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General American Investors Company, Inc.

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FY2015 Annual Report · General American Investors Company, Inc.
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General American Investors Company, Inc.
100 Park Avenue, New York, NY  10017
(212) 916-8400   (800) 436-8401
E-mail: InvestorRelations@gainv.com
www.generalamericaninvestors.com

G E N E R A L
A M E R I C A N 
I N V E S T O R S

2 0 1 5
A N N U A L
R E P O R T

GENERAL AMERICAN INVESTORS COMPANY, INC.

Established in 1927, the Company is a closed-end investment company listed on the 

New York Stock Exchange. Its objective is long-term capital appreciation through

investment in companies with above average growth potential.

FINANCIAL SUMMARY (unaudited)

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 

Common Shares outstanding-Dec. 31 
Market price range* (high-low) 
Market volume-shares 

*Unadjusted for dividend payments.

2015 

2014

$1,068,028,205 
13,728,242 
34,130,660 
(76,268,833) 
(11,311,972) 

$1,227,899,705
9,735,291
102,101,749
(27,988,358)
(11,311,972)

$37.74 
$31.94 
-15.4% 

$39.77
$35.00
-12.0%

28,296,697 
$35.98-$30.46 
16,381,264 

30,871,844
$38.27-$32.31
9,864,111

DIVIDEND SUMMARY (per share) (unaudited)

Record Date 

Payment Date 

Ordinary 
Income 

Long-Term  
Capital Gain 

Total

Common Stock

Nov. 16, 2015 
Feb. 1, 2016 
  Total from 2015 earnings  

Dec. 30, 2015 
Feb. 12, 2016 

$0.340000 
0.051500 
$0.391500 

$0.810000 
0.048500 
$0.858500 

 $1.150000
0.100000
$1.250000

Nov. 17, 2014 
  Total from 2014 earnings 

Dec. 30, 2014 

$0.574766 (a) 

$2.925234 

 $3.500000

(a) Includes short-term gains in the amount of $.253614.

Preferred Stock

Mar. 9, 2015 
Jun. 8 2015 
Sept. 7, 2015 
Dec. 7, 2015 
  Total for 2015 

Mar. 7, 2014 
Jun. 9, 2014 
Sept. 8, 2014 
Dec. 8, 2014 

Total for 2014 

Mar. 24, 2015 
Jun. 24, 2015 
Sept. 24, 2015 
Dec. 24, 2015 

Mar. 24, 2014 
Jun. 24, 2014 
Sept. 24, 2014 
Dec. 24, 2014 

$.109946 
.109946 
.109946 
.109946 
$.439784  

$.061069 
.061069 
.061069 
.061069 
$.244276 (b) 

$.261929 
.261929 
.261929 
.261929 
$1.047716 

$.310806 
.310806 
.310806 
.310806 
$1.243224 

 $.371875
.371875
.371875
.371875
 $1.487500

 $.371875
.371875
.371875
.371875
 $1.487500

(b) Includes short-term gains in the amount of $.107786 per share ($.0269465 per quarter).

T O   T H E   S T O C K H O L D E R S

G e n e r a l   A m e r i c a n   I n v e s t o r s

General American Investors Company, Inc.
100 Park 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

General  American  Investors’  net  asset  value  (NAV)  per 

Common  Share  (assuming  reinvestment  of  all  dividends) 
decreased  1.6%  for  the  year  ended  December  31,  2015.    The 
U.S. stock market was up 1.4% for the year, as measured by our 
benchmark, the Standard & Poor’s 500 Stock Index (including 
income).    The  return  to  our  Common  Stockholders  decreased 
by  5.3%  and  the  discount  at  which  our  shares  traded  to  their 
NAV continued to fluctuate and on December 31, 2015, it was 
15.4%.

The  table  that  follows  provides  a  comprehensive  presentation 
of  our  performance  and  compares  our  returns  on  an  annual-
ized basis with the S&P 500.  

Years 

Stockholder Return
(Market Value) 

NAV Return 

S&P 500

  3 

  5 

  10 

  20 

  30 

  40 

  50 

11.6% 

11.5% 

9.6 

5.2 

10.6 

11.5 

14.2 

11.3 

9.5 

5.2 

10.3 

11.7 

13.6 

11.6 

15.1%

12.6

7.3

8.2

10.3

11.3

9.7

Over  the  past  three  years,  we  have  commented  on  the  de-
viation  between  the  U.S.  economy’s  modest  growth  and  the 
equity  market’s  strong  performance,  with  expansion  in  the 
price-to-earnings  multiple  accounting  for  nearly  56%  of  those 
gains.  With the Fed recently raising interest rates, a period of 
convergence may have begun.

The  near  zero  return  of  the  S&P  500  during  2015  masked  a 
market characterized by divergences between growth and value 
investing, large and small capitalized equity performance, and 
large disparities in performance between sectors, especially the 
surprisingly  strong  performance  of  a  few  internet  stocks.    For 
2015,  56%  of  the  stocks  in  the  Russell  2000  were  down  more 
than 20% from their highs.  We fared comparatively well due 
in  part  to  shares  of  companies  in  the  bio-technology,  select 
technology  and  consumer  discretionary  sectors.    We  also  en-
joyed  positive  performance  of  companies  that  were  acquired, 
namely:  Platinum  Underwriters,  PartnerRe  Insurance,  EMC, 
and  Towers  Watson.    Detracting  were  shares  of  energy,  select 
industrials and a few financial companies.  

The  U.S.  economy  has  maintained  a  modest  advance  for  the 
past  year  with  GDP  rising  2.1%,  a  deceleration  from  the  prior 
year.    For  the  consumer,  low  inflation  due  to  falling  com-
modity  and  food  prices  and  strong  employment  growth  have 
improved  income  levels,  savings  rates  and  balance  sheets.  
Home and auto sales continue to improve, the latter reaching 
a  level  on  par  with  2007  albeit  on  elevated  sub-prime  loans.  
The average age of a car in the U.S. remains high at 11+ years, 
suggesting the improvement may last longer than prior cycles. 

Unfortunately,  inventories  throughout  the  economy  have 
been elevated for the past two quarters and industrial produc-
tion has slowed demonstrably as the strong dollar and related 
impacts from commodity markets has muted exports in dollar 
terms.    Changing  consumer  behavior  may  have  also  contrib-
uted  to  an  increase  in  the  household  savings  rate,  reducing 
consumption  from  its  pace  earlier  in  the  year  amidst  higher 
than expected health insurance costs, rent, and concerns over 
geo-politics.

Weakness in energy prices has challenged all U.S. energy-relat-
ed companies leading to credit quality concerns.  Historically, 
widening  credit  spreads  due  to  credit  deterioration  portend 
future  economic  difficulty.    With  the  Federal  Reserve  initiat-

ing its first interest rate increase since 2006 amidst weakening 
growth,  it  would  seem  unlikely  that  rates  will  increase  much 
over the next several quarters.   Europe continues to improve, 
but  recent  turmoil  in  the  Middle  East  and  the  related  refugee 
crisis  has  taxed  the  EU,  both  financially  and  politically,  pos-
sibly  leading  to  slower  growth  over  the  near  term.    China, 
though  accounting  for  less  than  2%  of  U.S.  exports  has  ac-
counted for nearly 46% of global growth over the past 5 years 
and may have reached a near term peak in its contribution to 
world GDP.  This has negatively impacted emerging economies 
that rely heavily on the production of base materials.  

In sum, the post crisis world economy remains constrained by 
excess capacity, leverage and geopolitical turmoil.  These head-
winds  are  countered  by  low  interest  rates,  low  inflation  and 
GDP growth in the U.S. and Europe.  U.S. companies, particu-
larly  multi-nationals,  have  been  buffeted  by  currency  effects, 
slowing  worldwide  growth  and  reduced  trade  as  measured  in 
U.S.  dollars.  These  risks  appear  to  be  discounted  in  valuations 
assuming  no  exogenous  shocks.    Low  prices  for  energy  will 
do  their  part  in  removing  excess  capacity  over  time  and  it  re-
mains  unclear  if  Saudi  Arabia’s  strategy  of  flooding  the  world 
with oil and gaining market share will result in more power or 
weakness  as  the  country  faces  the  potential  for  massive  bud-
get  deficits.    Despite  short  term  pain  for  producers,  it  seems 
reasonable to assume lower prices for fuel are a net positive to 
global GDP over time.  

In  the  interim,  given  geopolitical  uncertainties  and  a  slowing 
worldwide  expansion,  the  U.S.  may  experience  a  period  of 
decelerating  growth  and  as  a  result  equity  markets  may  expe-
rience  higher  volatility.    Over  the  longer  term,  U.S.  equities, 
remain  the  better  alternative  to  fixed  income  securities  as 
many  of  them  have  dividend  yields  that  compare  favorably 
to  bonds  and  possess  a  growth  rate  linked  to  global  GDP.  
Companies  paying  dividends  with  room  to  grow  them  will 
garner  more  attention  this  year  as  growth  appears  modest 
globally.  For the longer term, few assets will provide investors 
with a greater return than equities. Reinvested dividends form 
the  cornerstone  of  equity  returns.  Since  1935  approximately 
44%  of  the  total  return  of  the  S&P  500  is  due  to  reinvested 
dividends.

We are pleased to report that, on October 14, 2015, Mr. Henry 
R.  Schirmer  was  appointed  to  the  Board  of  Directors  of  the 
Company.    Mr.  Schirmer  is  the  Chief  Financial  Officer  and 
Senior  Vice  President,  Finance  for  Unilever  North  America.  
Mr.  Schirmer’s  extensive  experience  in  finance,  informa-
tion  technology,  mergers  and  acquisitions,  supply  chain 
operations,  marketing  and  sales  will  be  of  great  value  to  the 
Company in the future.

