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 (unaudited)
Net assets applicable to Common Stock -
December 31
Net investment income
Net realized gain
Net increase (decrease) in unrealized
appreciation
Distributions to Preferred Stockholders
Per Common Share-December 31
Net asset value
Market price
Discount from net asset value
2003
2002
$986,335,111
855,551
28,144,510
$809,192,127
5,238,632
17,039,043
200,469,430
(11,075,000)
(264,293,395)
(10,800,000)
$33.11
$29.73
-10.2%
$26.48
$23.85
-9.9%
30,561,356
4,700
$34.89-$22.17
6,978,900
Common Shares outstanding-Dec. 31
Common stockholders of record-Dec. 31
Market price range* (high-low)
Market volume-shares
29,789,263
4,500
$29.78-$21.95
6,280,700
*Unadjusted for dividend payments.
DIVIDEND SUMMARY (per share) (unaudited)
Record Date
Payment Date
Ordinary
Income
Long-Term
Capital Gain
Total
Common Stock
Nov. 14, 2003
Jan. 26, 2004
Dec. 23, 2003
Feb. 9, 2004
Total from 2003 earnings
Nov. 14, 2002
Jan. 27, 2003
Dec. 23, 2002
Feb. 10, 2003
Total from 2002 earnings
Preferred Stock
Mar. 6, 2003
Jun. 6, 2003
Sep. 8, 2003
Dec. 8, 2003
Total for 2003
Mar. 6, 2002
Jun. 6, 2002
Sep. 6, 2002
Dec. 6, 2002
Total for 2002
Mar. 24, 2003
Jun. 23, 2003
Sep. 23, 2003
Dec. 24, 2003
Mar. 25, 2002
Jun. 24, 2002
Sep. 23, 2002
Dec. 23, 2002
$.00761
.013
$.02061
$.022
.01
$.032
$.01485
.01485
.01485
.012272
$.056822
$.15525
.15525
.15525
.15525
$.621
$.49239
.097
$.58939
$.298
.03
$.328
$.50
.11
$.61
$.32
.04
$.36
$.43515
.43515
.43515
.359603
$1.665053
$.29475
.29475
.29475
.29475
$1.179
$.45
.45
.45
.371875
$1.721875
$ .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
Following three down years, the U.S. securities
market rallied meaningfully, gaining 28.6% in
the year ended December 31, 2003, as
measured by our benchmark, the Standard & Poor's
500 Stock Index (including income). General
American Investors' net asset value (NAV) per com-
mon share (assuming reinvestment of all
dividends) increased 27.4%. The return to our
common shareholders was 27% as the discount at
which our shares trade widened slightly to 10.2%
at year-end.
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
- 1.2%
9.8
14.9
14.3
15.7
13.1
-4.1%
- 0.6
11.0
13.0
12.2
10.6
During 2003, the Company purchased 1,106,600
of its common shares in the open market at an
average discount to NAV of 9.7%. The Board of
Directors has authorized repurchases of common
shares when they are trading at a discount in
excess of 8% of NAV.
The cumulative return for our stockholders, as illu-
atrated on pages 4 and 5, is close to the peak
reached during the last 20 years. Total assets,
meanwhile, are near $1.2 billion, reflecting, in
part, the redemption of $150 million liquidation
value of 7.20% Cumulative Preferred Stock and its
replacement with $200 million of 5.95%
Cumulative Preferred Stock. The costs attending
this refinancing were fully absorbed in the year just
ended.
In the first half of last year, investor concerns were
centered on the war in Iraq and on economic
weakness and deflation, with the yield on 10-year
treasury notes falling to near 3% as investors
sought safety. By the end of the third quarter,
spurred by the conclusion of the conventional war
and aggressive monetary and fiscal policy, the
economy was growing at a rapid 7% annualized
pace and investors bid up share prices. Despite the
sheltering effects of sharp gains in manufacturing
productivity and low cost imports, inflation had
become a focus of investor anxiety.
