energy infrastructure.
New Investments
Dalal Street did not open any new positions during Q4 2025.
Added, Trimmed, and Exited
Added
Mohnish Pabrai added meaningfully to his largest holding, Transocean (RIG), purchasing approximately 2.6 million additional shares, bringing the position to over 27 million shares. He also made a small addition of 11,000 shares to Alpha Metallurgical (AMR).
What it means: The significant increase in Transocean (RIG) — already by far his largest position — signals deep conviction in the offshore drilling thesis even as the stock appreciated over 46% during the quarter. Pabrai appears to be doubling down on his belief that the offshore drilling upcycle has further room to run. The minor top-up in Alpha Metallurgical (AMR), a metallurgical coal producer, reinforces his continued commitment to cyclical, "old economy" commodity plays where he sees a wide margin of safety and asymmetric upside.
Trimmed
Pabrai trimmed his Valaris (VAL) position significantly, selling over 607,000 shares — reducing the holding by roughly 57%.
What it means: The sharp reduction in Valaris (VAL) is notable given that it's a peer to Transocean (RIG) in the offshore drilling space. This suggests Pabrai may be consolidating his offshore exposure into his highest-conviction name, Transocean, while harvesting capital from Valaris — possibly viewing RIG as offering a more favorable risk/reward profile. The stock also posted a significant loss of over 55% during the quarter, which may have prompted the reallocation.
Exited
Pabrai fully exited his position in Noble (NE), liquidating all 239,000 shares.
What it means: The complete exit from Noble (NE), another offshore driller, further underscores the theme of consolidation within the offshore drilling sector. Pabrai appears to have decisively narrowed his offshore bet from three drillers down to primarily Transocean (RIG) with a smaller residual position in Valaris (VAL). This "few bets, big bets" approach is classic Pabrai — concentrating capital where he sees the most compelling opportunity rather than spreading it across similar names in 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.