As announced on December 16, 2015, Maureen E. LoBello, an 
employee of the Company for the last twenty-three years and 
Corporate  Secretary  since  January  1,  2013,  retired  effective 
December 31, 2015.  Effective January 1, 2016, Linda J. Genid, 
who  has  been  an  employee  of  the  Company  since  1983  and 
Assistant  Corporate  Secretary  since  January  1,  2014,  was  ap-
pointed Corporate Secretary.

Information  about  the  Company,  including  our  investment 
objectives,  operating  policies  and  procedures,  investment  re-
sults, 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,
Jeffrey W. Priest
President and Chief Executive Officer

January 20, 2016

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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  companies.  It  is  an 
independent  organization  that 
is  internally  managed.  For  reg-
ulatory purposes, the Company is classified as 
a  diversified,  closed-end  management  invest-
ment company; it is registered under and sub-
ject  to  the  Investment  Company  Act  of  1940 
and  Sub-Chapter  M  of  the  Internal  Revenue 
Code.

Investment
Policy

The  primary  objective  of  the 
Company  is  long-term  capital 
appreciation.    Lesser  emphasis 
is  placed  on  current  income.  
In  seeking  to  achieve  its  pri-
mary  objective,  the  Company  invests  prin-
cipally  in  common  stocks  believed  by  its 
management  to  have  better  than  average 
growth potential.

The  Company’s  investment  approach  focuses 
on  the  selection  of  individual  stocks,  each  of 
which  is  expected  to  meet  a  clearly  defined 
portfolio  objective.    A  continuous  investment 
research  program,  which  stresses  fundamental 
security  analysis,  is  carried  on  by  the  officers 
and staff of the Company under the oversight 
of  the  Board  of  Directors.    The  Directors  have 
a  broad  range  of  experience  in  business  and 
financial affairs.  

Portfolio 
Manager

Mr.  Jeffrey  W.  Priest,  has  been 
President  of  the  Company 
since  February  1,  2012  and 
has  been  responsible  for  the 
management  of  the  Company 
since  January  1,  2013  when 
he  was  appointed  Chief  Executive  Officer 
and  Portfolio  Manager.    Mr.  Priest  joined  the 
Company  in  2010  as  a  senior  investment 
analyst  and  has  spent  his  entire  30-year  busi-
ness career on Wall Street.  Mr. Priest succeeds  
Mr.  Spencer  Davidson  who  served  as  Chief 
Executive  Officer  and  Portfolio  Manager 
from  1995  through  2012.    Mr.  Davidson  re-
mains  closely  involved  in  the  Company  as  its 
Chairman of the Board of Directors. Common 
Stock

“GAM” 
Common
Stock 

As  a  closed-end  investment 
company,  the  Company  does 
not  offer  its  shares  continu-
ously.    The  Common  Stock  is 
listed  on  The  New  York  Stock 
Exchange  (symbol,  GAM)  and 
can  be  bought  or  sold  in  the  same  manner  as 
all  listed  stocks.    Net  asset  value  is  computed 
and published on the Company’s website daily 
(on  an  unaudited  basis)  and  is  also  furnished 
upon  request.    It  is  also  available  on  most 
electronic quotation services using the symbol 
“XGAMX.”    Net  asset  value  per  share  (NAV), 
market  price,  and  the  discount  or  premium 
from NAV as of the close of each week, is pub-
lished  in  Barron’s  and  The  Wall  Street  Journal, 
Monday edition.

While  shares  of  the  Company  usually  sell  at 
a  discount  to  NAV,  as  do  the  shares  of  most 
other  domestic  equity  closed-end  invest-
ment  companies,  they  occasionally  sell  at  a 
premium  over  NAV.    During  2015,  the  stock 
sold  at  discounts  to  NAV  which  ranged  from 
12.7% (March 10) to 18.0% (September 8).   At 
December  31,  the  price  of  the  stock  was  at  a 
discount of 15.4%.

Since  March  1995,  the  Board  of  Directors  has 
authorized  the  repurchase  of  Common  Stock 
in  the  open  market  when  the  shares  trade  at 
a  discount  to  net  asset  value  of  at  least  8%.  
To  date,  22,175,848  shares  have  been  repur-
chased.

“GAM Pr B” 
Preferred
Stock

On  September  24,  2003,  the 
Company  issued  and  sold  in 
a n   u n d e r w r i t t e n   o f f e r i n g 
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  rated 
“A1”  by  Moody’s  Investors  Service,  Inc.  and 
are  listed  and  traded  on  The  New  York  Stock 
Exchange  (symbol,  GAM  Pr  B).    The  Preferred 
Shares are available to leverage the investment 
performance  of  the  Common  Stockholders; 
higher  market  volatility  for  the  Common 
Stockholders may result.

The  Board  of  Directors  has  authorized  the  re-
purchase  of  up  to  1  million  Preferred  Shares 
in  the  open  market  at  prices  below  $25  per 
share.    To  date,  395,313  shares  have  been  re-
purchased.

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

Dividend
and 
Distribution 
Policy

The  Company’s  dividend  and 
distribution  policy  is  to  dis-
tribute  to  stockholders  before 
year-end  substantially  all  or-
dinary  income  estimated  for 
the  full  year  and  capital  gains 
realized  during  the  ten-month  period  ended 
October 31 of that year.  If any additional capi-
tal gains are realized and available or ordinary 
income  is  earned  during  the  last  two  months 
of the year, a “spill-over” distribution of these 
amounts  may  be  paid.    Dividends  and  distri-
butions  on  shares  of  Preferred  Stock  are  paid 
quarterly.  Distributions from capital gains and 
dividends  from  ordinary  income  are  allocated 
proportionately  among  holders  of  shares  of 
Common Stock and Preferred Stock.  

Dividends  from  income  have  been  paid  con-
tinuously  on  the  Common  Stock  since  1939 
and  capital  gain  distributions  in  varying 
amounts  have  been  paid  for  each  of  the  years 
1943-2015 (except for the year 1974).  (A table 
listing dividends and distributions paid during 
the  20-year  period  1996-2015  is  shown  at  the 
bottom  of  page  4.)    To  the  extent  that  shares 
can  be  issued,  dividends  and  distributions  are 
paid  to  Common  Stockholders  in  additional 
shares of Common Stock unless the stockhold-
er specifically requests payment in cash.  

Proxy Voting 
Policies, 
Procedures  
and Record

The  policies  and  procedures 
used  by  the  Company  to  de-
termine  how  to  vote  proxies 
relating  to  portfolio  securities 
and  the  Company’s  proxy 
voting  record  for  the  12-
month  period  ended  June 
30,  2015  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  www.generalamerican-
investors.com  and  (3)  on  the  Securities  and 
Exchange  Commission’s  website  at  www.sec.
gov.

Direct 
Registration

The  Company  makes  avail-
able  direct  registration  for 
its  Common  Shareholders.  
Direct  registration,  which  is 
an  element  of  the  Investors 
Choice  Plan  administered  by 
our  transfer  agent,  is  a  system  that  allows  for 
book-entry  ownership  and  electronic  trans-
fer  of  our  Common  Shares.    Accordingly, 
when  Common  Shareholders,  who  hold  their 
shares  directly,  receive  new  shares  resulting 
from  a  purchase,  transfer  or  dividend  pay-
ment,  they  will  receive  a  statement  showing 
the  credit  of  the  new  shares  as  well  as  their 
Plan  account  and  certificated  share  balanc-
es.    A  brochure  which  describes  the  features 
and  benefits  of  the  Investors  Choice  Plan,  in-
cluding  the  ability  of  shareholders  to  deposit 
certificates  with  our  transfer  agent,  can  be 
obtained by calling American Stock Transfer & 
Trust Company at 1-800-413-5499, calling the 
Company  at  1-800-436-8401  or  visiting  our 
website:    www.generalamericaninvestors.com 
- click on Distributions & Reports, then Report 
Downloads.

Privacy  
Policy and 
Practices

The  Company  collects  non-
public  personal  information 
about  its  customers  (stock-
holders)  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 identifi-
cation or Social Security number and dividend 
elections.  We  do  not  have  knowledge  of,  nor 
do  we  collect  personal  information  about, 
stockholders  who  hold  the  Company’s  securi-
ties  at  financial  institutions  in  “street  name” 
registration.

We  do  not  disclose  any  nonpublic  personal 
information about our current or former stock-
holders to anyone, except as permitted by law.  
We  also  restrict  access  to  nonpublic  personal 
information  about  our  stockholders  to  those 
few  employees  who  need  to  know  that  infor-
mation  to  perform  their  responsibilities.    We 
maintain  safeguards  that  comply  with  federal 
standards  to  guard  our  stockholders’  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 in-
vestment for 20 years ended 
December 31, 2015

This table shows dividends 
and distributions on the 
Company’s Common Stock 
for the prior 20-year period. 
Amounts shown are based 
upon the year in which the 
income was earned, not the 
year paid.  Spill-over pay-
ments made after year-end 
are attributable to income 
and gains earned in the 
prior year.

T he investment return for a Common Stockholder of General American Investors (GAM) 

over the 20 years ended December 31, 2015 is shown in the table below and in the 
accompa ny ing 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 illustration assumes an investment of $10,000 at the beginning of 1996.

