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 7
A N N U A L
R E P O R T
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
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
Common Shares outstanding-Dec. 31
Market price range* (high-low)
Market volume-shares
*Unadjusted for dividend payments.
2017
2016
$1,070,483,445
8,564,156
91,833,612
70,336,629
(11,311,972)
$1,022,534,692
8,172,289
91,570,557
(15,321,337)
(11,311,972)
$40.47
$34.40
-15.0%
$37.56
$31.18
-17.0%
26,453,136
$36.53-$31.12
10,504,400
27,221,115
$33.25-$26.88
15,584,306
DIVIDEND SUMMARY (per share) (unaudited)
Record Date
Payment Date
Ordinary
Income
Long-Term
Capital Gain
Total
Common Stock
Nov. 13, 2017
Feb. 5, 2018
Total from 2017 earnings
Dec. 29, 2017
Feb. 16, 2018
Nov. 14, 2016
Jan. 30, 2017
Total from 2016 earnings
Dec. 30, 2016
Feb. 10, 2017
$0.578150
—
$0.578150
$0.282605
—
$0.282605
$2.511850
0.500000
$3.011850
$2.797395
0.200000
$2.997395
$3.090000
0.500000
$3.590000
$3.080000
0.200000
$3.280000
Preferred Stock
Mar. 7, 2017
Jun. 7, 2017
Sept. 7, 2017
Dec. 7, 2017
Total for 2017
Mar. 7, 2016
Jun. 7, 2016
Sept. 7, 2016
Dec. 7, 2016
Total for 2016
Mar. 24, 2017
Jun. 26, 2017
Sept. 25, 2017
Dec. 26, 2017
Mar. 24, 2016
Jun. 24, 2016
Sept. 26, 2016
Dec. 27, 2016
$.069579
.069579
.069579
.069579
$.278316
$.034185
.034185
.034185
.034185
$.136740
$.302296
.302296
.302296
.302296
$1.209184
$.337690
.337690
.337690
.337690
$1.350760
$.371875
.371875
.371875
.371875
$1.487500
$.371875
.371875
.371875
.371875
$1.487500
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 re-
investment of all dividends) increased 18.4%
for the year ended December 31, 2017. The
U.S. stock market was up 21.8% for the year,
as measured by our benchmark, the Standard
& Poor’s 500 Stock Index (including income).
The return to our Common Stockholders was
21.2% and the discount at which our shares
traded to their NAV continued to fluctuate and
on December 31, 2017, it was 15.0%.
The table that follows provides a compre-
hensive presentation of our performance and
compares our returns on an annualized basis
with the S&P 500.
Years
Stockholder Return
(Market Value)
NAV Return
S&P 500
3
5
10
20
30
40
7.3%
8.5%
12.6
5.4
9.2
12.8
14.0
12.5
6.0
9.2
12.2
13.7
11.4%
15.8
8.5
7.2
10.7
11.8
10.1
11.5
11.9
50
At year end we continue to enjoy the second-
longest bull market in history. The economy
has expanded in tandem and has accelerated
modestly during the last nine months. At 9
years old, the U.S. equity market looks robust
fundamentally, and may be capable of further
gains as interest rates, though higher, remain
subdued with modestly higher inflation due
largely to increasing services costs. The passage
of the tax bill may have created opportunities
not yet fully appreciated, with nearly 2,500
large and medium size companies either raising
wages or paying individual workers substan-
tive one-time bonuses. Wage gains are more
likely to positively affect consumption on a
long-term basis than the bonus payments,
but regardless, each is accretive to the U.S.
economy’s performance over the near-term.
Significant deregulation has been proposed leg-
islatively and implemented by fiat in the U.S.
which may have also lubricated the economy
with reduced friction costs.
Equity markets have risen further than many
analysts had predicted and valuations may
appear high and already discounting much
of the tax benefits. In consequence, the be-
havior of central banks and their decisions
with respect to interest rates over the course
of the next year or two may be taking center
stage since earnings multiples are generally the
inverse of yields. This is not to suggest mar-
kets have peaked since yields are rising from
historically depressed levels. It is merely an
observation that volatility which has been un-
usually constrained over the past several years
may begin to rise as uncertainty over the push
and pull of potentially shrinking earnings mul-
tiples are met by accelerating earnings growth.
According to a recent study, reported earn-
ings growth among nearly 20,000 listed firms
worldwide is anticipated to rise by nearly 19%
in 2017. While inflation is expected to rise
over the business cycle, equities remain better
positioned with respect to inflation than most
other asset classes, short of commodities, as
firms that have pricing power need not experi-
ence margin contraction.
The many countervailing forces in the current
environment and the absence of a significant
market correction over the past 19 months
implies caution. The economy and the equity
markets appear capable of withstanding some
headwinds and continuing their advance, short
of some geopolitical event or a central bank-
led excess withdrawal of liquidity. In short,
Goldilocks appears fine as the bears are in the
woods and not yet in the house. We remain
sanguine on the equity markets, but vigilant
given this historically unusual environment.
Mr. Daniel M. Neidich, a director since 2007,
decided not to stand for re-election at the an-
nual meeting held in April 2017. His wisdom,
judgment, and service have been invaluable
to the Board of Directors and we express our
deep gratitude and appreciation for his distin-
guished service to the Company.
We are pleased to announce that on January
18, 2017, Ms. Clara E. Del Villar, and on May
30, 2017, Ms. Rose P. Lynch, were appointed
to the Board of Directors of the Company.
Ms. Del Villar has extensive experience in the
financial services, technology, energy, and
publishing industries as a portfolio manag-
er at Neuberger Berman and as the Founder,
Chief Executive Officer, and Editor-in-Chief of
the Hispanic Post, among others. These roles
and experience provide Ms. Del Villar with an
extremely diverse background in numerous dis-
ciplines and industries.
