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.
2002
2001
FINANCIAL SUMMARY
Net assets applicable to Common Stock -
December 31
Net investment income
Net realized gain
Net decrease in unrealized appreciation
Distributions to Preferred Stockholders
Per Common Share-December 31
Net asset value
Market price
Discount from net asset value
$809,192,127
5,698,197
17,039,043
(264,293,395)
(10,800,000)
$26.48
$23.85
-9.9%
Common Shares outstanding-Dec. 31
Common stockholders of record-Dec. 31
Market price range* (high-low)
Market volume-shares
30,561,356
4,700
$34.89-$22.17
6,978,900
*Unadjusted for dividend payments.
$1,097,529,720
12,512,405
70,720,822
(87,697,439)
(10,800,000)
$35.14
$33.47
-4.8%
31,231,563
4,900
$39.70-$27.50
5,009,500
DIVIDEND SUMMARY (per share)
Record Date
Payment Date
Ordinary
Income
Long-Term
Capital Gain
Total
Common Stock
Nov. 14, 2002
Jan. 27, 2003
Dec. 23, 2002
Feb. 10, 2003
Total from 2002 earnings
Nov. 15, 2001
Jan. 28, 2002
Dec. 20, 2001
Feb. 11, 2002
Total from 2001 earnings
$0.022
0.01
$0.032
$0.82 (a)
.19 (b)
$1.01
$0.298
0.03
$0.328
$1.26
.11
$1.37
(a) Includes short-term gain in the amount of $.45 per share.
(b) Represents short-term gain.
Preferred Stock
Mar. 6, 2002
Jun. 6, 2002
Sep. 6, 2002
Dec. 6, 2002
Total for 2002
Mar. 6, 2001
Jun. 6, 2001
Sep. 6, 2001
Dec. 6, 2001
Total for 2001
Mar. 25, 2002
Jun. 24, 2002
Sep. 23, 2002
Dec. 23, 2002
Mar. 23, 2001
Jun. 25, 2001
Sep. 24, 2001
Dec. 24, 2001
$.15525
.15525
.15525
.15525
$.621
$.0963
.0963
.0963
.0963
$.3852 (c)
$ .29475
.29475
.29475
.29475
$1.179
$ .3537
.3537
.3537
.3537
$1.4148
(c) Includes short-term gain in the amount of $.2224 per share ($.0556 per quarter).
$0.32
0.04
$0.36
$2.08
.30
$2.38
$ .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
E-mail: InvestorRelations@gainv.com
www.generalamericaninvestors.com
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 ended December 31, 2002 marked
the third consecutive down year for the U.S.
securities market and the first year in the
past five that General American Investors failed to
outperform its benchmark, the Standard & Poor’s
500 Stock Index, by a meaningful amount. Our
net asset value per common share (assuming rein-
vestment of all dividends) was down 23% whereas
the S&P 500 (including income) declined 22.1%.
Because the discount at which our shares traded
widened, furthermore, the return to our sharehold-
ers was negative by 27.2%.
On a more positive note, 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 in-
vestment results.
Years
Stockholder Return
S&P 500
3
5
10
20
30
40
- 3.3%
10.6
10.2
13.8
13.5
12.8
-14.6%
- 0.6
9.3
12.7
10.7
10.5
During 2002, the Company purchased 922,100 of
its common shares in the open market at an aver-
age discount to NAV of 9.1%. The Board of
Directors has authorized repurchases of common
shares when they are trading at a discount in
excess of 8% of NAV.
It has been almost 3 years since the stock market
reached its apogee and almost 2 years past the
economy's trough, yet the pace of recovery
remains anemic. Unemployment continues to be
stubbornly high and may even rise, excessive
capacity characterizes many sectors of the
economy and pricing power is limited despite mas-
sive monetary and fiscal stimulus. It would appear
that more time will be required to right the excess-
es of the last boom and to adjust to the new
realities of international commerce. By dint of its
human resources and controlled currency, China
now seems to be the low cost producer of an
increasing number of goods, leaving other
providers with no option but to rationalize
facilities and cut costs. The disinflationary conse-
quences of these actions are being felt broadly in
Japan, Europe and North America.
Accommodative monetary policy has allowed con-
sumers to keep spending while American
companies slash capital spending and restructure
balance sheets. While the stock market anticipates
the future, and some improvement is evident,
progress is likely to be uneven and gains in corpo-
rate profits modest by historical measures.
Valuations have become more reasonable, but not
compelling. Our portfolio continues to feature
companies with strong financial characteristics,
high earnings visibility and powerful positions in
their respective industries. We continue to retain
abundant cash reserves and look forward to their
selective employment as opportunities present
themselves.