Stockholder Return is the return a Common Stock holder of GAM would have achieved assum-
ing reinvestment of all dividends and distributions at the actual reinvestment price and of all 
cash dividends at the average (mean between high and low) market price on the ex-dividend 
date.

Net Asset Value (NAV) Return is the return on shares of the Company’s Common Stock based 
on the NAV per share, including the reinvestment of all dividends and distributions at the rein-
vestment prices indicated above.

Standard & Poor’s 500 Return is the time-weighted total rate of return on this widely-recog-
nized, unmanaged index which is a measure of general stock market performance, including 
dividend income.

Past performance may not be indicative of future results.

The following tables and graph do not reflect the deduction of taxes that a stockholder would pay 
on Company distributions or the sale of Company shares.

GENERAL AMERICAN INVESTORS 

STOCKHOLDER RETURN 

CUMULATIVE 
INVESTMENT 

   ANNUAL 
   RETURN 

NET ASSET VALUE RETURN 
   ANNUAL 
   RETURN 

CUMULATIVE 
INVESTMENT 

STANDARD & POOR’S 500
RETURN

CUMULATIVE 
 INVESTMENT 

   ANNUAL
   RETURN

$11,948 

19.48% 

$11,997 

19.97% 

$12,291 

22.91%

17,035 

22,369 

31,142 

37,091 

38,697 

28,167 

35,775 

38,920 

45,692 

53,359 

58,012 

30,050 

41,127 

47,806 

45,277 

54,228 

72,785 

79,569 

75,320 

42.58 

31.31 

39.22 

19.10 

4.33 

-27.21 

27.01 

8.79 

17.40 

16.78 

8.72 

-48.20 

36.86 

16.24 

-5.29 

19.77 

34.22 

9.32 

-5.34 

15,842 

21,409 

29,202 

34,353 

33,941 

26,128 

33,287 

36,738 

42,690 

47,915 

51,753 

29,489 

38,949 

44,912 

43,623 

51,174 

68,231 

72,638 

71,505 

32.05 

35.14 

36.40 

17.64 

-1.20 

-23.02 

27.40 

10.37 

16.20 

12.24 

8.01 

-43.02 

32.08 

15.31 

-2.87 

17.31 

33.33 

6.46 

-1.56 

16,388 

21,066 

25,482 

23,165 

20,411 

15,892 

20,431 

22,635 

23,729 

27,445 

28,929 

18,205 

23,020 

26,487 

27,052 

31,377 

41,546 

47,234 

47,900 

33.33

28.55

20.96

-9.09

-11.89

-22.14

28.56

10.79

4.83

15.66

5.41

-37.07

26.45

15.06

2.13

15.99

32.41

13.69

1.41

1996 

1997 

1998 

1999 

2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

D I V I D E N D S   A N D   D I S T R I B U T I O N S   P E R   C O M M O N   S H A R E   ( 1 9 9 6 - 2 0 1 5 )     ( U N A U D I T E D )

EARNINGS SOURCE

     SHORT-TERM       LONG-TERM

  YEAR     INCOME  CAPITAL GAINS   CAPITAL GAINS 
$.050 
  1996 
— 
  1997 
— 
  1998 
.620 
  1999 
1.550 
  2000 
.640 
  2001 
  2002 
— 
— 
  2003 
— 
  2004 
.041 
  2005 

$2.710
2.950
4.400
4.050
6.160
1.370
.330
.590
.957
1.398 

$.200 
.210 
.470 
.420 
.480 
.370 
.030 
.020 
.217 
.547 

EARNINGS SOURCE

        SHORT-TERM         LONG-TERM      RETURN OF

  YEAR     INCOME  CAPITAL GAINS    CAPITAL GAINS      CAPITAL

  2006 
  2007 
  2008 
  2009 
  2010 
  2011 
  2012 
  2013 
  2014 
  2015 

$.334 
.706 
.186 
.103 
.081 
.147 
.215 
.184 
.321 
.392 

— 
$.009 
— 
.051 
.033 
.011 
.015 
— 
.254 
— 

$2.666 
5.250 
.254 
.186 
.316 
.342 
1.770 
1.916 
2.925 
.858 

—
—
—
$.010
—
—
—
—
—
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
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  

COMPARATIVE ANNUALIZED INVESTMENT RESULTS

YEARS ENDED 
 DECEMBER 31, 2015 

STOCKHOLDER 
RETURN 

GAM NET 
ASSET VALUE 

S&P 500
STOCK INDEX

-5.3% 

-1.6% 

1.4%

1 year 

5 years 

  10 years 

  15 years 

9.6 

5.2 

4.9 

9.5 

5.2 

5.0 

12.6

7.3

5.0

8.2

  20 years 

10.6 

10.3 

$100,000

$75,000

$50,000

$25,000

6

9

9

1

7

9

9

1

8

9

9

1

9

9

9

1

0

0

0

2

1

0

0

2

2

0

0

2

3

0

0

2

4

0

0

2

5

0

0

2

6

0

0

2

7

0

0

2

8

0

0

2

9

0

0

2

0

1

0

2

1

1

0

2

2

1

0

2

3

1

0

2

4

1

0

2

5

1

0

2

GAM Stockholder Return

GAM Net Asset Value

S&P 500 Stock Index

$0

 
 
 
 
 
6

M A J O R   S T O C K   C H A N G E S ( a ) :   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 1 5   ( 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

Applied DNA Sciences, Inc. - Warrants 

  Cempra, Inc. 

NET SHARES TRANSACTED 
578,591 
324,409 

SHARES HELD
281,409  (b)
494,409   (b)

ADDITIONS

Anadarko Petroleum Corporation 

  Hertz Global Holdings, Inc. 
  M&T Bank Corporation 
  Nelnet, Inc. 

Synchronoss Technologies, Inc. 

DECREASES:

ELIMINATIONS

  Ciena Corporation 
Target Corporation 

REDUCTIONS

Apple Inc. 

  Costco Wholesale Corporation 

EMC Corporation 
Ensco plc - Class A 
FCB Financial Holdings, Inc. 
Intel Corporation 
Intra-Cellular Therapies Inc. 

  Occidental Petroleum Corporation 
  QUALCOMM Incorporated 
Repros Therapeutics Inc. 
Republic Services, Inc. 
  Ultra Petroleum Corp. 
  Verint Systems Inc. 

8,000  
50,000 
28,493   (c) 
31,500 
25,000 

496,000  
216,300 

50,000 
64,019 
55,000 
230,000 
85,000 
328,200 
62,700 
45,500 
75,000 
112,937 
64,300 
652,900 
60,400 

218,000
795,064
153,493
520,000
425,534

-----
-----

344,000
243,781
560,000
385,000
300,000
505,500
182,442
154,500
461,200
396,123
972,800
150,903
130,886

(a)  Common shares unless otherwise noted; excludes transactions in Common Stocks - Miscellaneous - Other.
(b)  Shares purchased in prior period and previously carried under Common Stocks - Miscellaneous - Other.
(c)  Shares received in a merger with Hudson City Bancorp, Inc.

P O R T F O L I O   D I V E R S I F I C A T I O N   ( U N A U D I T E D )

                   DECEMBER 31, 2015

COST(000) 

VALUE(000) 

% COMMON 
NET ASSETS

The diversification of the 
Company’s net assets 
applicable to its Common 
Stock by industry group as 
of December 31, 2015 is 
shown in the table.

INDUSTRY CATEGORY 
 Financials
   Banks 
   Diversified Financials 
   Insurance 

 Information Technology
   Semiconductors & Semiconductor Equipment 
   Software & Services 
   Technology Hardware & Equipment 

 Consumer Staples
   Food, Beverage & Tobacco 
   Food & Staples Retailing 

 Industrials
   Capital Goods 
   Commercial & Professional Services 
   Transportation 

$9,918 
25,490 
41,708 
77,116 

15,210 
38,968 
57,965 
112,143 

69,831 
7,370 
77,201 

61,692 
27,451 
14,793 
103,936 

$29,337 
55,296 
170,754 
255,387 

35,244 
58,065 
101,271 
194,580 

123,172 
39,371 
162,543 

71,842 
74,047 
11,314 
157,203 

 Health Care
   Pharmaceuticals, Biotechnology & Life Sciences 

75,945 

146,498 

 Consumer Discretionary
   Automobiles & Components 
   Retailing 

 Energy 
 Miscellaneous* 
 Telecommunication Services 
 Materials 

 Short-Term Securities 
   Total Investments 
 Other Assets and Liabilities - Net 
 Preferred Stock 
   Net Assets Applicable to Common Stock 

16,175 
5,255 
21,430 

86,758 
37,900 
23,341 
17,928 
633,698 
106,006 
$739,704 

17,811 
88,259 
106,070 

76,923 
32,485 
22,061 
9,112 
1,162,862 
106,006 
1,268,868 
(10,723) 
(190,117) 
$1,068,028 

 *  Securities which have been held for less than one year, not previously disclosed and not restricted.

2.7%
5.2
16.0
23.9

3.3
5.5
9.5
18.3

11.5
3.7
15.2

6.7
6.9
1.1
14.7

13.7

1.6
8.3
9.9

7.2
3.0
2.1
0.9
108.9
9.9
118.8
(1.0)
(17.8)
100.0%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2015, 
shown on pages 8 - 10 
includes 56 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 the leading
off-price retailer. The continued growth of these divisions in the
U.S. and Europe, along with expansion of related U.S. and foreign
off-price formats, provide ongoing growth opportunities.