Ms. Lynch has extensive executive level stra-
tegic marketing, financial and operating
experience in the fashion, apparel and beauty
industries. Ms. Lynch currently serves on the
Board of Directors of Steven Madden, Ltd.,
and is the Founder and President of Marketing
Strategies, LLC. Ms. Lynch's familiarity with
these industries and her senior level executive
and board experience will be of great value to
the Company.
Information about the Company, including
our investment objectives, 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.generalamericanin-
vestors.com.
By Order of the Board of Directors,
Jeffrey W. Priest
President and Chief Executive Officer
January 24, 2018
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 principally in common stocks believed
by its management to have better than average
growth potential.
The Company’s investment approach focuses
on the selection of individual stocks, each of
which is expected to meet a clearly defined
portfolio objective. A continuous investment
research program, which stresses fundamental
security analysis, is carried on by the officers
and staff of the Company under the oversight
of the Board of Directors. 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. ommon 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 investment
companies, they occasionally sell at a pre-
mium over NAV.
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 NAV of at least 8%. To date,
26,140,167 shares have been repurchased.
“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 authorized the repur-
chase of up to 1 million Preferred Shares in the
open market at prices below $25 per share. To
date, 395,313 shares have been repurchased.
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
1943-2017 (except for the year 1974). (A table
listing dividends and distributions paid during
the 20-year period 1998-2017 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, 2017 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, an element of the
Investors Choice Plan admin-
istered by our transfer agent, is
a system that allows for book-entry ownership
and 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 state-
ment showing the credit of the new shares
as well as their Plan account and certificated
share balances. A brochure which describes
the features and benefits of the Investors
Choice Plan, including the ability of share-
holders 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.generalameri-
caninvestors.com - click on Distributions &
Reports, then Report Downloads.
Privacy
Policy and
Practices
The Company collects non-
public personal information
about its direct stockhold-
ers with respect to their
transactions in shares of the
Company’s securities (those
stockholders whose shares are
registered directly in their names). This infor-
mation 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, stockholders who hold the Company’s
securities 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 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 to comply with federal
standards to secure our stockholders’ informa-
tion.
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, 2017
T he investment return for a Common Stockholder of General American Investors (GAM)
over the 20 years ended December 31, 2017 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 1998.
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 and distributions at the 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 total rate of return on this widely-recognized, unman-
aged 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
$13,131
31.31%
$13,514
35.14%
$12,855
28.55%
18,281
21,773
22,715
16,535
21,001
22,846
26,822
31,322
34,054
17,640
24,142
28,063
26,578
31,833
42,726
46,708
44,213
47,569
57,659
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
7.59
21.21
18,433
21,685
21,424
16,493
21,012
23,190
26,947
30,246
32,668
18,614
24,586
28,350
27,536
32,303
43,069
45,852
45,136
49,506
58,605
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
9.68
18.38
15,549
14,136
12,455
9,698
12,467
13,812
14,480
16,747
17,653
11,109
14,047
16,163
16,507
19,147
25,352
28,823
29,229
32,731
39,876
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
11.98
21.83
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
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 8 - 2 0 1 7 ) ( U N A U D I T E D )
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.
EARNINGS SOURCE
SHORT-TERM LONG-TERM
YEAR INCOME CAPITAL GAINS CAPITAL GAINS
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
$4.400
4.050
6.160
1.370
.330
.590
.957
1.398
2.666
5.250
—
$.620
1.550
.640
—
—
—
.041
—
.009
$.470
.420
.480
.370
.030
.020
.217
.547
.334
.706
EARNINGS SOURCE
SHORT-TERM LONG-TERM RETURN OF
YEAR INCOME CAPITAL GAINS CAPITAL GAINS CAPITAL
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
$.186
.103
.081
.147
.215
.184
.321
.392
.283
.578
—
$.051
.033
.011
.015
—
.254
—
—
—
$.254
.186
.316
.342
1.770
1.916
2.925
.858
2.997
3.012
—
$.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, 2017
STOCKHOLDER
RETURN
GAM NET
ASSET VALUE
S&P 500
STOCK INDEX
1 year
5 years
10 years
15 years
20 years
21.2%
18.4%
12.6
12.5
21.8%
15.8
5.4
8.7
9.2
6.0
8.8
9.2
8.5
9.9
7.2
$75,000
$50,000
$25,000
The diversification of the
Company’s net assets
applicable to its Common
Stock by industry group as
of December 31, 2017 is
shown in the table.
GAM Stockholder Return
GAM Net Asset Value
S&P 500 Stock Index
$0
1 9 9 8
1 9 9 9
2 0 0 0
2 0 0 1
2 0 0 2
2 0 0 3
2 0 0 4
2 0 0 5
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2 0 1 0
2 0 1 1
2 0 1 2
2 0 1 3
2 0 1 4
2 0 1 5
2 0 1 6
2 0 1 7
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, 2017
INDUSTRY CATEGORY
Information Technology
Semiconductors & Semiconductor Equipment
Software & Services
Technology Hardware & Equipment
Financials
Banks
Diversified Financials
Insurance
Consumer Staples
Food, Beverage & Tobacco
Food & Staples Retailing
Consumer Discretionary
Automobiles & Components
Media
Retailing
Industrials
Capital Goods
Commercial & Professional Services
Health Care
Pharmaceuticals, Biotechnology & Life Sciences
Energy
Miscellaneous**
Telecommunication Services
Short-Term Securities
Total Investments
Other Assets and Liabilities - Net
Preferred Stock
Net Assets Applicable to Common Stock
COST(000)
% COMMON
VALUE(000) NET ASSETS*
$19,814
74,377
29,486
123,677
560
13,633
40,918
55,111
60,723
19,617
80,340
5,092
6,726
52,485
64,303
42,108
11,168
53,276
47,183
42,360
50,759
13,448
530,457
147,196
$677,653
$54,040
119,549
82,440
256,029
18,809
55,701
149,339
223,849
129,366
42,000
171,366
5,421
6,383
133,255
145,059
51,198
53,263
104,461
5.0%
11.2
7.7
23.9
1.8
5.2
13.9
20.9
12.1
3.9
16.0
0.5
0.6
12.4
13.5
4.8
5.0
9.8
89,591
60,610
50,216
13,438
1,114,619
147,196
1,261,815
(1,215)
(190,117)
$1,070,483
8.4
5.7
4.7
1.2
104.1
13.8
117.9
(0.1)
(17.8)
100.0%
* Net Assets applicable to the Company's Common Stock.