In 2004, an election year, it appears that the mone-
tary authorities will retain their aggressive stance
and that the economy will continue to grow with
attendant gains in capital spending and
employment. America's sizeable trade and budget
deficits may continue to weigh on the dollar, how-
ever, leading to rising inflationary expectations
and interest rates. Although inflation has
increased at a rate of only around 2% as measured
by the Consumer Price Index, other indicators of
inflation like housing prices, energy and other
commodity costs have risen more rapidly. Longer
term, of course, chronically unbalanced finances
cannot endure. With almost 80 million "baby
boomers" scheduled to start collecting Social
Security within the next five years and Medicare
benefits within the next eight, a solution short of
selling more bonds or printing money must be
found.
The market has moved broadly higher accompanied
by the emergence of extremely high valuations
centered on technology stocks. Its future course
should be determined by the sustainability of the
economy's recovery and, while the equity markets
are not likely to generate gains of the magnitude
experienced last year, we are encouraged by the
presence, currently, of select opportunities to
invest in high quality companies at reasonable
prices.
Information about the Company, including our
investment objective, operating policies and
procedures, investment results, record of dividend
payments, financial reports and press releases, etc.
is available on our website which can be accessed
at www.generalamericaninvestors.com.
By Order of the Board of Directors,
Spencer Davidson
President and Chief Executive Officer
January 14, 2004
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
2003, the stock sold at discounts from net
asset value which ranged from 8.1% (January 7
and April 24) to 10.9% (November 6). At
December 31, the price of the stock was at a
discount of 10.2% as compared with a
discount of 9.9% a year earlier.
“GAM Pr B”
Preferred
Stock
On September 24, 2003, the
Company issued and sold in
an underwritten offering
8,000,000 shares of its 5.95%
Cumulative Preferred Stock,
Series B with a liquidation preference of $25
per share ($200,000,000 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 B).
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
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
1943-2003 (except for the year 1974). (A table
listing dividends paid during the 20-year peri-
od 1984-2003 is shown at the bottom of page
6.) To the extent that 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.
Proxy Voting
Policies and
Procedures
The policies and procedures
used by General American
Investors to determine how to
vote proxies relating to port-
folio securities are available:
(1) without charge, upon request, by calling
the Company at its toll-free number (1-800-
436-8401), (2) on the Company’s website at
http://www.generalamericaninvestors.com and
(3) on the Securities and Exchange
Commission’s website at http://www.sec.gov.
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
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.
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, 2003
T he investment return for a common
stockholder of General American
Investors (GAM) over the 20 years
ended December 31, 2003 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 1984.
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
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
$9,284
11,587
12,882
10,806
13,104
19,472
20,251
37,465
43,002
36,156
33,314
40,384
48,250
68,795
90,335
1999
125,765
2000
149,786
2001
2002
2003
156,271
113,750
144,474
-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
27.01
$9,291
12,543
13,944
14,297
16,809
23,172
24,723
39,826
41,239
40,518
39,407
48,700
58,425
77,150
104,261
142,212
167,298
165,291
127,241
162,105
-7.09%
$10,628
6.28%
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
27.40
14,005
16,622
17,493
20,385
26,830
26,001
33,905
36,479
40,170
40,681
55,936
68,751
91,665
117,836
142,534
129,578
114,171
88,894
114,282
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
28.56
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
$200,000
COMPARATIVE ANNUALIZED INVESTMENT RESULTS
YEARS ENDED
DECEMBER 31, 2003
STOCKHOLDER
RETURN
GAM NET
ASSET VALUE
S&P 500
STOCK INDEX
1 year
5 years
10 years
15 years
20 years
27.0 %
27.4 %
28.6 %
9.8
14.9
17.4
14.3
9.2
14.9
16.3
14.9
-0.6
11.0
12.2
13.0
GAM STOCKHOLDER RETURN
GAM NET ASSET VALUE
S&P 500 STOCK INDEX
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
2 0 0 3
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
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 3 ( 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
NEW POSITIONS
ADDITIONS
INCREASES
Bank of America Corporation
CEMEX, S.A. de C.V.
Devon Energy Corporation
FleetBoston Financial Corporation
MFA Mortgage Investments, Inc.
Annaly Mortgage Management, Inc.
MedImmune, Inc.
Medtronic, Inc.
Pfizer Inc
Wal-Mart Stores, Inc.
DECREASES
ELIMINATIONS
The Boeing Company
Max Re Capital Ltd.
Zarlink Semiconductor Inc.
