GENERAL AMERICAN INVESTORS COMPANY, INC.
Established in 1927, the Company is a closed-end investment company listed on the
New York Stock Exchange. Its objective is long-term capital appreciation through
investment in companies with above average growth potential.
FINANCIAL SUMMARY
Net assets-December 31
Preferred Stock liquidation preference
Common Stock
Net investment income
Net realized gain
Net increase (decrease) in unrealized
2000
$ 1 , 3 0 5 , 0 3 9 , 4 6 3
150,000,000
1,155,039,463
13,805,530
217,372,941
1999
$ 1 , 2 4 4 , 5 1 9 , 1 2 4
150,000,000
1,094,519,124
11,168,875
129,187,204
appreciation
(45,048,910)
164,358,438
Per Common Share-December 31
Net asset value
Market price
Discount from net asset value
$39.91
$36.00
-9.8%
Common Shares outstanding-Dec. 31
Common stockholders of record-Dec. 31
Market price range* (high-low)
Market volume-shares
28,940,544
5,182
$44.00-$35.63
4,896,700
*Unadjusted for dividend payments.
$41.74
$37.1875
-10.9%
26,219,377
5,452
$37.19-$30.19
4,884,500
DIVIDEND SUMMARY (per share)
Record Date
Payment Date
Ordinary
Income
Capital Gain
Total
Common Stock
Nov. 13, 2000
Jan. 29, 2001
Dec. 21, 2000
Mar. 14, 2001
Total from 2000 earnings
$1.97(a)
.06(b)
$2.03
$4.14
2.02
$6.16
(a) Includes short-term gain in the amount of $1.49 per share.
(b) Represents short-term gain.
Nov. 15, 1999
Jan. 24, 2000
Dec. 21, 1999
Mar. 7, 2000
Total from 1999 earnings
$0.71(c)
.33(d)
$1.04
$2.41
1.64
$4.05
(c) Includes short-term gain in the amount of $.29 per share.
(d) Represents short-term gain.
Preferred Stock
Mar. 6, 2000
Jun. 6, 2000
Sep. 6, 2000
Dec. 6, 2000
Total for 2000
Mar. 23, 2000
Jun. 23, 2000
Sep. 25, 2000
Dec. 26, 2000
$.1281
.1281
.1281
.1281
$.5124(e)
$ .3219
.3219
.3219
.3219
$1.2876
(e) Includes short-term gain in the amount of $.4056 per share ($.1014 per quarter).
Mar. 8, 1999
Jun. 7, 1999
Sep. 7, 1999
Dec. 6, 1999
Total for 1999
Mar. 23, 1999
Jun. 23, 1999
Sep. 23, 1999
Dec. 23, 1999
$.0715
.0715
.0715
.0715
$.2860(f)
$.3785
.3785
.3785
.3785
$1.5140
(f) Includes short-term gain in the amount of $.1164 per share ($.0291 per quarter).
$6.11
2.08
$8.19
$3.12
1.97
$5.09
$ .45
.45
.45
.45
$1.80
$.45
.45
.45
.45
$1.80
General American Investors Company, Inc.
450 Lexington Avenue, New York, NY 10017
(212) 916-8400 (800) 436-8401
1
T O T H E S T O C K H O L D E R S
G e n e r a l A m e r i c a n I n v e s t o r s
General American Investors has had another
exceptional year. For the twelve months
ended December 31, 2000, the investment
return to our common stockholders was 19.1%,
consisting of a 17.6% increase in the net asset
value per share (assuming reinvestment of all
dividends) together with a slight decline in the dis-
count at which our shares trade. By comparison,
our benchmark, the Standard & Poor’s 500 Stock
Index (including income), declined 9.1%.
General American has been cited as the top
performing US-listed, large-cap equity fund for the
year 2000. Results for the past five years have been
equally gratifying. Furthermore, the table that fol-
lows, which compares our returns on an
annualized basis with the S&P 500, illustrates that
General American’s superior performance has been
generational in nature.
Y e a r s
Stockholder Return
S&P 500
3
5
10
20
30
40
29.6%
30.0
22.2
17.1
16.0
14.5
12.2%
18.3
17.4
15.7
13.2
11.9
Last year’s performance was driven by strong gains
in financial services, health care and selected tech-
nology shares. By contrast, two core retail holdings,
Home Depot and Wal-Mart, declined meaningfully.
Everest Re Group, a property and casualty reinsurer,
appreciated dramatically, and is now among our
largest holdings, as did Golden West Financial - the
California savings and loan company. Other stand-
outs include Pfizer which has been in the portfolio
for a decade and retains its position within our top
ten holdings.
Total assets are now in excess of $1.3 billion includ-
ing the capital raised in our $150 million preferred
stock offering. By contrast, five years ago our assets
were approximately $600 million. General American
remains wholly independent and self-managed as it
has been since its inception in 1927. The Company’s
operating costs in relation to average net assets are
well below the equity mutual fund industry norm
and portfolio turnover remains modest.
Long-term capital gain distributions for 2000 will
total $6.16 per share, including $2.02 per share
that will be distributed in March 2001. Because of
tax requirements unique to our industry, gains re-
alized in November and December are paid in the
following calendar year. Total dividends attribut-
able to 2000, including net income and short-term
capital gains, amounted to $8.19 per share, or
20.5% of ending net asset value ("NAV"). This per-
centage has averaged 11.6% over the past 20 years.
The share repurchase program, a part of an
ongoing effort to maximize NAV, continues apace.
During 2000, 1,017,200 common shares were
acquired at an average discount to NAV of 8.6%.
The Board of Directors has authorized repurchases
of common shares when they are trading at a
discount in excess of 8% of NAV.
As in past years, our investments are focused on
companies with strong financial characteristics
and powerful positions in growing industries.
Our fundamental approach to research relies upon
a highly skilled staff of professionals supported
by the latest technology.
In recent quarterly reports, we have described the
effect that slowing economic activity together with
rising costs can have on earnings and further, that
we have employed certain hedging techniques to
protect our own profits. It now seems evident that
the economy is faltering as reflected in disappoint-
ing Christmas retail sales, declining auto sales,
slackening labor markets and a general slowdown
in manufacturing. While the Federal Reserve has
begun to ease its monetary policy aggressively, the
economy and stock market may not respond with
characteristic vigor. Abetted by the wealth effect
of a long bull market, consumers have been spend-
ing more than they make for some time.
Corporations, likewise, have participated in a capi-
tal spending boom, creating capacity that will
require time to fill, at the very least. Finally, the
Fed’s action is commencing with the market’s
price-to-earnings multiple at twice the average of
prior easings. While guarded with respect to the
outlook for the market overall, we remain highly
confident that the quality of our holdings and the
flexibility imparted by abundant cash reserves
leave us well positioned in the current
environment.
With regret, we report that Anthony M. Frank, a
Director since 1992, resigned as a Director, to
become effective at the time of the annual meeting
in April. His wisdom and judgement have been
highly regarded by the Board and his services to
the Company greatly appreciated. He was always
ready to make available his broad knowledge and
experience gained as a prominent business and
financial executive. We will miss him.