** Securities which have been held for less than one year, not previously disclosed and not restricted.
(see notes to unaudited financial statements)
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 7 ( 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
NET SHARES TRANSACTED
SHARES HELD
INCREASES:
NEW POSITIONS
Broadcom Limited
ADDITIONS
Arantana Therapeutics, Inc.
Axis Capital Holdings Limited
Celgene Corporation
Charter Communications, Inc.
Ensco plc - Class A
Everest Re Group, Ltd.
Halliburton Company
Liberty Expedia Holdings, Inc.
DECREASES:
ELIMINATIONS
CVS Health Corporation
Regal Entertainment Group
Repros Therapeutics Inc.
REDUCTIONS
American Express Company
Anadarko Petroleum Corporation
Applied Materials, Inc.
Cameco Corporation
Cisco Systems, Inc.
Eaton Corporation plc
Ford Motor Company
General Electric Company
Gilead Sciences, Inc.
Liberty Interactive Corporation, Series A
Macy's, Inc.
MetLife, Inc.
Microsoft Corporation
Oracle Corporation
Paratek Pharmaceuticals, Inc.
Tyler Technologies, Inc.
Universal Display Corporation
Vodafone Group plc ADR
12,900
250,323
30,000
10,000
4,000
150,000
10,000
40,000
25,000
130,000
607,845
237,504
40,000
15,000
20,244
213,000
150,000
65,000
830,000
575,000
20,000
30,000
145,000
20,000
105,000
137,081
38,349
26,000
49,400
100,000
36,900 (b)
1,117,923
275,000
165,000
19,000
1,350,000
120,000
460,000
360,779
---
---
---
125,000
158,000
239,756
927,947
640,000
124,131
434,063
295,000
443,600
291,599
200,000
380,000
500,686
243,247
308,864
27,170
121,309
421,252
(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.
(see notes to financial statement)
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, 2017,
shown on pages 8 - 10
includes securities of 57
issuers. 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.
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.
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.
SHARES
VALUE
% COMMON
NET ASSETS
919,768
$70,325,461
6.6%
787,800
53,263,158
5.0
500,686
42,828,680
4.0
NESTLÉ S.A.
Nestlé is a well-managed, global food company with a favorably-
positioned product portfolio and an excellent AA rated balance
sheet. Market share, volume growth, pricing power, expense control,
and capital management yield above-average total return potential.
ARCH CAPITAL GROUP LTD.
Arch Capital, a Bermuda-based insurer/reinsurer, generates
premiums of approximately $6 billion and has a high quality, well-
reserved A+ rated balance sheet. This company has a strong
management team that exercises underwriting discipline, expense
control, and capital management resulting in above-average growth.
UNILEVER N.V.
Unilever N.V. is a well-managed, primarily emerging market-based,
global consumer goods manufacturer focusing on personal care,
home care, food and refreshment products, and operates with a solid
A+ rated balance sheet. Advantaged geographies coupled with
volume growth, pricing power, and management execution should
generate above average returns.
450,000
38,704,712
3.6
400,000
36,308,000
3.4
625,000
35,204,513
3.3
BERKSHIRE HATHAWAY INC. CLASS A
Berkshire Hathaway is a holding company owning many well-operated
subsidiaries mainly in the insurance, railroad, utility/energy, aerospace,
manufacturing, retail, and finance industries. The company also holds
various thoughtfully selected common stock investments primarily in
the consumer non-durable and financial services industries. Berkshire
is positioned to provide above average returns due to its conservative,
well-reserved AA rated balance sheet.
110
32,736,001
3.1
ASML HOLDING N.V.
ASML is the leading global provider of lithography systems for the
semiconductor industry, manufacturing complex equipment critical
to the production of integrated circuits or microchips. ASML has a
dominant market share in next-generation lithography as this market
grows its share of semiconductor capex budgets. ASML has growth,
prospects, margin leverage, shareholder-friendly capital allocation, and
a moderate risk profile.
185,850
32,304,447
3.0
ALPHABET INC.
Alphabet is a global technology firm with a dominant market
share in internet search, online advertising, desktop, and mobile
operating systems, as well as a growing share of cloud computing
platforms. Alphabet also sells related consumer and enterprise
software and hardware products. Alphabet has a wide competitive
moat, a strong business franchise, a reasonable valuation, and
manageable risks.
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 Hepatitis C, the company has expanded its reach
into cardiopulmonary medicine, oncology, and other related areas.
30,500
31,915,200
3.0
443,600
31,779,504
2.9
$405,369,676
37.9%
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 7
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
(13.3%)
SHARES
COMMON STOCKS
AUTOMOBILES AND COMPONENTS (0.5%)
434,063 Ford Motor Company
MEDIA (0.6%)
VALUE (NOTE 1a)
(COST $5,091,724)
$5,421,447
19,000 Charter Communications, Inc. (a)
(COST $6,725,543)
6,383,240
RETAILING (12.2%)
20,000 Amazon.com, Inc. (a)
360,779 Liberty Expedia Holdings, Inc. (a)
291,599 Liberty Interactive Corporation, Series A (a)
200,000 Macy's, Inc.
919,768 The TJX Companies, Inc.
CONSUMER STAPLES
(16.0%)
FOOD, BEVERAGE, AND TOBACCO (12.1%)
220,000 Danone (France)
93,210 Diageo plc ADR (United Kingdom)
450,000 Nestlé S.A. (Switzerland)
195,000 PepsiCo, Inc.
