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.