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 0 0 1
A N N U A L
R E P O R T
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 decrease in unrealized appreciation
Per Common Share-December 31
Net asset value
Market price
Discount from net asset value
2001
$1,247,529,720
150,000,000
1,097,529,720
12,512,405
70,720,822
(87,697,439)
$35.14
33.47
-4.8%
Common Shares outstanding-Dec. 31
Common stockholders of record-Dec. 31
Market price range* (high-low)
Market volume-shares
31,231,563
4,900
$39.70-$27.50
5,009,500
*Unadjusted for dividend payments.
2000
$1,305,039,463
150,000,000
1,155,039,463
13,805,530
217,372,941
(45,048,910)
$39.91
$36.00
-9.8%
28,940,544
5,182
$44.00-$35.63
4,896,700
DIVIDEND SUMMARY (per share)
Record Date
Payment Date
Ordinary
Income
Long-Term
Capital Gain
Common Stock
Nov. 15, 2001
Jan. 28, 2002
Dec. 20, 2001
Feb. 11, 2002
Total from 2001 earnings
$0.82(a)
.19(b)
$1.01
(a) Includes short-term gain in the amount of $.45 per share.
(b) Represents short-term gain.
Nov. 13, 2000
Jan. 29, 2001
Dec. 21, 2000
Mar. 14, 2001
Total from 2000 earnings
$1.97(c)
.06(d)
$2.03
(c) Includes short-term gain in the amount of $1.49 per share.
(d) Represents short-term gain.
$1.26
.11
$1.37
$4.14
2.02
$6.16
Preferred Stock
Mar. 6, 2001
Jun. 6, 2001
Sep. 6, 2001
Dec. 6, 2001
Total for 2001
Mar. 23, 2001
Jun. 25, 2001
Sep. 24, 2001
Dec. 24, 2001
$.0963
.0963
.0963
.0963
$.3852(e)
$ .3537
.3537
.3537
.3537
$1.4148
(e) Includes short-term gain in the amount of $.2224 per share ($.0556 per quarter).
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(f)
$ .3219
.3219
.3219
.3219
$1.2876
(f) Includes short-term gain in the amount of $.4056 per share ($.1014 per quarter).
General American Investors Company, Inc.
450 Lexington Avenue, New York, NY 10017
(212) 916-8400 (800) 436-8401
E-mail: InvestorRelations@gainv.com
Total
$2.08
.30
$2.38
$6.11
2.08
$8.19
$ .45
.45
.45
.45
$1.80
$ .45
.45
.45
.45
$1.80
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
The year just ended marked General American
Investors’ 75th Anniversary as a closed-end
investment company. It will be remembered
most for the tragic events of September 11th. It
was also the first time since 1973-74 that our
benchmark, the Standard & Poor’s 500 Stock Index
(including income), posted back-to-back negative
returns, losing 11.9%. By contrast, the return to
our common stockholders (assuming reinvestment
of all dividends) was 4.3%, resulting from a decline
in net asset value per share of 1.20% together with
significant shrinkage in the discount at which our
shares trade. We are encouraged by our
performance, especially when viewed in the
context of the extraordinary results of recent years.
The table that follows, which compares our returns
on an annualized basis with the S&P 500,
illustrates that over many years General American
has produced superior investment results.
Years
Stockholder Return
S&P 500
3
5
10
20
30
40
20.0%
26.5
15.4
16.6
15.9
13.7
-1.0%
10.7
12.9
15.2
12.3
10.9
Long-term capital gain distributions for 2001 will
total $1.37 per share, including $.11 per share that
will be distributed in February 2002. 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 2001, including net income and short-term
capital gains, amounted to $2.38 per share, or 6.8%
of ending net asset value ("NAV"). This percentage
has averaged 10.9% over the past 20 years.
During 2001, 19,000 common shares of General
American were purchased in the open market at an
average discount to NAV of 9%. The Board of
Directors has authorized repurchases of common
shares when they are trading at a discount in
excess of 8% of NAV.
rates eleven times, to 1.75%, the lowest level in
forty years. As a result, the real rate (the nominal
rate less inflation) is presently below zero.
Together with current deficit spending, these
actions should ensure future economic growth.
The recovery is likely to be sluggish, however, and
gains in corporate profits may well be modest.
Importantly, there would seem to be little pent-up
demand for consumer durables like cars and hous-
es, two traditional well-springs of a cyclical
rebound. It may take some time, furthermore, to
purge the structural excesses of the last boom
when both business and consumer spending rose
to levels well above their respective rates of
savings. While the number of newly unemployed
workers may be receding, the unemployment rate
could rise for some time. This would weigh on
consumer confidence and spending.