625,000 Unilever N.V. (Netherlands/United Kingdom)
FOOD AND STAPLES RETAILING (3.9%)
118,781 Costco Wholesale Corporation
200,000 Wal-Mart Stores, Inc.
158,000 Anadarko Petroleum Corporation
927,947 Cameco Corporation (Canada)
1,350,000 Ensco plc - Class A (United Kingdom)
3,830,440 Gulf Coast Ultra Deep Royalty Trust
460,000 Halliburton Company
1,721,159 Helix Energy Solutions Group, Inc. (a)
ENERGY
(5.7%)
FINANCIALS
(20.9%)
23,389,400
15,993,333
15,816,330
5,038,000
70,325,461
130,562,524
142,367,211
18,460,644
13,611,456
38,704,712
23,384,400
35,204,513
129,365,725
22,107,520
19,750,000
41,857,520
171,223,245
8,475,120
8,564,951
7,978,500
119,050
22,480,200
12,977,539
60,595,360
(COST $51,601,196)
(COST $63,418,463)
(COST $60,723,128)
(COST $19,485,720)
(COST $80,208,848)
(COST $42,328,525)
BANKS (1.8%)
110,000 M&T Bank Corporation
(COST $560,176)
18,808,900
DIVERSIFIED FINANCIALS (5.2%)
125,000 American Express Company
205,000
390,000 Nelnet, Inc.
JPMorgan Chase & Co.
INSURANCE (13.9%)
154,552 Aon plc (United Kingdom)
400,000 Arch Capital Group Ltd. (a) (Bermuda)
275,000 Axis Capital Holdings Limited (Bermuda)
110 Berkshire Hathaway Inc. Class A (a) (b)
120,000 Everest Re Group, Ltd. (Bermuda)
380,000 MetLife, Inc.
(COST $13,632,866)
(COST $40,917,896)
(COST $55,110,938)
12,413,750
21,922,700
21,364,200
55,700,650
20,709,968
36,308,000
13,821,500
32,736,001
26,551,200
19,212,800
149,339,469
223,849,019
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 7 - 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
COMMON STOCKS (Continued)
VALUE (NOTE 1a)
HEALTH CARE
(8.4%)
PHARMACEUTICALS, BIOTECHNOLOGY, AND LIFE SCIENCES
1,117,923
Arantana Therapeutics, Inc. (a)
165,000 Celgene Corporation (a)
443,600 Gilead Sciences, Inc.
284,942
200,191 Merck & Co., Inc.
308,864
380,808
Paratek Pharmaceuticals, Inc. (a)
Pfizer Inc.
Intra-Cellular Therapies, Inc. (a)
INDUSTRIALS
(9.8%)
CAPITAL GOODS (4.8%)
124,131
295,000
315,000
190,000
Eaton Corporation plc (Ireland)
General Electric Company
Johnson Controls International plc
United Technologies Corporation
COMMERCIAL AND PROFESSIONAL SERVICES (5.0%)
Republic Services, Inc.
787,800
$5,880,275
17,219,400
31,779,504
4,125,960
11,264,747
5,528,666
13,792,866
89,591,418
9,807,590
5,147,750
12,004,650
24,238,300
51,198,290
(COST $47,183,416)
(COST $42,108,392)
(COST $11,167,520)
(COST $53,275,912)
53,263,158
104,461,448
INFORMATION
TECHNOLOGY
(23.9%)
SEMICONDUCTORS AND SEMICONDUCTOR EQUIPMENT (5.0%)
239,756
185,850
36,900
Applied Materials, Inc.
ASML Holding N.V. (Netherlands)
Broadcom Limited
SOFTWARE AND SERVICES (11.2%)
30,500
755,000
500,686
243,247
27,170
Alphabet Inc. (a)
eBay Inc. (a)
Microsoft Corporation
Oracle Corporation
Tyler Technologies, Inc. (a)
TECHNOLOGY HARDWARE AND EQUIPMENT (7.7%)
104,000
640,000
301,200
121,309
Apple Inc.
Cisco Systems, Inc.
QUALCOMM Incorporated
Universal Display Corporation
(COST $19,813,998)
(COST $74,376,968)
(COST $29,483,182)
(COST $123,674,148)
12,256,327
32,304,447
9,479,610
54,040,384
31,915,200
28,493,700
42,828,680
11,500,718
4,810,448
119,548,746
17,599,920
24,512,000
19,282,824
20,943,999
82,338,743
255,927,873
MISCELLANEOUS (4.7%)
Other (c)
(COST $50,759,381)
50,215,720
TELECOMMUNICATION
SERVICES (1.2%)
421,252
Vodafone Group plc ADR (United Kingdom) (COST $13,448,136)
13,437,939
TOTAL COMMON STOCKS (103.9%)
(COST $529,407,767)
1,111,669,233
TECHNOLOGY
HARDWARE AND
EQUIPMENT (0.0%)
WARRANTS
WARRANT (a)
281,409 Applied DNA Sciences, Inc./
November 14, 2019/$3.50
CONTRACTS
CALL OPTIONS
(100 SHARES EACH) COMPANY/EXPIRATION DATE/EXERCISE PRICE
(COST $2,814)
101,307
ENERGY (0.0%)
CONSUMER
DISCRETIONARY
(0.1%)
1,500 Cameco Corporation/January 19, 2018/$10
(COST $31,562)
15,000
1,500 Macy's Inc./January 19, 2018/$20
1,500 Macy's Inc./January 19, 2018/$22
TOTAL CALL OPTIONS (0.1%)
(COST $302,375)
(COST $333,937)
735,000
510,000
1,245,000
1,260,000
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 7 - 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
CONTRACTS
PUT OPTIONS
(100 SHARES EACH)
COMPANY/EXPIRATION DATE/EXERCISE PRICE
CONSUMER
DISCRETIONARY
(0.1%)
500
1,200
Expedia, Inc./January 19, 2018/$145
TJX Companies, Inc./April 20, 2018/$72.50
(COST $581,470)
CONSUMER STAPLES
(0.0%)
150
250
Costco Wholesale Corporation/ January 19, 2018/$183
Costco Wholesale Corporation/April 20, 2018/$180
TOTAL PUT OPTIONS (0.1%)
(COST $131,567)
(COST $713,037)
SHARES
147,195,903
SHORT-TERM SECURITIES AND OTHER ASSETS
State Street Institutional Treasury Plus Money Market Fund
(COST $147,195,903)
Trust Class, 1.13% (d) (13.8%)
TOTAL INVESTMENTS (e) (117.9%)
Liabilities in excess of receivables and other assets (-0.1%)
(COST $677,653,458)
PREFERRED STOCK (-17.8%)
NET ASSETS APPLICABLE TO COMMON STOCK (100%)
VALUE (NOTE 1a)
$1,225,000
222,000
1,447,000
22,200
120,000
142,200
1,589,200
147,195,903
1,261,815,643
(1,215,023)
1,260,600,620
(190,117,175)
$1,070,483,445
ADR - American Depository Receipt
(a) Non-income producing security.
