Monish Pabrai on Berkshire Hathaway, Big Tech, and Betting on Coal

In a recent interview with SumZero, legendary value investor Monish Pabrai shared his thoughts on markets, leadership, and his unconventional bets on commodities.

Pabrai views Berkshire Hathaway as a superior alternative to passive investing, especially in today’s market. “Given Berkshire’s large cash position, modest valuation, [and] relatively young leader, it’s a good place to be,” he said. He praised Greg Abel’s hands-on approach: “Greg actively pursues synergies between subsidiaries… There’s a lot more rolling up your sleeves.” Yet, he tempered expectations: “We will never have another Warren Buffett. Just like we’re never going to have another Jesus.”

While he avoids the Magnificent Seven, he acknowledged their dominance. On Tesla: “Never underestimate a man who overestimates himself… I would never count Tesla out.” He critiqued Google’s challenges: “Search is threatened in a way that it wasn’t threatened a few years ago.” Microsoft, however, earned high praise: “So embedded in the enterprise… [it’s] as close to bulletproof as you can get.”

Pabrai’s bets on metallurgical coal and offshore drillers highlight his contrarian edge. Coal miners, he noted, face irrational stigma: “JP Morgan told them, ‘We cannot have you as a customer anymore’ due to ESG pressure.” On drillers like Valaris: “They might be trading at 10% of replacement cost… If rates go to $600–700k/day, they would be printing almost their market cap in cash every year.” His thesis hinges on scarcity: “50 years from now, we’ll still be burning metallurgical coal to produce iron and steel.”

He embraces concentration, citing the Walton family’s 46% Walmart stake for decades: “If you are successful as an investor, you are going to end up with 80% in a single position.” He warned against premature selling: “When you find a great compounder, don’t get cute… until it’s egregiously overpriced.”

His blend of humility, contrarianism, and long-term focus is important in all markets. As he put it: “We are all too soon and wise too late.”

You can watch the entire interview here: