Toyota

Tesla's institutional legitimization came in a thirty-month sequence. In January 2010 the Department of Energy's loan office extended a $465 million loan for advanced clean-energy manufacturing, capital the company later repaid in full. In May 2010 Tesla bought the NUMMI plant in Fremont from Toyota for $42 million, and on June 29, 2010, it went public on the NASDAQ at $17 per share, raising $226 million as the first American car company to hold an initial public offering since Ford in 1956. The Model S luxury sedan entered production in June 2012 and won the 2013 Motor Trend Car of the Year; in September 2013 it became the first electric car to top a country's monthly new-car sales ranking, leading Norway's market. Tesla joined the NASDAQ-100 in July 2013, unveiled the Powerwall and Powerpack storage products in April 2015 to roughly $800 million in orders within a week, and shipped the Model X that September.

Page 8 PIF3's Largest Holdings Shares Held Cost Market Value Vintage Approx. (millions) (millions) Return Micron Tech. 389,000 $16 $31.6 2018 2x Rain Industries 14,737,427 $10 $29.4 2015 3x Reysas Logistics 23,395,000 $4.2 $27.1 2019 6.5x Sunteck Realty 3,701,506 $13.5 $19.4 2017 1.4x Seritage Gr. Prop. 1,211,000 $11.0 $19 2020 1.7x Total $126.5 (~3/4th of PIF3 assets) The grapes of 2016 must have been sour. As an investor in Pabrai Funds, you can take some comfort from the likely zero overlap between Pabrai Funds and your other investments. You probably don’t own any of these household names. The large gains in Reysas Logistics may have piqued your curiosity. Let’s delve further. Reysas Logistics – The Little Engine that Could Reysas Logistics is based in Istanbul, Turkey. Over the years, Fahad and I have made several wonderful trips to Istanbul and met with 50+ listed businesses in Turkey. On our last trip in July 2019, we visited the headquarters of Reysas and met with the outstanding father-son duo that run the place. After the meeting and drilldown, we sold our other two investments in Turkey and put every dollar we could into Reysas Logistics. “All day you wait for the pitch you like; then when the fielders are asleep you step up and hit it.” - Warren Buffett Durmus Doven founded Reysas in 1989. The family owned a Toyota dealership in Ankara in the 1980s.

At that time new Toyota cars were individually driven from the Istanbul port to Ankara and other dealerships across the country. In the late 1980s, Durmus was vacationing in France and saw a car carrier trailer for the very first time in his life. At the time, these did not exist in Turkey. Hence all cars were driven from the port to the various dealerships across the country using an expensive army of drivers. As soon as he returned to Turkey, Durmus tried to bring a car carrier trailer into Turkey only to be rebuffed. These type of trucks were not allowed to be imported in Turkey at the time. So, he rigged up his own version of a car carrier trailer (sans hydraulics) and offered to transport Toyotas deep into the hinterland at much lower prices than were prevailing. Toyota loved it. The dealers loved it and customers were willing to pay a premium for new cars with “zero miles.”

[21:30] I think people, if you’d worked in the auto industry; let’s say you’re an auto dealer the last 10 years, you would have seen Chrysler come up with the minivan. If you were a Buick dealer, a Toyota dealer, a Honda dealer, you would have seen the Chrysler dealership packed with people. You could have made 10 times your money on Chrysler a year after the minivan came out. Ford introduces the Taurus/Sable, the most exceptional line of cars in the last 20 years. Ford went up sevenfold on the Taurus/Sable. So, if you’re a car dealer, you only need to buy a few stocks every decade. When your lifetime is over, you don’t need a lot of five-baggers to make a lot of money starting with $10,000 or $5,000. So, in your own industry you’re going to see a lot of stocks, and that’s what bothers me. There are good stocks out there looking for you and people aren’t listening and they’re just not watching. They have incredible edges.