SHARES 

VALUE 

% COMMON
NET ASSETS 

1,244,668 

$88,259,408 

8.3%

ARCH CAPITAL GROUP LTD. 
Arch Capital, a Bermuda-based insurer/reinsurer, generates premiums
of approximately $5 billion and has a high quality, well-reserved
A+ rated balance sheet.  This company has a strong management team
that exercises prudent underwriting discipline, efficient expense
control, and steady capital management resulting in above-average 
earnings and book value growth. 

700,000 

438,600 

GILEAD SCIENCES, INC. 
Gilead Sciences is a U.S. based biotechnology company that discovers,
develops and commercializes therapeutics. Originally founded to focus
predominantly on antiviral drugs to treat patients with HIV, Hepatitis B,
CMV, influenza and most recently, Hepatitis C, the company has expanded
its reach into cardiopulmonary medicine and oncology and other related areas.
REPUBLIC SERVICES, INC. 
Republic Services is a leading provider of non-hazardous, solid
waste collection and disposal services in the U.S.  The efficient
operation of its routes and facilities combined with appropriate
pricing enables Republic Services to generate significant free cash flow.
COSTCO WHOLESALE CORPORATION 
Costco is the world’s largest wholesale club with a record of steady
growth in sales and profits as it continues to gain share of the
consumer dollar in the U.S. and overseas. 

243,781 

972,800 

MICROSOFT CORPORATION 
Microsoft is a leading global provider of software services and
hardware devices.  The company produces the Windows operating
system, Office productivity suite, Azure public cloud service, and Xbox
gaming console.

680,686 

APPLE INC. 
Apple designs, manufactures and markets mobile communications
and media devices, personal computers and portable digital music
players.  It also sells device related software, services, peripherals and
third-party content and applications.  The company’s growth pro-
spects look favorable as the shift to mobile computing expands globally
and as more products and services are added to the Apple ecosystem.

344,000 

48,825,000 

4.6

44,381,934 

4.1

42,793,472 

4.0

39,370,631 

3.7

37,764,459 

3.5

36,209,440 

3.4

PARTNERRE LTD. 
PartnerRe, a Bermuda-based global reinsurer, generates annual 
premiums of approximately $6 billion, has a quality investment 
portfolio and a conservative, well-reserved A+ rated balance sheet.  
This well-managed organization exercises prudent underwriting 
discipline and superior capital management resulting in above 
earnings and book value growth.

NESTLÉ S.A. 
Nestlé is a well-managed global food company with a
favorably-positioned product portfolio and an excellent
AA rated balance sheet.  Solid volume growth, strong pricing
power, expense control and steady capital management yield
durable, above-average, long-term total return potential.

253,361 

35,404,666 

3.3

450,000 

33,497,253 

3.1

GENERAL ELECTRIC COMPANY 
General Electric is a global industrial and technology company. 
The company aims to generate 75% of its earnings from industrial 
businesses upon completion of the exit from most of its financial 
businesses. The company’s diverse mix of infrastructure businesses, 
many with leading market positions, forms the foundation of 
management’s focus upon shareholder value via earnings growth, 
optimization of profitability, and returning capital through dividends 
and share repurchases.

1,015,000 

31,617,250 

3.0

$438,123,513 

41.0%

 
 
 
8

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 1 5

G e n e r a l   A m e r i c a n   I n v e s t o r s

CONSUMER 
DISCRETIONARY
(9.9%)

CONSUMER  STAPLES       
(15.2%)

SHARES 

COMMON STOCKS 

AUTOMOBILES AND COMPONENTS (1.6%)
1,264,063  Ford Motor Company 

 RETAILING (8.3%)
1,244,668  The TJX Companies, Inc. 

FOOD, BEVERAGE AND TOBACCO (11.5%)

201,174  Danone 
237,400  Diageo plc ADR 
450,000  Nestlé S.A. 
195,000  PepsiCo, Inc. 
704,378  Unilever N.V. 

ENERGY
(7.2%)

FOOD AND STAPLES RETAILING (3.7%)

243,781  Costco Wholesale Corporation 

218,000  Anadarko Petroleum Corporation 
230,900  Apache Corporation 
1,572,819  Cameco Corporation 
385,000  Ensco plc - Class A 
585,000  Halliburton Company 
154,500  Occidental Petroleum Corporation 
150,903  Ultra Petroleum Corp. (a) 

FINANCIALS                        
(23.9%)

BANKS (2.7%) 
  300,000  FCB Financial Holdings, Inc. (a) 
  153,493  M&T Bank Corporation 

DIVERSIFIED FINANCIALS (5.2%)
  245,000  American Express Company 
  315,000  JPMorgan Chase & Co. 

520,000  Nelnet,  Inc. 

INSURANCE (16.0%)
  243,492  Aon plc 
  700,000  Arch Capital Group Ltd. (a) 

110  Berkshire Hathaway Inc. Class A (a) 

  135,000  Everest Re Group, Ltd. 
  365,000  MetLife, Inc. 
  253,361  PartnerRe Ltd. 

PHARMACEUTICALS, BIOTECHNOLOGY AND LIFE SCIENCES 
 1,200,000   Ariad Pharmaceuticals, Inc. (a) 
  180,000   Celgene Corporation (a) 
  494,409   Cempra, Inc. (a) 
  438,600   Gilead Sciences, Inc.  
  182,442   Intra-Cellular Therapies Inc. (a) 
  427,191   Merck & Co., Inc. 
  277,076   Paratek Pharmaceuticals Inc. (a) 
  605,808   Pfizer Inc. 
  396,123   Repros Therapeutics Inc. (a) 

HEALTH CARE                         
(13.7%)

VALUE (NOTE 1a)

(COST $16,174,723) 

$17,810,648

(COST $5,254,725) 
(COST $21,429,448) 

88,259,408
106,070,056

13,610,379
25,893,218
33,497,253
19,484,400
30,686,974
123,172,224

(COST $69,831,143) 

(COST $7,369,695) 
(COST $77,200,838) 

39,370,631
162,542,855

10,590,440
10,268,123
19,392,858
5,925,150
19,913,400
10,445,745
377,258
76,912,974

10,737,000
18,600,282
29,337,282

17,039,750 
20,799,450
17,456,400
55,295,600

22,452,397
48,825,000
21,758,000
24,717,150
17,596,650
35,404,666
170,753,863
255,386,745

7,500,000 
21,556,800
15,390,952
44,381,934
9,813,555
22,564,229
5,256,132
19,555,482
479,309
146,498,393

(COST $86,314,371) 

(COST $9,918,278) 

(COST $25,489,288) 

(COST $41,708,047) 
(COST $77,115,613) 

(COST $75,945,208) 

 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
9

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 1 5   -   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

INDUSTRIALS                
(14.7%)

SHARES 

COMMON STOCKS (Continued) 

 CAPITAL GOODS (6.7%)
  219,131   Eaton Corporation PLC 
 1,015,000   General Electric Company 
  300,000   United Technologies Corporation 

COMMERCIAL AND PROFESSIONAL SERVICES (6.9%)
  972,800  Republic Services, Inc. 
  243,298  Towers Watson & Co. Class A (b) 

TRANSPORTATION (1.1%)
  795,064  Hertz Global Holdings, Inc. (a) 

VALUE (NOTE 1a)

$11,403,577
31,617,250
28,821,000
71,841,827

42,793,472
31,254,061
74,047,533

(COST $61,692,252) 

(COST $27,450,601) 

(COST $14,793,585) 
(COST $103,936,438) 

11,313,761
157,203,121

INFORMATION
TECHNOLOGY
(18.2%)

SEMICONDUCTORS AND SEMICONDUCTOR EQUIPMENT (3.3%)
  200,850  ASML Holding N.V. 
  505,500 

Intel Corporation 

SOFTWARE AND SERVICES (5.5%) 
  680,686  Microsoft Corporation  
  425,534  Synchronoss Technologies, Inc. (a) 
  130,886  Verint Systems Inc. (a) 

TECHNOLOGY HARDWARE AND EQUIPMENT (9.4%) 
  344,000  Apple Inc. 
 1,000,000  Cisco Systems, Inc. 
  560,000  EMC Corporation 
  461,200  QUALCOMM Incorporated 

(COST $15,210,099) 

(COST $38,967,624) 

(COST $57,961,936) 
(COST $112,139,659) 

17,829,454
17,414,475
35,243,929

37,764,459
14,991,563
5,308,736
58,064,758

36,209,440
27,155,000
14,380,800
23,053,082
100,798,322
194,107,009

MATERIALS                
(0.9%)
MISCELLANEOUS                
(3.0%)
TELECOMMUNICATION 
SERVICES 
(2.1%)

TECHNOLOGY
HARDWARE AND 
EQUIPMENT
(0.1%)

  801,422  Huntsman Corporation 

(COST $17,928,463) 

9,112,168

Other (c) 

(COST $37,899,832) 

32,485,029

  683,852  Vodafone Group plc ADR 

(COST $23,341,422) 

22,061,066

TOTAL COMMON STOCKS (108.8%) 

(COST $633,251,292)  1,162,379,416

WARRANTS   WARRANT

281,409  Applied DNA Sciences, Inc. (a) 

 (COST $2,814) 

  472,486

CONTRACTS

CALL OPTIONS 

(100 SHARES EACH)     COMPANY/EXPIRATION DATE/EXERCISE PRICE

ENERGY

1,000  Ensco plc/January 15, 2016/$17 (a) 
1,500  Ensco plc/January 15, 2016/$19 (a) 

(COST $443,582) 

10,000
  0
10,000

 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
    
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 1 5   -   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

SHARES 
 106,006,567 

SHORT-TERM SECURITIES AND OTHER ASSETS  

SSgA U.S. Treasury Money Market Fund (9.9%)  

(COST $106,006,567) 

 TOTAL INVESTMENTS (d) (118.8%) 
      Liabilities in excess of receivables and other assets (-1.0%) 

(COST $739,704,255) 

PREFERRED STOCK (-17.8%) 
NET ASSETS APPLICABLE TO COMMON STOCK (100%) 

VALUE (NOTE 1a)
$106,006,567

1,268,868,469
(10,723,089)
1,258,145,380
(190,117,175)
$1,068,028,205

 ADR - American Depository Receipt 
 (a) Non-income producing security.
 (b) Name changed to Willis Towers Watson PLC upon merger on January 5, 2016.
 (c) Securities which have been held for less than one year, not previously disclosed, and not restricted.
 (d) At December 31, 2015, the cost of investments for Federal income tax purposes was $739,704,255; aggregate gross 
unrealized appreciation was $586,393,098; aggregate gross unrealized depreciation was $57,228,885; and net unrealized ap-
preciation was $529,164,213.