(b) Security is held as collateral for options written.
(c) Securities which have been held for less than one year, not previously disclosed, and not restricted.
(d) 7 day yield.
(e) At December 31, 2017, the cost of investments for Federal income tax purposes was $681,216,803; aggregate gross
unrealized appreciation was $599,385,399; aggregate gross unrealized depreciation was $18,786,559; and net unrealized
appreciation was $580,598,840.
S T A T E M E N T O F C A L L O P T I O N S W R I T T E N
CONTRACTS
(100 SHARES EACH) COMPANY/EXPIRATION DATE/EXERCISE PRICE
VALUE (NOTE 1a)
CONSUMER
DISCRETIONARY
(0.0%)
500 Expedia, Inc./January 19, 2018/$150
1,200 TJX Companies, Inc./April 20, 2018/$80
(PREMIUMS RECEIVED $518,017)
$2,500
252,000
254,500
CONSUMER STAPLES
(0.0%)
400 Costco Wholesale Corporation/April 20, 2018/$185
(PREMIUM RECEIVED $187,919)
358,000
TOTAL OPTIONS WRITTEN (PREMIUMS RECEIVED $705,936*)
$612,500
*The maximum cash outlay if all call options are exercised is $24,500,000.
(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, 2017
INVESTMENTS, AT VALUE (NOTE 1a)
Common stocks (cost $529,407,767)
Warrant (cost $2,814)
Purchased options (cost $1,046,974)
Money market fund (cost $147,195,903)
Total investments (cost $677,653,458)
RECEIVABLES AND OTHER ASSETS
Receivable for securities sold
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
Outstanding options written, at value (premiums received $705,936)
Accrued preferred stock dividend not yet declared
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 - 26,453,136 (note 5)
NET ASSET VALUE PER COMMON SHARE
NET ASSETS APPLICABLE TO COMMON STOCK
Common Stock, 26,453,136 shares at par value (note 5)
Additional paid-in capital (note 5)
Over distributed net investment income (note 5)
Undistributed realized gain on common stocks, options, and other
Unallocated distributions on Preferred Stock
Unrealized appreciation on common stocks, options, and other
Accumulated other comprehensive loss (note 7)
NET ASSETS APPLICABLE TO COMMON STOCK
(see notes to financial statements)
$1,111,669,233
101,307
2,849,200
147,195,903
1,261,815,643
6,891,255
1,912,602
4,761,364
1,049,422
1,276,430,286
3,088,065
2,035,000
612,500
219,955
5,851,558
3,715,753
306,835
15,829,666
190,117,175
$1,070,483,445
$40.47
$26,453,136
451,840,892
(2,394,592)
13,184,238
(219,955)
584,255,622
(2,635,896)
$1,070,483,445
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 $651,594)
Interest
TOTAL INCOME
EXPENSES
Investment research
Administration and operations
Office space and general
Auditing and legal fees
Directors’ fees and expenses
Transfer agent, custodian and registrar fees, and expenses
State and local taxes
Stockholders’ meeting and reports
TOTAL EXPENSES
NET INVESTMENT INCOME
YEAR ENDED
DECEMBER 31, 2017
$21,010,241
1,344,967
22,355,208
7,424,592
3,391,865
1,893,734
319,302
290,660
220,184
167,703
83,012
13,791,052
8,564,156
REALIZED GAIN AND CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS (NOTES 1, 3 AND 4)
Net realized gain on investments:
Common stock transactions
Purchased option transactions
Written option transactions
Net increase (decrease) in unrealized appreciation:
Common stocks and warrants
Purchased options
Written options
NET INVESTMENT INCOME, REALIZED GAINS, AND APPRECIATION ON INVESTMENTS
DISTRIBUTIONS TO PREFERRED STOCKHOLDERS
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
S T A T E M E N T O F C H A N G E S I N N E T A S S E T S
89,873,015
777,915
1,182,682
91,833,612
70,581,014
(135,215)
(109,170)
70,336,629
170,734,397
(11,311,972)
$159,422,425
OPERATIONS
Net investment income
Net realized gain on investments
Net increase (decrease) in unrealized appreciation
Distributions to Preferred Stockholders:
From net investment income
From net capital gains
Decrease in net assets from Preferred distributions
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
OTHER COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31,
2017
2016
$8,564,156
91,833,612
70,336,629
170,734,397
$8,172,289
91,570,557
(15,321,337)
84,421,509
(2,116,504)
(9,195,468)
(11,311,972)
(1,039,878)
(10,272,094)
(11,311,972)
159,422,425
73,109,537
Funded status of defined benefit plans (note 7)
1,987,555
624,419
DISTRIBUTIONS TO COMMON STOCKHOLDERS
From net investment income
From net capital gains
(15,212,903)
(71,518,172)
(8,988,445)
(75,933,325)
DECREASE IN NET ASSETS FROM COMMON DISTRIBUTIONS
(86,731,075)
(84,921,770)
CAPITAL SHARE TRANSACTIONS (NOTE 5)
Value of Common Shares issued in payment of dividends
and distributions
Cost of Common Shares purchased
DECREASE IN NET ASSETS - CAPITAL TRANSACTIONS
NET INCREASE (DECREASE) IN NET ASSETS
NET ASSETS APPLICABLE TO COMMON STOCK
BEGINNING OF YEAR
35,156,383
(61,886,535)
(26,730,152)
47,948,753
33,686,020
(67,991,719)
(34,305,699)
(45,493,513)
1,022,534,692
1,068,028,205
END OF YEAR (including over distributed net investment
income of ($2,394,592) and ($1,947,100), respectively)
$1,070,483,445
$1,022,534,692
(see notes to financial statements)
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, 2017.