On March 26, 2002, the Company launched a Web
site which can be accessed on the Internet at
www.generalamericaninvestors.com. It contains
a wealth of information about the Company,
including current NAV and market price data as
well as historical dividend payments, financial re-
ports, notices and press releases.
We record with deep sorrow the death on October
14, 2002 of Hon. Bill Green who had served as a
Director of the Company with great dedication for
almost ten years. His contributions to Board delib-
erations, based on broad knowledge and
experience gained from his distinguished career in
legal and government service and as a result of his
significant commitment to educational,
environmental and human services organizations,
have been greatly valued. His services will be
missed.
As mentioned in our first quarter report, Arthur G.
Altschul, our esteemed colleague and Chairman
Emeritus, died on March 17, 2002. He served the
Company for 50 years and contributed to its
success by giving the Company steady leadership
and guidance through many stock market cycles.
His counsel and support will be missed.
By Order of the Board of Directors,
Spencer Davidson
President and Chief Executive Officer
January 15, 2003
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,
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.
Investment
Policy
The primary objective of the
Company is long-term capi-
tal 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 con-
tinuous investment research program,
which stresses fundamental security analy-
sis, 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
management 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 ca-
reer 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
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
2002, the stock sold at premiums over and
discounts from net asset value which ranged
from a premium of 2.8% (January 18) to a dis-
count of 11.6% (July 25). At December 31,
the price of the stock was at a discount of 9.9%
as compared with a discount of 4.8% 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).
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
certificated share balances. A brochure which
describes the features and benefits of Direct
Registration, including the ability of
shareholders to deposit certificates with our
transfer agent, is located at our Website -
www.generalamericaninvestors.com - under
Additional Information - Transfer Agent
Services. The brochure can also be obtained by
contacting our Corporate Secretary at 1-800-
436-8401.
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.
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
1943-2002 (except for the year 1974). (A table
listing dividends paid during the 20-year peri-
od 1983-2002 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.
Direct
Registration
In December 2002, the
Company initiated Direct
Registration (“DR”) for its
Common Shareholders. DR is
a system that allows for book-
entry ownership and the electronic transfer of
our Common Shares. Accordingly, when
Common Shareholders, who hold their shares
directly, receive new shares resulting from a
purchase, transfer or dividend payment, they
will receive a statement showing the credit of
the new shares as well as their book-entry and
4
I N V E S T M E N T R E S U L T 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
Total return on
$10,000 investment
20 years ended
December 31, 2002
T he investment return for a common
stockholder of General American
Investors (GAM) over the 20 years
ended December 31, 2002 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 1983.
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
1983
$11,631
16.31%
$12,301
23.01%
$12,255
22.55%
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
10,798
13,477
14,983
12,569
15,241
22,648
23,554
43,575
50,016
42,053
38,748
46,970
56,120
80,016
1998
105,069
1999
146,277
2000
2001
2002
174,216
181,759
132,303
-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
-27.21
11,429
15,429
17,152
17,586
20,676
28,504
30,411
48,989
50,729
49,841
48,475
59,906
71,869
94,903
128,251
174,935
205,794
203,324
156,519
-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
-23.02
13,025
17,163
20,370
21,438
24,981
32,880
31,864
41,551
44,705
49,229
49,854
68,549
84,254
112,336
144,408
174,676
158,798
139,917
108,939
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
-22.14
5
I N V E S T M E N T R E S U L T 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
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, 2002
STOCKHOLDER
RETURN
GAM NET
ASSET VALUE
S&P 500
STOCK INDEX
1 year
-27.2 % -23.0 %
-22.1 %
5 years
10 years
15 years
20 years
10.6
10.2
17.0
13.8
10.5
11.9
15.7
14.7
-0.6
9.3
11.4
12.7
GAM STOCKHOLDER RETURN
GAM NET ASSET VALUE
S&P 500 STOCK INDEX
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
2 0 0 2
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 2 ( 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
CIENA Corporation
El Paso Corporation
0% Convertible Notes Due 2/28/21
Lucent Technologies Inc.
MedImmune Vaccines, Inc.
SHARES OR
PRINCIPAL AMOUNT
—
—
—
SHARES OR PRINCIPAL
AMOUNT HELD
DECEMBER 31, 2002
550,000
(a)
$ 5,000,000
712,500
(a)
(a)
5 1/4% Convertible Notes Due 2/1/08
$10,000,000
$10,000,000
ADDITIONS
American International Group, Inc.