REDUCTIONS
American International Group, Inc.
Everest Re Group, Ltd.
Genentech, Inc.
Golden West Financial Corporation
John Hancock Financial Services, Inc.
The Home Depot, Inc.
OSI Pharmaceuticals, Inc.
SunTrust Banks, Inc.
SHARES
100,000
463,500
370,700
150,000
575,000
250,000
221,000
160,000
225,000
105,000
20,000
110,000
250,000
10,000
40,000
20,000
65,000
95,000
25,000
45,000
20,000
SHARES HELD
DECEMBER 31, 2003
100,000
463,500
650,000
150,000
575,000
(a)
825,000
455,000
450,000
1,325,000
675,000
—
—
—
325,000
650,000
315,000
335,000
330,000
1,920,000
30,000
205,000
* Excludes transactions in Stocks-Miscellaneous-Other.
(a) Includes shares 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 4 - 2 0 0 3 ) ( 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 1984-2003.
Amounts shown include
payments made after
year-end attributable to
income and gain in each
respective year.
YEAR
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
DIVIDEND FROM
INCOME#
LONG-TERM
CAPITAL GAINS
$.28
.47
.36
.35
.29
.23
.21
.09
.03
.06
$1.35
1.07
2.15
1.54
1.69
1.56
1.65
3.07
2.93
2.34
YEAR
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
DIVIDEND FROM
INCOME#
LONG-TERM
CAPITAL GAINS
$.06
.13
.25
.21
.47
1.04
2.03
1.01
.03
.02
$1.59
2.77
2.71
2.95
4.40
4.05
6.16
1.37
.33
.59
#Includes short-term capital gains per share which amounted to $.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, 2003,
shown on pages 10 and
11 includes 58 security
issues. Listed here are
the ten largest holdings
on that date.
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.
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.
EVEREST RE GROUP, LTD.
The largest independent U.S. property/casualty reinsurer which
generates annual premiums of approximately $4.5 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.
With the acquisition of Pharmacia now complete, Pfizer continues
to optimize its corporate structure and is streamlining the
company for optimal growth and success as a transforming force
in global healthcare.
DEVON ENERGY CORPORATION
One of the largest independent oil and gas exploration and
production companies, Devon operates both domestically and
internationally. Recent opportunistic acquisitions enhanced
production volumes and improved the company’s exploration
profile.
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 over $80 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.
M & T BANK CORPORATION
A bank holding company with over $50 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.
REPUBLIC SERVICES, INC.
A leading provider of non-hazardous solid waste collection and
disposal services through 141 collection companies in 22 states.
The efficient operation of its routes and facilities combined with
appropriate pricing enable the company to generate significant
free cash flow. Republic Services' share price should benefit from
additional contracts, a pick up in waste volumes with improved
economic activity and share repurchases by the company.
GENENTECH, INC.
A leading biotechnology company focused on the development
and production of biotherapeutics for medical needs. With a
strong product portfolio, recent FDA drug approvals and a broad
pipeline of product opportunities, Genentech is positioned for
continued success.
*Net assets applicable to the Company’s Common Stock.