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 common stocks,
options and other - 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
2017
2016
2015
2014
2013
$37.56
.32
$37.74
.30
$39.77
.48
$41.07
.32
$32.68
.17
6.23
.08
6.63
(.04)
(.39)
(.43)
6.20
3.10
.02
3.42
(.04)
(.38)
(.42)
3.00
(.99)
.02
(.49)
(.12)
(.27)
(.39)
(.88)
(.30)
(2.99)
(3.29)
(.33)
(2.85)
(3.18)
(.34)
(.81)
(1.15)
2.39
(.13)
2.58
(.04)
(.34)
(.38)
2.20
(.32)
(3.18)
(3.50)
10.51
.20
10.88
(.04)
(.35)
(.39)
10.49
(.18)
(1.92)
(2.10)
Net asset value, end of year
Per share market value, end of year
$40.47
$34.40
$37.56
$31.18
$37.74
$31.94
$39.77
$35.00
$41.07
$35.20
TOTAL INVESTMENT RETURN - Stockholder
Return, based on market price per share 21.21%
RATIOS AND SUPPLEMENTAL DATA
Net assets applicable to Common Stock,
7.59%
(5.34%)
9.32%
34.24%
end of year (000’s omitted)
$1,070,483 $1,022,535 $1,068,028 $1,227,900 $1,229,470
Ratio of expenses to average net assets
applicable to Common Stock
1.28%
1.27%
1.17%
1.10%
1.27%
Ratio of net income to average net assets
applicable to Common Stock
Portfolio turnover rate
0.79%
19.58%
0.78%
20.29%
1.17%
14.41%
0.78%
14.98%
0.47%
17.12%
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)
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
$190,117
663%
$190,117
638%
$190,117 $190,117 $190,117
747%
662%
746%
$25.00
$26.59
$25.00
$25.77
$25.00
$26.75
$25.00
$26.01
$25.00
$25.30
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
1 4
N O T E S T O F I N A N C I A L S T A T E M E N T S - c o n t i n u e d
G e n e r a l A m e r i c a n I n v e s t o r s
1. SIGNIFICANT ACCOUNTING POLICIES - (Continued from previous page.)
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 purchases put
options or writes call options to hedge the value of portfolio investments while it purchases call options and
writes put options to obtain equity market exposure. The risk associated 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 counterparty 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 unexer-
cised are treated by the Company on the expiration date as realized gains on written option transactions in the
Statement of Operations. The difference between the premium received and the amount paid on effecting a clos-
ing 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 transaction, 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 invest-
ments 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 parenthetically 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 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.
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.
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.)
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 sum-
marized 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, 2017:
Assets
Common stocks
Warrants
Purchased options
Money market fund
Total
Liabilities
Options written
Level 1
$1,111,669,233
101,307
2,849,200
147,195,903
$1,261,815,643
Level 2
—
—
—
—
—
Level 3
—
—
—
—
—
Total
$1,111,669,233
101,307
2,849,200
147,195,903
$1,261,815,643
($612,500)
—
—
($612,500)
Transfers of Level 3 Securities, if any, are reported as of the actual date of reclassification. No such transfers occurred dur-
ing the year ended December 31, 2017.
3. PURCHASES AND SALES OF SECURITIES
Purchases and sales of securities (other than short-term securities and options) during 2017 amounted to
$216,996,261 and $341,267,505, on long transactions, respectively.
4. OPTIONS
The level of activity in purchased and written options varies from year to year based upon market conditions.
Transactions in purchased call and put options, as well as written covered call options and collateralized put
options during the year ended December 31, 2017 were as follows:
Purchased Options
Outstanding, December 31, 2016
Purchased
Exercised
Expired
Outstanding, December 31, 2017
Written Options
Outstanding, December 31, 2016
Written
Terminated in closing purchase transaction
Expired
Outstanding, December 31, 2017
CALLS
CONTRACTS
27,500
7,100
(28,500)
(1,600)
4,500
COST BASIS
$1,347,996
759,619
(1,614,939)
(158,739)
$333,937
COVERED CALLS
CONTRACTS
2,068
2,400
(2,368)
0
2,100
PREMIUMS
$223,189
888,319
(405,572)
0
$705,936
5. CAPITAL STOCK AND DIVIDEND DISTRIBUTIONS
PUTS
CONTRACTS
2,068
2,350
(318)
(2,000)
2,100
COST BASIS
$273,203
902,287
(197,829)
(264,624)
$713,037
COLLATERALIZED PUTS
CONTRACTS
9,800
8,100
(14,306)
(3,594)
0
PREMIUMS
$462,617
868,724
(1,138,810)
(192,531)
$0
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, 26,453,136 shares
were issued and outstanding; 8,000,000 Preferred Shares were originally issued and 7,604,687 were outstanding
on December 31, 2017.
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 divi-
dends 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.
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.)
