GAM Holding AG
Annual Report 2018

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General American Investors Company, Inc. 530 Fifth Avenue, New York, NY 10036 (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 8 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 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. 2018 $896,789,202 8,173,881 59,267,989 (139,146,694) (11,311,972) 2017 $1,070,483,445 8,564,156 91,833,612 70,336,629 (11,311,972) $34.51 $28.44 -17.6% $40.47 $34.40 -15.0% 25,984,054 $37.26-$27.09 12,069,886 26,453,136 $36.53-$31.12 10,504,400 DIVIDEND SUMMARY (per share) (unaudited) Record Date Payment Date Ordinary Income Long-Term Capital Gain Total Common Stock Nov. 19, 2018 Total from 2018 earnings Dec. 28, 2018 $0.293862 $1.956138 $2.250000 Nov. 13, 2017 Feb. 5, 2018 Total from 2017 earnings Dec. 29, 2017 Feb. 16, 2018 $0.578150 - $0.578150 $2.511850 0.500000 $3.011850 $3.090000 0.500000 $3.590000 Preferred Stock Mar. 7, 2018 Jun. 7, 2018 Sept. 7, 2018 Dec. 7, 2018 Total for 2018 Mar. 7, 2017 Jun. 7, 2017 Sept. 7, 2017 Dec. 7, 2017 Total for 2017 Mar. 26, 2018 Jun. 25, 2018 Sept. 24, 2018 Dec. 24, 2018 Mar. 24, 2017 Jun. 26, 2017 Sept. 25, 2017 Dec. 26, 2017 $0.048567 0.048567 0.048567 0.048567 $0.194268 $0.069579 0.069579 0.069579 0.069579 $0.278316 $0.323308 0.323308 0.323308 0.323308 $1.293232 $0.302296 0.302296 0.302296 0.302296 $1.209184 $0.371875 0.371875 0.371875 0.371875 $1.487500 $0.371875 0.371875 0.371875 0.371875 $1.487500 General American Investors Company, Inc. 530 Fifth Avenue, New York, NY 10036 (212) 916-8400 (800) 436-8401 E-mail: InvestorRelations@gainv.com www.generalamericaninvestors.com 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 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) decreased 7.0% for the year ended December 31, 2018. The U.S. stock market was down 4.4% for the year, as measured by our benchmark, the Standard & Poor’s 500 Stock Index (including income). The return to our Common Stockholders de- creased by 9.9% and the discount at which our shares traded to their NAV continued to fluctu- ate and on December 31, 2018, it was 17.6%. 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. Stockholder Return Years (Market Value) NAV Return S&P 500 3 5 10 20 30 40 50 5.4% 3.9 11.4 7.1 11.7 13.5 10.6 6.3% 9.3% 4.7 11.2 7.2 11.3 13.0 11.3 8.5 13.1 5.6 9.9 11.5 9.8 Market volatility returned with a vengeance in 2018 reflected in the equity market’s strong early performance and weak finish as December’s market decline was unmatched since 1931. As we hypothesized last year, earn- ings multiples contracted with interest rate increases just as earnings accelerated rapidly with an improved economy on the back of sig- nificantly reduced U.S. corporate tax rates and regulatory reforms. Thus, while earnings rose in excess of 23% for the year, the performance of the S&P 500 logged 7% gains through October 31 and ended down 4.4% for the year. Much of the decline can be traced to escalat- ing trade spats threatening corporate supply chains, elevated debt levels and liquidity con- cerns, perhaps in part, a result of Fed balance sheet reductions and similar planned actions by other central banks. Significant geo-politi- cal tensions also appeared to reach a zenith in the fourth quarter with tariff implementations, degrading world economic growth, especially in China and Europe, an uncertain outcome with Brexit and the rise of political populism across the European Union. As is often the case, the very circumstances that lead to market corrections cause adjust- ment in policy as participants adjust their strategies, relieving the overriding pessimism, upending the negative sentiment and in the short-term lead markets higher. Recent favor- able comments by Federal Reserve Chairman Powell and others are the case in point and have diminished market fears of a “too tight” Federal Reserve policy, and recent U.S./China discussions seem to have calmed trade and geopolitical concerns converting pessimism to hope that many of the issues contributing to the 4th quarter and late December selloff may be resolved favorably. In truth, nothing has yet been resolved, al- though, at the fringes some progress has been made. Valuations are largely where they were at the end of November with the exception of the FAANG stocks, which have experienced significant multiple contraction as of this writ- ing. 2019 earnings growth for the S&P 500 anticipated at the end of September to be 9% has been reduced by analysts to 5%, with a few calling for an outright earnings recession, as we had in 2015. However, stock buybacks have likely been large enough over the past year, despite some margin compression, to grow earnings around 1-2% per S&P 500 share on their own and assuming nominal