SHARES
VALUE
1,920,000
$68,140,800
% COMMON
NET ASSETS*
6.9%
2,500,000
55,125,000
5.6
650,000
54,990,000
5.6
1,325,000
46,812,250
4.7
650,000
37,219,000
3.8
675,000
35,808,750
3.6
335,000
34,568,650
3.5
310,000
30,473,000
3.1
1,175,000
30,115,250
3.1
315,000
29,474,550
3.0
$422,727,250 42.9%
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,
2003
2002
(cost $512,775,431 and $417,614,713, respectively)
$927,510,131
$629,812,240
Convertible corporate notes (cost $9,714,002 and
$11,464,420, respectively)
Corporate discount notes
(cost $149,931,413 and $222,859,450, respectively)
U.S. Treasury bills (cost $99,546,882 and $98,645,315,
respectively)
Total investments (cost $771,967,728 and $750,583,898,
10,250,000
11,450,000
149,931,413
222,859,450
99,546,882
98,645,315
respectively)
1,187,238,426
962,767,005
CASH, RECEIVABLES AND OTHER ASSETS
Cash (including margin account balance of
$3,455 for 2002)
Receivable for securities sold
Deposit with broker for securities sold short
Dividends, interest and other receivables
Prepaid expenses
Other
TOTAL ASSETS
LIABILITIES
54,695
2,731,429
13,684,582
2,093,543
6,979,584
321,045
68,413
1,394,958
5,710,669
1,534,495
6,474,097
455,687
1,213,103,304
978,405,324
Payable for securities purchased
Preferred dividend accrued but not yet declared
Securities sold short, at value (proceeds $13,684,582
and $5,710,669, respectively) (note 1a)
Accrued expenses and other liabilities
TOTAL LIABILITIES
1,480,264
231,389
15,307,245
9,749,295
26,768,193
5,905,815
240,000
4,715,171
8,352,211
19,213,197
CUMULATIVE PREFERRED STOCK -
5.95% Series B, 8,000,000 shares and
7.20% Tax-Advantaged, 6,000,000 shares,
respectively, at a liquidation value of $25 per share (note 2)
NET ASSETS APPLICABLE TO COMMON STOCK -
200,000,000
150,000,000
29,789,263 and 30,561,356 shares, respectively (note 2)
$986,335,111
$809,192,127
NET ASSET VALUE PER COMMON SHARE
$33.11
$26.48
NET ASSETS APPLICABLE TO COMMON STOCK
Common Stock, 29,789,263 and 30,561,356 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
$29,789,263
538,866,532
2,951,398
1,311,272
(231,389)
$30,561,356
563,709,764
1,089,200
893,202
(240,000)
sold short (including aggregate gross unrealized appreciation
of $459,535,751 and $303,127,054, respectively)
413,648,035
213,178,605
NET ASSETS APPLICABLE TO COMMON STOCK
$986,335,111
$809,192,127
(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 in 2002)
Interest
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,
2003
2002
$7,810,852
4,168,048
$8,131,252
6,259,873
11,978,900
14,391,125
6,977,145
2,862,224
554,237
188,250
176,626
160,213
118,874
85,780
5,353,349
2,423,028
594,154
211,000
208,974
152,486
127,208
82,294
11,123,349
9,152,493
855,551
5,238,632
REALIZED GAIN AND CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS (NOTES 1e AND 4)
Net realized gain on investments:
Long transactions
Short sale transactions (note 1b)
Net realized gain on investments (long-term)
Net increase (decrease) in unrealized appreciation
NET GAIN (LOSS) ON INVESTMENTS
DISTRIBUTIONS TO PREFERRED STOCKHOLDERS
28,586,216
(441,706)
28,144,510
200,469,430
6,036,466
11,002,577
17,039,043
(264,293,395)
228,613,940 (247,254,352)
(11,075,000)
(10,800,000)
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
218,394,491
(252,815,720)
OTHER COMPREHENSIVE INCOME (NOTE 1d)
NET INCREASE (DECREASE) IN NET ASSETS
283,689
459,565
$218,678,180 ($252,356,155)
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 increase (decrease) in unrealized appreciation
Distributions to Preferred Stockholders:
From net income
From long-term capital gains
Decrease in net assets from preferred distributions
YEAR ENDED DECEMBER 31,
2003
2002
$855,551
28,144,510
200,469,430
$5,238,632
17,039,043
(264,293,395)
(365,476)
(10,709,524)
(11,075,000)
(3,726,000)
(7,074,000)
(10,800,000)
INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
OTHER COMPREHENSIVE INCOME
218,394,491 (252,815,720)
459,565
283,689
DISTRIBUTIONS TO COMMON STOCKHOLDERS
From net income, including short-term capital gains in 2002
From long-term capital gains
DECREASE IN NET ASSETS FROM COMMON DISTRIBUTIONS
(531,570)
(15,572,788)
(16,104,358)
(6,606,164)
(12,540,285)
(19,146,449)
CAPITAL SHARE TRANSACTIONS
Value of Common Shares issued in payment of dividends (note 2)
Cost of Common Shares purchased (note 2)
Underwriting discount and other expenses associated with
the issuance of Preferred Stock (note 2)
DECREASE IN NET ASSETS - CAPITAL TRANSACTIONS
NET INCREASE (DECREASE) IN NET ASSETS
NET ASSETS APPLICABLE TO COMMON STOCK
BEGINNING OF YEAR
9,724,118
6,410,677
(28,454,956) (23,245,666)
(6,700,000)
—
(25,430,838)
177,142,984
(16,834,989)
(288,337,593)
809,192,127 1,097,529,720
END OF YEAR (including undistributed net income of $1,311,272
and $893,202, respectively)
$986,335,111 $809,192,127
(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 3
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)
463,500 CEMEX, S.A. de C.V.
