The most significant move this quarter was the aggressive expansion of the Valaris position, with over 456,000 new shares added (+31.96%). Combined with the unchanged Noble Corp holding, offshore drilling now represents approximately 46% of the portfolio. This substantial increase signals Pabrai’s growing conviction that offshore drilling assets remain undervalued and positioned for a significant recovery cycle.

Despite the relative decline in portfolio percentages, both coal positions saw share increases. Warrior Met Coal added 165 shares while Alpha Metallurgical increased by 45,711 shares (+11.02%). Together, these positions still comprise nearly 50% of the portfolio, demonstrating Pabrai’s continued belief in metallurgical coal’s essential role in steel production and the quality of these specific operators.

The addition of AutoNation marks Pabrai’s first foray outside of energy and commodities in recent quarters. At 4.46% of the portfolio, this position represents a meaningful but measured allocation. AutoNation’s position as America’s largest automotive retailer, combined with potential industry consolidation trends and operational leverage, may have attracted Pabrai’s value-oriented investment approach.

While expanding to five positions from four, Pabrai maintains his characteristic concentration with the top four holdings representing over 95% of the portfolio. The addition of AutoNation appears to be funded by portfolio growth rather than significant reallocation, as evidenced by the share increases across his major positions. This suggests strong conviction across all holdings while selectively adding new opportunities that meet his value criteria.