Portfolio Strategy Diversified holdings serve to reduce risk. Top Ten Sectors Distribution of assets across ten largest industries. Top Ten Holdings Distribution of assets among ten largest investment holdings. General American Investors Company’s portfolio is constructed using a “bottom up” approach. Our security analysts utilize numerous sources, including publications and reports, conferences and meetings, and industry trade group activities, to identify the securities of companies with strong long-term growth potential. Company visits and the development of close relationships with management representatives are important aspects of the analytical process. The portfolio manager continually monitors economic conditions and the outlook for the securities markets, industry segments and individual securities. When a recommendation is made, the portfolio manager reviews the rationale provided by the related analyst, often with the assistance and input from other members of the research staff. Decisions to buy or sell securities are made based upon our ongoing assessment of the prospects for the company. Other aspects of our decision-making process are described under Investment Policy. We approach portfolio diversification by selecting companies individually, as described above, without reference to industry weightings in the Standard & Poor’s Index. We believe that adequate diversification can be achieved with a limited number of holdings (50 to 60) in diverse industries. Individual security weightings depend upon our assessment of the company’s potential for growth as well as the market liquidity of the security. The most recent industry weightings in our portfolio are set forth under Top Ten Sectors. The Company’s portfolio turnover is relatively low as it has averaged 21.4% over the past 5 years.