In consequence, corporate profits face a number of
headwinds and a return to vigorous growth may
prove challenging. The relative strength of the
dollar continues to impact export demand while
adversely affecting the competitive position of
U. S. manufacturers at home. With little inflation,
more than adequate capacity and balance sheets
already stretched, improving profit margins will
not be accomplished easily. Markets, however,
now reflect more fully subdued expectations for
growth and profits. While a return to the environ-
ment that produced the out-sized gains of the five
years ended in 1999 seems improbable, we are less
guarded with respect to the market outlook than
we have been in recent reports.
We have commenced work on the development
of a website for General American. It will include
corporate information, current NAV and market
price data, historical reports, dividend payments,
press releases and a means by which you can con-
tact us and our transfer agent. Look for us on “the
Web” at www.generalamericaninvestors.com
toward the end of the first quarter.
The economy appears to be stabilizing amid
nascent signs of recovery. In the past, aggressive
Federal Reserve Board action has succeeded in end-
ing recessions. In 2001, the Fed reduced interest
By Order of the Board of Directors,
Spencer Davidson
President and Chief Executive Officer
January 16, 2002
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
and
75th Year
General American Investors,
established in 1927, is one
of the nation’s oldest
closed-end investment com-
panies. It is an independent
organization, internally managed. For regu-
latory 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.
As we celebrate our 75th year, we look back
with pride on a record characterized by
continuity of management and consistency
of purpose with attendant superior returns.
Over the last 75 years, the total return
(exclusive of operating expenses) indicated
for the Company is 13.1% compounded
annually. In comparison, the total return
for the Standard & Poor’s 500 Stock Index
(including income) is 10.6% per year.
During our first 21 years, Frank Altschul
served as President and portfolio manager.
He then served as Chairman followed by
his son, Arthur G. Altschul (1961-1995),
and by our current Chairman, Lawrence B.
Buttenwieser. During this 75-year period,
only 6 individuals served as President and
portfolio manager; these titles are currently
held by Spencer Davidson (since 1995).
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 page 16 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 counselor, 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
or premium from net asset value as of the close
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
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, sell at a
premium over net asset value. The last time
the Company’s shares sold at a premium for a
prolonged period was the year-long period
from March 1992 through April 1993. During
2001, the stock sold at premiums over and
discounts from net asset value which ranged
from a premium of 1.8% (July 6) to a discount
of 8.5% (September 21). At December 31, the
price of the stock was at a discount of 4.8% as
compared with a discount of 9.8% 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
policy is to distribute to stock-
holders 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" distribution
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 since
1939 and capital gain dividends in varying
amounts have been paid for each of the years
1943-2001 (except for the year 1974). (A table
listing dividends paid during the 20-year peri-
od 1982-2001 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. This information includes the
stockholder’s address, tax identification or
Social Security number and dividend elections.
We do not have knowledge of, nor do we
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, 2001
T he investment return for a common
stockholder of General American
Investors (GAM) over the 20 years
ended December 31, 2001 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 1982.
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
1982
$ 11,929
19.29 % $ 11,842
18.42 %
$12,155
21.55 %
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
13,875
12,881
16,077
17,873
14,994
18,181
27,017
28,098
51,981
59,664
50,165
46,222
56,031
66,946
95,451
1998
125,337
1999
174,494
2000
2001
207,822
216,821
16.31
-7.16
24.81
11.17
-16.11
21.26
48.60
4.00
85.00
14.78
-15.92
-7.86
21.22
19.48
42.58
31.31
39.22
19.10
4.33
14,567
13,534
18,271
20,312
20,826
24,485
33,755
36,013
58,013
60,073
59,021
57,404
70,940
85,107
112,384
151,875
207,158
243,701
240,776
23.01
-7.09
35.00
11.17
2.53
17.57
37.86
6.69
61.09
3.55
-1.75
-2.74
23.58
19.97
32.05
35.14
36.40
17.64
-1.20
14,896
15,831
20,861
24,760
26,057
30,365
39,966
38,731
50,505
54,339
59,838
60,598
83,322
102,411
136,544
175,528
212,318
193,019
170,069
22.55
6.28
31.77
18.69
5.24
16.53
31.62
-3.09
30.40
7.59
10.12
1.27
37.50
22.91
33.33
28.55
20.96
-9.09
-11.89
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
20-YEAR INVESTMENT RESULTS
ASSUMING AN INITIAL
INVESTMENT OF $10,000
CUMULATIVE VALUE
OF INVESTMENT
$250,000
COMPARATIVE ANNUALIZED INVESTMENT RESULTS
YEARS ENDED
DECEMBER 31, 2001
STOCKHOLDER
RETURN
GAM NET
ASSET VALUE
S&P 500
STOCK INDEX
1 year
5 years
10 years
15 years
20 years
4.3 %
-1.2 %
-11.9 %
26.5
15.4
18.1
16.6
23.1
15.3
17.9
17.2
10.7
12.9
13.7
15.2
GAM STOCKHOLDER RETURN
GAM NET ASSET VALUE
S&P 500 STOCK INDEX
1 9 8 2
1 9 8 3
1 9 8 4
1 9 8 5
1 9 8 6
1 9 8 7
1 9 8 8
1 9 8 9
1 9 9 0
1 9 9 1
1 9 9 2
1 9 9 3
1 9 9 4
1 9 9 5
1 9 9 6
1 9 9 7
1 9 9 8
1 9 9 9
2 0 0 0
2 0 0 1
225,000
200,000
175,000
150,000
125,000
100,000
75,000
50,000
25,000
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 1 ( 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
INCREASES
NEW POSITIONS
AXT, Inc.
