Mohnish Pabrai's Portfolio

The most notable change this quarter is the addition of two offshore drilling companies: Valaris and Noble Corp, which together now comprise over 41% of the portfolio. This represents a significant strategic pivot from Pabrai's previous exclusive focus on coal. The timing suggests he sees value in offshore drilling assets that may be underappreciated by the market, potentially positioned to benefit from increasing offshore exploration activity.

Despite the new focus on offshore drilling, Pabrai maintains substantial positions in Warrior Met Coal and Alpha Metallurgical, which still represent nearly 59% of the portfolio. The increased stake in Warrior Met, now the largest position, demonstrates his continued conviction in metallurgical coal's importance for steel production. However, the reduction in Alpha Metallurgical suggests some rebalancing within this thesis.

Notably absent this quarter is Consol Energy, which previously made up approximately 25% of the portfolio. This complete exit, combined with the reduced position in Alpha Metallurgical, provided the capital for Pabrai's new offshore drilling investments. The decision may reflect a more selective approach to coal exposure, focusing on metallurgical coal (used in steel production) rather than thermal coal (used in electricity generation).

While maintaining his trademark concentrated approach with just four holdings, Pabrai has introduced more diversification across the energy value chain. The portfolio now spans both metallurgical coal (vital for steel production) and offshore drilling services (supporting oil and gas exploration). This suggests a broader thesis on energy and industrial commodities rather than a singular focus on coal, while still maintaining the high-conviction, concentrated approach that has characterized his investment style.