(see notes to financial statements)

S T A T E M E N T   O F   O P T I O N S   W R I T T E N

 CALL OPTIONS 
CONSUMER STAPLES

CONTRACTS
(100 SHARES EACH) 

COMPANY/EXPIRATION DATE/EXERCISE PRICE 

VALUE (NOTE 1a)

FOOD & STAPLES RETAILING 

HEALTH CARE 
INFORMATION TECHNOLOGY
SEMICONDUCTORS AND

 250  Costco Wholesale Corporation/January 15, 2016/$145 
500  Costco Wholesale Corporation/January 15, 2016/$150 

1,000  Cempra, Inc./January 16, 2016/$25 

$450,000
665,000 
680,000

   SEMICONDUCTOR EQUIPMENT 

500 

Intel Corporation/January 15, 2016/$32 

(PREMIUMS RECEIVED $1,473,462) 

 PUT OPTIONS
ENERGY 

 1,000  Ensco plc/January 15, 2016/$14 
1,500  Ensco plc/January 15, 2016/$15 

TOTAL OPTIONS WRITTEN  

(PREMIUMS RECEIVED $404,556*) 
(PREMIUMS RECEIVED $1,878,018)  

141,000
1,936,000

40,000
90,000 
130,000
$2,066,000

*The maximum cash outlay if all put options are exercised is $3,650,000.

(see notes to financial statements)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
1 1

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 

DECEMBER 31, 2015

INVESTMENTS, AT VALUE (NOTE 1a)

Common stocks (cost $633,251,292) 
Warrant (cost $2,814) 
Purchased options (cost $443,582) 
Money market fund (cost $106,006,567) 
Total investments (cost $739,704,255) 

RECEIVABLES AND OTHER ASSETS

Cash, including that held by custodian in segregated account* 
Dividends, interest and other receivables 
Qualified pension plan asset, net excess funded (note 7) 
Prepaid expenses, fixed assets and other assets 

TOTAL ASSETS 

LIABILITIES

Payable for securities purchased 
Accrued compensation payable to officers and employees 
Accrued preferred stock dividend not yet declared 
Outstanding options written, at value (premiums received $1,878,018) 
Accrued supplemental pension plan liability (note 7) 
Accrued supplemental thrift plan liability (note 7) 
Accrued expenses and other liabilities 

TOTAL LIABILITIES 

5.95% CUMULATIVE PREFERRED STOCK, SERIES B -
  7,604,687 at a liquidation value of $25 per share (note 5) 
NET ASSETS APPLICABLE TO COMMON STOCK -  28,296,697 (note 5) 

NET ASSET VALUE PER COMMON SHARE 

NET ASSETS APPLICABLE TO COMMON STOCK  
  Common Stock, 28,296,697 shares at par value (note 5) 
  Additional paid-in capital (note 5) 
  Undistributed realized gain on securities sold 
   Over distributed net investment income (note 5) 
  Accumulated other comprehensive loss (note 7) 
  Unallocated distributions on Preferred Stock 
  Unrealized appreciation on investments, options written and other 
NET ASSETS APPLICABLE TO COMMON STOCK 

*Of which $3,832,500 is collateral for options written.

(see notes to financial statements)

$1,162,379,416
472,486
10,000
106,006,567
1,268,868,469

3,845,114
2,201,436
1,995,511
916,094
1,277,826,624

5,355,964
3,219,500
219,955
2,066,000
5,605,494
2,816,870
397,461
19,681,244

190,117,175
$1,068,028,205

$37.74

$28,296,697
511,036,440
5,015,370
(92,807)
(5,247,870)
(219,955)
529,240,330
$1,068,028,205

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 2

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 $643,722) 

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 
State and local taxes 
Stockholders’ meeting and reports 

TOTAL EXPENSES 

NET INVESTMENT INCOME 

YEAR ENDED 
DECEMBER 31, 2015

$27,547,383

6,838,278
3,973,579
1,696,392
487,704
294,173 
234,766
173,980
120,269

13,819,141

13,728,242

Realized Gain And Change In Unrealized Appreciation On Investments (Notes 1, 3 and 4)

Net realized gain on investments:

Securities transactions 

  Written options transactions (notes 1b and 4) 

Net decrease in unrealized appreciation 

NET INVESTMENT INCOME, REALIZED GAINS AND DEPRECIATION ON INVESTMENTS  

DISTRIBUTIONS TO PREFERRED STOCKHOLDERS    

DECREASE IN NET ASSETS RESULTING FROM OPERATIONS 

(see notes to financial statements)

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: 
From net investment income 
From net capital gains  

  Decrease in net assets from Preferred distributions 

INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 
OTHER COMPREHENSIVE INCOME (LOSS)

Funded status of defined benefit plans (note 7) 

DISTRIBUTIONS TO COMMON STOCKHOLDERS

From net investment income 
From net capital gains 

33,494,870
635,790
34,130,660

(76,268,833)

(28,409,931)

(11,311,972)

($39,721,903)

YEAR ENDED DECEMBER 31,

2015

2014

$13,728,242 
34,130,660 
(76,268,833) 
(28,409,931) 

$9,735,291
102,101,749
(27,988,358)
83,848,682

(3,344,407) 
(7,967,565) 
(11,311,972) 

(1,037,961)
(10,274,011)
(11,311,972)

(39,721,903) 

72,536,710

538,384 

(3,962,010)

(9,622,112) 
(22,923,266) 

(9,462,665)
(93,663,921)

DECREASE IN NET ASSETS FROM COMMON DISTRIBUTIONS 

(32,545,378) 

(103,126,586)

CAPITAL SHARE TRANSACTIONS (NOTE 5)

Value of Common Shares issued in payment of dividends 
   and distributions  
Cost of Common Shares purchased 

INCREASE (DECREASE) IN NET ASSETS - CAPITAL TRANSACTIONS 
NET DECREASE IN NET ASSETS 

NET ASSETS APPLICABLE TO COMMON STOCK

BEGINNING OF YEAR 

END OF YEAR (including over distributed net investment
income of ($92,807) and ($857,611), respectively) 

(see notes to financial statements)

13,532,276 
(101,674,879) 
(88,142,603) 
(159,871,500) 

51,886,970
(18,905,125)
32,981,845
(1,570,041)

1,227,899,705 

1,229,469,746

$1,068,028,205 

$1,227,899,705

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 3

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 table shows per share 
operating performance 
data, total investment 
return, ratios and supple-
mental data for each year 
in the five-year period 
ended December 31, 2015. 
This information has 
been derived from infor-
mation 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

        and unrealized 

     Other comprehensive income (loss) 

  Distributions on Preferred Stock:

        Dividends from net investment income 
        Distributions from net capital gains 

  Total from investment operations 

  Distributions on Common Stock:

       Dividends from net investment income 
       Distributions from net capital gains 

2015 

2014 

2013 

2012 

2011

$39.77 
.48 

$41.07 
.32 

$32.68 
.17 

$29.78 
.24 

$31.26
.18

(.99) 
.02 
(.49) 

(.12) 
(.27) 
(.39) 
(.88) 

2.39 
(.13) 
2.58 

(.04) 
(.34) 
(.38) 
2.20 

(.34) 
(.81) 
(1.15) 

(.32) 
(3.18) 
(3.50) 

10.51 
.20 
10.88 

(.04) 
(.35) 
(.39) 
10.49 

(.18) 
(1.92) 
(2.10) 

5.05 
— 
5.29 

(.04) 
(.35) 
(.39) 
4.90 

(.21) 
(1.79) 
(2.00) 

(.68)
(.10)
(.60)

(.11)
(.27)
(.38)
(.98)

(.15)
(.35)
(.50)

  Net asset value, end of year 

  Per share market value, end of year 

$37.74 

$31.94 

$39.77 

$35.00 

$41.07 

$35.20 

$32.68 

$27.82 

$29.78

$24.91

TOTAL INVESTMENT RETURN - Stockholder
  Return, based on market price per share 

RATIOS AND SUPPLEMENTAL DATA
  Net assets applicable to Common Stock,

(5.34%) 

9.32% 

34.24% 

19.77% 

(5.29%)

   end of year (000’s omitted) 

$1,068,028  $1,227,900  $1,229,470  $955,418  $886,537

  Ratio of expenses to average net assets  

   applicable to Common Stock 

 1.17% 

 1.10% 

1.27% 

1.67% 

1.39%

  Ratio of net income to average net assets

   applicable to Common Stock    

  Portfolio turnover rate    

1.17% 
14.41% 

0.78% 
14.98% 

0.47% 
17.12% 

0.74% 
9.56% 

0.56%
11.17%

  PREFERRED STOCK

  Liquidation value, end of year

   (000’s omitted) 

  Asset coverage 
  Liquidation preference per share 
  Market value per share 

(see notes to financial statements)

$190,117 
662% 

$190,117 
746% 

$190,117  $190,117  $190,117
566%

747% 

603% 

$25.00 
$26.75 

$25.00 
$26.01 

$25.00 
$25.30 

$25.00 
$25.54 

$25.00
$25.47

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
 
 
 
         
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 4

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 

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 accompanying financial statements have been prepared in accordance with United States generally 
accepted accounting principles (“U.S. GAAP”) pursuant to the requirements for reporting; Accounting Standards 
Codification 946, Financial Services - Investment Companies (“ASC 946"), and Regulation S-X.