Millennium Pharmaceuticals, Inc.
Newell Rubbermaid Inc.
ADDITIONS
Annuity and Life Re (Holdings), Ltd.
Brooks Automation, Inc.
Golden West Financial Corporation
Health Net, Inc.
IQE plc
MedImmune, Inc.
MetLife, Inc.
Reinsurance Group of America, Incorporated
Wind River Systems, Inc.
DECREASES
ELIMINATIONS
AMR Corporation
Brooktrout, Inc.
REDUCTIONS
AmerUs Group Co.
Annaly Mortgage Management, Inc.
BioReliance Corporation
The Boeing Company
Cisco Systems, Inc.
Coca-Cola Enterprises Inc.
Everest Re Group, Ltd.
First Midwest Bancorp, Inc.
The Home Depot, Inc.
IDEC Pharmaceuticals Corporation
John Hancock Financial Services, Inc.
OSI Pharmaceuticals, Inc.
PartnerRe Ltd.
PRI Automation, Inc.
Transatlantic Holdings, Inc.
Uniroyal Technology Corporation
SHARES
DECEMBER 31, 2001
SHARES HELD
30,000
—
—
10,000
100,000
40,000
100,000
196,000
25,000
50,000
50,000
189,500
500,000
225,000
20,000
50,000
98,200
25,000
25,000
250,000
35,000
58,750
100,000
80,000
20,000
30,000
25,000
200,000
5,000
148,000
213,500
120,000
150,000
(a)
(b)
(b)
560,000
275,000
525,000
400,000
2,646,000
264,000
300,000
600,000
339,500
—
—
300,000
525,000
100,000
475,000
535,000
500,000
575,000
200,000
2,045,000
520,000
440,000
150,000
550,000
120,000
225,000
250,000
(c)
* Excludes transactions in Stocks-Miscellaneous-Other.
(a) Includes shares purchased in prior period and previously carried under Stocks-Miscellaneous-Other.
(b) Shares purchased in prior period and previously carried under Stocks-Miscellaneous-Other.
(c) 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 2 - 2 0 0 1 )
The following table
shows aggregate
dividends paid per share
on the Company’s
Common Stock for each
year during the 20-year
period 1982-2001.
Amounts shown include
payments made after
year-end attributable to
income and gain in each
respective year.
YEAR
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
DIVIDEND FROM
INCOME#
LONG-TERM
CAPITAL GAINS
$.36
.67
.28
.47
.36
.35
.29
.23
.21
.09
$1.15
2.38
1.35
1.07
2.15
1.54
1.69
1.56
1.65
3.07
YEAR
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
DIVIDEND FROM
INCOME#
LONG-TERM
CAPITAL GAINS
$.03
.06
.06
.13
.25
.21
.47
1.04
2.03
1.01
$2.93
2.34
1.59
2.77
2.71
2.95
4.40
4.05
6.16
1.37
#Includes short-term capital gains per share which amounted to $.28 in 1983, $.12 in 1985, $.02 in 1989,
$.03 in 1995, $.05 in 1996, $.62 in 1999, $1.55 in 2000 and $.64 in 2001.
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, 2001,
shown on pages 10 and
11 includes 59 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.
THE TJX COMPANIES, INC.
The leading off-price retailer, through divisions such as T.J. Maxx
and Marshalls, 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.
SHARES
VALUE
% TOTAL
NET ASSETS
2,045,000 $104,315,450
8.4 %
1,325,000
52,814,500
4.2
EVEREST RE GROUP, LTD.
The largest independent U.S. property/casualty reinsurer which
generates annual premiums of $1.5 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.
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.
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.
GOLDEN WEST FINANCIAL CORPORATION
A savings and loan holding company with $59 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.
