Sequoia Fund, Inc.   9 West 57th Street, Suite 5000
New York, NY 10019-2701
(800) 686-6884

For the Period Ended September 30, 2014


To the Shareholders of Sequoia Fund, Inc.:

As of this writing, the Sequoia Fund is up 6.06% year-to-date versus an increase of 13.71% for the S&P 500 Index.

On November 17, we paid a capital gains distribution of $2.0017 per share to shareholders of record on November 14.



Robert D. Goldfarb
  David M. Poppe
Executive Vice President


November XX, 2014


Sequoia Fund, Inc.

Fund Performance

Sequoia Fund’s results for the periods ended September 30, 2014 are shown below with comparable results for the S&P 500 Index:

To September 30, 2014     Sequoia
      S & P 500*  
3 Months     -0.65 %      1.13 % 
9 Months     0.26 %      8.34 % 
1 Year     9.36 %      19.73 % 
5 Years (Annualized)     16.26 %      15.70 % 
10 Years (Annualized)     8.85 %      8.11 % 

The performance shown above represents past performance and does not guarantee future results. The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Current performance may be lower or higher than the performance information shown.

* The S&P 500 Index is an unmanaged, capitalization-weighted index of the common stocks of 500 major US corporations. The performance data quoted represents past performance and assumes reinvestment of distributions.
  The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Year to date performance as of the most recent month end can be obtained by calling DST Systems, Inc. at (800) 686-6884.


Fees and Expenses of the Fund

This table describes the fees and expenses that you may pay if you buy and hold shares of the Fund.

Shareholder Fees (fees paid directly from your investment)

The Fund does not impose any sales charges, exchange fees or redemption fees.

Annual Fund Operating Expenses (expenses that are deducted from Fund assets)

Annual Fund Operating Expenses

Management Fees     1.00 % 
Other Expenses     0.02 % 
Total Annual Fund Operating Expenses*     1.02 % 
* Does not reflect Ruane, Cunniff & Goldfarb Inc.’s (“Ruane, Cunniff & Goldfarb”) contractual reimbursement of a portion of the Fund’s operating expenses. This reimbursement is a provision of Ruane, Cunniff & Goldfarb’s investment advisory agreement with the Fund and the reimbursement will be in effect only so long as that investment advisory agreement is in effect. For the year ended December 31, 2013, the Fund’s annual operating expenses and advisory fee, net of such reimbursement, were 1.00% and 0.98%, respectively.


Sequoia Fund, Inc.
Schedule of Investments
September 30, 2014

Common Stocks (87.9%)

Shares     Value (a)
       Advertising (0.8%)           
929,021     Omnicom Group Inc.     $ 63,972,386  
       Aerospace/Defense (6.5%)           
942,616     Precision Castparts Corp.       223,286,878  
23,011,104     Qinetiq Group plc (United Kingdom)       83,868,061  
12,089,546     Rolls-Royce Holdings plc (United Kingdom)       189,030,836  
       Auto Parts (4.3%)           
627,642     Advance Auto Parts, Inc.       81,781,753  
1,650,465     O’Reilly Automotive Inc. (b)       248,163,917  
2,065,604     Novozymes A/S – B Shares (Denmark)       89,619,150  
       Construction & Engineering (0.9%)           
1,454,996     Jacobs Engineering Group Inc. (b)       71,081,725  
       Construction Equipment (0.1%)           
479,500     Ritchie Bros. Auctioneers Incorporated       10,736,005  
       Crude Oil & Gas Production (0.1%)           
178,601     Canadian Natural Resources Limited (Canada)       6,936,863  
       Dental Equipment (1.2%)           
1,250,644     Sirona Dental Systems Inc. (b)       95,899,382  
       Diversified Companies (12.6%)           
2,998     Berkshire Hathaway Inc. – Class A (b)       620,286,200  
2,504,804     Berkshire Hathaway Inc. – Class B (b)       346,013,625  
       Diversified Manufacturing (0.8%)           
761,792     Danaher Corporation       57,880,956  
       Electrical & Mechanical Systems (0.4%)           
771,799     EMCOR Group Inc.       30,841,088  
       Electronic Manufacturing Services (0.5%)           
1,270,244     Trimble Navigation Limited (b)       38,742,442  
       Flooring Products (2.0%)           
1,140,877     Mohawk Industries, Inc. (b)       153,813,037  
       Freight Transportation (0.0%)           
77,653     Expeditors International, Inc.       3,151,159  
       Healthcare (20.6%)           
527,122     Perrigo Company plc (Ireland)       79,168,453  
11,281,224     Valeant Pharmaceuticals International Inc. (Canada) (b)       1,480,096,589  
460,615     West Pharmaceutical Services, Inc.       19,274,327  
19,932     Zoetis, Inc.       736,487  