By Order of the Board of Directors,
Spencer Davidson
President and Chief Executive Officer
January 17, 2001
2
T H E C O M P A N Y
G e n e r a l A m e r i c a n I n v e s t o r s
Corporate
Overview
General American
Investors, establish-
ed in 1927, is one
of the nation’s
oldest closed-end investment
companies. It is an independent
organization, internally
managed. For regulatory
purposes, the Company is
classified as a diversified,
closed-end management
investment company;
it is registered under and
subject to the regulatory
provisions of the Investment
Company Act of 1940.
Investment
Policy
The primary objective of the
Company is long-term capital
appreciation. Lesser emphasis
is placed on current income.
In seeking to achieve its
primary objective, the Company invests
principally in common stocks believed by its
management to have better than average
growth potential.
The Company’s investment approach focuses
on the selection of individual stocks, each of
which is expected to meet a clearly defined
portfolio objective. A continuous investment
research program, which stresses fundamental
security analysis, is carried on by the officers
and staff of the Company under the oversight
of the Board of Directors. A listing of the
directors with their principal affiliations,
showing a broad range of experience in
business and financial affairs, is on the inside
rear cover of this report.
Portfolio
Manager
Mr. Spencer Davidson has
been responsible for the man-
agement of General
American’s portfolio since he
was elected President and
Chief Executive Officer of the Company in
August 1995. Mr. Davidson, who joined the
Company in 1994 as senior investment coun-
selor, has spent his entire business career on
Wall Street since first joining an investment
and banking firm in 1966.
“GAM”
Common
Stock
As a closed-end investment
company, General American
Investors does not offer its
shares continuously. The
Common Stock is listed on The
New York Stock Exchange (symbol, GAM) and
can be bought or sold with commissions deter-
mined in the same manner as all listed stocks.
Net asset value is computed daily (on an unau-
dited basis) and is furnished upon request. It
is also available on most electronic quotation
services using the symbol "XGAMX." The fig-
ure for net asset value per share, together with
the market price and the percentage discount
3
T H E C O M P A N Y
G e n e r a l A m e r i c a n I n v e s t o r s
or premium from net asset value as of the close
of each week, is published in The New York
Times, The Wall Street Journal and Barron’s.
The ratio of market price to net asset value has
shown considerable variation over a long
period of time. While shares of GAM usually
sell at a discount from their underlying net
asset value, as do the shares of most other
domestic equity closed-end investment
companies, they, periodically, have sold at a
premium over net asset value. The last time
the Company’s shares sold at a premium was
the year-long period from March 1992 through
April 1993. During 2000, the stock sold at
discounts from net asset value which ranged
from 0.3% (November 22) to 13.2% (March 3).
At December 31, the price of the stock was
at a discount of 9.8% as compared with a
discount of 10.9 % a year earlier.
“GAM Pr”
Preferred
Stock
On June 19, 1998, the
Company issued and sold in
an underwritten offering
6,000,000 shares of its 7.20%
Tax-Advantaged Cumulative
Preferred Stock with a liquidation preference of
$25 per share ($150,000,000 in the aggregate).
The Preferred Shares are noncallable for 5
years, are rated "aaa" by Moody’s Investors
Service, Inc. and are listed and traded on the
New York Stock Exchange (symbol, GAM Pr).
The preferred capital is available to leverage
the investment performance of the Common
Stockholders. As is the case for leverage in
general, it may also result in higher market
volatility for the Common Stockholders.
Dividend
Policy
The Company’s dividend poli-
cy is to distribute to
stockholders before year-end
substantially all ordinary
income estimated for the full
year and capital gains realized during the ten-
month period ending October 31 of that year.
If any additional capital gains are realized or
ordinary income is earned during the last
two months of the year, a "spill-over" distribu-
tion of these amounts will be paid early in the
following year to Common Stockholders.
Dividends on shares of Preferred Stock are paid
quarterly. Distributions from capital gains and
ordinary income are allocated proportionately
among holders of shares of Common Stock
and Preferred Stock.
Dividends from income have been paid
continuously on the Common Stock since1939
and capital gain dividends in varying amounts
have been paid for each of the years 1943-2000
(except for the year 1974). (A table listing div-
idends paid during the 20-year period
1981-2000 is shown at the bottom of page 6.)
To the extent that full shares can be issued,
dividends are paid to Common Stockholders
in additional shares of Common Stock unless
the stockholder specifically requests payment
in cash. Spill-over dividends of nominal
amounts are paid in cash only.
Privacy
Policy and
Practices
General American Investors
collects nonpublic personal in-
formation about its customers
(stockholders) with respect to
their transactions in shares of
the Company’s securities but only for those
stockholders whose shares are registered in
their names. We do not have knowledge of or
collect personal information about stockhold-
ers who hold the Company’s securities at
financial institutions such as brokers or banks
in “street name” registration.
We do not disclose any nonpublic personal in-
formation about our stockholders or former
stockholders to anyone, except as permitted by
law.
We restrict access to nonpublic personal infor-
mation about our stockholders to those
employees who need to know that
information to provide services to our
stockholders. We maintain physical, electron-
ic and procedural safeguards that comply with
federal standards to guard our stockholders’
nonpublic personal information.
4
I N V E S T M E N T R E S U L T S
G e n e r a l A m e r i c a n I n v e s t o r s
Total return on
$10,000 investment
20 years ended
December 31, 2000
T he investment return for a common
stockholder of General American
Investors (GAM) over the 20 years
ended December 31, 2000 is shown in the
table below and in the accompanying chart.
The return based on GAM’s net asset value
(NAV) per common share in comparison to
the change in the Standard & Poor’s 500 Stock
Index (S&P 500) is also displayed. Each illustra-
tion assumes an investment of $10,000 at the
beginning of 1981.
The Stockholder Return is the return a
common stockholder of GAM would have
achieved assuming reinvestment of all
optional dividends at the actual reinvestment
price and reinvestment of all cash dividends
at the average (mean between high and low)
market price on the ex-dividend date.
The GAM Net Asset Value (NAV) Return
is the return on shares of the Company’s com-
mon stock based on the NAV per share,
including the reinvestment of all dividends.
The S&P 500 Return is the time-weighted
total rate of return on this widely-recognized,
unmanaged index which is a measure of
general stock market performance, including
dividend income.
The results illustrated are a record of past
performance and may not be indicative of
future results.