(COST $11,394,095)
$12,143,700
BUILDING AND
REAL ESTATE (1.2%)
COMMUNICATIONS AND
INFORMATION SERVICES
(5.6%)
550,000 CIENA Corporation (a)
900,000 Cisco Systems, Inc. (a)
620,000 Cox Communications, Inc. Class A (a)
450,000 Juniper Networks, Inc. (a)
COMPUTER SOFTWARE
AND SYSTEMS (1.0%)
300,000 EMC Corporation (a)
350,000 VeriSign, Inc. (a)
CONSUMER PRODUCTS
AND SERVICES (2.8%)
275,000 Coca-Cola Enterprises Inc.
275,000 Ethan Allen Interiors Inc.
125,000 Newell Rubbermaid Inc.
150,000 PepsiCo, Inc.
3,608,000
21,807,000
21,359,000
8,406,000
55,180,000
3,876,000
5,705,000
9,581,000
6,014,250
11,517,000
2,846,250
6,993,000
27,370,500
(COST $31,949,019)
(COST $4,111,632)
(COST $17,111,384)
ELECTRONICS (2.1%)
692,500 Molex Incorporated Class A
(COST $14,877,393)
20,297,175
1,175,000 Republic Services, Inc.
(COST $26,227,380)
30,115,250
ENVIRONMENTAL CONTROL
(INCLUDING SERVICES) (3.0%)
FINANCE AND INSURANCE
(31.5%)
BANKING (9.5%)
100,000 Bank of America Corporation
150,000 FleetBoston Financial Corporation
335,000 Golden West Financial Corporation
310,000 M&T Bank Corporation
205,000 SunTrust Banks, Inc.
INSURANCE (19.7%)
325,000 American International Group, Inc.
1,000,000 Annuity and Life Re (Holdings), Ltd.
300 Berkshire Hathaway Inc. Class A (a)
650,000 Everest Re Group, Ltd.
330,000 John Hancock Financial Services, Inc.
435,000 MetLife, Inc.
500,000 PartnerRe Ltd.
425,000 Reinsurance Group of America, Incorporated
230,000 Transatlantic Holdings, Inc.
OTHER (2.3%)
825,000 Annaly Mortgage Management, Inc.
90,184 Central Securities Corporation
575,000 MFA Mortgage Investments, Inc.
(COST $21,970,548)
(COST $94,253,080)
(COST $17,830,051)
(COST $134,053,679)
HEALTH CARE (19.3%)
PHARMACEUTICALS (14.8%)
340,000 Alkermes, Inc. (a)
900,000 Baxter International Inc.
275,000 Biogen Idec Inc. (a)
300,000 Bristol-Myers Squibb Company
270,000 Genaera Corporation (a)
315,000 Genentech, Inc. (a)
375,000 Genta Incorporated (a)
455,000 MedImmune, Inc. (a)
120,000 Millennium Pharmaceuticals, Inc. (a)
30,000 OSI Pharmaceuticals, Inc. (a)
1,325,000 Pfizer Inc
MEDICAL INSTRUMENTS AND DEVICES (2.2%)
450,000 Medtronic, Inc.
