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1220 Roosevelt, Suite 200Irvine, CA 92620-3675USATel. To:All Limited Partners and Investors of the Pabrai Investment FundsFrom:Mohnish Pabrai, Managing PartnerDate:April 12, 2019Re:Q1 2019 Results et. al.Dear Partners:For the quarter ended March 31, 2019, a total of 0.2 million was added to PIF3 by existing investors.PIF2 and PIF4 are closed to new investors (or additions from existing investors), and only PIF3 is opento new money from existing or new investors. PIF3 is our offshore fund for Accredited Investors andInstitutions based outside the United States. To invest in PIF3, one needs to be a non-US accreditedoffshore investor, private foundation, endowment, or IRA.The minimum investment to join as a new partner in PIF3 is 2.5 million for individuals and 10 millionfor IRAs/Foundations/Endowments. For current investors, the minimum addition to their currentinvestment is 25,000. For IRA investors the minimum is 5,000. The next opening is on May 1, 2019.If you are interested or would like more information, please contact Valerie Magursky or me atvm@pabraifunds.com or mp@pabraifunds.com, respectively.The updated performance numbers on all the funds are:Page 1

THE PABRAI INVESTMENT FUND II, LP (US Accredited Investors) Performance Summary:DJIANASDAQS&P 500PIF2(net to 0.2%-10.3%-0.5% 18.6% 0.7% 11.1% 23.0%-13.3%-23.0% 18.9% 30.4% 5.2% 18.9% 15.5% 7.2% 4.5% 22.1%-41.0%-32.7% 11.4% 26.8% 1.1% 6.5% 20.7%-11.2%-19.1% 16.0% 32.9% 5.4% 17.8% 31.2% 14.6%-1.6% 28.4%-14.0%-18.0% 0.3% 19.1% 6.3% 8.6% 20.6%-13.1%-26.2% 14.4% 30.7% 3.9% 20.6% 24.6% 7.4% 4.0% 17.9% 17.4% 35.3% 34.2% 38.7% 23.4% 15.0% 34.0%-32.4%-25.2% 43.6% 35.8%-21.8% 42.2% 26.7%-4.5%-30.0% 64.9%7/1/17-6/30/187/1/18-3/31/19 16.3% 8.7% 23.6% 3.8% 14.4% 5.8% 23.9%-17.9%1/1/19-3/31/19 11.8% 16.8% 13.6% 5.4%Annualized 7.5% 5.2% 5.8% 12.4%Cumulative 281.3% 154.3% 184.0% 776.1%Comparison of changes in value of 100,000invested in PIF2 vs. the Indices.PIF2: 876,100 Best Index (Dow): 381,300 1,500,000PIF2S&P 500DJIANASDAQ 1,000,000 500,000 0PIF2 Investors:A 100,000 investment in PIFI at inception on July 1, 1999 and rolled over into PIF2 on 12/31/02 ( 197,900) was worth 1,227,400 as of March 31, 2019 (net to investors). This equates to an annualized return of 13.5% since inception – after allmanagement fees and expenses. The best index over the same period was the Dow and an investment of 100,000 in the DJIAon July 1, 1999 was worth 377,400 on March 31, 2019 – an annualized gain of 7.0%. The Dow gains include reinvesteddividends. In the graph above, the start date for PIF2 is shown as June 2000 for readability. The correct start date is October2000.Page 2