GENERAL AMERICAN INVESTORS
STOCKHOLDER RETURN
NET ASSET VALUE RETURN
STANDARD & POOR’S 500
RETURN
CUMULATIVE
INVESTMENT
ANNUAL
RETURN
CUMULATIVE
INVESTMENT
ANNUAL
RETURN
CUMULATIVE
INVESTMENT
ANNUAL
RETURN
1981
$ 11,322
1 3 . 2 2 % $ 10,110
1 . 1 0 %
$ 9,503
- 4 . 9 7 %
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1 3 , 5 0 6
1 5 , 7 0 9
1 4 , 5 8 4
1 8 , 2 0 2
2 0 , 2 3 6
1 6 , 9 7 6
2 0 , 5 8 5
3 0 , 5 8 9
3 1 , 8 1 2
5 8 , 8 5 3
6 7 , 5 5 1
5 6 , 7 9 7
5 2 , 3 3 3
6 3 , 4 3 8
7 5 , 7 9 6
1997
1 0 8 , 0 7 0
1998
1 4 1 , 9 0 6
1 9 9 9
2 0 0 0
1 9 7 , 5 6 2
2 3 5 , 2 9 6
1 9 . 2 9
1 6 . 3 1
- 7 . 1 6
24.81
11.17
-16.11
21.26
48.60
4.00
85.00
14.78
-15.92
-7.86
21.22
19.48
4 2 . 5 8
3 1 . 3 1
3 9 . 2 2
1 9 . 1 0
1 1 , 9 7 2
1 4 , 7 2 7
1 3 , 6 8 3
1 8 , 4 7 2
2 0 , 5 3 5
2 1 , 0 5 5
2 4 , 7 5 4
3 4 , 1 2 6
3 6 , 4 0 9
5 8 , 6 5 1
6 0 , 7 3 4
5 9 , 6 7 1
5 8 , 0 3 6
7 1 , 7 2 1
8 6 , 0 4 3
1 1 3 , 6 2 0
1 5 3 , 5 4 6
2 0 9 , 4 3 7
2 4 6 , 3 8 1
1 8 . 4 2
2 3 . 0 1
- 7 . 0 9
3 5 . 0 0
1 1 . 1 7
2 . 5 3
1 7 . 5 7
3 7 . 8 6
6 . 6 9
6 1 . 0 9
3 . 5 5
- 1 . 7 5
- 2 . 7 4
2 3 . 5 8
1 9 . 9 7
3 2 . 0 5
3 5 . 1 4
3 6 . 4 0
1 7 . 6 4
1 1 , 5 5 1
1 4 , 1 5 6
1 5 , 0 4 5
1 9 , 8 2 4
2 3 , 5 2 9
2 4 , 7 6 2
2 8 , 8 5 6
3 7 , 9 8 0
3 6 , 8 0 6
4 7 , 9 9 5
5 1 , 6 3 8
5 6 , 8 6 4
5 7 , 5 8 6
7 9 , 1 8 1
9 7 , 3 2 1
1 2 9 , 7 5 8
1 6 6 , 8 0 4
2 0 1 , 7 6 6
1 8 3 , 4 2 6
2 1 . 5 5
2 2 . 5 5
6 . 2 8
3 1 . 7 7
1 8 . 6 9
5 . 2 4
1 6 . 5 3
3 1 . 6 2
- 3 . 0 9
3 0 . 4 0
7 . 5 9
1 0 . 1 2
1 . 2 7
3 7 . 5 0
2 2 . 9 1
3 3 . 3 3
2 8 . 5 5
2 0 . 9 6
- 9 . 0 9
5
I N V E S T M E N T R E S U L T S
G e n e r a l A m e r i c a n I n v e s t o r s
COMPARATIVE ANNUALIZED INVESTMENT RESULTS
YEARS ENDED
DECEMBER 31, 2000
STOCKHOLDER
RETURN
GAM NET
ASSET VALUE
S&P 500
STOCK INDEX
1 year
5 years
10 years
15 years
20 years
19.1 %
17.6 %
-9.1 %
30.0
22.2
18.6
17.1
28.0
21.1
18.9
17.4
18.3
17.4
16.0
15.7
6
M A J O R S T O C K C H A N G E S * : T H R E E M O N T H S E N D E D D E C E M B E R 3 1 , 2 0 0 0 ( U N A U D I T E D )
G e n e r a l A m e r i c a n I n v e s t o r s
ADDITIONS
INCREASES
Alkermes, Inc.
Brooktrout, Inc.
Coca-Cola Enterprises Inc.
MedImmune, Inc.
Molex Incorporated Class A
Shaw Industries, Inc.
SONICblue Incorporated (a)
DECREASES
Buffets, Inc.
DuPont Photomasks, Inc.
GelTex Pharmaceuticals, Inc.
GPU, Inc.
Huntingdon Life Sciences Group plc-ADR
Nvest Companies, L.P.
Smallworldwide plc
Spherion Corporation
ELIMINATIONS
REDUCTIONS
Cisco Systems, Inc.
Everest Re Group, Ltd.
Golden West Financial Corporation
HNC Software Inc.
IDEC Pharmaceuticals Corporation
Lam Research Corporation
Manugistics Group, Inc.
Mitel Corporation
National Commerce Bancorporation
SPSS Inc.
Uniroyal Technology Corporation
Visteon Corporation
Waste Management, Inc.
XL Capital Ltd.
* Excludes transactions in Stocks - Miscellaneous - Other.
(a) Formerly named S3 Incorporated.
(b) Shares disposed of in conjunction with a tender offer.
(c) Shares disposed of in conjunction with a merger.
(d) Excludes 150,000 shares sold short.
SHARES
DECEMBER 31, 2000
SHARES HELD
45,000
50,000
1,500
25,000
15,000
25,000
343,000
165,000
225,000
526,500
214,000
644,000
225,000
600,000
1,987,500
85,000
300,000
110,000
70,000
82,000
200,000
64,500
(b)
(c)
(b)
(b)
(b)
40,000
70,000
15,000
50,000
140,000
150,000
145,000
100,000
300,000
60,000
13,000
120,507
40,000
85,000
—
—
—
—
—
—
—
—
(d)
(e)
(f)
600,000
780,000
465,000
50,000
225,000
350,000
60,000
130,000
25,000
35,500
753,000
54,993
373,000
66,000
(e) Includes shares purchased in prior period and previously carried under Stocks-Miscellaneous-Other.
(f) Includes shares received in conjunction with a stock split.
D I V I D E N D S P E R C O M M O N S H A R E ( 1 9 8 1 - 2 0 0 0 )
The following table
shows aggregate
dividends paid per share
on the Company’s
Common Stock for each
year during the 20-year
period 1981-2000.
Amounts shown include
payments made after
year-end attributable to
income and gain in each
respective year.
YEAR
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
DIVIDEND FROM
INCOME#
CAPITAL GAINS
$.63
.36
.67
.28
.47
.36
.35
.29
.23
.21
$3.63
1.15
2.38
1.35
1.07
2.15
1.54
1.69
1.56
1.65
YEAR
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
DIVIDEND FROM
INCOME#
CAPITAL GAINS
$.09
.03
.06
.06
.13
.25
.21
.47
1.04
2.03
$3.07
2.93
2.34
1.59
2.77
2.71
2.95
4.40
4.05
6.16
#Includes short-term capital gains per share which amounted to $.08 in 1981, $.28 in 1983, $.12 in 1985,
$.02 in 1989, $.03 in 1995, $.05 in 1996, $.62 in 1999 and $1.55 in 2000.