gross domestic product growth in the U.S. econo- my in excess of 3.5%, 4-5% earnings growth seems plausible, if not conservative. Assuming no significant policy errors here and abroad, China successfully rebooting its expansion and the addition of announced, but not imple- mented buybacks, growth in earnings may improve further. In sum, the rise of uncertainty has negative- ly affected anticipated growth rates, margins and multiples paid for corporate earnings. Volatility in financial markets has risen dra- matically with much of it self-induced by poorly planned or implemented policy de- cisions and commentary. As some of these uncertainties resolve themselves over time, negative expectations may not be realized and the equity markets may find their footing and continue to advance as one of the longest mar- ket expansions in U.S. history unfolds into its eleventh year. We remain guardedly optimistic on the equity markets, but vigilant on the po- tential for rising risks to the economy. Ms. Diane G. Radosti, an employee of the Company for the last thirty-eight years and Treasurer since 1990, retired effective December 31, 2018. Ms. Radosti will continue in a consulting role with the Company dur- ing the first quarter of 2019. Effective January 1, 2019, Ms. Samantha X. Jin was appointed Treasurer. The Company is also pleased to report the fol- lowing officer promotions effective January 1, 2019: Mr. Anang K. Majmudar to Senior Vice- President, Mr. Liron Kronzon to Vice-President, and Ms. Connie A. Santa Maria to Assistant Corporate Secretary. 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 February 6, 2019 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. “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. Shares of the Company usually sell at a dis- count to NAV, as do the shares of most other domestic equity closed-end investment com- panies. 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, 27,368,114 shares have been repurchased. “GAM Pr B” Preferred Stock On September 24, 2003, the Company issued and sold in an underwritten offering 8,000,000 shares of its 5.95% Cumulative Preferred Stock, Series B with a liqui- dation preference of $25 per share ($200,000,000 in the ag- gregate). 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 1943-2018 (except for the year 1974). (A table listing dividends and distributions paid during the 20-year period 1999-2018 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, 2018 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, 2018 T he investment return for a Common Stockholder of General American Investors (GAM) over the 20 years ended December 31, 2018 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 1999. 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 STANDARD & POOR’S 500 STOCKHOLDER RETURN ANNUAL RETURN 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 -9.87 CUMULATIVE INVESTMENT $13,922 16,581 17,299 12,592 15,993 17,399 20,426 23,854 25,934 13,434 18,385 21,371 20,241 24,242 32,538 35,570 33,671 36,227 43,910 39,576 NET ASSET VALUE RETURN ANNUAL CUMULATIVE RETURN INVESTMENT 36.40% $13,640 17.64 16,046 -1.20 15,854 -23.02 12,204 27.40 15,548 10.37 17,160 16.20 19,940 12.24 22,381 8.01 24,174 -43.02 13,774 32.08 18,193 15.31 20,978 -2.87 20,376 17.31 23,903 33.33 31,870 6.46 33,929 -1.56 33,400 9.68 36,633 18.38 43,366 -7.03 40,317 RETURN CUMULATIVE INVESTMENT $12,096 10,996 9,689 7,544 9,698 10,745 11,264 13,028 13,733 8,642 10,928 12,573 12,841 14,894 19,722 22,422 22,738 25,462 31,020 29,661 ANNUAL RETURN 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 -4.38 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 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 9 - 2 0 1 8 ) ( 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 $.620 1999 1.550 2000 .640 2001 2002 — — 2003 — 2004 .041 2005 — 2006 2007 .009 — 2008 $4.050 6.160 1.370 .330 .590 .957 1.398 2.666 5.250 .254 $.420 .480 .370 .030 .020 .217 .547 .334 .706 .186 EARNINGS SOURCE SHORT-TERM LONG-TERM RETURN OF YEAR INCOME CAPITAL GAINS CAPITAL GAINS CAPITAL 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 $.103 .081 .147 .215 .184 .321 .392 .283 .578 .294 $.051 .033 .011 .015 — .254 — — — — $.186 .316 .342 1.770 1.916 2.925 .858 2.997 3.012 1.956 $.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, 2018 STOCKHOLDER RETURN GAM NET ASSET VALUE S&P 500 STOCK INDEX 1 year 5 years 10 years 15 years 20 years -9.9% -7.0% -4.4% 3.9 11.4 6.2 7.1 4.7 11.2 6.5 7.2 8.5 13.1 7.7 5.6 $40,000 $30,000 $20,000 $10,000 $0 GAM Stockholder Return GAM Net Asset Value S&P 500 Stock Index The diversification of the Company’s net assets applicable to its Common Stock by industry group as of December 31, 2018 is shown in the table. 