HEALTH CARE SERVICES (2.3%)
695,000 Health Net, Inc. (a)
(COST $103,936,515)
(COST $10,483,716)
21,874,500
(COST $15,334,735)
(COST $129,754,966)
22,726,500
191,165,850
8,043,000
6,547,500
34,568,650
30,473,000
14,657,500
94,289,650
21,541,000
1,380,000
25,275,000
54,990,000
12,375,000
14,646,450
29,025,000
16,426,250
18,584,000
194,242,700
15,180,000
1,883,944
5,606,250
22,670,194
311,202,544
4,590,000
27,468,000
10,092,500
8,580,000
882,900
29,474,550
3,911,250
11,547,900
2,238,000
967,500
46,812,250
146,564,850
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 3 - 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
VALUE (NOTE 1a)
MISCELLANEOUS (0.7%)
Other
(COST $5,672,944)
$6,577,461
OIL AND NATURAL GAS
(INCLUDING SERVICES)
(5.5%)
650,000 Devon Energy Corporation
650,000 Halliburton Company
(COST $39,828,119)
RETAIL TRADE (18.8%)
700,000 Costco Wholesale Corporation (a)
SEMICONDUCTORS (2.3%)
1,920,000 The Home Depot, Inc. (b)
2,500,000 The TJX Companies, Inc.
675,000 Wal-Mart Stores, Inc.
200,000 Applied Materials, Inc. (a)
250,000 ASM International N.V. (a)
491,500 Brooks Automation, Inc. (a)
197,000 EMCORE Corporation (a)
1,644,900 IQE plc (a)
(COST $68,036,225)
(COST $21,748,875)
SPECIAL HOLDINGS
(a)(c)
(NOTE 5) (0.2%)
400,000 Cytokinetics, Incorporated Series E Preferred
144,000 Silicon Genesis Corporation
546,000 Standard MEMS, Inc. Series A Convertible Preferred
(COST $8,009,720)
37,219,000
16,900,000
54,119,000
26,026,000
68,140,800
55,125,000
35,808,750
185,100,550
4,488,000
5,060,000
11,668,210
927,870
477,021
22,621,101
2,000,000
36,000
—
2,036,000(d)
TOTAL COMMON STOCKS (94.0%)
(COST $512,775,431)
927,510,131
HEALTH CARE (1.0%)
$10,000,000 MedImmune Vaccines, Inc. 5 1/4% due 2/1/08
(COST $9,714,002)
10,250,000
CONVERTIBLE CORPORATE NOTE
SHORT-TERM SECURITIES AND OTHER ASSETS
PRINCIPAL AMOUNT
$8,800,000
29,700,000
15,300,000
25,400,000
14,000,000
34,400,000
22,500,000
100,000,000
AIG Funding, Inc. note due 2/2/04; 1.01%
American Express Credit Corporation notes due 1/5-1/27/04; 1.05%
American General Finance Corporation note due 2/5/04; 1.03%
General Electric Capital Corporation notes due 1/8-2/3/04; 1.05%-1.08%
General Motors Acceptance Corporation notes due 1/6-1/30/04; 1.36%-1.38%
Prudential Funding, LLC notes due 1/2-1/22/04; 1.02%-1.06%
Sears Roebuck Acceptance Corp. notes due 1/12-1/26/04; 1.10%-1.15%
U.S. Treasury bills due 2/26-3/18/04; 0.98%-1.00%
TOTAL SHORT-TERM SECURITIES (25.3%)
(COST $249,478,295)
Liabilities in excess of cash, receivables and other assets
TOTAL SHORT-TERM SECURITIES AND OTHER ASSETS, NET (25.2%)
PREFERRED STOCK (-20.2%)
NET ASSETS APPLICABLE TO COMMON STOCK (100%)
8,789,877
29,668,398
15,283,497
25,373,541
13,979,499
34,364,830
22,471,771
99,546,882
249,478,295
(903,315)
248,574,980
(200,000,000)
$986,335,111
(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) 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 3
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
72,000
300,000
24,100
Electronic Arts Inc.
NASDAQ - 100 Trust, Series 1
Southwest Bancorporation of Texas, Inc.
TOTAL SECURITIES SOLD SHORT
(PROCEEDS $13,684,582)
(see notes to financial statements)
VALUE (NOTE 1a)
$3,432,960
10,938,000
936,285
$15,307,245
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.
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 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 would be applied).
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 COMPREHENSIVE INCOME Pursuant to FAS 87, the Company recognizes on an amortized basis the
excess of the fair value of its pension plan assets over the present value of accumulated plan benefits.
e. 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 short-term 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, and
10,000,000 shares of Preferred Stock, $1.00 par value, of which 29,789,263 shares and 8,000,000 shares, respectively,
were outstanding at December 31, 2003.