7
T E N L A R G E S T I N V E S T M E N T H O L D I N G S ( U N A U D I T E D )
G e n e r a l A m e r i c a n I n v e s t o r s
The statement of
investments as
of December 31, 2000,
shown on pages 10 and
11 includes 72 stock is-
sues. Listed here are the
ten largest stock
holdings on that date.
THE HOME DEPOT, INC.
The dominant company in home center retailing, Home Depot’s
innovative merchandising, strong balance sheet and excellent
management has enabled the Company to continue to gain
share in a fragmented industry.
EVEREST RE GROUP, LTD.
The largest independent U.S. property/casualty reinsurer which
generates annual premiums of $1.3 billion and has a high quality,
well-reserved AA balance sheet. This Bermuda domiciled company
has a strong management team that exercises prudent under-
writing discipline and efficient expense control, resulting in
above-average earnings growth.
IDEC PHARMACEUTICALS CORPORATION
A biopharmaceutical company which is committed to develop-
ing and commercializing effective treatments of selected cancers
and autoimmune diseases. With proven products such as
Rituxan and a broad pipeline of product opportunities, IDEC is
positioned for continued success.
FORD MOTOR COMPANY
A global manufacturer of automobiles, trucks and related parts. The
company provides financial services through its Ford Motor Credit
subsidiary and owns 81% of Hertz, the top car rental firm in the U.S.
THE TJX COMPANIES, INC.
The leading off-price retailer of apparel and home fashions in
the U.S. and worldwide. TJX has expanded through acquisitions and
internal growth, has achieved financial strength and is positioned for
sustainable growth.
PFIZER INC.
Well established as a leader in the pharmaceutical industry, Pfizer
continues to reap the benefits of its commitment to research
and development and its ability to effectively market products.
The recent launch of several new products serving large markets
and development of a pipeline rich with many promising drug
candidates position Pfizer for strong long-term growth.
GOLDEN WEST FINANCIAL CORPORATION
A savings and loan holding company with $50 billion in assets
headquartered in Oakland, CA. It has a strong, conservative
management with a high level of insider ownership. Excellent
asset quality, tight expense control and efficient capital manage-
ment help produce above-average earnings increases.
AMR CORPORATION
The holding company of American Airlines, AMR is a global
market leader in air transportation and related information
services.
M & T BANK CORPORATION
A bank holding company with $30 billion in assets headquarter-
ed in Buffalo, NY. It has strong, opportunistic management
with a high level of ownership and a history of enhancing
shareholder value. High asset quality, excellent expense control,
share repurchases and adroit acquisitions help generate above-
average earnings growth.
WAL-MART STORES, INC.
A policy of serving the mass market with everyday low prices,
supported by the lowest cost structure has made Wal-Mart the
world’s largest retailer with ongoing growth opportunities in
the U.S. and overseas.
S H A R E S
V A L U E
% T O T A L
N E T A S S E T S
2,145,000
$97,999,688
7.5 %
780,000
55,867,500
4.3
225,000
42,651,562
3.3
1,650,500
38,683,593
3.0
1,350,000
37,462,500
2.9
790,000
36,340,000
2.8
465,000
31,387,500
2.4
800,000
31,350,000
2.4
450,000
30,600,000
2.3
570,000
30,281,250
2.3
$432,623,593 33.2%
8
S T A T E M E N T O F A S S E T S A N D L I A B I L I T I E S
G e n e r a l A m e r i c a n I n v e s t o r s
A S S E T S
INVESTMENTS, AT VALUE (NOTE 1a)
Common Stocks
DECEMBER 31,
2000
1999
(cost $457,376,112 and $400,200,912, respectively)
$ 1,005,549,350 $ 1,010,419,262
Corporate discount notes
(cost $285,169,722 and $233,018,638, respectively)
CASH, RECEIVABLES AND OTHER ASSETS
Cash (including margin account balance of $2,899,267
in 2000)
Receivable for securities sold
Receivable from broker for proceeds on securities sold
short
Dividends, interest and other receivables
Prepaid Expenses
Other
TOTAL ASSETS
L I A B I L I T I E S
Payable for securities purchased
Preferred dividend accrued but not yet declared
Securities sold short, at value (proceeds $67,808,111)
(note 1a)
Accrued expenses and other liabilities
TOTAL LIABILITIES
NET ASSETS
285,169,722
1,290,719,072
233,018,638
1,243,437,900
3,112,551
434,736
67,808,111
2,754,152
5,078,299
557,437
92,743
4,352,729
—
2,613,692
4,423,775
580,184
1,370,464,358
1,255,501,023
3,921,101
240,000
50,811,910
10,451,884
65,424,895
2,781,760
240,000
—
7,960,139
10,981,899
$1,305,039,463
$1,244,519,124
NET ASSETS APPLICABLE TO PREFERRED STOCK AT A LIQUIDATION VALUE
OF $25 PER SHARE
$150,000,000
$150,000,000
NET ASSETS APPLICABLE TO COMMON STOCK
$1,155,039,463
$1,094,519,124
NET ASSET VALUE PER COMMON SHARE
$39.91
$41.74
N E T A S S E T S
7.20% Tax-Advantaged Cumulative Preferred Stock, $1 par value (note 2)
Authorized 10,000,000 shares; outstanding
6,000,000 shares
Common Stock, $1 par value (note 2)
Authorized 50,000,000 shares; outstanding 28,940,544
and 26,219,377 shares, respectively (exclusive of 9,400
and 105,400 shares, respectively, held in Treasury)
Additional paid-in capital ( note 2)
Undistributed realized gain on securities sold (note 2)
Distributions in excess of net income (note 2)
Unallocated distributions on Preferred Stock
Unrealized appreciation on investments
(including aggregate gross unrealized appreciation of
$604,311,705 and $638,728,297, respectively)
TOTAL NET ASSETS
(see notes to financial statements)
$6,000,000
$6,000,000
28,940,544
645,307,453
60,229,372
(367,345)
(240,000)
26,219,377
551,566,976
51,801,923
(1,047,502)
(240,000)
565,169,439
610,218,350
$1,305,039,463
$1,244,519,124
9
S T A T E M E N T O F O P E R A T I O N S
G e n e r a l A m e r i c a n I n v e s t o r s