PABRAI INVESTMENT FUND 3, LTD (Offshore/IRA Investors) Performance Summary:DJIANASDAQS&P 500PIF3(net to 1/1/18-12/31/181/1/19-3/31/19-14.1% 28.3% 5.3% 1.7% 19.0% 8.9%-31.9% 22.7% 14.1% 8.4% 10.2% 29.6% 10.0% 0.2% 16.5% 28.1%-3.5% 11.8%-29.9% 50.8% 9.2% 2.1% 10.4% 10.7%-39.9% 45.4% 18.2%-0.8% 17.7% 40.2% 14.8% 7.1% 8.9% 29.7%-2.8% 16.8%-20.4% 28.7% 10.9% 4.9% 15.8% 5.5%-37.0% 26.5% 15.1% 2.1% 16.0% 32.4% 13.7% 1.4% 11.9% 21.8%-4.4% 13.6%-5.2% 96.5% 14.7%-0.2% 37.8%-7.8%-60.9% 125.0% 34.4%-15.7% 23.4% 46.6% 1.9%-16.7% 2.3% 109.2%-41.9% 3.8%Annualized 8.4% 9.6% 7.7% 10.2%Cumulative 300.3% 381.1% 254.8% 433.9% 1,000,000Comparison of changes in value of 100,000invested in PIF3 vs. the Indices.PIF3: 533,900; Best Index (Nasdaq): 481,100 500,000PIF3S&P 500DJIANASDAQ 0PIF3 Investors:A 100,000 investment in PIF3 at inception on February 1, 2002 was worth 533,900 as of March 31, 2019 (net to investors).This equates to an annualized return of 10.2% since inception. The best index over the same period was the Nasdaq and aninvestment of 100,000 in the Nasdaq on February 1, 2002 was worth 481,100 on March 31, 2019 – an annualized gain of9.6%. The Nasdaq gains include reinvested dividends. In the graph above, the start date for PIF3 is shown as December 31,2001 for readability. The correct start date is Feb. 1, 2002.Page 3

THE PABRAI INVESTMENT FUND IV, LP (US Qualified Investors) Performance Summary:DJIANASDAQS&P 500PIF4(net to 81/1/19-3/31/19 13.4% 5.3% 1.7% 19.0% 8.9%-31.9% 22.7% 14.1% 8.4% 10.2% 29.6% 10.0% 0.2% 16.5% 28.1%-3.5% 11.8% 12.3% 9.2% 2.1% 10.4% 10.7%-39.9% 45.4% 18.2%-0.8% 17.7% 40.2% 14.8% 7.1% 8.9% 29.7%-2.8% 16.8% 12.2% 10.9% 4.9% 15.8% 5.5%-37.0% 26.5% 15.1% 2.1% 16.0% 32.4% 13.7% 1.4% 11.9% 21.8%-4.4% 13.6% 8.4% 14.4% 4.9% 32.4%-3.4%-60.0% 118.8% 30.7%-14.8% 16.1% 46.0% 1.8%-15.4% 6.3% 62.4%-22.8% 13.1%Annualized 9.6% 11.2% 9.2% 8.6%Cumulative 312.4% 416.8% 291.3% 257.7%Comparison of changes in value of 100,000invested in PIF4 vs. the Indices.PIF4: 357,700; Best Index (Nasdaq): 516,800 600,000 400,000PIF4S&P 500DJIANASDAQ 200,000 0PIF4 Investors:A 100,000 investment in PIF4 at inception on October 1, 2003 was worth 357,700 as of March 31, 2019 (net to investors).This equates to an annualized gain of 8.6% since inception. The best index over the same period was the Nasdaq and aninvestment of 100,000 in the Nasdaq on October 1, 2003 was worth 516,800 on March 31, 2019 – an annualized gain of11.2%. The Nasdaq gains include reinvested dividends. In the graph above, the start date for PIF4 is shown as Dec 31, 2003for readability. The correct start date is Oct. 1, 2003.Page 4