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 6 1 0 2 1 7 0 2 8 1 0 2 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 ) 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 Media Retailing Industrials Capital Goods Commercial & Professional Services Transportation 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 DECEMBER 31, 2018 COST(000) % COMMON VALUE(000) NET ASSETS* $9,265 91,009 42,067 142,341 560 10,386 41,926 52,872 58,772 25,409 84,181 30,174 37,129 67,303 27,479 8,408 21,327 57,214 51,038 65,350 58,369 7,835 586,503 57,748 $644,251 $34,345 130,116 77,058 241,519 15,744 37,816 144,890 198,450 116,956 43,496 160,452 31,094 108,609 139,703 33,747 43,102 20,784 97,633 83,889 64,701 38,653 6,611 1,031,611 57,748 1,089,359 (2,453) (190,117) $896,789 3.8% 14.6 8.6 27.0 1.7 4.2 16.2 22.1 13.0 4.9 17.9 3.5 12.1 15.6 3.8 4.8 2.3 10.9 9.4 7.2 4.3 0.7 115.1 6.4 121.5 (0.3) (21.2) 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 8 ( 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 VBI Vaccines Inc. ADDITIONS Axis Capital Holdings Limited Cameco Corporation Delta Air Lines, Inc. Discovery, Inc. DXC Technology Company Eaton Corporation plc GCI Liberty, Inc.- Class A Nelnet, Inc. Paratek Pharmaceuticals, Inc. Phillips 66 Worldpay, Inc. DECREASES: ELIMINATIONS Charter Communications, Inc. Ford Motor Company General Electric Company REDUCTIONS Apple Inc. Arantana Therapeutics, Inc. Celgene Corporation eBay Inc. Ensco plc - Class A Everest Re Group, Ltd. Facebook, Inc. - Class A Gilead Sciences, Inc. Halliburton Company JPMorgan Chase & Co. Kindred Biosciences, Inc. The Kroger Co. Macy's, Inc. PepsiCo, Inc. Pfizer Inc. Sinclair Broadcast Group, Inc. - Class A Universal Display Corporation Vodafone Group plc ADR Wal-Mart Stores, Inc. NET SHARES TRANSACTED SHARES HELD 900,000 1,764,464 (b) 20,000 200,000 20,000 50,000 25,000 25,000 67,600 12,500 28,621 28,000 10,000 10,000 434,063 295,000 15,000 274,999 10,000 200,000 200,000 5,000 9,500 40,000 25,000 6,600 9,243 140,979 120,000 20,500 50,000 263,000 10,000 328,352 72,325 295,000 1,327,947 416,511 449,285 151,474 154,131 359,199 382,500 464,985 168,000 148,769 --- --- --- 89,000 1,599,365 155,000 438,800 1,325,000 115,000 76,500 333,600 460,000 182,300 449,574 415,782 300,000 174,500 330,808 197,196 121,309 342,900 157,875 (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, 2018, shown on pages 8 - 10 includes securities of 61 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. 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. 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. 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 has a wide competitive moat, a strong business franchise, a reasonable valuation, several positive potential catalysts, and manageable risks. NESTLÉ S.A. Nestlé is a well-managed, global food company with a favorably- positioned product portfolio and an excellent balance sheet. Market share, volume growth, pricing power, expense control, and capital management yield durable, above average, total return potential. SHARES VALUE % COMMON NET ASSETS 1,296,536 $58,007,021 6.4% 500,686 50,854,677 5.7 597,895 43,102,251 4.8 35,500 36,764,155 4.1 450,000 36,545,900 4.1 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 common stock investments. Berkshire is positioned to provide above average, long term, relatively defensive returns due to its conservative balance sheet. 110 33,660,000 3.7 ARCH CAPITAL GROUP LTD. Arch Capital, a Bermuda-based insurer/reinsurer, generates premiums of approximately $6.5 billion and has a high quality, well-reserved balance sheet. This company has a strong management team that exercises underwriting discipline, expense control, and capital management resulting in above-average earnings and book value growth. 1,200,000 32,064,000 3.6 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. Advantaged geographies coupled with above average volume growth, pricing power, and management execution generates above average, long-term shareholder returns. 590,000 32,051,366 3.6 640,000 CISCO SYSTEMS, INC. Cisco is the leading global provider of telecommunications infrastructure products and services that span networking, security, collaboration, and cloud applications. Cisco benefits from secular technology trends and is also successfully executing a multi-year transition. Cisco offers an attractive valuation with solid growth, strong shareholder yield, and moderate risk. ASML HOLDING N.V. ASML is the leading global provider of lithography systems for the semiconductor industry, manufacturing highly complex equipment critical to the production of integrated circuits or microchips. ASML has established a dominant market share in next-generation lithography even as that market grows its share of semiconductor capex budgets. ASML has strong growth prospects, healthy margin leverage, shareholder-friendly capital allocation, and a moderate risk profile. 