Cisco Systems, Inc.
Costco Wholesale Corporation
Health Net, Inc.
MetLife Inc.
Transatlantic Holdings, Inc.
DECREASES
ELIMINATIONS
AmerUs Group Co.
REDUCTIONS
Brooks-PRI Automation, Inc.
Cox Communications, Inc. Class A
El Paso Corporation
Everest Re Group, Ltd.
Ford Motor Company
Golden West Financial Corporation
Halliburton Company
The Home Depot, Inc.
M&T Bank Corporation
MedImmune, Inc.
Millennium Pharmaceuticals, Inc.
PartnerRe Ltd.
Reinsurance Group of America, Incorporated
SunTrust Banks, Inc.
The TJX Companies, Inc.
70,000
245,000
25,000
75,000
15,000
5,000
108,000
168,500
155,000
425,000
25,000
540,000
40,000
450,000
100,000
15,000
25,000
20,000
5,000
55,000
5,000
225,000
345,000
900,000
700,000
550,000
440,000
230,000
—
168,500
620,000
750,000
675,000
225,000
425,000
850,000
1,945,000
320,000
239,000
120,000
525,000
490,000
230,000
2,425,000
* Excludes transactions in Stocks-Miscellaneous-Other.
(a) Securities purchased in prior period and previously carried under Stocks-Miscellaneous-Other.
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 3 - 2 0 0 2 ) ( U N A U D I T E D )
The following table
shows aggregate
dividends paid per share
on the Company’s
Common Stock for each
year during the 20-year
period 1983-2002.
Amounts shown include
payments made after
year-end attributable to
income and gain in each
respective year.
YEAR
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
DIVIDEND FROM
INCOME#
LONG-TERM
CAPITAL GAINS
$.67
.28
.47
.36
.35
.29
.23
.21
.09
.03
$2.38
1.35
1.07
2.15
1.54
1.69
1.56
1.65
3.07
2.93
YEAR
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
DIVIDEND FROM
INCOME#
LONG-TERM
CAPITAL GAINS
$.06
.06
.13
.25
.21
.47
1.04
2.03
1.01
.03
$2.34
1.59
2.77
2.71
2.95
4.40
4.05
6.16
1.37
.33
#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, 2002,
shown on pages 10 and
11 includes 54 security
issues. Listed here are
the ten largest holdings
on that date.
THE TJX COMPANIES, INC.
Through its T.J. Maxx and Marshalls divisions, TJX is a leading
off-price retailer. The continued growth of these divisions,
along with expansion into related U.S. and foreign off-price
formats, provide ongoing opportunities.
THE HOME DEPOT, INC.
The largest company in home center retailing, Home Depot’s
proven merchandising capabilities and strong financial structure
should provide the basis for continuing growth.
EVEREST RE GROUP, LTD.
The largest independent U.S. property/casualty reinsurer which
generates annual premiums of approximately $2.5 billion and has
a high quality,well-reserved AA balance sheet. This Bermuda
domiciled company has a strong management team that exercises
prudent underwriting discipline and efficient expense control,
resulting in above-average earnings progress.
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 new products serving large markets
and development of a pipeline rich with many promising drug
candidates position Pfizer for strong long-term results.
GOLDEN WEST FINANCIAL CORPORATION
A savings and loan holding company with $60 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.
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.
PARTNERRE LTD.
A leading global Bermuda-based multi-line reinsurer that generates
annual premiums of approximately $2.5 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 current strong industry pricing cycle.
M & T BANK CORPORATION
A bank holding company with over $30 billion in assets head-
quartered in Buffalo, NY. It has strong, opportunistic management
with a high level of ownership and a history of enhancing share-
holder value. High asset quality, excellent expense control, share
repurchases and adroit acquisitions help generate above-average
earnings growth.
BERKSHIRE HATHAWAY INC. CLASS A
A holding company engaged in diverse businesses, the most
important of which is the property and casualty insurance
business which is conducted through subsidiaries, including
GEICO - a major U.S. auto insurer - and General Re Corp. - a
significant global reinsurer.
GENENTECH, INC.
A leading biotechnology company focused on the development
and production of biotherapeutics for medical needs. With a
strong product portfolio and a broad pipeline of product
opportunities, Genentech is positioned for continued success.
*Net assets applicable to the Company’s Common Stock.