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 2017 and 2016 were as follows:
SHARES
2017
2016
AMOUNT
2017
2016
Par Value of Shares issued in payment of
dividends and distributions (shares
issued from treasury)
Increase in paid-in capital
Total increase
Par Value of Shares purchased (at an
average discount from net asset value
of 15.7% and 17.7%, respectively)
Decrease in paid-in capital
Total decrease
Net decrease
1,047,100
1,073,658
$1,047,100
34,109,283
35,156,383
$1,073,658
32,612,362
33,686,020
(1,815,079) (2,149,240)
(767,979) (1,075,582)
(1,815,079)
(60,071,456)
(61,886,535)
($26,730,152)
(2,149,240)
(65,842,479)
(67,991,719)
($34,305,699)
At December 31, 2017, the Company held in its treasury 5,527,736 shares of Common Stock with an aggregate cost
of $180,582,009.
The tax basis distributions during the year ended December 31, 2017 are as follows: ordinary distributions of
$17,329,407 and net capital gains distributions of $80,713,640. As of December 31, 2017, distributable earnings on a
tax basis included $16,747,116 from undistributed net capital gains and $580,692,277 from net unrealized apprecia-
tion on investments if realized in future years. Reclassifications arising from permanent “book/tax” difference reflect
non-tax deductible expenses during the year ended December 31, 2017. As a result, additional paid-in capital was
decreased by $1,517 and over-distributed net investment income was decreased by $1,517. As of December 31, 2017,
the Company had straddle loss deferrals of $131,762. 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, 2017 to its offi-
cers (identified on page 20) amounted to $6,688,000 of which $1,698,000 was payable as of year end.
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 2017 was $982,992. The qualified thrift plan acquired
69,658 shares in the open market, sold 26,963 shares in the open market, and distributed to a retired employee 31,908
shares of the Company’s Common Stock during the year ended December 31, 2017. It held 628,692 shares of the
Company’s Common Stock at December 31, 2017.
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
average salary with an offset for a portion of Social Security covered compensation. The investment policy of the pen-
sion 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 valued based upon their closing market price.
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 - (Continued from previous page.)
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, 2017 (MEASUREMENT DATE)
CHANGE IN BENEFIT OBLIGATION:
Benefit obligation at beginning of year
Service cost
Interest cost
Benefits paid
Actuarial (gain)/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
$16,817,110
372,091
686,184
(878,075)
1,300,275
18,297,585
$5,508,944
129,810
220,280
(320,320)
312,844
5,851,558
$22,326,054
501,901
906,464
(1,198,395)
1,613,119
24,149,143
19,220,423
4,716,601
—
(878,075)
23,058,949
$4,761,364
—
—
320,320
(320,320)
—
($5,851,558)
19,220,423
4,716,601
320,320
(1,198,395)
23,058,949
($1,090,194)
Accumulated benefit obligation at end of year
$17,589,109
$5,706,990
$23,296,099
WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE OBLIGATION AT YEAR END:
Discount rate: 3.55%
Salary scale assumption: 4.50% for NHCE* and 2.75% for HCE*
Mortality: RP-2014 Mortality Table scaled back through 2006/MP-2017 Projection 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
$2,403,313
$2,358,051
$4,761,364
($307,545)
(5,201,399)
($3,567)
(339,047)
($311,112)
(5,540,446)
AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME CONSIST OF:
Net actuarial (gain)/loss
Prior service cost
ACCUMULATED OTHER COMPREHENSIVE INCOME
$4,621,628
1,823
$4,623,451
($1,986,598)
(957)
($1,987,555)
$2,635,030
866
$2,635,896
WEIGHTED-AVERAGE ASSUMPTIONS TO DETERMINE NET PERIODIC BENEFIT COST DURING YEAR:
Discount rate: 4.00%
Expected return on plan assets**: 7.25% for Qualified Plan; N/A for Supplemental Plan
Salary scale assumption: 4.50% for NHCE* and 2.75% for HCE*
Mortality: RP-2014 Mortality Table scaled back through 2006/MP-2016 Projection Scale without collar adjustment
*NHCE - Non-Highly Compensated Employee; HCE - Highly Compensated Employee.
**Determined based upon a discount to the long-term average historical performance of the plan.
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
$372,091
686,184
(1,392,161)
372
210,607
($122,907)
$129,810
220,280
—
585
54,058
$404,733
$501,901
906,464
(1,392,161)
957
264,665
$281,826
The Company's qualified pension plan owns assets as of December 31, 2017 comprised of $16,876,101 of equity securities
and $2,195,673 of money market fund assets classified as Level 1 and $3,987,175 of limited partnership interests which are
not classified by level.
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.)
EXPECTED CASH FLOWS
Expected Company contributions for 2017
Expected benefit payments:
2018
2019
2020
2021
2022
2023-2027
QUALIFIED PLAN
—
$931,283
953,274
966,963
973,967
981,908
5,328,059
SUPPLEMENTAL PLAN
$311,112
$311,112
304,863
292,597
279,998
267,449
1,637,330
TOTAL
$311,112
$1,242,395
1,258,137
1,259,560
1,253,965
1,249,357
6,965,389
The estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit
cost in 2018 is $225,116 which is comprised of $224,531 of actuarial loss and $585 of service cost.
8. OPERATING LEASE COMMITMENT
In 2007, the Company entered into an operating lease agreement for office space which expires in 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 of-
fice improvements, and incurs escalations annually relating to operating costs and real property taxes and to annual rent
charges beginning in 2013. The Company has extended the lease for two months through March 2018. Rental expense
approximated $1,286,000 for the year ended December 31, 2017. Minimum rental commitments under the operating lease
are approximately $192,200 in 2018 which includes the cost of extending the lease to March 31, 2018.
In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.
2016-02, Leases, which requires lessees to reassess if a contract is or contains lease agreements and assess the lease classifi-
cation to determine if they should recognize an asset and offsetting liability on the statement of assets and liabilities that
arises from entering into a lease, including an operating lease. Existing U.S. GAAP does not require the lessee to record an
asset and offsetting liability associated with an operating lease. Generally consistent with existing U.S. GAAP, the annual
cost of an operating lease will continue to be reflected as an expense in the statements of operations and changes in net
assets and disclosure of the terms of a lease will continue to be reported in the footnotes to the financial statements. ASU
2016-02 is effective for financial statements issued for fiscal years beginning after December 15, 2018, including interim
periods within those fiscal years. Early application is permitted and likely by the Company in conjunction with the expi-
ration of its current operating lease on January 31, 2018 and entrance into a new operating lease which is anticipated to
be effective in the first quarter of 2018. This will necessitate reporting an asset and offsetting liability on the statement of
assets and liabilities of the Company at that time.
