General American Investors Files Certified Shareholder Report for Year Ended December 31, 2024

Rhea-AI Summary

General American Investors (GAM) has filed its Certified Shareholder Report for 2024, revealing significant financial improvements. Net assets applicable to common stock increased to $1.36 billion ($57.78 per share) from $1.23 billion in 2023. Net investment income rose to $13.3 million ($0.57 per share) from $10.6 million in 2023.

The company reported net gains on investments of $232.2 million ($10.10 per share) and increased dividends to common shareholders to $4.50 per share from $2.65 in 2023. During 2024, GAM purchased 969,931 shares of its common stock in the open market. The company's top five holdings include Republic Services, Apple, Alphabet, Microsoft, and Berkshire Hathaway.

Positive

• Net assets increased by 10% to $1.36 billion in 2024
• Net investment income grew 25.7% to $13.3 million
• Dividends per share increased 69.8% to $4.50
• Active share buyback program with 969,931 shares repurchased

Negative

• Net gains on investments decreased by 11.7% to $232.2 million
• Common shares outstanding reduced by 264,161 shares

Insights

Investment Fund Analyst

The 2024 annual report reveals GAM's robust financial health and strategic positioning. Net assets grew by 10% to $1.36 billion, while net investment income surged by 25.7% to $13.3 million. The most striking development is the 69.8% increase in common share dividends to $4.50 per share, signaling strong confidence in the fund's earnings capacity and commitment to shareholder returns.

The portfolio composition reflects a sophisticated blend of growth and value investments, anchored by market leaders in technology and services. The presence of Berkshire Hathaway among top holdings suggests a balanced approach to sector allocation, combining innovation with proven business models. This diversification strategy, while maintaining significant positions in tech giants, demonstrates astute risk management.

The fund's share repurchase program, activated when trading at an 8% discount to NAV, represents an efficient capital allocation strategy that enhances shareholder value through two mechanisms: reducing the discount to NAV and increasing NAV per share for remaining shareholders. The authorization to repurchase preferred shares below $25 provides additional flexibility in optimizing the capital structure.

With nearly a century of market presence since 1927, GAM's longevity through multiple market cycles underscores its resilience and adaptability. The $190 million preferred stock component provides stable leverage while maintaining a conservative capital structure, essential for long-term sustainability in the closed-end fund space.

NEW YORK--(BUSINESS WIRE)-- General American Investors Company, Inc., a closed-end investment company listed on the New York Stock Exchange (GAM), filed with the U.S. Securities and Exchange Commission (SEC) its Certified Shareholder Report (Form N-CSR) for the year ended December 31, 2024. The Form N-CSR, which contains the Company’s 2024 Annual Report, is available at the SEC’s website: www.sec.gov and the Company’s website: www.generalamericaninvestors.com.

The 2024 Annual Report and the Proxy Statement, pertaining to the Company’s Annual Meeting of Stockholders to be held on April 16, 2025, will be available on the website.

The Annual Report indicates that as of and for the year ended:

	2024	2023
Net Assets Applicable to Common Stock	$1,355,988,837	$1,233,031,938
Per Common Share	$57.78*	$51.96**
Net Investment Income	$13,297,853	$10,577,329
Per Common Share	$0.57	$0.44
Net Gain (Loss) on Investments	$232,157,337	$262,826,469
Per Common Share	$10.10	$11.18
Common Shares Outstanding	23,468,163	23,732,324
Dividends and Distributions to Common Shareholders	$103,286,898	$61,945,377
Per Common Share	$4.50	$2.65
Dividends and Distributions to Preferred Shareholders	$11,307,310	$11,310,806
Per Common Share	$0.49	$0.48

*		After dividends and distributions of $4.50 per share paid in December 2024.
**		After dividends and distributions of $2.65 per share paid in December 2023.

The Company also reported that it purchased 969,931 shares of its outstanding common stock in the open market during 2024. The Board of Directors has authorized repurchasing common shares when they are trading at a discount in excess of 8%. The Company is also authorized to repurchase up to a remaining 1,601,553 shares of its 5.95% Cumulative Preferred Stock, Series B (symbol GAM Pr B on NYSE) when they are trading at less than $25 per share. The aggregate liquidation value of the preferred stock is $190.0 million.

The five largest stock holdings in the Company’s portfolio at December 31, 2024 included: Republic Services, Apple Inc., Alphabet Inc., Microsoft Corporation, and Berkshire Hathaway, Inc. General American Investors was founded in 1927, has been publicly traded since its inception and has been listed on the NYSE since 1930. The objective of the Company is long-term capital appreciation through investment in companies with above average growth potential.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250214120762/en/

Eugene S. Stark

Vice-President, Administration

(212) 916-8447

Source: General American Investors Company, Inc.

FAQ

What was GAM's net asset value per share at the end of 2024?

GAM's net asset value per share was $57.78 at the end of 2024, after dividends and distributions of $4.50 per share.

How much did GAM pay in dividends per share for 2024?

GAM paid $4.50 per share in dividends and distributions to common shareholders in 2024, up from $2.65 in 2023.

What were GAM's top 5 stock holdings as of December 31, 2024?

GAM's five largest holdings were Republic Services, Apple Inc., Alphabet Inc., Microsoft , and Berkshire Hathaway, Inc.

How many shares did GAM repurchase during 2024?

GAM repurchased 969,931 shares of its outstanding common stock in the open market during 2024.

What was GAM's net investment income for 2024?

GAM's net investment income for 2024 was $13,297,853 ($0.57 per share), compared to $10,577,329 ($0.44 per share) in 2023.