COSTCO WHOLESALE CORPORATION
A growing chain of membership warehouses, located principally
in the U.S., that sell high quality merchandise at competitive
prices. Earnings are generated from high sales volume, low
operating costs and rapid inventory turnover.
PARTNERRE LTD.
A leading global Bermuda-based multi-line reinsurer that generates
annual premiums of $1.7 billion and has a well-capitalized and
conservatively reserved AA balance sheet. PartnerRe has a deep
and talented staff and is well positioned to benefit from the
upcoming strong industry pricing cycle.
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.
575,000
40,652,500
3.3
520,000
35,843,600
2.9
890,000
35,466,500
2.8
570,000
32,803,500
2.6
525,000
30,896,250
2.5
675,000
29,956,500
2.4
550,000
29,700,000
2.4
1,700,500
26,731,860
2.1
$419,180,660 33.6%
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
ASSETS
INVESTMENTS, AT VALUE (NOTE 1a)
Common Stocks
DECEMBER 31,
2001
2000
(cost $461,130,422 and $457,376,112, respectively)
$ 931,026,318 $ 1,005,549,350
Corporate discount notes
(cost $310,348,410 and $285,169,722, respectively)
CASH, RECEIVABLES AND OTHER ASSETS
Cash (including margin account balance of $20,966
and $2,899,267, respectively)
Receivable for securities sold
Receivable from broker for proceeds on securities sold
short
Dividends, interest and other receivables
Prepaid Expenses
Other
TOTAL ASSETS
LIABILITIES
310,348,410
1,241,374,728
285,169,722
1,290,719,072
40,931
2,827,707
23,334,454
1,261,862
5,804,035
513,446
3,112,551
434,736
67,808,111
2,754,152
5,078,299
557,437
1,275,157,163
1,370,464,358
Payable for securities purchased
Preferred dividend accrued but not yet declared
Securities sold short, at value (proceeds $23,334,454
and $67,808,111, respectively) (note 1a)
Accrued expenses and other liabilities
TOTAL LIABILITIES
NET ASSETS
1,318,500
240,000
15,758,350
10,310,593
27,627,443
3,921,101
240,000
50,811,910
10,451,884
65,424,895
$1,247,529,720
$1,305,039,463
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
$1,097,529,720
$1,155,039,463
NET ASSET VALUE PER COMMON SHARE
$35.14
$39.91
NET ASSETS
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 31,231,563
and 28,940,544 shares, respectively (exclusive of 9,400
shares held in Treasury in 2000)
Additional paid-in capital ( note 2)
Undistributed realized gain on securities sold (note 2)
Undistributed net income and distributions in excess of
net income, respectively (note 2)
Unallocated distributions on Preferred Stock
Unrealized appreciation on investments
(including aggregate gross unrealized appreciation of
$520,141,071 and $604,311,705, respectively)
TOTAL NET ASSETS
(see notes to financial statements)
$6,000,000
$6,000,000
31,231,563
723,414,981
9,598,439
28,940,544
645,307,453
60,229,372
52,737
(240,000)
(367,345)
(240,000)
477,472,000
565,169,439
$1,247,529,720
$1,305,039,463
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 $55,790 and $71,050, respectively)
Interest
Other Income
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
TOTAL EXPENSES
NET INVESTMENT INCOME
YEAR ENDED DECEMBER 31,
2001
2000
$7,862,551
15,201,651
541,123
$7,646,236
17,819,536
431,836
23,605,325
25,897,608
7,145,088
2,656,023
534,127
224,807
167,907
128,337
152,700
83,931
8,031,203
2,710,018
550,679
250,036
187,653
146,510
132,000
83,979
11,092,920
12,092,078
12,512,405
13,805,530
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
$15,679,190 and $43,284,041, respectively)
Net decrease in unrealized appreciation
NET GAIN (LOSS) ON INVESTMENTS
52,639,769
18,081,053
213,312,192
4,060,749
70,720,822
(87,697,439)