General CommentsThe three benchmark indices were up between 11.8% and 16.8% for the quarter. The S&P 500, whichwas up 13.6%, delivered its best first quarter performance in more than 20 years. It also had its bestsingle quarter gain since 2009. The three Pabrai Funds were up 5.4%, 3.8% and 13.1% respectively forthe quarter. They lagged most of the indices during Q1 2019.It is not worth reading too much into the results of a single quarter. When markets are up double digitsin a single quarter, we are unlikely to keep up. Three of our larger positions, Fiat Chrysler, MicronTechnology and Rain Industries, are facing temporary headwinds in their businesses during the first halfof 2019. All three management teams expect these headwinds to dissipate in the 2nd half of 2019 andbeyond. Our investments in these businesses have very little to do with their short-term results. What Icare about is the underlying intrinsic value of these businesses in a few years. While there are noguarantees in investing, we are likely to do very well with these and other holdings.The three funds own fractions of a set of wonderful businesses run by exceptional leaders. In the lastfew years we have added some remarkable assets to the portfolio at significant discounts to underlyingintrinsic value. My biggest challenge is to avoid doing anything to this terrific portfolio for several years.If I can just sit on my ass and do nothing for a few years, I think we’ll all be very well off. As Harinawill attest, I am pretty good at doing nothing. So, that is the plan. Unless spectacular opportunities showup, there will be a few tweaks around the edges, but not much beyond that.I would not be surprised if some of our bets flatline or even go south. A high error rate is par for thecourse in equity investing. Even with a few mistakes that will be sure to reveal themselves in the nextfew years, the results should be very acceptable. There is no other set of stocks I’d rather have the Pabraifamily assets invested in.A Note for PIF3 InvestorsAt 3.8% the Q1 2019 NAV gains in PIF3 are the lowest among the three funds. The 42% decline in2018 in PIF3 was the highest decline among the three funds. This data surely is disappointing to mostinvestors in PIF3. I would like to add that, as of April 12, the YTD gain in the PIF3 NAV isapproximately 11%. And if one were to look at the results from January 2017 through April 12, 2019PIF3 has an approximately 14% annualized gain versus less than 13% for the S&P 500.It is not worth fixating on results over 2-3 years, but I just wanted to provide some color. PIF3 is moreconcentrated than the other two funds. It is this concentration that led to its 109% gain in 2017 and 42%decline in 2018.If I had a choice, I would put all the Pabrai family assets in PIF3. All the funds are likely to do very wellin the future, however PIF3 is likely to be the best performer among the three funds in the next fewyears.Page 5

Alignment of InterestsMy immediate family has a stake of 400,859 units of PIF2 and 1,253,074 units of PIF4. In addition, theadministrative team at Pabrai Funds and my immediate family owns 54,157 units of PIF4 and 17,192units of PIF3 in various retirement accounts. Finally, The Dakshana Foundation owns 77,006 units ofPIF3. The aggregate stake of the Pabrai family, the Pabrai Funds team and The Dakshana Foundationin Pabrai Funds is worth approximately 87 million.Pabrai Funds charges no management fee, just performance fees – which are ¼ of the returns over 6%annualized (subject to high-water marks). I only get paid when you make money. When you win, I win.I am very bullish on the long-term future of Pabrai Funds – as demonstrated by my being the largestinvestor in the funds. No fees were earned in Q1 2019.My family and I have an approximately 14 million investment in Dhandho Holdings. Additionally,The Dakshana Foundation has an approximately 0.8 million investment in Dhandho Holdings.Besides this, we have no other meaningful interests in any other mutual funds, hedge funds or privateequity funds. Our interests are completely aligned.Annual Report – Will be out in Q2 2019Our modus operandi is now to provide expansive commentary in the annual reports and the annualmeetings. The quarterly letter will continue to provide updated performance numbers andannouncements, but minimal commentary. The annual report is slated to be published in Q2 2019.Final K-1’s (for US Investors)For PIF2 and PIF4 investors, your final K-1s were emailed to you (password protected) in mid March.If you (or your accountant) are still waiting for the K-1, please nudge Valerie Magursky atvm@pabraifunds.com and she will get it to you immediately.Annual Redemption Date Only for Retirement Account RMDsWe have added an annual redemption date on September 30th only for retirement accounts invested inthe PIFs in which the beneficial owner is 70 years or older. The purpose of this addition is to allow folkswho are 70 years or older and who are invested in the PIFs with retirement assets to meet their annualrequired minimum distributions (RMDs). The maximum amount that these folks can redeem onSeptember 30th is 25% of the value of their balance on that date. These investors can also still redeemwhatever they wish on 12/31 with 60 days’ advance notice.We recommend that these folks make their first redemption request with the next 5 years in mind andredeem 20% of their balance. They can then keep those retirement funds in cash or a low-cost indexfund with daily liquidity (e.g., an S&P 500 index fund with their broker/custodian) and tap that annuallyfor RMDs as needed. Then, each year, they can redeem an additional 3.5% - 7% to make sure that theyhave sufficient funds for RMDs at all times.Page 6