  The preparation of financial statements in accordance with U.S. GAAP requires management to make esti-
mates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial state-
ments and the reported amounts of income, expenses and gains and losses during the reported period.  Changes 
in the economic environment, financial markets, and any other parameters used in determining these estimates 
could cause actual results to differ, and these differences could be material.

a.  SECURITY VALUATION  Equity securities traded on a national securities exchange are valued at the last reported 
sales price on the last business day of the period. Equity securities reported on the NASDAQ national market 
are valued at the official closing price on that day. Listed and NASDAQ equity 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 options written) on the valuation date. Equity securities traded primarily in foreign markets are 
valued at the closing price of such securities on their respective exchanges or markets.  Corporate debt securities, 
domestic and foreign, are generally traded in the over-the-counter market rather than on a securities exchange.  
The Company utilizes the latest bid prices provided by independent dealers and information with respect to 
transactions in such securities to determine current market value.  If, after the close of foreign markets, condi-
tions change significantly, the price of certain foreign securities may be adjusted to reflect fair value as of the 
time of the valuation of the portfolio. Investments in money market funds are valued at their net asset value.  
Special holdings (restricted securities) and other securities for which quotations are not readily available are val-
ued at fair value determined in good faith pursuant to specific procedures appropriate to each security as estab-
lished by and under the general supervision of the Board of Directors.  The determination of fair value involves 
subjective judgments.  As a result, using fair value to price a security may result in a price materially different 
from the price used by other investors or the price that may be realized upon the actual sale of the security.

b.  OPTIONS  The Company may purchase and write (sell) put and call options.  The Company typically purchases 
put options or writes call options to hedge the value of portfolio investments while it typically purchases call 
options and writes put options to obtain equity market exposure under specified circumstances. The risk associ-
ated with purchasing an option is that the Company pays a premium whether or not the option is exercised. 
Additionally, the Company bears the risk of loss of the premium and a change in market value should the coun-
terparty not perform under the contract.  Put and call options purchased are accounted for in the same manner 
as portfolio securities. Premiums received from writing options are reported as a liability on the Statement of 
Assets and Liabilities. Those that expire unexercised are treated by the Company on the expiration date as real-
ized gains on written option transactions in the Statement of Operations. The difference between the premium 
received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is 
also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transac-
tion, as a realized loss on written option transactions in the Statement of Operations. If a written call option is 
exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether 
the Company has realized a gain or loss on investments in the Statement of Operations. If a written put option 
is exercised, the premium reduces the cost basis for the securities purchased by the Company and is parentheti-
cally disclosed under cost of investments on the Statement of Assets and Liabilities. The Company as writer of an 
option bears the market risk of an unfavorable change in the price of the security underlying the written option.  
See Note 4 for written option activity.

c.  SECURITIES TRANSACTIONS AND INVESTMENT INCOME 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 recog-
nized on the accrual basis. Cost of short-term investments represents amortized cost.

d.  FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS  Portfolio securities and other assets and liabilities denomi-
nated in foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies versus 
U.S. dollars on the date of valuation.  Purchases and sales of securities, income and expense items denominated 
in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.  Events 
may impact the availability or reliability of foreign exchange rates used to convert the U.S. dollar equivalent 
value.  If such an event occurs, the foreign exchange rate will be valued at fair value using procedures established 
and approved by the Company’s Board of Directors.  The Company does not separately report the effect of 
changes in foreign exchange rates from changes in market prices on securities held.  Such changes are included 
in net realized and unrealized gain or loss from investments on the Statement of Operations.

  Realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses real-
ized between the trade and settlement dates on securities transactions and the difference between the recorded 
amounts of dividends, interest, and foreign withholding taxes and the U.S. dollar equivalent of the amounts ac-
tually received or paid.  Net unrealized foreign exchange gains and losses arise from changes in foreign exchange 
rates on foreign denominated assets and liabilities other than investments in securities held at the end of the 
reporting period.

 
      
1 5

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

1.  SIGNIFICANT ACCOUNTING POLICIES - (Continued from previous page.)

  Foreign security and currency transactions may involve certain considerations and risks not typically associ-
ated with those of U.S. companies as a result of, among other factors, the possibility of political or economic 
instability or the level of governmental supervision and regulation of foreign securities markets.

e.  DIVIDENDS AND DISTRIBUTIONS  The Company expects to pay dividends of net investment income and distribu-
tions of net realized capital and currency gains, if any, annually to common shareholders and quarterly to preferred 
shareholders.  Dividends and distributions to common and preferred shareholders, which are determined in accor-
dance with Federal income tax regulations are recorded on the ex-dividend date.  Permanent book/tax differences 
relating to income and gains are reclassified to paid-in capital as they arise.

f.   FEDERAL INCOME TAXES  The Company’s policy is to fulfill the requirements of the Internal Revenue Code appli-
cable to regulated investment companies and to distribute substantially all taxable income to its stockholders. 
Accordingly, no provision for Federal income taxes is required. In accordance with U.S. GAAP requirements regard-
ing accounting for uncertainties in income taxes, management has analyzed the Company’s tax positions taken or 
expected to be taken on Federal and state income tax returns for all open tax years (the current and the prior three 
tax years) and has concluded that no provision for income tax is required in the Company’s financial statements.

g.  CONTINGENT LIABILITIES  Amounts related to contingent liabilities are accrued if it is probable that a liability has 
been incurred and an amount is reasonably estimable.  Management evaluates whether there are incremental 
legal or other costs directly associated with the ultimate resolution of a matter that are reasonably estimable and, 
if so, they are included in the accrual.

h. INDEMNIFICATIONS  In the ordinary course of business, the Company enters into contracts that contain a variety 
of indemnifications. The Company’s maximum exposure under these arrangements is unknown. However, the 
Company has not had prior claims or losses pursuant to these indemnification provisions and expects the risk of 
loss thereunder to be remote.

2.  FAIR VALUE MEASUREMENTS 
Various data inputs are used in determining the value of the Company’s investments. These inputs are summa-
rized in a hierarchy consisting of the three broad levels listed below:

Level 1 - quoted prices in active markets for identical securities (including money market funds which are valued 
using amortized cost and which transact at net asset value, typically $1 per share),

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, credit risk, 
etc.), and

Level 3 - significant unobservable inputs (including the Company’s own assumptions in determining the fair 
value of investments).

  The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated 
with investing in those securities. The following is a summary of the inputs used to value the Company’s net 
assets as of December 31, 2015:

  Assets 
  Common stocks 
  Warrants 
  Purchased options 
  Money market fund 
  Total 
  Liabilities
  Options written 

Level 1 
$1,162,379,416 
472,486 
10,000 
106,006,567 
$1,268,868,469 

Level 2 
— 
— 
— 
— 
— 

Level 3 
— 
— 
— 
— 
— 

Total
$1,162,379,416
472,486
10,000
106,006,567
$1,268,868,469

($2,066,000) 

— 

— 

($2,066,000)

Transfers of Level 3 Securities, if any, are reported as of the actual date of reclassification.  No such transfers occurred during 
the year ended December 31, 2015.
3.  PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (other than short-term securities and options) during 2015 amounted to 
$181,750,203 and $297,520,251, on long transactions, respectively.

4.  WRITTEN OPTIONS
The level of activity in written options varies from year to year based upon market conditions.  Transactions in 
written covered call options and collateralized put options during the year ended December 31, 2015 were as fol-
lows: 

COLLATERALIZED PUTS

COVERED CALLS 

CONTRACTS 
2,100 
  Options  outstanding, December 31, 2014 
  Options written 
2,250 
  Options terminated in closing purchase transaction  (1,900) 
(200) 
  Options expired 
2,250 
  Options outstanding, December 31, 2015 

PREMIUMS 
$245,504 
1,473,462 
(200,966) 
(44,538) 
$1,473,462 

CONTRACTS 

0 
4,762 
(2,262) 
0 
2,500 

PREMIUMS
                $0
  952,916
(548,360)
0
$404,556 

5.  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.  With respect to the Common Stock, 28,296,697 shares 
were issued and outstanding; 8,000,000 Preferred Shares were originally issued and 7,604,687 were outstanding 
on December 31, 2015.

 
 
 
 
 
 
 
1 6

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

5.  CAPITAL STOCK AND DIVIDEND DISTRIBUTIONS  -  (Continued from previous page.)

  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 were noncallable for the 5 year period ended September 
24, 2008 and have a liquidation preference of $25.00 per share plus accumulated and unpaid dividends to the date of 
redemption.  

  On December 10, 2008, the Board of Directors authorized the repurchase of up to 1 million Preferred Shares in the 
open market at prices below $25.00 per share.  This authorization has been renewed annually thereafter.  To date, 
395,313 shares have been repurchased.