INCOME
Dividends (net of foreign withholding taxes
of $71,050 and $198,010, respectively)
Interest
TOTAL INCOME
EXPENSES
Investment research
Administration and operations
Office space and general
Transfer agent, custodian and registrar fees and expenses
Directors’ fees and expenses
Stockholders’ meeting and reports
Auditing and legal fees
Miscellaneous taxes (note 1c)
TOTAL EXPENSES
NET INVESTMENT INCOME
YEAR ENDED DECEMBER 31,
2000
1999
$7,646,236
17,819,536
$6,927,077
13,355,343
25,465,772
20,282,420
7,766,966
2,542,419
550,679
250,036
187,653
146,510
132,000
83,979
5,291,925
2,372,064
680,511
220,989
184,675
149,881
120,000
93,500
11,660,242
9,113,545
13,805,530
11,168,875
REALIZED GAIN AND CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS
(NOTES 1d AND 4)
Net realized gain on investments:
Long transactions
Short sale transactions (note 1b)
Net realized gain on investments (long-term, except for
$43,284,041 and $16,905,418, respectively)
Net increase (decrease) in unrealized appreciation
NET GAIN ON INVESTMENTS
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
S T A T E M E N T
O F C H A N G E S
I N N E T A S S E T S
OPERATIONS
213,312,192
4,060,749
129,187,204
—
217,372,941
(45,048,910)
129,187,204
164,358,438
172,324,031
293,545,642
$186,129,561 $304,714,517
YEAR ENDED DECEMBER 31,
2000
1999
Net investment income
Net realized gain on sales of securities
Net increase (decrease) in unrealized appreciation
$ 13,805,530 $ 11,168,875
129,187,204
164,358,438
217,372,941
(45,048,910)
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
186,129,561
304,714,517
DISTRIBUTIONS TO PREFERRED STOCKHOLDERS
From net income, including short-term capital gain
From long-term capital gain
DECREASE IN NET ASSETS FROM PREFERRED DISTRIBUTIONS
(3,074,400)
(7,725,600)
(1,716,000)
(9,084,000)
(10,800,000)
(10,800,000)
DISTRIBUTIONS TO COMMON STOCKHOLDERS
From net income, including short-term capital gain
From long-term capital gain
DECREASE IN NET ASSETS FROM COMMON DISTRIBUTIONS
(60,132,212)
(151,138,654)
(211,270,866)
(17,730,368)
(93,854,267)
(111,584,635)
CAPITAL SHARE TRANSACTIONS
Value of Common Shares issued in payment of dividends (note 2) 136,477,203
Cost of Common Shares purchased (note 2)
(40,015,559) (30,486,251)
73,742,396
INCREASE IN NET ASSETS - CAPITAL TRANSACTIONS
NET INCREASE IN NET ASSETS
96,461,644
60,520,339
43,256,145
225,586,027
NET ASSETS
BEGINNING OF YEAR
1,244,519,124 1,018,933,097
(see notes to
financial statements)
END OF YEAR (including distributions in excess of
net income of $367,345 and $1,047,502, respectively)
$1,305,039,463 $1,244,519,124
1 0
S T A T E M E N T O F I N V E S T M E N T S : D E C E M B E R 3 1 , 2 0 0 0
G e n e r a l A m e r i c a n I n v e s t o r s
C O M M O N S T O C K S
SHARES
VALUE (NOTE 1a)
80,000 Union Carbide Corporation
(COST $3,566,534)
$ 4,315,000
CHEMICAL (INCLUDING
INSTRUMENTATION )
(0.3%)
COMMUNICATIONS AND
INFORMATION SERVICES
(4.9%)
COMPUTER SOFTWARE
AND SYSTEMS (3.3%)
75,000 Avanex Corporation (a)
225,000 Brooktrout, Inc. (a)
600,000 Cisco Systems, Inc. (a)
520,000 Cox Communications, Inc. Class A (a)
275,000 NTL Incorporated (a)
142,500 Wolters Kluwer NV-ADR
400,000 Allaire Corporation (a)
50,000 HNC Software Inc. (a)
60,000 Manugistics Group, Inc. (a)
200,000 NCR Corporation (a)
300,000 Parametric Technology Corporation (a)
35,500 SPSS Inc. (a)
600,000 SONICblue Incorporated (a)
275,000 Synopsys, Inc. (a)
230,000 Viewpoint Corporation (a)
150,000 Wind River Systems, Inc. (a)
CONSUMER PRODUCTS
AND SERVICES (5.8%)
526,500 Coca-Cola Enterprises Inc.
275,000 Ethan Allen Interiors, Inc.
1,650,500 Ford Motor Company
75,000 Keebler Foods Company
200,000 PepsiCo, Inc.
225,000 Shaw Industries, Inc.
54,993 Visteon Corporation
4,467,187
2,130,480
22,950,000
24,017,500
6,582,812
3,883,125
64,031,104
2,012,500
1,484,375
3,420,000
9,825,000
4,031,250
783,219
2,475,000
13,045,312
1,250,625
5,118,750
43,446,031
10,003,500
9,212,500
38,683,593
3,107,812
9,912,500
4,260,938
632,420
75,813,263
(COST $22,773,354)
(COST $37,014,812)
(COST $58,279,202)
ELECTRONICS (1.3%)
644,000 Molex Incorporated Class A
(COST $13,592,516)
16,381,750
ENVIRONMENTAL CONTROL
(I N C L U D I N G S E R V I C E S ) (0.8%)
FINANCE AND INSURANCE
(23.6%)
373,000 Waste Management, Inc.
(COST $5,272,841)
10,350,750
195,000 American International Group, Inc.
375,000 AmerUs Group Co.
550,000 Annaly Mortgage Management, Inc.
600,000 Annuity and Life Re (Holdings), Ltd.
315 Berkshire Hathaway Inc. Class A (a)
73,980 Central Securities Corporation
780,000 Everest Re Group, Ltd.
355,000 First Midwest Bancorp, Inc.
465,000 Golden West Financial Corporation
475,000 John Hancock Financial Services, Inc.
450,000 M&T Bank Corporation
250,000 MetLife, Inc.
25,000 National Commerce Bancorporation
300,000 PartnerRe Ltd.
350,000 Reinsurance Group of America, Incorporated
235,000 SunTrust Banks, Inc.
200,000 Transatlantic Holdings, Inc.
66,000 XL Capital Ltd
(COST $107,887,625)
19,219,688
12,140,625
4,984,375
19,162,500
22,365,000
2,089,935
55,867,500
10,206,250
31,387,500
17,871,875
30,600,000
8,750,000
618,750
18,300,000
12,425,000
14,805,000
21,175,000
5,766,750
307,735,748
1 1
S T A T E M E N T O F I N V E S T M E N T S : D E C E M B E R 3 1 , 2 0 0 0 - c o n t i n u e d
G e n e r a l A m e r i c a n I n v e s t o r s
C O M M O N S T O C K S (C o n t i n u e d)
HEALTH CARE (11.3%)
SHARES
PHARMACEUTICALS (9.0%)
165,000 Alkermes, Inc. (a)
225,000 IDEC Pharmaceuticals Corporation (a)
77,500 Johnson & Johnson
270,000 Magainin Pharmaceuticals Inc. (a)
214,000 MedImmune, Inc. (a)
180,000 OSI Pharmaceuticals, Inc. (a)
790,000 Pfizer Inc.
(COST $21,104,488)
VALUE (NOTE 1a)
$ 5,176,875
42,651,562
8,142,344
599,063
10,205,125
14,422,500
36,340,000
117,537,469
MEDICAL INSTRUMENTS AND DEVICES
(1.3%)
290,000 Medtronic, Inc.