177,850 27,731,200 3.1 27,677,017 3.1 $378,457,587 42.2% 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 8 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 (15.4%) SHARES COMMON STOCKS MEDIA (3.5%) 449,285 359,199 197,196 Discovery, Inc. (a) GCI Liberty, Inc.- Class A (a) Sinclair Broadcast Group, Inc. - Class A RETAILING (11.9%) 18,000 335,279 300,000 1,296,536 Amazon.com, Inc. (a) Liberty Expedia Holdings, Inc. (a) Macy's, Inc. The TJX Companies, Inc. (COST $30,174,082) (COST $36,833,238) (COST $67,007,320) CONSUMER STAPLES (17.9%) FOOD, BEVERAGE, AND TOBACCO (13.0%) 225,118 93,210 450,000 174,500 590,000 Danone (France) Diageo plc ADR (United Kingdom) Nestlé S.A. (Switzerland) PepsiCo, Inc. Unilever N.V. (Netherlands/United Kingdom) 85,200 415,782 157,875 FOOD AND STAPLES RETAILING (4.9%) Costco Wholesale Corporation The Kroger Co. Wal-Mart Stores, Inc. (COST $58,772,256) (COST $25,409,192) (COST $84,181,448) ENERGY (7.2%) 252,500 1,327,947 1,325,000 3,830,440 460,000 1,300,000 168,000 Anadarko Petroleum Corporation Cameco Corporation (Canada) Ensco plc - Class A (United Kingdom) Gulf Coast Ultra Deep Royalty Trust Halliburton Company Helix Energy Solutions Group, Inc. (a) Phillips 66 (COST $65,349,681) VALUE (NOTE 1a) $11,115,311 14,784,631 5,194,143 31,094,085 27,035,460 13,112,762 8,934,000 58,007,021 107,089,243 138,183,328 15,863,133 13,217,178 36,545,900 19,278,760 32,051,366 116,956,337 17,356,092 11,434,005 14,706,056 43,496,153 160,452,490 11,069,600 15,072,198 4,717,000 109,168 12,226,800 7,033,000 14,473,200 64,700,966 FINANCIALS (22.1%) BANKS (1.7%) 110,000 M&T Bank Corporation (COST $560,176) 15,744,300 182,300 382,500 DIVERSIFIED FINANCIALS (4.2%) JPMorgan Chase & Co. Nelnet, Inc. (COST $10,385,873) INSURANCE (16.2%) 154,552 1,200,000 295,000 110 115,000 400,000 Aon plc (United Kingdom) Arch Capital Group Ltd. (a) (Bermuda) Axis Capital Holdings Limited (Bermuda) Berkshire Hathaway Inc.- Class A (a) (b) Everest Re Group, Ltd. (Bermuda) MetLife, Inc. (COST $41,925,667) (COST $52,871,716) PHARMACEUTICALS, BIOTECHNOLOGY, AND LIFE SCIENCES 1,599,365 155,000 333,600 299,942 449,574 200,191 464,985 330,808 1,764,464 Arantana Therapeutics, Inc. (a) Celgene Corporation (a) Gilead Sciences, Inc. Intra-Cellular Therapies, Inc. (a) Kindred Biosciences, Inc. (a) Merck & Co., Inc. Paratek Pharmaceuticals, Inc. (a) Pfizer Inc. VBI Vaccines Inc. (a) (Canada) (COST $51,037,592) 17,796,126 20,020,050 37,816,176 22,465,679 32,064,000 15,233,800 33,660,000 25,042,400 16,424,000 144,889,879 198,450,355 9,804,107 9,933,950 20,866,680 3,416,339 4,922,835 15,296,594 2,385,373 14,439,769 2,823,142 83,888,789 HEALTH CARE (9.4%) 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 8 - 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) INDUSTRIALS (10.9%) CAPITAL GOODS(3.8%) 154,131 217,541 Eaton Corporation plc (Ireland) United Technologies Corporation (COST $27,479,170) $10,582,634 23,163,766 33,746,400 COMMERCIAL AND PROFESSIONAL SERVICES (4.8%) 597,895 Republic Services, Inc. (COST $8,407,622) 43,102,251 TRANSPORTATION (2.3%) 416,511 Delta Air Lines, Inc. (COST $21,327,337) (COST $57,214,129) INFORMATION TECHNOLOGY (26.9%) SEMICONDUCTOR AND SEMICONDUCTOR EQUIPMENT(3.8%) 203,652 177,850 Applied Materials, Inc. ASML Holding N.V. (Netherlands) (COST $9,264,556) SOFTWARE AND SERVICES (14.5%) 35,500 151,474 438,800 76,500 500,686 148,769 Alphabet Inc. (a) DXC Technology Company eBay Inc. (a) Facebook, Inc. - Class A (a) Microsoft Corporation Worldpay, Inc. (a) TECHNOLOGY, HARDWARE, AND EQUIPMENT (8.6%) (COST $90,704,097) 89,000 640,000 133,966 175,000 135,036 121,309 Apple Inc. Cisco Systems, Inc. InterDigital, Inc. Lumentum Holdings Inc. (a) QUALCOMM Incorporated Universal Display Corporation (COST $42,064,544) (COST $142,033,197) 20,783,899 97,632,550 6,667,566 27,677,017 34,344,583 36,764,155 8,053,873 12,317,116 10,028,385 50,854,677 11,370,415 129,388,621 14,038,860 27,731,200 8,899,361 7,351,750 7,684,899 11,350,883 77,056,953 240,790,157 MISCELLANEOUS (4.3%) TELECOMMUNICATION SERVICES (0.7%) Other (c) (COST $58,369,076) 38,653,117 342,900 Vodafone Group plc ADR (United Kingdom) (COST $7,835,032) 6,611,112 TOTAL COMMON STOCKS (114.8%) (COST $585,899,191) 1,029,362,864 WARRANTS TECHNOLOGY HARDWARE AND EQUIPMENT (0.0%) 281,409 WARRANT (a) Applied DNA Sciences, Inc./November 14, 2019/$3.50 (COST $2,814) 1,126 PUT OPTIONS CONTRACTS RETAILING (0.2%) (100 SHARES EACH) COMPANY/EXPIRATION DATE/EXERCISE PRICE 3,800 The TJX Companies, Inc./January 18, 2019/$48.75 (COST $296,005) 1,520,000 SOFTWARE AND SERVICES (0.1%) 1,500 Microsoft Corporation/January 18, 2019/$105 (COST $304,552) (COST $600,557) TOTAL PUT OPTIONS (0.3%) 727,500 2,247,500 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 8 - 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 57,748,016 SHORT-TERM SECURITIES AND OTHER ASSETS VALUE (NOTE 1a) State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.25% (d) (6.4%) (COST $57,748,016) $57,748,016 TOTAL INVESTMENTS (e) (121.5%) Liabilities in excess of receivables and other assets (-0.3%) PREFERRED STOCK (-21.2%) NET ASSETS APPLICABLE TO COMMON STOCK (100%) (COST $644,250,578) 1,089,359,506 (2,453,129) 1,086,906,377 (190,117,175) $896,789,202 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, 2018, the cost of investments for Federal income tax purposes was $647,437,508; aggregate gross unrealized appreciation was $496,340,378; aggregate gross unrealized depreciation was $54,418,380; and net unrealized appreciation was $441,921,998. (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, 2018 INVESTMENTS, AT VALUE (NOTE 1a) Common stocks (cost $585,899,191) Warrant (cost $2,814) Purchased options (cost $600,557) Money market fund (cost $57,748,016) Total investments (cost $644,250,578) RECEIVABLES AND OTHER ASSETS Cash Receivable for securities sold Dividends, interest and other receivables Qualified pension plan asset, net excess funded (note 7) Present value of future office lease payments (note 8) 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 Accrued supplemental pension plan liability (note 7) Accrued supplemental thrift plan liability (note 7) Present value of future office lease payments (note 8) 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 - 25,984,054 (note 5) NET ASSET VALUE PER COMMON SHARE NET ASSETS APPLICABLE TO COMMON STOCK Common Stock, 25,984,054 shares at par value (note 5) Additional paid-in capital (note 5) Unallocated distributions on Preferred Stock Total distributable earnings (note 5) Accumulated other comprehensive loss (note 7) NET ASSETS APPLICABLE TO COMMON STOCK (see notes to financial statements) $1,029,362,864 1,126 2,247,500 57,748,016 1,089,359,506 3,440,304 3,266,222 1,834,035 2,889,389 5,477,302 2,001,531 1,108,268,289 1,942,260 3,448,000 219,955 5,376,582 4,022,879 5,477,302 874,934 21,361,912 190,117,175 $896,789,202 $34.51 $25,984,054 432,382,368 (219,955) 442,606,759 (3,964,024) $896,789,202 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 $693,812) Interest 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, 2018 $19,257,586 1,519,921 20,777,507 6,674,468 3,690,461 1,209,190 287,648 281,926 231,369 136,244 92,320 12,603,626 8,173,881 REALIZED GAIN AND CHANGE IN UNREALIZED APPRECIATION ON INVESTMENTS (NOTES 1, 3 AND 4) Net realized gain on investments: Common stock Purchased option transactions Written option transactions Net decrease in unrealized appreciation: Common stocks and warrant Purchased options Written options GAINS AND DEPRECIATION ON INVESTMENTS NET INVESTMENT INCOME, GAINS, AND DEPRECIATION ON INVESTMENTS DISTRIBUTIONS TO PREFERRED STOCKHOLDERS DECREASE IN NET ASSETS RESULTING FROM OPERATIONS 60,012,191 (664,474) (79,728) 59,267,989 (138,897,975) (155,283) (93,436) (139,146,694) (79,878,705) (71,704,824) (11,311,972) ($83,016,796) S T A T E M E N T O F C H A N G E S I N N E T A S S E T S OPERATIONS Net investment income Net realized gain on investments Net increase (decrease) in unrealized appreciation Distributions to Preferred Stockholders* INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS OTHER COMPREHENSIVE INCOME (LOSS) Funded status of defined benefit plans (note 7) Distributions to Common Stockholders* 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 END OF YEAR YEAR ENDED DECEMBER 31, 2018 2017 $8,173,881 59,267,989 (139,146,694) (71,704,824) (11,311,972) (83,016,796) $8,564,156 91,833,612 70,336,629 170,734,397 (11,311,972)* 159,422,425 (1,328,128) (70,424,179) 1,987,555 (86,731,075)* 22,883,574 (41,808,714) (18,925,140) (173,694,243) 35,156,383 (61,886,535) (26,730,152) 47,948,753 1,070,483,445 1,022,534,692 $896,789,202 $896,789,202 $1,070,483,445 $1,070,483,445 *Securities and Exchange Commission Release No. 33-10532, effective November 5, 2018, specifies certain disclosure updates and simplifications. Accordingly, the distinction between dividends from net investment income and distri- butions from realized capital gains is being discontinued such that all dividends and distributions will be reported in a single line item. Prior year distribution amounts have been conformed to current presentation. In the year ended December 31, 2017 distributions were reported as follows: Distribution to Preferred Stockholders consisted of Dividends from net investment income of $2,116,504 and Distributions from capital gains of $9,195,468. Distribution to Common Stockholders consisted of Dividends from net income of $15,212,903 and Distributions from capital gains of $71,518,172. (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, 2018. 