  The Company allocates distributions from net capital gains and other types of income  proportionately among hold-
ers of shares of Common Stock and Preferred Stock. To the extent that dividends on the shares of Preferred Stock are 
not paid from net capital gains, they will be paid from investment company taxable income, 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% of the Preferred Stock. In addition, pursuant to Moody’s Investor Service, Inc. Rating Agency Guidelines, the 
Company is required to maintain a certain discounted asset coverage for its portfolio that equals or exceeds a Basic 
Maintenance Amount.  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.  In addition, failure to meet the foregoing asset coverage require-
ments could restrict the Company’s 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.

  Holders of Preferred Stock will elect two members to the Company’s Board of Directors and the holders 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 subclassification as a closed-end 
investment company or changes in its fundamental investment policies.

  The Company presents its Preferred Stock, for which its redemption is outside of the Company’s control, outside of 
the net assets applicable to Common Stock in the Statement of Assets and Liabilities.

  Transactions in Common Stock during 2015 and 2014 were as follows:

SHARES 

AMOUNT

2015 

2014 

2015 

2014

Par Value of Shares issued in payment of 
dividends and distributions (includes
439,217 and 1,473,643 shares issued
from treasury, respectively) 

Increase in paid-in capital 

Total increase   

Par Value of Shares purchased (at an average
   discount from net asset value of
   15.5% and 14.4%, respectively) 
Decrease in paid-in capital 

Total decrease 
Net increase (decrease) 

439,217 

1,473,643 

$439,217 
13,093,059 
      13,532,276 

$1,473,643
50,413,327
51,886,970

(3,014,364) 

(541,367) 

(2,575,147) 

932,276 

(3,014,364) 
(98,660,515) 
(101,674,879) 
($88,142,603) 

(541,367)
(18,363,758)
(18,905,125)
$32,981,845

  At December 31, 2015, the Company held in its treasury 3,684,175 shares of Common Stock with an aggregate cost 
of $125,050,953.

  The tax basis distributions during the year ended December 31, 2015 are as follows: ordinary distributions of 
$12,966,519 and net capital gains distributions of $30,890,831.  As of December 31, 2015, distributable earnings on 
a tax basis included $1,442,060 from ordinary distributions and $5,268,234 from undistributed net capital gains and 
$529,240,330 from net unrealized appreciation on investments if realized in future years.  Reclassifications arising from 
permanent “book/tax” differences reflect non-tax deductible expenses and redesignation of dividends during the year 
ended December 31, 2015.  As a result, additional paid-in capital was decreased by $3,081 and net investment income 
increased by $3,081.  As of December 31, 2015 the Company had straddle loss deferrals of $252,864.  Net assets were 
not affected by this reclassification.

6.  OFFICERS’ COMPENSATION

The aggregate compensation accrued and paid by the Company during the year ended December 31, 2015 to its offi-
cers (identified on page 20) amounted to $7,036,500 of which $3,164,000 was payable as of year end.

 
   
 
 
 
 
 
 
 
 
1 7

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

7.  BENEFIT PLANS 
  The Company has funded (qualified) and unfunded (supplemental) defined contribution thrift plans that are avail-
able to its employees.  The aggregate cost of such plans for 2015 was $275,860.  The qualified thrift plan acquired 38,349 
shares of the Company’s Common Stock during the year ended December 31, 2015.  It held 576,937 shares of the 
Company’s Common Stock at December 31, 2015. 

  The Company also has both funded (qualified) and unfunded (supplemental) noncontributory defined benefit pen-
sion plans that cover its employees.  The pension plans provide a defined benefit based on years of service and final aver-
age salary with an offset for a portion of Social Security covered compensation.  The investment policy of the pension 
plan is to invest not less than 80% of its assets, under ordinary conditions, in equity securities and the balance in fixed 
income securities.  The investment strategy is to invest in a portfolio of diversified registered investment funds (open-end 
and exchange traded) and an unregistered partnership.  Open-end funds and the unregistered partnership are valued at 
net asset value based upon the fair market value of the underlying investment portfolios.  Exchange traded funds are val-
ued based upon their closing market price.

  The Company recognizes the overfunded or underfunded status of a defined benefit postretirement plan as an asset 
or liability in the Statement of Assets and Liabilities and recognizes changes in funded status in the year in which the 
changes occur through other comprehensive income.

OBLIGATIONS AND FUNDED STATUS OF DEFINED BENEFIT PLANS: 

DECEMBER 31, 2015 (MEASUREMENT DATE) 

CHANGE IN BENEFIT OBLIGATION:
  Benefit obligation at beginning of year 

Service cost 
Interest cost 
  Benefits paid 
  Actuarial loss 
  Projected benefit obligation at end of year 
CHANGE IN PLAN ASSETS:

Fair value of plan assets at beginning of year 

  Actual return on plan assets 
  Employer contributions 
  Benefits paid 

Fair value of plan assets at end of year 

FUNDED STATUS AT END OF YEAR 

 QUALIFIED   SUPPLEMENTAL

PLAN 

PLAN 

TOTAL

$16,878,901   
435,566   
669,462   
(769,505)  
(868,484) 
16,345,940   

$5,997,210 
167,367 
230,177 
(314,277) 
(474,983) 
5,605,494 

$22,876,111
602,933
899,639
(1,083,782)
(1,343,467)
21,951,434

19,467,227  
(356,271)  

— 
(769,505)   
18,341,451   
$1,995,511   

— 
— 
314,277 
(314,277) 

— 
($5,605,494) 

19,467,227
(356,271)
314,277
(1,083,782)
18,341,451
($3,609,983)

Accumulated benefit obligation at end of year 

$15,185,972   

$5,019,013 

$20,204,985

WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE OBLIGATION AT YEAR END:

  Discount rate 

Salary scale assumption 

  Mortality 

4.25% 
4.25% 

4.25%
4.25%
RP-2014 Mortality Table/
MP-2015 Mortality 
Improvement Scale 
without collar adjustment

CHANGE IN FUNDED STATUS: 

  Noncurrent benefit asset - qualified plan 
LIABILITIES:
  Current benefit liability - supplemental plan 
  Noncurrent benefit liability - supplemental plan 

BEFORE  ADJUSTMENTS 

AFTER

$2,588,326 

($592,815) 

$1,995,511

($305,970) 
(5,691,240) 

($5,609) 
397,325 

($311,579)
(5,293,915)

AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME CONSIST OF:
  Net actuarial loss 
  Prior service cost 
ACCUMULATED OTHER COMPREHENSIVE INCOME 

$5,725,662 
60,592 
$5,786,254 

($497,419) 
(40,965) 
($538,384) 

$5,228,243
19,627
$5,247,870

WEIGHTED-AVERAGE ASSUMPTIONS TO DETERMINE NET PERIODIC BENEFIT COST DURING YEAR:
  Discount rate 
  Expected return on plan assets* 

Salary scale assumption 

  Mortality 

3.90% 
7.50% 
4.25% 

3.90% 
N/A 
4.25% 

RP-2014 Mortality Table pro-
jected generationally with 
MP-2014 Mortality 
Improvement Scale without 
collar adjustment

  *Determined based upon a discount to the long-term average historical performance of the plan.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 8

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

7.  BENEFIT PLANS - (Continued from previous page.) 

COMPONENTS OF NET PERIODIC BENEFIT COST:

Service cost 
Interest cost 

  Expected return on plan assets 
  Amortization of:

  Prior service cost 
  Recognized net actuarial loss 

  Net periodic benefit cost 

  QUALIFIED    SUPPLEMENTAL

PLAN 

     PLAN 

       TOTAL

$435,566 
669,462 
(1,243,845) 

40,208 
615,006 
$516,397 

$167,367 
230,177 

— 

757 
139,062 
$537,363 

$602,933
899,639
(1,243,845)

40,965
754,068
$1,053,760

PLAN ASSETS
The Company’s qualified pension plan asset allocation by asset class at December 31, 2015, is as follows:
ASSET CATEGORY 
  Equity securities 
  Limited partnership interest 
  Money market fund 
Total 

LEVEL 2 
— 
$2,841,744 
— 
$2,841,744 

LEVEL 3 
— 
— 
— 
— 

LEVEL 1 
$13,887,306 
— 

1,612,401 
$15,499,707 

TOTAL
$13,887,306
2,841,744
1,612,401
$18,341,451

EXPECTED CASH FLOWS 
Expected Company contributions for 2016 
Expected benefit payments:
  2016 
  2017 
  2018 
  2019 
  2020 
  2021-2025 

QUALIFIED PLAN 
— 

$834,092 
859,992 
883,983 
903,576 
917,773 
4,908,100 

SUPPLEMENTAL PLAN 

$311,579 

$311,579 
302,746 
298,283 
293,206 
282,604 
1,475,115 

TOTAL
$311,579

$1,145,671
1,162,738
1,182,266
1,196,782
1,200,377
6,381,215

 The estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 
 2016 is $370,158 which is comprised of $352,354 of actuarial loss and $17,804 of service.

8.  OPERATING LEASE COMMITMENT
In September 2007, the Company entered into an operating lease agreement for office space which expires in February 
2018 and provided for aggregate rental payments of approximately $10,755,000, net of construction credits. The lease 
agreement contains clauses whereby the Company receives free rent for a specified number of months and credit towards 
construction of office improvements, and incurs escalations annually relating to operating costs and real property taxes 
and to annual rent charges beginning in February 2013. The Company has the option to renew the lease after February 
2018 for five years at market rates. Rental expense approximated $1,164,300 for the year ended December 31, 2015. 
Minimum rental commitments under the operating lease are approximately $1,183,000 per annum in 2016 through 2017, 
and $99,000 in 2018.