(COST $862,614)
17,508,750
HEALTH CARE SERVICES
(1.0%)
317,000 BioReliance Corporation (a)
750,000 Covance Inc. (a)
(COST $8,080,420)
(COST $30,047,522)
4,200,250
8,062,500
12,262,750
147,308,969
MISCELLANEOUS (3.0%)
Other
(COST $46,805,509)
39,469,660
700,000 Repsol, S.A.-ADR
(COST $8,236,884)
11,287,500
OIL & NATURAL GAS
(INCLUDING SERVICES )
(0.9%)
RETAIL TRADE (14.6%)
S E M I C O N D U C T O R S ( 4 . 3 % )
600,000 Costco Companies, Inc. (a)
2,145,000 The Home Depot, Inc. (b)
1,350,000 The TJX Companies, Inc.
570,000 Wal-Mart Stores, Inc.
175,000 Brooks Automation, Inc. (a)
425,000 Cirrus Logic, Inc. (a)
400,000 EMCORE Corporation (a)
2,150,000 IQE plc (a)
350,000 Lam Research Corporation (a)
133,624 MIPS Technologies, Inc. Class B (a)
130,000 Mitel Corporation (a)
200,000 PRI Automation, Inc. (a)
753,000 Uniroyal Technology Corporation (a)
(COST $47,869,734)
(COST $49,934,011)
23,962,500
97,999,688
37,462,500
30,281,250
189,705,938
4,910,938
7,968,750
18,800,000
6,450,000
5,075,000
3,405,324
1,048,125
3,750,000
4,706,250
56,114,387
30,000
3,003,000
3,033,000(d)
SPECIAL HOLDINGS
(a)(c)
(NOTE 6) (0.2%)
(e) Sequoia Capital IV
546,000 Standard MEMS, Inc. Series A Convertible Preferred
(COST $3,992,654)
TECHNOLOGY (0.4%)
175,000 Thermo Electron Corporation (a)
(COST $2,930,773)
5,206,250
TRANSPORTATION (2.4%)
800,000 AMR Corporation
(COST $19,172,141)
31,350,000
TOTAL COMMON STOCKS (77.1%)
(COST $457,376,112)
1,005,549,350
1 2
S T A T E M E N T O F I N V E S T M E N T S : D E C E M B E R 3 1 , 2 0 0 0 - c o n t i n u e d
G e n e r a l A m e r i c a n I n v e s t o r s
S H O R T-T E R M S E C U R I T I E S A N D O T H E R A S S E T S
PRINCIPAL AMOUNT
$72,100,000
69,600,000
69,000,000
77,500,000
Ford Motor Credit Company notes due 1/5-2/6/01; 6.35%-6.57%
General Electric Capital Corp. notes due 1/9-2/5/01; 6.41%-6.57%
General Motors Acceptance Corp. notes due 1/2-1/26/01; 6.45%-6.58%
Sears Roebuck Acceptance Corp. notes due 1/16-2/12/01; 6.25%-7.35%
Cash, receivables and other assets, less liabilities
TOTAL SHORT-TERM SECURITIES AND OTHER ASSETS, NET (22.9%)
NET ASSETS
(COST $285,169,722)
(COST $299,490,113)
(COST $756,866,225)
VALUE (NOTE 1a)
$ 71,422,972
68,869,898
68,290,041
76,586,811
285,169,722
14,320,391
299,490,113
$1,305,039,463
(a) Non-income producing security.
(b) 2,100,000 shares held by custodian in a segregated custodian account as collateral for open short positions.
(c) Restricted security.
(d) Fair value of each holding in the opinion of the Directors.
(e) A limited partnership interest
.
S T A T E M E N T O F S E C U R I T I E S S O L D S H O R T : D E C E M B E R 3 1 , 2 0 0 0
G e n e r a l A m e r i c a n I n v e s t o r s
SHARES
16,500
64,000
30,000
122,000
35,000
150,000
128,800
42,000
50,000
45,000
152,000
50,000
10,000
131,250
308,000
175,000
100,000
C O M M O N S T O C K S
Ariba, Inc.
ASM Lithography Holding N.V.
Asyst Technologies, Inc.
Atmel Corporation
Chartered Semiconductor Manufacturing Ltd.-ADR
Cisco Systems, Inc.
The Dow Chemical Company
General Electric Company
INTERSHOP Communications AG
i2 Technologies, Inc.
Maxtor Corporation
MBNA Corporation
Micrel, Incorporated
MIPS Technologies, Inc. Class A
Molex Incorporated
Southwest Bancorporation of Texas Inc.
STMicroelectronics N.V.
TOTAL SECURITIES SOLD SHORT
(PROCEEDS $67,808,111)
(see notes to financial statements)
VALUE (NOTE 1a)
$884,813
1,444,000
403,125
1,418,250
923,125
5,737,500
4,717,300
2,013,375
1,557,500
2,446,875
850,250
1,846,875
336,875
3,502,734
10,934,000
7,514,063
4,281,250
$50,811,910
1 3
N O T E S T O F I N A N C I A L S T A T E M E N T S
G e n e r a l A m e r i c a n I n v e s t o r s
1. SIGNIFICANT ACCOUNTING POLICIES
General American Investors Company, Inc. (the “Company”), established in 1927, is registered under the
Investment Company Act of 1940 as a closed-end, diversified management investment company. It is internally
managed by its officers under the direction of the Board of Directors.
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
a. SECURITY VALUATION Securities traded on securities exchanges or on the NASDAQ National Market System are
valued at the last reported sales price on the last business day of the period. Listed and NASDAQ securities for which
no sales are reported on that day and other securities traded in the over-the-counter market are valued at the last bid
price (asked price for open short positions) on the valuation date. Corporate discount notes are valued at amortized
cost, which approximates market value. Special holdings are valued at fair value in the opinion of the Directors. In
determining fair value, in the case of restricted shares, consideration is given to cost, operating and other financial
data and, where applicable, subsequent private offerings or market price of the issuer’s unrestricted shares (to which
a 30 percent discount is applied); for limited partnership interests, fair value is based upon an evaluation of the part-
nership’s net assets.
b. SHORT SALES The Company may make short sales of securities for either speculative or hedging purposes. When
the Company makes a short sale, it borrows the securities sold short from a broker; in addition, the Company places
cash with that broker and securities in a segregated account with the custodian, both as collateral for the short posi-
tion. The Company may be required to pay a fee to borrow the securities and may also be obligated to pay any divi-
dends declared on the borrowed securities. The Company will realize a gain if the security price decreases and a loss
if the security price increases between the date of the sale and the date on which the Company replaces the
borrowed securities.
c. FEDERAL INCOME TAXES The Company’s policy is to fulfill the requirements of the Internal Revenue Code
applicable to regulated investment companies and to distribute substantially all taxable income to its stockholders.
Accordingly, no provision for Federal income taxes is required.
d. OTHER As customary in the investment company industry, securities transactions are recorded as of the trade
date. Dividend income and distributions to stockholders are recorded as of the ex-dividend dates.
2. CAPITAL STOCK AND DIVIDEND DISTRIBUTIONS
On June 19, 1998, the Company issued and sold 6,000,000 shares of its 7.20% Tax-Advantaged Cumulative
Preferred Stock. The stock has a liquidation preference of $25.00 per share plus an amount equal to accumulated
and unpaid dividends to the date of redemption.