217,372,941
(45,048,910)
(16,976,617)
172,324,031
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
($4,464,212) $186,129,561
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
YEAR ENDED DECEMBER 31,
2001
2000
Net investment income
Net realized gain on sales of securities
Net decrease in unrealized appreciation
$12,512,405 $13,805,530
217,372,941
(45,048,910)
70,720,822
(87,697,439)
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
(4,464,212)
186,129,561
DISTRIBUTIONS TO PREFERRED STOCKHOLDERS
From net income, including short-term capital gain
From long-term capital gain
DECREASE IN NET ASSETS FROM PREFERRED DISTRIBUTIONS
(2,311,200)
(8,488,800)
(3,074,400)
(7,725,600)
(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
(26,369,696)
(96,274,382)
(122,644,078)
(60,132,212)
(151,138,654)
(211,270,866)
CAPITAL SHARE TRANSACTIONS
Value of Common Shares issued in payment of dividends (note 2)
Cost of Common Shares purchased (note 2)
81,091,222
136,477,203
(692,675) (40,015,559)
INCREASE IN NET ASSETS - CAPITAL TRANSACTIONS
NET INCREASE (DECREASE) IN NET ASSETS
80,398,547
(57,509,743)
96,461,644
60,520,339
NET ASSETS
BEGINNING OF YEAR
1,305,039,463 1,244,519,124
(see notes to
financial statements)
END OF YEAR (including undistributed net income of $52,737 and
distributions in excess of net income of $367,345, respectively) $1,247,529,720 $1,305,039,463
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 1
G e n e r a l A m e r i c a n I n v e s t o r s
COMMON STOCKS
SHARES
VALUE (NOTE 1a)
475,000 The Boeing Company
(COST $14,344,668)
$18,420,500
AEROSPACE/DEFENSE
(1.5%)
COMMUNICATIONS AND
INFORMATION SERVICES
(2.8%)
535,000 Cisco Systems, Inc. (a)
520,000 Cox Communications, Inc. Class A (a)
180,000 NTL Incorporated (a)
144,500 Wolters Kluwer NV-ADR
COMPUTER SOFTWARE
AND SYSTEMS (0.9%)
484,500 Oberthur Card Systems S.A. (a)
230,000 Viewpoint Corporation (a)
339,500 Wind River Systems, Inc. (a)
CONSUMER PRODUCTS
AND SERVICES (4.8%)
500,000 Coca-Cola Enterprises Inc.
275,000 Ethan Allen Interiors, Inc.
1,700,500 Ford Motor Company
150,000 Newell Rubbermaid Inc.
175,000 PepsiCo, Inc.
(COST $9,681,525)
(COST $15,966,968)
(COST $53,064,273)
9,688,850
21,793,200
169,200
3,294,600
34,945,850
3,861,465
1,566,300
6,080,445
11,508,210
9,470,000
11,437,250
26,731,860
4,135,500
8,520,750
60,295,360
ELECTRONICS (1.5%)
692,500 Molex Incorporated Class A
(COST $14,877,393)
18,732,125
280,000 Waste Management, Inc.
(COST $3,690,021)
8,934,800
ENVIRONMENTAL CONTROL
(INCLUDING SERVICES) (0.7%)
FINANCE AND INSURANCE
(23.4%)
195,000 American International Group, Inc.
300,000 AmerUs Group Co.
525,000 Annaly Mortgage Management, Inc.
560,000 Annuity and Life Re (Holdings), Ltd.
315 Berkshire Hathaway Inc. Class A (a)
78,912 Central Securities Corporation
575,000 Everest Re Group, Ltd.
200,000 First Midwest Bancorp, Inc.
525,000 Golden West Financial Corporation
440,000 John Hancock Financial Services, Inc.
360,000 M&T Bank Corporation
300,000 MetLife, Inc.
550,000 PartnerRe Ltd.
600,000 Reinsurance Group of America, Incorporated
260,000 SunTrust Banks, Inc.
225,000 Transatlantic Holdings, Inc.
HEALTH CARE (14.0%)
PHARMACEUTICALS (11.9%)
220,000 Alkermes, Inc. (a)
425,000 Bristol-Myers Squibb Company
270,000 Genaera Corporation (a)
325,000 Genentech, Inc. (a)
520,000 IDEC Pharmaceuticals Corporation (a)
155,000 Johnson & Johnson
264,000 MedImmune, Inc. (a)
120,000 Millennium Pharmaceuticals, Inc. (a)
150,000 OSI Pharmaceuticals, Inc. (a)
890,000 Pfizer Inc.
(COST $113,945,775)
(COST $66,166,567)
MEDICAL INSTRUMENTS AND DEVICES (1.2%)
290,000 Medtronic, Inc.