 
 
 
 
 
 
1 9

R E P O R T   O F   I N D E P E N D E N T   R E G I S T E R E D   P U B L I C   A C C O U N T I N G   F I R M

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  state-
ments  of  investments  and  options  written,  of  General  American  Investors  Company,  Inc.  (the 
“Company”)  as  of  December  31,  2015,  and  the  related  statement  of  operations  for  the  year 
then ended, the statement of 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 finan-
cial  state ments  and  financial  highlights  are  the  responsibility  of  the  Company’s  management.  
Our  responsibility  is  to  express  an  opinion  on  these  financial  state ments  and  financial  high-
lights based on our audits.

We  conducted  our  audits  in  accordance  with  the  standards  of  the  Public  Company 
Accounting  Oversight  Board  (United  States).  Those  standards  require  that  we  plan  and  per-
form  the  audit  to  obtain  reasonable  assurance  about  whether  the  financial  statements  and 
financial  highlights  are  free  of  material  misstatement.    We  were  not  engaged  to  perform  an 
audit  of  the  Company’s  internal  control  over  financial  reporting.    Our  audits  included  con-
sideration of internal control over financial reporting as a basis for designing audit procedures 
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on 
the effectivness of the Company’s internal control over financial reporting.  Accordingly, we 
express  no  such  opinion.    An  audit  includes  examining,  on  a  test  basis,  evi dence  supporting 
the  amounts  and  disclosures  in  the  financial  statements.  Our  procedures  included  confirma-
tion of securities owned as of December 31, 2015, by correspon dence with the custodian and 
brokers.  An  audit  also  includes  assessing  the  accounting  principles  used  and  significant  esti-
mates  made  by  management,  as  well  as  evaluating  the  overall  financial  statement  presenta-
tion. 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  position  of  General  American  Investors  Company, 
Inc. at December 31, 2015, the results of its operations for the year then ended, 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 U.S. generally accepted 
accounting principles.

New York, New York
February 8, 2016

2 0

O F F I C 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

NAME (AGE) 
  EMPLOYEE SINCE 
Jeffrey W. Priest (53) 
   2010 

PRINCIPAL OCCUPATION 
  DURING PAST 5 YEARS 
President of the Company  
   since 2012 and Chief Executive 
   Officer since 2013

NAME (AGE) 

EMPLOYEE SINCE 

Sally A. Lynch, Ph.D. (56) 
   1997 

Andrew V. Vindigni (56)  Senior Vice-President of the    
   1988 

   Company since 2006,
   Vice-President 1995-2006   
   securities analyst (financial    
   services and consumer 
   non-durables industries) 

Eugene S. Stark (57)  
   2005 

Craig A. Grassi (47) 
   1991 

Vice-President, Administration 
   of the Company and 
   Principal Financial Officer  
   since 2005, Chief Compliance 
   Officer since 2006

Vice-President of the Company 
   since 2013, Assistant Vice- 
   President 2005-2012 
   securities analyst and 
   information technology

Anang K. Majmudar (41)  
   2012 

Michael W. Robinson (43) 
   2006 

Diane G. Radosti (63) 
   1980 

Linda J. Genid (57) 
   1983 

PRINCIPAL OCCUPATION
  DURING PAST 5 YEARS 
Vice-President of the  
   Company since 2006, 
   securities analyst
   (biotechnology industry)

Vice-President of the 
   Company since 2015,
   securities analyst 
   (general industries)

Vice-President of the  
   Company since 2010,
   securities analyst 
   (general industries)

Treasurer of the Company
   since 1990, 
   Principal Accounting
   Officer since 2003

Corporate Secretary of the
  Company effective 2016,
  Assistant Corporate 
  Secretary 2014-2015,
  network administrator

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 in April.  The address for each officer is the Company’s office.  All information is as of February 6, 2016.

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
  American Stock Transfer & Trust Company, LLC
  6201 15th Avenue
  Brooklyn, NY  11219
  1-800-413-5499
  www.amstock.com

Previous  purchases  of  the  Company’s  Common  and  Preferred  Stock  are  set  forth  in  Note  5,  on  pages  15  and  16.  
Prospective purchases of Common and Preferred 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. 

The policies and procedures used by the Company to determine how to vote proxies relating to portfolio securities 
and the Company’s proxy voting record for the twelve-month period ended June 30, 2015 are available: (1) without 
charge, upon request, by calling us at our toll-free telephone number (1-800-436-8401), (2) on the Company’s website 
at www.generalamericaninvestors.com and (3) on the Securities and Exchange Commission’s website at www.sec.gov. 

In  addition  to  distributing  financial  statements  as  of  the  end  of  each  quarter,  General  American  Investors  files  a 
Quarterly  Schedule  of  Portfolio  Holdings  (Form  N-Q)  with  the  Securities  and  Exchange  Commission  (“SEC”)  as  of 
the end of the first and third calendar quarters.  The Company’s Forms N-Q are available at www.generalamerican-
investors.com  and  on  the  SEC’s  website:  www.sec.gov.    Copies  of  Forms  N-Q  may  also  be  obtained  and  reviewed 
at the SEC’s Public Reference Room in Washington, DC. or through the Company by calling us at 1-800-436-8401.  
Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330.  

On April 22, 2015, the Company submitted a CEO annual certification to the New York Stock Exchange (“NYSE”) on 
which the Company’s principal executive officer certified that he was not aware, as of that date, of any violation by 
the Company of the NYSE’s Corporate Governance listing standards.  In addition, as required by Section 302 of the 
Sarbanes-Oxley Act of 2002 and related SEC rules, the Company’s principal executive and principal financial officer 
made  quarterly  certifications,  included  in  filings  with  the  SEC  on  Forms  N-CSR  and  N-Q  relating  to,  among  other 
things, the Company’s disclosure controls and procedures and internal control over financial reporting, as applicable.

 
 
 
 
 
 
     
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
     
 
  
 
 
 
 
 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
D I R E C T O R S
G e n e r a l   A m e r i c a n   I n v e s t o r s  

NAME (AGE) 
  DIRECTOR SINCE 

PRINCIPAL OCCUPATION 
DURING PAST 5 YEARS 

INDEPENDENT DIRECTORS

  Arthur G. Altschul, Jr. (51) 

1995 

  Rodney B. Berens (70) 

2007 

Co-Founder and Chairman 
  Kolltan Pharmaceuticals, Inc. 
Managing Member 
  Diaz & Altschul Capital 
    Management, LLC 
    (private investment company)  
Chairman 
  Overbrook Management Corporation
    (investment advisory firm)

Founding Partner 
  Berens Capital Management, LLC 
    (investment management) 

  Lewis B. Cullman (97) 

Philanthropist 

1961 

Spencer Davidson (73) 
1995 

John D. Gordan, III (70) 
1986 

Chairman of the Board 
  General American Investors 
  Company, Inc. 
    President and Chief Executive
    Officer (1995-2012)

Attorney
  Beazley USA Services, Inc. (2013)
  (insurance)
Senior Counsel (2010-2011)
  Partner (1994-2010) (Retired)
  Morgan, Lewis & Bockius LLP

  Betsy F. Gotbaum (77) 

Consultant 

2010 

Sidney R. Knafel (85) 
1994 

Lead Independent Director 
Managing Partner 
  SRK Management Company 
    (private investment company) 

  Daniel M. Neidich (66) 

2007 

Chief Executive Officer 
  Dune Real Estate Partners LP 

CURRENT DIRECTORSHIPS AND AFFILIATIONS

Child Mind Institute, Director
Delta Opportunity Fund, Ltd., Director
Neurosciences Research Foundation, Trustee
Overbrook Foundation, Director

Alfred P. Sloan Foundation, Member of Investment Committee
Svarog Capital Advisors, Member of Investment Committee 
The Morgan Library and Museum, Trustee, Chairman of Investment
  Sub-Committee, and Member of Finance, Compensation and 
  Nomination Committees
The Woods Hole Oceanographic Institute, Trustee and Member of
  Investment Committee

Chess-in-the-Schools, Chairman
Metropolitan Museum of Art, Honorary Trustee
Museum of Modern Art, Vice Chairman, International Council and
  Honorary Trustee
The New York Botanical Garden, Senior Vice Chairman, Board of 
Managers 
The New York Public Library, Trustee

Neurosciences Research Foundation, Trustee

Chess-in-the-Schools, Trustee
Community Service Society, Trustee
Coro Leadership, Trustee
Fisher Center for Alzheimer’s Research Foundation, Trustee
Learning Leaders, Trustee
Visiting Nurse Association of New York, Trustee

IGENE Biotechnology, Inc., Director

Child Mind Institute, Director
Prep for Prep, Director 
Real Estate Roundtable, Member (formerly Chairman)
Urban Land Institute, Trustee

  Henry R. Schirmer (51) 

2015 

Results for Development Institute, Director

Chief Financial Officer/Senior  
Vice-President Finance
  Unilever North America (2012)
Chief Financial Officer/Senior
Vice-President Finance
  Unilever Germany/Australia/Switzerland 
  (2008-2012)

  Raymond S. Troubh (89) 

Financial Consultant 

Diamond Offshore Drilling, Inc., Director

1989 

      INTERESTED DIRECTOR               

Jeffrey W. Priest (53) 
2013 

President of the Company 
  since 2012 and Chief Executive Officer
  since 2013

  The Company is a stand-alone fund.  All Directors serve for a term of one year and are elected by Stockholders at the time of the annual 
meeting.  The address for each Director is the Company’s office.  All information is as of February 6, 2016.