The Company is required to allocate distributions from long-term capital gains and other types of income propor-
tionately among holders of shares of Common Stock and Preferred Stock. To the extent that dividends on the shares
of Preferred Stock are not paid from long-term capital gains, they will be paid from ordinary income or net short-
term capital gains or will represent a return of capital.
Under the Investment Company Act of 1940, the Company is required to maintain an asset coverage of at least
200% for the Preferred Stock. In addition, pursuant to the Rating Agency Guidelines, the Company is required to
maintain a certain discounted asset coverage for its portfolio that equals or exceeds the Basic Maintenance Amount
under the guidelines established by Moody’s Investors Service, Inc. The Company has met these requirements since
the issuance of the Preferred Stock.
The holders of Preferred Stock have voting rights equivalent to those of the holders of Common Stock (one vote
per share) and, generally, vote together with the holders of Common Stock as a single class.
At all times, holders of Preferred Stock will elect two members of the Company’s Board of Directors and the hold-
ers of Preferred and Common Stock, voting as a single class, will elect the remaining directors. If the Company fails
to pay dividends on the Preferred Stock in an amount equal to two full years’ dividends, the holders of Preferred
Stock will have the right to elect a majority of the directors. In addition, the Investment Company Act of 1940
requires that approval of the holders of a majority of any outstanding preferred shares, voting separately as a class,
would be required to (a) adopt any plan of reorganization that would adversely affect the Preferred Stock and (b)
take any action requiring a vote of security holders, including, among other things, changes in the Company’s sub-
classification as a closed-end investment company or changes in its fundamental investment policies.
On March 8, 2000, stockholders approved an increase in the number of authorized shares of Common Stock from
30,000,000 to 50,000,000.
Transactions in Common Stock during 2000 and 1999 were as follows:
SHARES
AMOUNT
2000
1999
2000
1999
Shares issued in payment of dividends
(includes 1,113,200 and 859,193 shares
issued from Treasury, respectively)
Increase in paid-in capital
Total increase
Shares purchased (at an average
discount from net asset value of
8.6% and 9.5%, respectively)
Decrease in paid-in capital
Total decrease
Net increase
3,738,367
2,231,251
$ 3,738,367
132,738,836
136,477,203
$ 2,231,251
71,511,145
73,742,396
1,017,200
928,593
(1,017,200)
(38,998,359)
(40,015,559)
$96,461,644
(928,593)
(29,557,658)
(30,486,251)
$43,256,145
1 4
N O T E S T O F I N A N C I A L S T A T E M E N T S - c o n t i n u e d
G e n e r a l A m e r i c a n I n v e s t o r s
2. CAPITAL STOCK AND DIVIDEND DISTRIBUTIONS
(Continued from bottom of previous page)
The cost of the 9,400 shares of Common Stock held in Treasury at December 31, 2000 amounted to $345,039.
Distributions in excess of net income for financial statement purposes result primarily from transactions where tax
treatment differs from book treatment.
3. OFFICERS’ COMPENSATION AND RETIREMENT AND THRIFT PLANS
The aggregate compensation paid by the Company during 2000 and 1999 to its officers amounted to $5,254,000
and $3,669,000, respectively.
The Company has non-contributory retirement plans and a contributory thrift plan which cover substantially all
employees. The costs to the Company and the assets and liabilities of the plans are not material. Costs of the plans
are funded currently.
4. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities and securities sold short (other than short-term securities) during 2000 were as fol-
lows:
Long transactions
Short sale transactions
Total
PURCHASES
$417,143,329
140,745,545
$557,888,874
SALES
$573,280,321
212,614,405
$785,894,726
At December 31, 2000, the cost of investments for Federal income tax purposes was the same as the cost for finan-
cial reporting purposes.
5. GENERAL INFORMATION
Brokerage commissions during 2000 were $944,948.
6. RESTRICTED SECURITIES
Sequoia Capital IV*
Standard MEMS, Inc. Series A Convertible Preferred
Total
DATE
ACQUIRED
1/31/84
12/17/99
COST
$989,654
3,003,000
$3,992,654
VALUE
(NOTE 1a)
$30,000
3,003,000
$3,033,000
* The amounts shown are net of distributions from this limited partnership interest which, in the aggregate,
amounted to $4,703,157. The initial investment in the limited partnership was $2,000,000.
7. OPERATING LEASE COMMITMENT
In July 1992, the Company entered into an operating lease agreement for office space which expires in 2007 and
provides for future rental payments in the aggregate amount of approximately $5.6 million. The lease agreement
contains a clause whereby the Company received twenty months of free rent beginning in December 1992 and
escalation clauses relating to operating costs and real property taxes.
Rental expense approximated $314,000 for 2000. Minimum rental commitments under the operating lease are
approximately $403,000 per annum in 2001 through 2002 and $504,000 per annum in 2003 through 2007.
In March 1996, the Company entered into a sublease agreement which expires in 2003 and provides for future
rental receipts. Minimum rental receipts under the sublease are approximately $203,000 per annum in 2001
through 2002 and $64,000 in 2003. The Company will also receive its proportionate share of operating expenses
and real property taxes under the sublease.
8. SUBSEQUENT EVENT
On January 17, 2001, the Board of Directors declared on the Common Stock a dividend of $60,156,812 from
realized gains, incuding $58,421,519 from long-term capital gains and the balance from short-term gains (ordinary
income). This dividend is payable in Common Stock, or in cash upon request, on March 14, 2001.
Unaudited
In addition to purchases of the Company’s Common Stock as set forth in Note 2 on page 13, purchases of
Common Stock may be made at such times, at such prices, in such amounts and in such manner as the Board of
Directors may deem advisable.
1 5
F I N A N C I A L H I G H L I G H T S
G e n e r a l A m e r i c a n I n v e s t o r s
The following table
shows per share
operating performance
data, total investment
return, ratios and
supplemental data for
each year in the five-
year period ended
December 31, 2000.
This information has
been derived from
information contained
in the financial
statements and market
price data for the
Company’s shares.