(COST $862,614)
14,850,900
HEALTH CARE SERVICES (0.9%)
100,000 BioReliance Corporation (a)
400,000 Health Net, Inc. (a)
(COST $7,734,076)
(COST $74,763,257)
2,853,000
8,712,000
11,565,000
175,083,550
15,483,000
10,752,000
8,400,000
14,061,600
23,814,000
1,997,263
40,652,500
5,838,000
30,896,250
18,172,000
26,226,000
9,504,000
29,700,000
19,968,000
16,302,000
20,475,000
292,241,613
5,799,200
21,675,000
1,053,000
17,631,250
35,843,600
9,160,500
12,236,400
2,941,200
6,861,000
35,466,500
148,667,650
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 1 - 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
COMMON STOCKS (Continued)
SHARES
VALUE (NOTE 1a)
MISCELLANEOUS (3.7%)
Other
(COST $56,000,845)
$46,057,135
OIL AND NATURAL GAS
(INCLUDING SERVICES)
(0.8%)
700,000 Repsol, S.A.-ADR
(COST $8,236,884)
10,171,000
RETAIL TRADE (17.7%)
675,000 Costco Wholesale Corporation (a)
2,045,000 The Home Depot, Inc. (b)
1,325,000 The TJX Companies, Inc.
570,000 Wal-Mart Stores, Inc.
SEMICONDUCTORS (2.5%)
213,500 AXT, Inc.(a)
275,000 Brooks Automation, Inc. (a)
197,000 EMCORE Corporation (a)
2,646,000 IQE plc (a)
120,000 PRI Automation, Inc. (a)
250,000 Uniroyal Technology Corporation (a)
380,000 Zarlink Semiconductor Inc. (a)
(COST $49,514,414)
(COST $40,148,272)
SPECIAL HOLDINGS
(a)(c)
(NOTE 5) (0.3%)
(d) Sequoia Capital IV
432,000 Silicon Genesis Corporation Series C Preferred
546,000 Standard MEMS, Inc. Series A Convertible Preferred
(COST $6,896,127)
29,956,500
104,315,450
52,814,500
32,803,500
219,889,950
3,080,805
11,184,250
2,649,650
6,747,300
2,454,000
800,000
4,275,000
31,191,005
2,500
3,006,720
546,000
3,555,220(e)
TOTAL COMMON STOCKS (74.6%)
(COST $461,130,422)
931,026,318
SHORT-TERM SECURITIES AND OTHER ASSETS
PRINCIPAL AMOUNT
$75,900,000
63,900,000
75,600,000
66,400,000
29,500,000
American Express Credit Corporation notes due 1/7-1/17/02; 1.78%-2.04%
Ford Motor Credit Company notes due 1/3-2/7/02; 2.54%-2.95%
General Electric Capital Corp. notes due 1/8-1/29/02; 1.75%-1.93%
General Motors Acceptance Corp. notes due 1/2-2/4/02; 2.40%-2.93%
Sears Roebuck Acceptance Corp. notes due 1/22-1/31/02; 2.25%-2.90%
Cash, receivables and other assets, less liabilities
TOTAL SHORT-TERM SECURITIES AND OTHER ASSETS, NET (25.4%)
NET ASSETS
(COST $310,348,410)
(COST $316,503,402)
(COST $777,633,824)
75,704,672
63,654,297
75,447,113
66,144,778
29,397,550
310,348,410
6,154,992
316,503,402
$1,247,529,720
(a) Non-income producing security.
(b) 1,000,000 shares held by custodian in a segregated custodian account as collateral for open short positions.
(c) Restricted security.
(d) A limited partnership interest
(e) Fair value of each holding in the opinion of the Directors.
.
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 1
G e n e r a l A m e r i c a n I n v e s t o r s
COMMON STOCKS
SHARES
338,000
175,000
Molex Incorporated
Southwest Bancorporation of Texas, Inc.
TOTAL SECURITIES SOLD SHORT
(PROCEEDS $23,334,454)
(see notes to financial statements)
VALUE (NOTE 1a)
$10,461,100
5,297,250
$15,758,350
1 2
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.
Certain prior year financial statement items have been reclassified to conform to the current year presentation.
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.
Transactions in Common Stock during 2001 and 2000 were as follows:
Shares issued in payment of dividends
(includes 28,400 and 1,113,200 shares
issued from Treasury, respectively)
Increase in paid-in capital
Total increase
Shares purchased (at an average
discount from net asset value of
9.0% and 8.6%, respectively)
Decrease in paid-in capital
Total decrease
Net increase
SHARES
AMOUNT
2001
2000
2001
2000
2,310,019
3,738,367
$ 2,310,019
78,781,203
81,091,222
$ 3,738,367
132,738,836
136,477,203
19,000
1,017,200
(19,000)
(673,675)
(692,675)
$80,398,547
(1,017,200)
(38,998,359)
(40,015,559)
$96,461,644
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 - 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)
Distributions in excess of net income for financial statement purposes result primarily from transactions where tax
treatment differs from book treatment.