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 Net asset value, end of year Per share market value, end of year TOTAL INVESTMENT RETURN Stockholder return, based on market price per share RATIOS AND SUPPLEMENTAL DATA Net assets applicable to Common Stock (9.87%) 2018 2017 2016 2015 2014 $40.47 .31 $37.56 .32 $37.74 .30 $39.77 .48 $41.07 .32 (3.03) (.05) (2.77) (.06) (.38) (.44) (3.21) 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) 2.39 (.13) 2.58 (.04) (.34) (.38) 2.20 (.29) (2.46) (2.75) $34.51 $28.44 (.30) (2.99) (3.29) $40.47 $34.40 (.33) (2.85) (3.18) $37.56 $31.18 (.34) (.81) (1.15) $37.74 $31.94 (.32) (3.18) (3.50) $39.77 $35.00 21.21% 7.59% (5.34%) 9.32% end of year (000's omitted) $896,789 $1,070,483 $1,022,535 $1,068,028 $1,227,900 Ratio of expenses to average net assets applicable to Common Stock 1.20% 1.28% 1.27% 1.17% 1.10% Ratio of net income to average net assets applicable to Common Stock Portfolio turnover rate 0.78% 23.00% 0.79% 19.58% 0.78% 20.29% 1.17% 14.41% 0.78% 14.98% 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) $190,117 572% $25.00 $25.72 $190,117 663% $25.00 $26.59 $190,117 638% $25.00 $25.77 $190,117 $190,117 746% $25.00 $26.01 662% $25.00 $26.75 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 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, 2018: Assets Common stocks Warrants Purchased options Money market fund Total Level 1 $1,029,362,864 1,126 2,247,500 57,748,016 $1,089,359,506 Level 2 — — — — — Level 3 — — — — — Total $1,029,362,864 1,126 2,247,500 57,748,016 $1,089,359,506 Transfers among levels, if any, are reported as of the actual date of reclassification. No such transfers occurred during the year ended December 31, 2018. 3. PURCHASES AND SALES OF SECURITIES Purchases and sales of securities (other than short-term securities and options) during 2018 amounted to $268,946,486 and $272,249,196, 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, 2018 were as follows: Purchased Options Outstanding, December 31, 2017 Purchased Exercised Expired Outstanding, December 31, 2018 CALLS CONTRACTS 4,500 2,000 (4,000) (2,500) 0 COST BASIS $333,937 236,523 (425,160) (145,300) $0 PUTS CONTRACTS 2,100 10,650 (5,850) (1,600) 5,300 COST BASIS $713,037 2,035,717 (1,829,510) (318,687) $600,557 Written Options COVERED CALLS COLLATERALIZED PUTS Outstanding, December 31, 2017 Written Terminated in closing purchase transaction Options assigned Expired Outstanding, December 31, 2018 CONTRACTS 2,100 19,505 (20,957) (148) (500) 0 PREMIUMS $705,936 6,671,559 (6,997,745) (123,277) (256,473) $0 CONTRACTS 0 6,602 (6,062) (540) 0 0 PREMIUMS $0 1,507,272 (1,374,205) (133,067) 0 $0 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, 25,984,054 shares were issued and outstanding; 8,000,000 Preferred Shares were originally issued and 7,604,687 were outstanding on December 31, 2018. 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 2018 and 2017 were as follows: SHARES 2018 2017 AMOUNT 2018 2017 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 16.0% and 15.7%, respectively) Decrease in paid-in capital Total decrease Net decrease 758,865 1,047,100 $758,865 22,124,709 22,883,574 $1,047,100 34,109,283 35,156,383 (1,227,947) (1,815,079) (469,082) (767,979) (1,227,947) (40,580,767) (41,808,714) ($18,925,140) (1,815,079) (60,071,456) (61,886,535) ($26,730,152) At December 31, 2018, the Company held in its treasury 5,996,818 shares of Common Stock with an aggregate cost of $197,915,206. The tax basis distributions during the year ended December 31, 2018 are as follows: ordinary distributions of $8,963,411 and net capital gains distributions of $72,772,740. As of December 31, 2018, distributable earnings on a tax basis totaled $445,891,246 consisting of $3,716,353 from undistributed net capital gains, $252,895 from ordinary income and $441,921,998 from net unrealized appreciation on investments. Reclassifications arising from permanent "book/tax" difference reflect non-tax deductible expenses during the year ended December 31, 2018. As a result, addi- tional paid-in capital was decreased by $1,002,465 and total distributable earnings was increased by $1,002,465. Net assets were not affected by this reclassification. As of December 31, 2018, the Company had wash loss deferrals of $3,186,930 and straddle loss deferrals of $1,103,299. 6. OFFICERS' COMPENSATION The aggregate compensation accrued and paid by the Company during the year ended December 31, 2018 to its offi- cers (identified on page 20) amounted to $6,390,000 of which $3,035,000 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 2018 was $541,301. The qualified thrift plan acquired 24,699 shares in the open market, sold 17,727 shares in the open market, of the Company’s Common Stock during the year ended December 31, 2018. It held 635,664 shares of the Company’s Common Stock at December 31, 2018. 