SHARES
VALUE
% COMMON
NET ASSETS*
2,425,000
$47,336,000
5.8%
1,945,000
46,602,200
5.7
675,000
37,327,500
4.6
1,025,000
31,334,250
3.9
425,000
30,519,250
3.8
570,000
28,790,700
3.6
525,000
27,205,500
3.4
320,000
25,392,000
3.1
300
21,825,000
2.7
650,000
21,554,000
2.7
$317,886,400 39.3%
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
(cost $417,614,713 and $461,130,422, respectively)
Convertible corporate notes (cost $11,464,420)
Corporate discount notes
(cost $222,859,450 and $310,348,410, respectively)
U.S. Treasury bills (cost $98,645,315)
Total investments (cost $750,583,898 and $771,478,832,
respectively)
CASH, RECEIVABLES AND OTHER ASSETS
Cash (including margin account balance of $3,455
and $20,966, 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
DECEMBER 31,
2002
2001
$629,812,240
11,450,000
$931,026,318
—
222,859,450
98,645,315
310,348,410
—
962,767,005
1,241,374,728
68,413
1,394,958
5,710,669
1,534,495
6,474,097
455,687
40,931
2,827,707
23,334,454
1,261,862
5,804,035
513,446
978,405,324
1,275,157,163
Payable for securities purchased
Preferred dividend accrued but not yet declared
Securities sold short, at value (proceeds $5,710,669
and $23,334,454, respectively) (note 1a)
Accrued expenses and other liabilities
TOTAL LIABILITIES
5,905,815
240,000
4,715,171
8,352,211
19,213,197
1,318,500
240,000
15,758,350
10,310,593
27,627,443
7.20% TAX ADVANTAGED CUMULATIVE PREFERRED STOCK -
6,000,000 shares at a liquidation value of $25 per share
(note 2)
NET ASSETS APPLICABLE TO COMMON STOCK -
150,000,000
150,000,000
30,561,356 and 31,231,563 shares, respectively (note 2)
$809,192,127
$1,097,529,720
NET ASSET VALUE PER COMMON SHARE
$26.48
$35.14
NET ASSETS APPLICABLE TO COMMON STOCK
Common Stock, 30,561,356 and 31,231,563 shares at par
value, respectively (note 2)
Additional paid-in capital (note 2)
Undistributed realized gain on investments (note 2)
Undistributed net income (note 2)
Unallocated distributions on Preferred Stock
Unrealized appreciation on investments and securities
$30,561,356
563,250,199
1,089,200
1,352,767
(240,000)
$31,231,563
579,414,981
9,598,439
52,737
(240,000)
sold short(including aggregate gross unrealized appreciation
of $303,127,054 and $520,141,071, respectively)
213,178,605
477,472,000
NET ASSETS APPLICABLE TO COMMON STOCK
$809,192,127
$1,097,529,720
(see notes to financial statements)
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 $21,770 and $55,790, respectively)
Interest
Other income
TOTAL INCOME
EXPENSES
Investment research
Administration and operations
Office space and general
Auditing and legal fees
Transfer agent, custodian and registrar fees and expenses
Directors’ fees and expenses
Stockholders’ meeting and reports
Miscellaneous taxes
TOTAL EXPENSES
NET INVESTMENT INCOME
YEAR ENDED DECEMBER 31,
2002
2001
$8,131,252
6,259,873
459,565
$7,862,551
15,201,651
541,123
14,850,690
23,605,325
5,353,349
2,423,028
594,154
211,000
208,974
152,486
127,208
82,294
7,145,088
2,656,023
534,127
152,700
224,807
167,907
128,337
83,931
9,152,493
11,092,920
5,698,197
12,512,405
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 in 2001)
Net decrease in unrealized appreciation
NET LOSS ON INVESTMENTS
DISTRIBUTIONS TO PREFERRED STOCKHOLDERS
DECREASE 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
Net investment income
Net realized gain on investments
Net decrease in unrealized appreciation
Distributions to Preferred Stockholders:
6,036,466
