For the three months ended March 31, 2009, the net asset value per Common Share decreased 11.2%, while the investment return to our stockholders declined by 11.8%. By comparison, our benchmark, the Standard & Poor’s 500 Stock Index (including income) decreased 10.9%. For the twelve months ended March 31, 2009, the return on the net asset value per Common Share was -46.9%, and the return to our stockholders was -50.5%; these compare with a return of -38.1% for the S&P 500. During each period, the discount at which our shares traded continued to fluctuate and on March 31, 2009, it was 18.0%.

As set forth in the accompanying financial statements (unaudited), as of March 31, 2009, the net assets applicable to the Company’s Common Stock were $598,882,291 equal to $18.73 per Common Share.

The decrease in net assets resulting from operations for the three months ended March 31, 2009 was $74,894,708. During this period, the net realized gain on securities sold was $14,293,185, and the decrease in net unrealized appreciation was $87,852,357. Net investment income for the three months was $1,611,387, and distributions to Preferred Stockholders amounted to $2,946,923.

During the three months, 94,363 shares of the Company’s Preferred Stock were purchased at an average price of $22.45.

Last year’s precipitous decline in equity values con- tinued into the second week of March. The market has rallied sharply since then, supported by data sug- gesting that the steep decline in the world economy is slowing, even if recovery has not yet begun. Our portfolio has participated fully in this move and, at this writing, has performed meaningfully better than our benchmark.

While the worst of the contraction, characterized by rising bankruptcies and foreclosures, may be behind us, the recovery, when it comes, is likely to be muted. Personal consumption, which makes up 70% of U.S. gross domestic product, may well be subdued owing to the erosion of wealth represented by home equity and marketable securities. Credit creation, mean- while, could be constrained because of the damaged condition of financial institutions in general, and money center banks in particular.

The specter of inflation, and its effect on interest rates and the value of the dollar, remains an important con- cern. The government’s aggressive policy response to the recession, in the form of unprecedented levels of fiscal and monetary stimulus, while salutary in the near term, must be managed carefully, since these measures are historically associated with inflationary surges.

We are saddened to report that Joseph T. Stewart, Jr., our esteemed colleague and Lead Independent Director, died on April 2, 2009. Mr. Stewart also served as a trustee of the Foundation of the University of Medicine and Dentistry of New Jersey, a member of the Advisory Council for the Marine Biological Laboratory, a member of the Board of Advisors of the United States Merchant Marine Academy, and a trustee for the United States Merchant Marine Academy Foundation. He served as a director of the Company for 22 years and as Lead Independent Director for the last two years. His counsel and support will be missed.

We are pleased to report that Sidney R. Knafel, a member of the Board of Directors of the Company since 1994, has been appointed by his fellow inde- pendent directors to serve as the Company’s Lead Independent Director, succeeding the late Joseph T. Stewart, Jr. The role of independent director was cre- ated two years ago when the offices of the Chairman and Chief Executive Officer were combined.

Information about the Company, including our investment objectives, operating policies and procedures, investment results, record of dividend and distribution payments, financial reports and press releases, is on our website and has been updated through March 31, 2009. It can be accessed on the internet at www.generalamericaninvestors.com.

By Order of the Board of Directors,

GENERAL AMERICAN INVESTORS COMPANY, INC.

Spencer Davidson Chairman of the Board

President and Chief Executive Officer

April 15, 2009

                Total investments (cost $847,345,291) 

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 generally valued at the preceding 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 assist in
determining current market value. If, after the close of foreign markets, conditions 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.
b. OPTIONS The Company may purchase and write (sell) put and call options. The Company typically purchases put options or writes
call options to hedge the value of portfolio investments while it typically purchases call options and writes put options to obtain equity
market exposure under specified circumstances. 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 unexercised 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 closing 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 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 investments in the
Statement of Operations. If a 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.
c. FEDERAL INCOME TAXES The Company’s policy is to fulfill the requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all taxable income to its stockholders. Accordingly, no provision for Federal income
taxes is required. The Company is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income
Taxes (FIN 48). As of and during the period ended March 31, 2009, the Company did not have any liabilities for any unrecognized tax
positions. The Company recognizes interest and penalties, if any, related to unrecognized tax positions as income tax expense in the
Statement of Operations. During the period, the Company did not incur any interest or penalties.
d. FOREIGN CURRENCY TRANSLATION AND TRANSACTIONS Portfolio securities and other assets and liabilities denominated in
foreign currencies are translated into U.S. dollars based on the exchange rate of such currencies against 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. Occasionally, 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 realized between the trade
and settlement dates on securities transactions and the difference between the recorded amounts of dividends, interest, and foreign with-
holding taxes and the U.S. dollar equivalent of the amounts actually 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 consideration and risks not typically associated 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 distributions of net realized capital
and currency gains, if any, annually to common shareholders and quarterly to preferred shareholders. Foreign currency laws may reduce
the amount of dividends of net investment income. Dividends and distributions to common and preferred shareholders, which are determined
in accordance with Federal income tax regulations and which may differ from generally accepted accounting principles, 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. 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.
g. OTHER As is customary in the investment company industry, 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 recognized on the accrual basis. Cost of short-term investments represents
amortized cost.

The Company also has funded and unfunded defined contribution thrift plans that are available to its employees. The aggregate cost of such
plans for the three months ended March 31, 2009 was ($74,561). The unfunded liability at March 31, 2009 was $1,426,682.

The Company applies the recognition provisions of Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting
Standards No. 158 “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans” which requires employers to
recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in the Statement of Assets
and Liabilities and to recognize changes in funded status in the year in which the changes occur through other comprehensive income.