As of December 31, 2001, the components of distributable earnings on a tax basis were as follows:
Undistributed ordinary income
Undistributed long-term gain
Unrealized appreciation
$5,926,412
3,342,802
477,472,000
$486,741,214
3. OFFICERS’ COMPENSATION AND RETIREMENT AND THRIFT PLANS
The aggregate compensation paid by the Company during 2001 and 2000 to its officers amounted to $5,334,000
and $5,254,000, 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 2001 were as fol-
lows:
Long transactions
Short sale transactions
Total
PURCHASES
$217,712,654
28,442,689
$246,155,343
SALES
$266,598,113
2,050,085
$268,648,198
At December 31, 2001, the cost of investments for Federal income tax purposes was the same as the cost for finan-
cial reporting purposes.
5. RESTRICTED SECURITIES
Sequoia Capital IV*
Silicon Genesis Corporation Series C Preferred
Standard MEMS, Inc. Series A Convertible Preferred
Total
DATE
ACQUIRED
1/31/84
2/16/01
12/17/99
COST
$886,407
3,006,720
3,003,000
$6,896,127
VALUE
(NOTE 1a)
$2,500
3,006,720
546,000
$3,555,220
* The amounts shown are net of distributions from this limited partnership interest which, in the aggregate,
amounted to $4,806,404. The initial investment in the limited partnership was $2,000,000.
6. 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 $322,000 for 2001. Minimum rental commitments under the operating lease are
approximately $403,000 in 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 in 2002 and $64,000 in
2003. The Company will also receive its proportionate share of operating expenses and real property taxes under the
sublease.
7. SUBSEQUENT EVENT
On January 16, 2002, the Board of Directors declared on the Common Stock a dividend of $9,369,469 from realized
gains, including $3,435,472 from long-term capital gains and the balance from short-term gains (ordinary income).
This dividend is payable in cash on February 11, 2002.
Unaudited
In addition to purchases of the Company’s Common Stock as set forth in Note 2 on page 12, 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 4
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, 2001.
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:
2001
2000
1999
1998
1997
$ 39.91
.41
$ 41.74
.53
$ 34.87
.45
$ 29.15
.47
$ 25.24
.21
(.66)
(.25)
6.12
6.65
11.32
11.77
9.44
9.91
7.15
7.36
Dividends from investment income
Distributions from capital gains
(.88)(a)
(3.28)
(4.16)
(2.30)(b)
(5.78)
(8.08)
(.71)(c)
(3.77)
(4.48)
(.48)
(3.24)
(3.72)
(.26)(d)
(3.19)
(3.45)
Preferred Stock:
Dividends from investment income
Distributions from capital gains
Unallocated
(.07)(e)
(.29)
—
(.36)
(.11)(f)
(.29)
—
(.40)
(.07)(g)
(.35)
—
(.42)
(.03)
(.20)
(.01)
(.24)
—
—
—
—
Total distributions
(4.52)
(8.48)
(4.90)
(3.96)
(3.45)
Capital Stock transaction -
effect of Preferred Stock offering
—
—
—
(.23)
—
Net asset value, end of year
Per share market value, end of year
$35.14
$33.47
$ 39.91
$ 36.00
$ 41.74
$ 37.19
$ 34.87
$ 30.44
$ 29.15
$ 26.19
TOTAL INVESTMENT RETURN - Stockholder
Return, based on market price per share
4.33%
19.10%
39.22%
31.31%
42.58%
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
$1,247,530 $1,305,039 $1,244,519 $1,018,933
$702,597
$1,097,530 $1,155,039 $1,094,519
$868,933
$702,597
applicable to Common Stock
1.02%
1.09%
1.01%
0.95%
0.98%
Ratio of net income to average net assets
applicable to Common Stock
Portfolio turnover rate
PREFERRED STOCK
Liquidation value, end of year
1.15%
23.81%
1.24%
40.61%
1.23%
33.68%
1.50%
34.42%
0.80%
32.45%
(000’s omitted)
$150,000
$150,000
$150,000
$150,000
Asset coverage
Liquidation preference per share
Market value per share
832%
870%
830%
679%
$25.00
$25.90
$25.00
$24.25
$25.00
$21.75
$25.00
$25.88
—
—
—
—
(a) Includes short-term capital gain in the amount of $0.51 per share.
(b) Includes short-term capital gain in the amount of $1.82 per share.
(c) Includes short-term capital gain in the amount of $.29 per share.
(d) Includes short-term capital gain in the amount of $.05 per share.
(e) Includes short-term capital gain in the amount of $.04 per share.
(f) Includes short-term capital gain in the amount of $.09 per share.
(g) Includes short-term capital gain in the amount of $.03 per share.