11,002,577
52,639,769
18,081,053
17,039,043
(264,293,395)
70,720,822
(87,697,439)
(247,254,352)
(16,976,617)
(10,800,000)
(10,800,000)
($258,054,352) ($27,776,617)
YEAR ENDED DECEMBER 31,
2002
2001
$5,698,197 $12,512,405
70,720,822
17,039,043
(87,697,439)
(264,293,395)
From net income, including short-term capital gain in 2001
From long-term capital gain
Decrease In Net Assets From Preferred Distributions
(3,726,000)
(7,074,000)
(2,311,200)
(8,488,800)
(10,800,000)
(10,800,000)
DECREASE IN NET ASSETS RESULTING FROM OPERATIONS
(252,356,155)
(15,264,212)
DISTRIBUTIONS TO COMMON STOCKHOLDERS
From net income, including short-term capital gain
From long-term capital gain
DECREASE IN NET ASSETS FROM COMMON DISTRIBUTIONS
CAPITAL SHARE TRANSACTIONS
(6,606,164)
(12,540,285)
(19,146,449)
(26,369,696)
(96,274,382)
(122,644,078)
Value of Common Shares issued in payment of dividends (note 2)
Cost of Common Shares purchased (note 2)
6,410,677
(23,245,666)
81,091,222
(692,675)
INCREASE (DECREASE) IN NET ASSETS - CAPITAL TRANSACTIONS
NET DECREASE IN NET ASSETS
(16,834,989)
(288,337,593)
80,398,547
(57,509,743)
NET ASSETS APPLICABLE TO COMMON STOCK
BEGINNING OF YEAR
1,097,529,720 1,155,039,463
END OF YEAR (including undistributed net income of $1,352,767
and $52,737, respectively)
$809,192,127 $1,097,529,720
(see notes to
financial statements)
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 2
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 OR PRINCIPAL AMOUNT
VALUE (NOTE 1a)
500,000 The Boeing Company
(COST $15,978,442)
$16,495,000
AEROSPACE/DEFENSE
(2.0%)
COMMUNICATIONS AND
INFORMATION SERVICES
(4.1%)
550,000 CIENA Corporation (a)
900,000 Cisco Systems, Inc. (a)
620,000 Cox Communications, Inc. Class A (a)
712,500 Lucent Technologies Inc. (a)
180,000 NTL Incorporated (a)
COMPUTER SOFTWARE
AND SYSTEMS (0.2%)
175,000 Oberthur Card Systems S.A. (a)
339,500 Wind River Systems, Inc. (a)
CONSUMER PRODUCTS
AND SERVICES (2.6%)
275,000 Ethan Allen Interiors, Inc.
225,000 Ford Motor Company
100,000 Newell Rubbermaid Inc.
150,000 PepsiCo, Inc.
2,827,000
11,790,000
17,608,000
897,750
2,880
33,125,630
385,000
1,391,950
1,776,950
9,451,750
2,092,500
3,033,000
6,333,000
20,910,250
(COST $35,837,826)
(COST $8,061,069)
(COST $15,442,195)
ELECTRONICS (1.7%)
692,500 Molex Incorporated Class A
(COST $14,877,393)
13,773,825
589,000 Waste Management, Inc.
(COST $11,654,199)
13,499,880
ENVIRONMENTAL CONTROL
(INCLUDING SERVICES) (1.7%)
FINANCE AND INSURANCE
(29.8%)
345,000 American International Group, Inc.
500,000 Annaly Mortgage Management, Inc.
1,000,000 Annuity and Life Re (Holdings), Ltd.
300 Berkshire Hathaway Inc. Class A (a)
84,548 Central Securities Corporation
675,000 Everest Re Group, Ltd.
425,000 Golden West Financial Corporation
435,000 John Hancock Financial Services, Inc.
320,000 M&T Bank Corporation
440,000 MetLife, Inc.
525,000 PartnerRe Ltd.
490,000 Reinsurance Group of America, Incorporated
230,000 SunTrust Banks, Inc.
230,000 Transatlantic Holdings, Inc.
HEALTH CARE (13.3%)
PHARMACEUTICALS (9.9%)
340,000 Alkermes, Inc. (a)
300,000 Bristol-Myers Squibb Company
270,000 Genaera Corporation (a)
650,000 Genentech, Inc. (a)
250,000 IDEC Pharmaceuticals Corporation (a)
239,000 MedImmune, Inc. (a)
120,000 Millennium Pharmaceuticals, Inc. (a)
125,000 OSI Pharmaceuticals, Inc. (a)
1,025,000 Pfizer Inc
(COST $118,978,387)
(COST $71,559,504)
MEDICAL INSTRUMENTS AND DEVICES (1.6%)
290,000 Medtronic, Inc.