On September 23, 2003, the Company redeemed all of its then outstanding 6,000,000 shares of 7.20% Tax-
Advantaged Cumulative Preferred Stock, Series A, at a redemption price of $25.00 per share. The Series A Preferred
Shares were issued originally on June 19,1998.
On September 24, 2003, the Company issued and sold 8,000,000 shares of its 5.95% Cumulative Preferred Stock,
Series B in an underwritten offering. The Preferred Shares are noncallable for 5 years and have a liquidation prefer-
ence of $25.00 per share plus an amount equal to accumulated and unpaid dividends to the date of redemption.
The underwriting discount and other expenses associated with the Preferred Stock offering amounted to $6,700,000
and were charged to paid-in capital.
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. If the Company fails to meet these requirements in the future and does not cure
such failure, the Company may be required to redeem in whole or in part, shares of Preferred Stock at a redemption
price of $25.00 per share plus accumulated and unpaid dividends (whether or not earned or declared). In addition,
the Company’s failure to meet the foregoing asset coverage requirements could restrict its ability to pay dividends
on shares of Common Stock and could lead to sales of portfolio securities at inopportune times.
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.
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.)
The Company classifies its Preferred Stock pursuant to the requirements of EITF D-98, Classification and
Measurement of Redeemable Securities, which require 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.
Transactions in Common Stock during 2003 and 2002 were as follows:
SHARES
AMOUNT
2003
2002
2003
2002
Shares issued in payment of dividends
(includes 334,507 and 251,893 shares
issued from treasury, respectively)
Increase in paid-in capital
Total increase
Shares purchased (at an average
discount from net asset value of
9.7% and 9.1%, respectively)
Decrease in paid-in capital
Total decrease
Net decrease
334,507
251,893
$334,507
9,389,611
9,724,118
$251,893
6,158,784
6,410,677
1,106,600
922,100
(1,106,600)
(27,348,356)
(28,454,956)
($18,730,838)
(922,100)
(22,323,566)
(23,245,666)
($16,834,989)
At December 31, 2003, the Company held in its treasury 1,442,300 shares of Common Stock with an aggre-
gate cost in the amount of $28,752,939.
Distributions for tax and book purposes are substantially the same.
As of December 31, 2003, the components of distributable earnings on a tax basis were as follows:
Undistributed ordinary income
Undistributed long-term gains
Unrealized appreciation
$359,332
2,876,071
413,648,035
$416,883,438
3. OFFICERS’ COMPENSATION AND RETIREMENT AND THRIFT PLANS
The aggregate compensation paid by the Company during 2003 and 2002 to its officers amounted to $4,994,000
and $4,419,000, 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 2003 amounted to
on long transactions $205,428,471 and $140,604,387, respectively, and on short sale transactions $5,283,161 and
$12,815,368, respectively.
At December 31, 2003, the cost of investments for Federal income tax purposes was the same as the cost for
financial reporting purposes.
5. RESTRICTED SECURITIES
Cytokinetics, Incorporated Series E Preferred
Silicon Genesis Corporation
Standard MEMS, Inc. Series A Convertible Preferred
Total
DATE
ACQUIRED
3/21/03
2/16/01
12/17/99
COST
$2,000,000
3,006,720
3,003,000
$8,009,720
VALUE
(NOTE 1a)
$2,000,000
36,000
—
$2,036,000
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 $304,600 for 2003. Minimum rental commitments under the operating lease are
approximately $505,000 per annum in 2004 through 2007.
In January 2003, the Company extended a sublease agreement (originally entered into in March 1996) which expires
in 2007 and provides for future rental receipts. Minimum rental receipts under the sublease are approximately
$254,000 per annum in 2004 through 2007. The Company will also receive its proportionate share of operating
expenses and real property taxes under the sublease.
7. SUBSEQUENT EVENT
On January 14, 2004, the Board of Directors declared on the Common Stock a dividend of $2,878,743 from net
long-term capital gains and a dividend of $385,811 from ordinary income. These dividends are payable in cash on
February 9, 2004.
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, 2003.