1 5
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, 2001, 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, 2001, 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, 2001, 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 15, 2002
O F F I C E R S
NAME (AGE)
EMPLOYEE SINCE
Spencer Davidson (59)
1994
Andrew V. Vindigni (42)
1988
POSITION WITH COMPANY
NAME (AGE)
POSITION WITH COMPANY
SINCE
President and Chief
Executive Officer
1995
Vice-President 1995
security analyst
(financial services
industry)
EMPLOYEE SINCE
SINCE
Peter P. Donnelly (53)
1974
Vice-President 1991
securities trader
Diane G. Radosti (49)
Treasurer 1990
1980
corporate accounting
and financial reporting
Eugene L. DeStaebler, Jr. (63) Vice-President,
Carole Anne Clementi (55) Secretary 1994
1975
Administration 1978
operations and finance
1982
shareholder relations
and office management
All officers serve for a term of one year and are elected by the board of directors at the time of its annual
organization meeting on the second Wednesday in April. The address for each officer is the Company’s office.
Other directorships and affiliations for Mr. Davidson are shown in the listing of Directors on page 16.
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
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
1 6
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
NAME (AGE)
DIRECTOR SINCE
PRINCIPAL OCCUPATION
DURING PAST 5 YEARS
INDEPENDENT (“DISINTERESTED”) DIRECTORS
Partner
Lawrence B. Buttenwieser (70)
Rosenman & Colin LLP
CHAIRMAN OF THE BOARD
(lawyers)
OF DIRECTORS
1967
Arthur G. Altschul, Jr. (37)
1995
Managing Member
Diaz & Altschul Group, LLC
(investments and securities)
Lewis B. Cullman (83)
1961
President
Cullman Ventures LLC
(catalogs)
OTHER DIRECTORSHIPS AND AFFILIATIONS
Delta Opportunity Fund, Ltd., Director
Medicis Pharmaceutical Corporation,
Director
The Overbrook Foundation, Trustee
Chess-in-the-Schools, Chairman,
Board of Trustees
Metropolitan Museum of Art, Trustee
Neurosciences Research Foundation, Trustee
The New York Botanical Garden, Senior
Vice Chairman, Board of Managers
Gerald M. Edelman (72)
1976
John D. Gordan, III (56)
1986
Bill Green (72)
1993
Member and Chairman of the
Department of Neurobiology
The Scripps Research Institute
Neurosciences Institute of the
Neurosciences Research Foundation, Director
and President
Partner
Morgan, Lewis & Bockius LLP
(lawyers)
Corporate director and trustee
ClientSoft, Inc., Director
Commercial Capital Corp., Director
Energy Answers Corporation, Director
New York City Housing Development
Corporation, Member and Vice Chair
Sidney R. Knafel (71)
1994
Managing Partner
SRK Management Company
(private investment company)
BioReliance Corporation, Chairman
IGENE Biotechnology, Inc., Director
Insight Communications Company, Inc.,
Chairman
NTL Incorporated, Director
Source Media, Inc., Director
Richard R. Pivirotto (71)
1971
President
Richard R. Pivirotto Co., Inc.
(self-employed consultant)
General Theological Seminary, Trustee
The Gillette Company, Director
The Greenwich Bank and Trust Company,
Joseph T. Stewart, Jr. (72)
1987
Raymond S. Troubh (75)
1989
Financial Consultant
Director
Greenwich Hospital Corporation, Trustee
Immunomedics, Inc., Director
New York Life Insurance Company,
Director
Princeton University, Charter Trustee
Emeritus
Corporate director and trustee
Foundation of the University of
Medicine and Dentistry of New Jersey,
Trustee
Marine Biological Laboratory, Member,
Advisory Council
Ariad Pharmaceuticals, Inc., Director
Diamond Offshore Drilling, Inc., Director
Enron Corp., Director
Gentiva Health Services, Inc., Director
Health Net, Inc., Director
Hercules Incorporated, Director
Petrie Stores Liquidating Trust, Trustee
Starwood Hotels & Resorts, Trustee
Triarc Companies, Inc., Director
WHX Corporation, Director
INSIDE (“INTERESTED”) DIRECTOR
Spencer Davidson (59)
1995
President and Chief Executive Officer
General American Investors
Company, Inc. since 1995
Medicis Pharmaceutical Corporation, Director
Neurosciences Research Foundation, Trustee
All directors serve for a term of one year and are elected by stockholders at the time of the annual meeting on the second
Wednesday in April. The address for each director is the Company’s office.
Arthur G. Altschul, CHAIRMAN EMERITUS
William O. Baker, DIRECTOR EMERITUS
William T. Golden, DIRECTOR EMERITUS
General American Investors Company, Inc.
450 Lexington Avenue, New York, NY 10017
(212) 916-8400 (800) 436-8401
E-mail: InvestorRelations@gainv.com