(COST $862,614)
13,224,000
HEALTH CARE SERVICES (1.8%)
550,000 Health Net, Inc. (a)
(COST $11,165,878)
(COST $83,587,996)
14,520,000
107,670,780
MISCELLANEOUS (1.6%)
Other
(COST $15,813,836)
13,407,894
19,958,250
9,400,000
2,320,000
21,825,000
1,376,441
37,327,500
30,519,250
12,136,500
25,392,000
11,897,600
27,205,500
13,269,200
13,091,600
15,341,000
241,059,841
2,131,800
6,945,000
172,800
21,554,000
8,292,500
6,493,630
952,800
2,050,000
31,334,250
79,926,780
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 2 - 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 OR PRINCIPAL AMOUNT
OIL AND NATURAL GAS
(INCLUDING SERVICES)
(2.6%)
750,000 El Paso Corporation
850,000 Halliburton Company
VALUE (NOTE 1a)
$5,220,000
15,903,500
21,123,500
(COST $26,501,884)
RETAIL TRADE (17.6%)
700,000 Costco Wholesale Corporation (a)
1,945,000 The Home Depot, Inc. (b)
2,425,000 The TJX Companies, Inc.
570,000 Wal-Mart Stores, Inc.
SEMICONDUCTORS (0.4%)
168,500 Brooks-PRI Automation, Inc. (a)
197,000 EMCORE Corporation (a)
1,644,900 IQE plc (a)
250,000 Zarlink Semiconductor Inc. (a)
(COST $48,567,239)
(COST $15,418,120)
SPECIAL HOLDINGS
(a)(c)
(NOTE 5) (0.2%)
(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)
19,642,000
46,602,200
47,336,000
28,790,700
142,370,900
1,931,010
431,430
164,490
565,000
3,091,930
2,500
1,503,360
—
1,505,860(e)
TOTAL COMMON STOCKS (77.8%)
(COST $417,614,713)
629,812,240
CONVERTIBLE CORPORATE NOTES
HEALTH CARE (1.2%)
OIL AND GAS (0.2%)
$10,000,000 MedImmune Vaccines, Inc. 5 1/4% due 2/1/08
$5,000,000 El Paso Corporation 0% due 2/28/21
TOTAL CONVERTIBLE CORPORATE NOTES (1.4%)
(COST $11,464,420)
9,900,000
1,550,000
11,450,000
SHORT-TERM SECURITIES AND OTHER ASSETS
PRINCIPAL AMOUNT
$26,300,000
42,000,000
12,000,000
18,000,000
61,800,000
43,100,000
20,100,000
99,000,000
AIG Funding, Inc. notes due 1/14-1/22/03; 1.26%-1.30%
American Express Credit Corporation notes due 1/7-2/10/03; 1.29%-1.32%
American General Finance Corporation note due 2/4/03; 1.31%
Ford Motor Credit Company notes due 1/2-2/11/03; 1.90%-1.93%
General Electric Capital Corp. notes due 1/9-1/28/03; 1.33%-1.36%
General Motors Acceptance Corp. notes due 1/6-2/3/03; 1.87%-1.95%
Sears Roebuck Acceptance Corp. notes due 1/21-2/6/03; 1.98%
U.S. Treasury bills due 1/23-2/13/03; 1.19%-1.65%
TOTAL SHORT-TERM SECURITIES (39.7%)
(COST $321,504,765)
Liabilities in excess of cash, receivables and other assets
TOTAL SHORT-TERM SECURITIES AND OTHER ASSETS, NET (39.3%)
PREFERRED STOCK (-18.5%)
NET ASSETS APPLICABLE TO COMMON STOCK (100%)
26,260,225
41,930,270
11,981,223
17,957,495
61,698,258
42,984,939
20,047,040
98,645,315
321,504,765
(3,574,878)
317,929,887
(150,000,000)
$809,192,127
(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 2
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
75,000
34,100
Electronic Arts Inc.
Southwest Bancorporation of Texas, Inc.
TOTAL SECURITIES SOLD SHORT
(PROCEEDS $5,710,669)
(see notes to financial statements)
VALUE (NOTE 1a)
$3,732,750
982,421
$4,715,171
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 accounting principles generally accepted in the United
States 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 and U.S. Treasury bills
are valued at amortized cost, which approximates market value. Special holdings are valued at fair value in the opin-
ion of the Directors. In determining fair value, in the case of restricted shares, consideration is given to cost, operat-
ing 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 partnership’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 short 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. Interest income,
adjusted for amortization of discount and premium on investments, is earned from settlement date and is
recognized on the accrual basis. Cost of investments represents amortized cost.
2. CAPITAL STOCK AND DIVIDEND DISTRIBUTIONS
The authorized capital stock of the Company consists of 50,000,000 shares of Common Stock, $1.00 par value, of
which 30,561,356 shares and 31,231,563 shares were outstanding as of December 31, 2002 and 2001, respectively,
and 10,000,000 shares of Preferred Stock, $1.00 par value, of which 6,000,000 shares were outstanding at each date.