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 pension plan is to invest not less than 80% of its assets, under ordinary conditions, in equity securities and the bal- ance 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 focused upon capital appreciation. 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, 2018 (MEASUREMENT DATE) QUALIFIED SUPPLEMENTAL PLAN PLAN TOTAL 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 Accumulated benefit obligation at end of year $18,297,585 374,634 662,547 (877,707) (1,036,603) 17,420,456 23,058,949 (1,871,397) - (877,707) 20,309,845 $2,889,389 $16,755,697 $5,851,558 141,257 205,715 (321,696) (500,252) 5,376,582 $24,149,143 515,891 868,262 (1,199,403) (1,536,855) 22,797,038 - - 321,696 (321,696) 23,058,949 (1,871,397) 321,696 (1,199,403) 20,309,845 - ($2,487,193) ($5,376,582) $5,285,506 $22,041,203 WEIGHTED-AVERAGE ASSUMPTIONS USED TO DETERMINE OBLIGATION AT YEAR END: Discount rate: 4.20% Salary scale assumption: 4.50% for NHCE* and 2.75% for HCE* Mortality: RP-2014 Mortality Table scaled back through 2006/MP-2018 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 $4,761,364 ($1,871,975) $2,889,389 ($311,112) (5,540,446) ($3,561) 478,537 ($314,673) (5,061,909) AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME CONSIST OF: Net actuarial (gain)/loss Prior service cost ACCUMULATED OTHER COMPREHENSIVE INCOME $2,635,030 866 $2,635,896 $1,328,713 $3,963,743 281 $3,964,024 (585) $1,328,128 WEIGHTED-AVERAGE ASSUMPTIONS TO DETERMINE NET PERIODIC BENEFIT COST DURING YEAR: Discount rate: 3.55% 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-2017 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 $374,634 662,547 (1,502,844) - 203,449 ($262,214) $141,257 205,715 - 585 76,370 $423,927 $515,891 868,262 (1,502,844) 585 279,819 $161,713 The Company's qualified pension plan owns assets as of December 31, 2018 comprised of $14,387,812 of equity securities and $2,603,360 of money market fund assets classified as Level 1 and $3,318,673 of limited partnership interest 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 2018 Expected benefit payments: 2019 2020 2021 2022 2023 2024-2027 QUALIFIED PLAN — $960,992 991,681 1,007,168 1,020,393 1,045,469 5,608,896 SUPPLEMENTAL PLAN $314,673 $314,673 302,040 288,712 275,226 271,447 1,763,142 TOTAL $314,673 $1,275,665 1,293,721 1,295,880 1,295,619 1,316,916 7,372,038 The estimated amount that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2019 is $42,981 which is comprised of $42,700 of actuarial loss and $281 of service cost. 8. OPERATING LEASE COMMITMENT In 2007, the Company entered into an operating lease agreement for office space which expired in January 2018 and provided for aggregate rental payments of approximately $10,755,000, net of construction credits. The lease agreement contained clauses whereby the Company received free rent for a specified number of months and credit towards construc- tion of office improvements, and incurred escalations annually relating to operating costs and real property taxes and to annual rent charges beginning in 2013. The Company extended the lease for two months through March 2018. Rental expense approximated $192,200 for the year ended December 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 classification to determine if they should recognize a right-of-use 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 did 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 fi- nancial 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, the Company, in con- junction with its new operating lease adopted this accounting standard at the beginning of 2018. The above referenced right-of-use asset and offsetting liability is reported on the Statement of Assets and Liabilities of the Company in line items entitled, “Present value of future office lease payments.” Since the operating lease does not specify an implicit rate, the right-of-use asset and liability have been calculated using a discount rate of 3.0%, which is based upon high quality corporate interest rates for a term equivalent to the lease period as of January 1, 2018. The Company entered into a new operating lease agreement in 2017 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 escalations annually relating to operating costs and real property taxes and to annual rent charges beginning in 2023. Rental expense approximated $594,200 for the year ended December 31, 2018. The Company has the option to extend the lease for an additional five years at market