The Company entered into a new operating lease agreement for office space which will expire in 2028 and provide for
aggregate rental payments of approximately $6,437,500. The lease agreement contains clauses whereby the Company will
receive free rent for a specified number of months and credit towards construction of office improvements and incurs es-
calations annually relating to operating costs and real property taxes and to annual rent charges beginning in 2023. The
Company has the option to extend the lease for an additional five years at market rates. Minimum rental commitments
under this operating lease are approximately:
$104,000 (2 months)
2018:
$624,000
2019:
$624,000
2020:
$624,000
2021:
2022:
$624,000
Thereafter: $3,836,500
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.
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of General American
Investors Company, Inc. (“the Company”), including the statements of investments and
options written as of December 31, 2017, and the related statements of operations for the year
then ended, the statements of changes in net assets for each of the two years in the period
then ended, the financial highlights for each of the five years in the period then ended and the
related notes (collectively referred to as the “financial statements”). In our opinion, the finan-
cial statements present fairly, in all material respects, the financial position of the Company at
December 31, 2017, 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 its financial highlights for each of
the five years in the period then ended, in conformity with U.S. generally accepted accounting
principles.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsi-
bility is to express an opinion on the Company’s financial statements based on our audits. We
are a public accounting firm registered with the Public Company Accounting Oversight Board
(United States) ("PCAOB") and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCOAB. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement, whether due to error or fraud. The
Company is not required to have, nor were we engaged to perform, an audit of the Company’s
internal control over financial reporting. As part of our audits, we are required to obtain an
understanding of internal control over financial reporting, but not for the purpose of express-
ing an opinion on the effectiveness of the Company’s internal control over financial reporting.
Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the
financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the
amounts and disclosures in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 2017, by correspondence with the custodian and brokers.
Our audits also included evaluating the accounting principles used and significant estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that our audits provide a reasonable basis for our opinion.
Ernst & Young LLP
We have served as the Company’s auditor since 1949.
Philadelphia, PA
February 13, 2018
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 (55)
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. (58)
1997
Andrew V. Vindigni (58) 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 (59)
2005
Craig A. Grassi (49)
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 (43)
2012
Diane G. Radosti (65)
1980
Linda J. Genid (59)
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)
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 meeting in April.
The address for each officer is the Company’s office. All information is as of December 31, 2017.
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, 2017 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 13, 2017, 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. (53)
1995
Founder and Managing Member
Diaz & Altschul Capital
Management, LLC
(investment advisory firm)
Chairman
Overbrook Management Corporation
(investment advisory firm)
Co-Founder and Chairman
Kolltan Pharmaceuticals, Inc.
(pharmaceuticals) (until 2016)
CURRENT DIRECTORSHIPS AND AFFILIATIONS
Child Mind Institute, Director
Delta Opportunity Fund, Ltd., Director
Neurosciences Research Foundation, Trustee
Overbrook Foundation, Director
Rodney B. Berens (72)
2007
Founder, Chairman and Senior Investment Svarog Capital Advisors, Member of Investment Committee
Strategist
Berens Capital Management, LLC
(investment advisory firm)
The Morgan Library and Museum, Life 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
Lewis B. Cullman (99)
Philanthropist
1961
Chess-in-the-Schools, Chairman Emeritus
Metropolitan Museum of Art, Honorary Trustee
Museum of Modern Art, Honorary Trustee
The New York Botanical Garden, Life Trustee
The New York Public Library, Trustee
Chairman of the Board of Company
Neurosciences Research Foundation, Trustee
Spencer Davidson (75)
1995
Clara E. Del Villar (59)
2017
John D. Gordan, III (72)
1986
Betsy F. Gotbaum (79)
2010
Strategic Consultant
Advisor, Strategic Partnerships,
Trialogies, Inc. (until 2016)
(information technology)
Founder, Chief Executive Officer
and Editor-in-Chief,
Hispanic Post (2011-2016)
(digital media)
Attorney
Beazley USA Services, Inc.
(insurance)
Executive Director
Citizen Union (since 2017)
(nonprofit democratic reform
organization)
Consultant
Sidney R. Knafel (87)
1994
Lead Independent Director of Company
Managing Partner
SRK Management Company
(investment company)
Rose P. Lynch (67)
Director since May 2017
Founder and President
Marketing Strategies, LLC
(consulting firm)
Henry R. Schirmer (53)
2015
Chief Financial Officer/Executive
Vice-President
Unilever Europe (since 2016)
Chief Financial Officer/Senior
Vice-President Finance
Unilever North America (2012-2016)
(consumer products)
Tribecca Innovation Awards Foundation, Fellow
Women’s Health Symposium, Weill Cornell Medicine, Member
of Executive Steering Committee
Center for Community Alternatives, Director
Community Service Society, Trustee
Fisher Center for Alzheimer’s Research Foundation, Trustee
Visiting Nurse Service of New York, Director
Addison Gallery of American Art, Board of Governors
The Frick Collection, Trustee
Phillips Academy, Charter Trustee Emeritus
Radcliffe Institute for Advanced Study, Dean's Council
The Rogosin Institute, Director
Wellesley College, Trustee Emeritus
Steven Madden, Ltd., Director
Concord Academy, Trustee
Princeton University Varsity Club, Director
Women and Foreign Policy Advisory Council, Council of
Foreign Relations, Member
Results for Development Institute, Director
Raymond S. Troubh (91)
Financial Consultant
Diamond Offshore Drilling, Inc., Director
1989
INTERESTED DIRECTOR
Jeffrey W. Priest (55)
2013
President and Chief Executive Officer
of Company
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 December 31, 2017.