On June 19, 1998, the Company issued and sold 6,000,000 shares of its 7.20% Tax-Advantaged Cumulative
Preferred Stock. The Preferred Shares are noncallable for 5 years and have 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.
Effective January 1, 2001, the Company adopted the classification requirement of EITF D-98, Classification and
Measurement of Redeemable Securities. EITF D-98 requires that preferred stock for which its redemption is outside of
the Company’s control should be presented outside of net assets in the statement of assets and liabilities. In adopt-
ing EITF D-98, the Company’s net assets as of January 1, 2001 in the statement of changes in net assets is restated by
excluding preferred stock valued at $150,000,000 at that date. The adoption also resulted in distributions to
preferred stockholders being reclassified from distributions on the statement of changes in net assets to a separate
line item within the statement of operations. This resulted in an increase of $10,800,000 in the net decrease in net
assets resulting from operations for the periods ended December 31, 2002 and 2001. As part of the adoption, per
share distributions on preferred stock were reclassified from distributions to amounts from investment operations
for each period presented in the financial highlights.
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)
Transactions in Common Stock during 2002 and 2001 were as follows:
Shares issued in payment of dividends
(includes 251,893 and 28,400 shares
issued from treasury, respectively)
Increase in paid-in capital
Total increase
Shares purchased (at an average
discount from net asset value of
9.1% and 9.0%, respectively)
Decrease in paid-in capital
Total decrease
Net increase (decrease)
SHARES
AMOUNT
2002
2001
2002
2001
251,893
2,310,019
$ 251,893
6,158,784
6,410,677
$ 2,310,019
78,781,203
81,091,222
922,100
19,000
(922,100)
(22,323,566)
(23,245,666)
($16,834,989)
(19,000)
(673,675)
(692,675)
$80,398,547
At December 31, 2002, the Company held in its treasury 670,207 shares of Common Stock with an aggregate
cost in the amount of $16,277,373.
Distributions for tax and book purposes are substantially the same. 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, 2002, the components of distributable earnings on a tax basis were as follows:
Undistributed ordinary income
Undistributed long-term gain
Unrealized appreciation
$233,239
865,252
213,178,605
$214,277,096
3. OFFICERS’ COMPENSATION AND RETIREMENT AND THRIFT PLANS
The aggregate compensation paid by the Company during 2002 and 2001 to its officers amounted to $4,419,000
and $5,334,000, 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 2002 amounted to
on long transactions $164,794,270 and $202,882,025, respectively, and on short sale transactions $20,128,265 and
$13,507,057, respectively.
At December 31, 2002, 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
1,503,360
—
$1,505,860
* 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 $315,000 for 2002. Minimum rental commitments under the operating lease are
approximately $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 $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 15, 2003, the Board of Directors declared on the Common Stock a dividend of $915,098 from net long-
term capital gains and a dividend of $305,032 from ordinary income. These dividends are payable in cash on
February 10, 2003.
Unaudited
In addition to purchases of the Company’s Common Stock as set forth in Note 2 above, 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, 2002.
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 (loss) on securities - realized
2002
2001
2000
1999
1998
$ 35.14
.19
$ 39.91
.41
$ 41.74
.53
$ 34.87
.45
$ 29.15
.47
and unrealized
(7.88)
(.66)
6.12
11.32
9.44
Distributions on Preferred Stock:
Dividends from investment income
Distributions from capital gains
Unallocated
Total from investment operations
(.12)
(.23)
—
(.35)
(8.04)
(.07)(a)
(.29)
—
(.36)
(.61)
(.11)(b)
(.29)
—
(.40)
6.25
(.07)(c)
(.35)
—
(.42)
11.35
(.03)
(.20)
(.01)
(.24)
9.67
Less distributions on Common Stock:
Dividends from investment income
Distributions from capital gains
(.21)(d)
(.41)
(.62)
(.88)(e)
(3.28)
(4.16)
(2.30)(f)
(5.78)
(8.08)
(.71)(g)
(3.77)
(4.48)
(.48)
(3.24)
(3.72)
Capital Stock transaction -
effect of Preferred Stock offering
Net asset value, end of year
Per share market value, end of year
—
$26.48
$23.85
—
$35.14
$33.47
—
$ 39.91
$ 36.00
—
$ 41.74
$ 37.19
(.23)
$ 34.87
$ 30.44
TOTAL INVESTMENT RETURN - Stockholder
Return, based on market price per share
(27.21)%
4.33%
19.10%
39.22%
31.31%
RATIOS AND SUPPLEMENTAL DATA
Net assets attributable to Common Stock,
end of year (000’s omitted)
$809,192 $1,097,530 $1,155,039 $1,094,519
$868,933
Ratio of expenses to average net assets
applicable to Common Stock
0.97%
1.02%
1.09%
1.01%
0.95%
Ratio of net income to average net assets
applicable to Common Stock
Portfolio turnover rate
0.61%
22.67%
1.15%
23.81%
1.24%
40.61%
1.23%
33.68%
1.50%
34.42%
PREFERRED STOCK
Liquidation value, end of year
(000’s omitted)
$150,000
$150,000
$150,000
$150,000
$150,000
Asset coverage
Liquidation preference per share
Market value per share
639%
832%
870%
830%
679%
$25.00
$25.85
$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 $.04 per share.