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year
Net investment income
Net gain on securities - realized
and unrealized
Total from investment operations
Less distributions on:
Common Stock:
2000
1999
1998
1997
1996
$ 41.74
.53
$ 34.87
.45
$ 29.15
.47
$ 25.24
.21
$ 23.94
.22
6.12
6.65
11.32
11.77
9.44
9.91
7.15
7.36
3.86
4.08
Dividends from investment income
Distributions from capital gains
(2.30)(a)
(5.78)
(8.08)
(.71)(b)
(3.77)
(4.48)
(.48)
(3.24)
(3.72)
(.26)(c)
(3.19)
(3.45)
(.20)
(2.58)
(2.78)
Preferred Stock:
Dividends from investment income
Distributions from capital gains
Unallocated
(.11)(d)
(.29)
—
(.40)
(.07)(e)
(.35)
—
(.42)
(.03)
(.20)
(.01)
(.24)
—
—
—
—
—
—
—
—
Total distributions
(8.48)
(4.90)
(3.96)
(3.45)
(2.78)
Capital Stock transaction -
effect of Preferred Stock offering
—
—
(.23)
—
—
Net asset value, end of year
Per share market value, end of year
$39.91
$36.00
$ 41.74
$ 37.19
$ 34.87
$ 30.44
$ 29.15
$ 26.19
$ 25.24
$ 21.00
TOTAL INVESTMENT RETURN - Stockholder
Return, based on market price per share
19.10%
39.22%
31.31%
42.58%
19.48%
RATIOS AND SUPPLEMENTAL DATA
Total net assets, end of year
(000’s omitted)
Net assets attributable to
Common Stock, end of year
(000’s omitted)
Ratio of expenses to average net assets
$1,305,939 $1,244,519 $1,018,933
$702,597 $597,597
$1,155,039 $1,094,519
$868,933
$702,597
$597,597
applicable to Common Stock
1.05%
1.01%
0.95%
0.98%
1.05%
Ratio of net income to average net assets
applicable to Common Stock
Portfolio turnover rate
1.24%
40.61%
1.23%
33.68%
1.50%
34.42%
0.80%
32.45%
0.88%
33.40%
PREFERRED STOCK
Liquidation value, end of year
(000’s omitted)
Asset coverage
Liquidation preference per share
Market value per share
$150,000
870%
$25.00
$24.25
$150,000
830%
$25.00
$21.75
$150,000
679%
$25.00
$25.88
—
—
—
—
—
—
—
—
(a) Includes short-term capital gain in the amount of $1.82 per share.
(b) Includes short-term capital gain in the amount of $.29 per share.
(c) Includes short-term capital gain in the amount of $.05 per share.
(d) Includes short-term capital gain in the amount of $.09 per share.
(e) Includes short-term capital gain in the amount of $.028 per share.
1 6
R E P O R T O F I N D E P E N D E N T A U D I T O R S
G e n e r a l A m e r i c a n I n v e s t o r s
TO THE BOARD OF DIRECTORS AND STOCKHOLDERS OF
GENERAL AMERICAN INVESTORS COMPANY, INC.
We have audited the accompanying statement
of assets and liabilities, including the statements
of investments and securities sold short, of
General American Investors Company, Inc. as of
December 31, 2000, and the related statements of
operations and changes in net assets for each of
the two years in the period then ended, and
financial highlights for each of the five years in
the period then ended. These financial state-
ments and financial highlights are the responsi-
bility of the Company’s management. Our
responsibility is to express an opinion on these
financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with
auditing standards generally accepted in the
United States. Those standards require that we
plan and perform the audit to obtain reasonable
assurance about whether the financial statements
and financial highlights are free of material mis-
statement. An audit includes examining, on a
test basis, evidence supporting the amounts and
disclosures in the financial statements. Our
procedures included confirmation of securities
owned as of December 31, 2000, by correspon-
dence with the custodian and brokers. An audit
also includes assessing the accounting principles
used and significant estimates made by manage-
ment, as well as evaluating the overall financial
statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and
financial highlights referred to above present
fairly, in all material respects, the financial posi-
tion of General American Investors Company,
Inc. at December 31, 2000, the results of its oper-
ations and the changes in its net assets for each
of the two years in the period then ended, and
the financial highlights for each of the five years
in the period then ended, in conformity with
accounting principles generally accepted in the
United States.
New York, New York
January 12, 2001
O F F I C E R S
SPENCER DAVIDSON
President and Chief
Executive Officer
ANDREW V. VINDIGNI
Vice-President
S E R V I C E C O M P A N I E S
COUNSEL
Sullivan & Cromwell
INDEPENDENT AUDITORS
Ernst & Young LLP
CUSTODIAN
Bankers Trust Company
EUGENE L. DESTAEBLER, JR.
Vice-President, Administration
DIANE G. RADOSTI
Treasurer
PETER P. DONNELLY
Vice-President and Trader
CAROLE ANNE CLEMENTI
Secretary
TRANSFER AGENT AND REGISTRAR
Mellon Investor Services LLC
P.O. Box 3315
South Hackensack, NJ 07606-1915
1-800-413-5499
www.mellon-investor.com
D I R E C T O R S
G e n e r a l A m e r i c a n I n v e s t o r s
LAWRENCE B. BUTTENWIESER, C HAIRMAN
Rosenman & Colin LLP, Partner
JOHN D. GORDAN, III
Morgan, Lewis & Bockius LLP, Partner
ARTHUR G. ALTSCHUL, JR.
Diaz & Altschul Group, LLC, Managing Member
Delta Opportunity Fund, Ltd., Director
Medicis Pharmaceutical Corporation, Director
The Overbrook Foundation, Trustee
Soliloquy, Inc., Chairman
LEWIS B. CULLMAN
Cullman Ventures LLC, President
Chess-in-the-Schools, Chairman, Board of Trustees
Metropolitan Museum of Art, T r u s t e e
Museum of Modern Art, Vice Chairman,
International Council and Honorary Trustee
Neurosciences Research Foundation, Trustee
The New York Botanical Garden,
Senior Vice Chairman, Board of Managers
SPENCER DAVIDSON
General American Investors Company, Inc.,
President and Chief Executive Officer
BILL GREEN
ClientSoft, Inc., Director
Commercial Capital Corp., Director
Energy Answers Corporation, Director
New York City Housing Development Corporation,
Member and Vice Chair
SIDNEY R. KNAFEL
SRK Management Company, Managing Partner
BioReliance Corporation, Chairman
Insight Communications Company, Inc., Chairman
NTL Incorporated, Director
RICHARD R. PIVIROTTO
General Theological Seminary, Trustee
The Gillette Company, Non-executive Chairman
The Greenwich Bank and Trust Company, Director
Greenwich Hospital Corporation, Trustee
Immunomedics, Inc., Director
New York Life Insurance Company, Director
Princeton University, Charter Trustee Emeritus
Medicis Pharmaceutical Corporation, Director
Neurosciences Research Foundation, Trustee
JOSEPH T. STEWART, JR.
Foundation of the University of Medicine and
GERALD M. EDELMAN
Neurosciences Institute of the Neurosciences
Research Foundation, Director and President
The Scripps Research Institute, Chairman,
Department of Neurobiology
Becton, Dickinson and Company, Director
ANTHONY M. FRANK
Belvedere Capital Partners, Founding Chairman
The Charles Schwab Corporation, Director
Temple-Inland Inc., Director
Dentistry of New Jersey, Trustee
Marine Biological Laboratory, Member, Advisory Council
RAYMOND S. TROUBH
Diamond Offshore Drilling, Inc., Director
HealthNet, Inc., Director
Starwood Hotels & Resorts, Trustee
Triarc Companies, Inc., Director
ARTHUR G. ALTSCHUL, CHAIRMAN EMERITUS
WILLIAM O. BAKER, DIRECTOR EMERITUS
WILLIAM T. GOLDEN, DIRECTOR EMERITUS