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
2003
2002
2001
2000
1999
$26.48
.02
$35.14
.17
$39.91
.39
$41.74
.51
$34.87
.44
and unrealized
7.72
(7.88)
(.66)
6.12
11.32
Distributions on Preferred Stock:
Dividends from investment income
Distributions from capital gains
Total from investment operations
Other comprehensive income
Less distributions on Common Stock:
Dividends from investment income
Distributions from capital gains
(.01)
(.35)
(.36)
7.38
.01
(.02)
(.52)
(.54)
(.12)
(.23)
(.35)
(8.06)
.02
(.07)(a)
(.29)
(.36)
(.63)
(.11)(b)
(.29)
(.40)
6.23
(.07)(c)
(.35)
(.42)
11.34
.02
.02
.01
(.21)(d)
(.41)
(.62)
(.88)(e)
(3.28)
(4.16)
(2.30)(f)
(5.78)
(8.08)
(.71)(g)
(3.77)
(4.48)
Capital Stock transaction -
effect of Preferred Stock offering
Net asset value, end of year
Per share market value, end of year
(.22)
$33.11
$29.73
—
$26.48
$23.85
—
$35.14
$33.47
—
$39.91
$36.00
—
$41.74
$37.19
TOTAL INVESTMENT RETURN - Stockholder
Return, based on market price per share
27.01%
(27.21)%
4.33%
19.10%
39.22%
RATIOS AND SUPPLEMENTAL DATA
Net assets applicable to Common Stock,
end of year (000’s omitted)
$986,335
$809,192 $1,097,530 $1,155,039 $1,094,519
Ratio of expenses to average net assets
applicable to Common Stock
1.26%
0.97%
1.02%
1.09%
1.01%
Ratio of net income to average net assets
applicable to Common Stock
Portfolio turnover rate
0.10%
18.62%
0.56%
22.67%
1.10%
23.81%
1.20%
40.61%
1.22%
33.68%
PREFERRED STOCK
Liquidation value, end of year
(000’s omitted)
Asset coverage
Liquidation preference per share
Market value per share
$200,000
593%
$150,000
639%
$150,000
832%
$150,000
870%
$150,000
830%
$25.00
$25.04
$25.00
$25.85
$25.00
$25.90
$25.00
$24.25
$25.00
$21.75
(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, 2003, 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, 2003, 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, 2003, 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, 2004
O F F I C E R S
NAME (AGE)
EMPLOYEE SINCE
Spencer Davidson (61)
1994
Andrew V. Vindigni (44)
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 (55)
1974
Vice-President 1991
securities trader
Diane G. Radosti (51)
Treasurer 1990
1980
Principal Accounting
Officer 2003
Eugene L. DeStaebler, Jr. (65) Vice-President,
Carole Anne Clementi (57) 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 organiza-
tion 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
State Street Bank and 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 ( 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 (72)
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. (39)
1995
Managing Member
Diaz & Altschul Capital
Management, LLC
(investments and securities)
Delta Opportunity Fund, Ltd., Director
Medicis Pharmaceutical Corporation, Director
Neurosciences Research Foundation, Trustee
Lewis B. Cullman (85)
1961
Managing Member
Cullman Ventures LLC
(formerly Cullman Ventures, Inc.) Museum of Modern Art, Vice Chairman,
Chess-in-the-Schools, Chairman, Board of Trustees
Metropolitan Museum of Art, Honorary Trustee
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 (74)
1976
John D. Gordan, III (58)
1986
Sidney R. Knafel (73)
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 (73)
1971
President
Richard R. Pivirotto Co., Inc.
(self-employed consultant)
General Theological Seminary, Trustee
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. (74)
1987
Corporate director and trustee
Executive Consultant
Johnson & Johnson (1990-1999) Marine Biological Laboratory, Member,
Foundation of the University of
Medicine and Dentistry of New Jersey, Trustee
Raymond S. Troubh (77)
1989
Financial Consultant
Advisory Council
United States Merchant Marine Academy, Trustee,
Board of Advisors
Diamond Offshore Drilling, Inc., Director
Enron Corp., Chairman, Board of Directors
Gentiva Health Services, Inc., Director
Petrie Stores Liquidating Trust, Trustee
Triarc Companies, Inc., Director
WHX Corporation, Director
INSIDE (“INTERESTED”) DIRECTOR
Spencer Davidson (61)
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