(b) Includes short-term capital gain in the amount of $.09 per share.
(c) Includes short-term capital gain in the amount of $.03 per share.
(d) Includes short-term capital gain in the amount of $.19 per share.
(e) Includes short-term capital gain in the amount of $.51 per share.
(f) Includes short-term capital gain in the amount of $1.82 per share.
(g) Includes short-term capital gain in the amount of $.29 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, 2002, 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, 2002, 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, 2002, 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 14, 2003
O F F I C E R S
NAME (AGE)
EMPLOYEE SINCE
Spencer Davidson (60)
1994
Andrew V. Vindigni (43)
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 (54)
1974
Vice-President 1991
securities trader
Diane G. Radosti (50)
Treasurer 1990
1980
corporate accounting
and financial reporting
Eugene L. DeStaebler, Jr. (64) Vice-President,
Carole Anne Clementi (56) Secretary 1994
1975
Administration 1978
Principal Financial
Officer 2002
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 O R G A N I Z A T I O N S
COUNSEL
Sullivan & Cromwell LLP
INDEPENDENT AUDITORS
Ernst & Young LLP
CUSTODIAN
Deutsche Bank Trust Company Americas
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 ( 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
NAME (AGE)
DIRECTOR SINCE
PRINCIPAL OCCUPATION
DURING PAST 5 YEARS
OTHER DIRECTORSHIPS AND AFFILIATIONS
INDEPENDENT (“DISINTERESTED”) DIRECTORS
Lawrence B. Buttenwieser (71)
CHAIRMAN OF THE
BOARD OF DIRECTORS
1967
Counsel 2002-present
Partner 1966-2002
Katten Muchin Zavis Rosenman
and predecessor firms (lawyers)
Arthur G. Altschul, Jr. (38)
1995
Lewis B. Cullman (84)
1961
Managing Member
Diaz & Altschul Capital
Management, LLC
(investments and securities)
President
Cullman Ventures LLC
(catalogs)
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, Honorary Trustee
Museum of Modern Art, Vice Chairman,
International Council and Honorary Trustee
Neurosciences Research Foundation, Vice Chairman,
Board of Trustees
The New York Botanical Garden, Senior Vice
Chairman, Board of Managers
Gerald M. Edelman (73)
1976
John D. Gordan, III (57)
1986
Sidney R. Knafel (72)
1994
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)
Managing Partner
SRK Management Company
(private investment company)
BioReliance Corporation, Chairman, Board of Directors
IGENE Biotechnology, Inc., Director
Insight Communications Company, Inc.,
Chairman, Board of Directors
Richard R. Pivirotto (72)
1971
President
Richard R. Pivirotto Co., Inc.
(self-employed consultant)
General Theological Seminary, Trustee
The Gillette Company, Director
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
Joseph T. Stewart, Jr. (73)
1987
Corporate director and trustee
Foundation of the University of
Raymond S. Troubh (76)
1989
Financial Consultant
Medicine and Dentistry of New Jersey, Trustee
Marine Biological Laboratory, Member,
Advisory Council
United States Merchant Marine Academy, Trustee,
Board of Advisors
Ariad Pharmaceuticals, Inc., Director
Diamond Offshore Drilling, Inc., Director
Enron Corp., Chairman, Board of Directors
Gentiva Health Services, Inc., Director
Hercules Incorporated, Director
Petrie Stores Liquidating Trust, Trustee
Triarc Companies, Inc., Director
WHX Corporation, Director
INSIDE (“INTERESTED”) DIRECTOR
Spencer Davidson (60)
1995
President and Chief Executive Officer Medicis Pharmaceutical Corporation, Director
General American Investors
Company, Inc. since 1995
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.
William O. Baker, DIRECTOR EMERITUS
William T. Golden, DIRECTOR EMERITUS