rates. As of December 31, 2018, no consideration has been given to extending this lease. Minimum rental commitments under this operating lease are approximately: 2019: 2020: 2021: 2022: 2023 Thereafter: Total Remaining Lease Payments Effect of Present Value Discounting Present Value of Future Office Lease Payments $624,000 624,000 624,000 624,000 631,000 3,206,000 6,333,000 (855,698) $5,477,302 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 statement of investments, as of December 31, 2018, and the related statements of operations for the year then ended, the state- ments 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 financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2018, 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 PCAOB. 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, 2018, 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. We have served as the Company’s auditor since 1949. New York, NY February 15, 2019 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 (56) 2010 PRINCIPAL OCCUPATION DURING PAST 5 YEARS President of the Company since 2012 and Chief Executive Officer since 2013 NAME (AGE) EMPLOYEE SINCE Liron Kronzon (49) 2016 Anang K. Majmudar (44) Senior Vice-President of the Company effective 2019, 2012 Vice-President 2015-2018, securities analyst (general industries) Andrew V. Vindigni (59) Senior Vice-President of the 1988 Company since 2006, securities analyst (financial services and consumer non-durables) Eugene S. Stark (60) 2005 Craig A. Grassi (50) 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, securities analyst and information technology Sally A. Lynch, Ph.D. (59) 1997 Diane G. Radosti (66) 1980 Samantha X. Jin (44) 2018 Linda J. Genid (60) 1983 Connie A. Santa Maria (45) 2015 PRINCIPAL OCCUPATION DURING PAST 5 YEARS Vice-President of the Company effective 2019, securities analyst (general industries) Vice-President of the Company since 2006, securities analyst (biotechnology industry) Treasurer of the Company 1990-2018 and Principal Accounting Officer 2003-2018 Treasurer of the Company and Principal Accounting Officer effective 2019 Corporate Secretary of the Company since 2016, Assistant Corporate Secretary 2014-2015, network administrator Assistant Corporate Secretary of the Company effective 2019, Human Resources/ Benefits Manager All information is as of December 31, 2018, unless otherwise noted. 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. 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, 2018 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 filed 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, D.C. 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 26, 2018, 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. (54) 1995 Rodney B. Berens (73) 2007 Founder and Managing Member Diaz & Altschul Capital Management, LLC (investment advisory) Chairman Overbrook Management Corporation (investment advisory) Co-Founder and Chairman Kolltan Pharmaceuticals, Inc. (pharmaceuticals) (until 2016) Partner and Co-Chief Investment Officer, Berens Global Value Fund, Alternative Investment Group (since 2018; investment advisory) Founder, Chairman and Senior Investment Strategist Berens Capital Management, LLC (2000-2018; investment advisory) CURRENT DIRECTORSHIPS AND AFFILIATIONS Child Mind Institute, Director Delta Opportunity Fund, Ltd., Director Neurosciences Research Foundation, Trustee Overbrook Foundation, Chairman 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 (100) 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 Spencer Davidson (76) 1995 Clara E. Del Villar (60) 2017 John D. Gordan, III (73) 1986 Betsy F. Gotbaum (80) 2010 Chairman of the Board of Company Neurosciences Research Foundation, Trustee Tribecca Innovation Awards Foundation, Fellow Women’s Health Symposium, Weill Cornell Medicine, Member of Executive Steering Committee 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 Citizens Union (since 2017) (nonprofit democratic reform) Consultant 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 Sidney R. Knafel (88) 1994 Managing Partner SRK Management Company (investment company) Rose P. Lynch (68) Director since May 2017 Founder and President Marketing Strategies, LLC (consulting firm) Henry R. Schirmer (54) 2015 Chief Financial Officer and Member of Executive Board Randstad (since 2018; human resources) Chief Financial Officer/Executive Vice-President Unilever Europe (2016-2018) Chief Financial Officer/Senior Vice-President Finance Unilever North America (2012-2016; consumer products) Raymond S. Troubh (92) Financial Consultant 1989 INTERESTED DIRECTOR Jeffrey W. Priest (56) 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, 2018.

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