Sequoia Fund, Inc.
Schedule of Investments (Continued)
September 30, 2014

Shares     Value (a)
       Industrials & Construction Supplies (5.1%)           
8,712,162     Fastenal Company     $ 391,176,074  
       Industrial Gases (1.2%)           
685,180     Praxair, Inc.       88,388,220  
       Industrial Machinery (0.9%)           
3,500,367     IMI plc (United Kingdom)       69,797,380  
       Information Processing (2.9%)           
2,974,345     MasterCard Inc.       219,863,582  
       Insurance Brokers (0.5%)           
1,119,143     Brown & Brown Inc.       35,980,447  
       Internet Software & Services (2.5%)           
161,452     Google Inc. – Class A (b)       94,999,971  
161,452     Google Inc. – Class C (b)       93,215,927  
       Investment Banking & Brokerage (1.0%)           
432,800     The Goldman Sachs Group Incorporated       79,449,096  
       IT Consulting & Other Services (1.1%)           
464,967     International Business Machines Corp.       88,264,686  
       Precision Instruments (1.1%)           
837,443     Waters Corporation (b)       83,007,350  
       Property and Casualty Insurance (0.7%)           
31,041     Admiral Group plc (United Kingdom)       645,629  
4,915,535     Hiscox Ltd. (Bermuda)       50,203,243  
20,894     Verisk Analytics, Inc. – Class A (b)       1,272,236  
       Retailing (9.9%)           
39,465     Costco Wholesale Corporation       4,945,754  
848,687     Tiffany & Co.       81,737,045  
10,208,405     TJX Companies, Inc.       604,031,324  
890,120     Wal-Mart Stores, Inc.       68,067,476  
       Specialty Chemicals (0.7%)           
1,527,051     Croda International plc (United Kingdom)       50,823,307  
       Transportation Services (1.7%)           
3,234,324     World Fuel Services Corp.       129,114,214  
       Veterinary Diagnostics (3.0%)           
1,969,714     Idexx Laboratories Inc. (b)       232,091,401  
       Miscellaneous Securities (3.6%) (c)       276,682,202  
       Total Common Stocks (Cost $2,511,310,343)     $ 6,738,137,883  


Sequoia Fund, Inc.
Schedule of Investments (Continued)
September 30, 2014

U.S. Government Obligations (12.1%)

Principal Amount     Value (a)
    U.S. Treasury Bills, 0.005% – 0.030%
  due 10/9/2014 through 11/28/2014
    $ 924,010,925  
       Total U.S. Government Obligations
  (COST $924,010,945)
    $ 924,010,925  
       Total Investments (100.0%)
  (COST $3,435,321,268) ++
    $ 7,662,148,808  


Common Stocks     87.9 %    $ 6,738,137,883  
U.S. Government Obligations     12.1 %      924,010,925  
Net Cash & Receivables     0.00 %      33,735  
Net Assets   $ 7,662,182,543  
Number of Shares Outstanding     34,673,820  
Net Asset Value Per Share   $ 220.98  
++ The cost for federal income tax purposes is identical. At September 30, 2014, the aggregate gross tax basis unrealized appreciation and depreciation of securities were $4,261,073,433 and $34,245,893, respectively.
(a) Securities traded on a national securities exchange are valued at the last reported sales price on the principal exchange on which the security is listed on the last business day of the period; securities traded in the over-the-counter market are valued in accordance with NASDAQ Official Closing Price on the last business day of the period; securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are valued at the mean between the last reported bid and asked prices.

Securities traded on a foreign exchange are valued at the Official Closing Price on the last business day of the period on the principal exchange on which the security is primarily traded. The value is then converted into its U.S. dollar equivalent at the foreign exchange rate in effect at the close of the New York Stock Exchange on that day.

U.S. Treasury Bills with remaining maturities of sixty days or less are valued at their amortized cost. U.S. Treasury Bills that when purchased have a remaining maturity in excess of sixty days are stated at their discounted value based upon the mean between the bid and asked discount rates until the sixtieth day prior to maturity, at which point they are valued at amortized cost.

When reliable market quotations are insufficient or not readily available at time of valuation or when the Investment Adviser determines that the prices or values available do not represent the fair value of a security, such security is valued as determined in good faith by the Investment Adviser, in conformity with guidelines adopted by and subject to review by the Board of Directors.

Purchases and sales of foreign portfolio securities are translated into U.S. dollars at the rates of exchange prevailing when such securities are acquired or sold.

(b) Non-income producing.
(c) “Miscellaneous Securities” include holdings in their initial period of acquisition that have not previously been publicly disclosed.


Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below:

Level 1 –  quoted prices in active markets for identical securities
Level 2 –  other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 –  significant unobservable inputs (including the Fund’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. During the period ended September 30, 2014, there were no significant transfers into and out of Level 1 and 2 measurements in the fair value hierarchy. There were no Level 3 securities held in the Fund during the period ended September 30, 2014.

The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2014:

Valuation Inputs     Common
      U.S. Government Obligations       Total  

Level 1 – 

Quoted Prices

  $ 6,738,137,883              $ 6,738,137,883  

Level 2 – 

Other Significant Observable Inputs

        $ 924,010,925       924,010,925  
Total   $ 6,738,137,883     $ 924,010,925     $ 7,662,148,808  



Other information

Please consider the investment objectives, risks and charges and expenses of the Fund carefully before investing. The Fund’s prospectus contains this and other information about the Fund. You may obtain year to date performance as of the most recent month end, and a copy of the prospectus by calling 1-800-686-6884, or on the Fund’s website at Please read the prospectus carefully before investing.

Shares of the Fund are offered through the Fund’s distributor, Ruane, Cunniff & Goldfarb LLC. Ruane, Cunniff & Goldfarb LLC is an affiliate of Ruane, Cunniff & Goldfarb Inc. and is a member of FINRA. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

The Fund may be offered only to persons in the United States and by way of a prospectus. This should not be considered a solicitation or offering of any product or service to investors residing outside of the United States.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available on the SEC’s web site at The Fund’s Form N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. For information regarding the operation of the SEC’s Public Reference Room, call 1-800-SEC-0330. For a complete list of the Fund’s portfolio holdings, view the most recent quarterly, semiannual or annual report on Sequoia Fund’s web site at

You may obtain a description of the Fund’s proxy voting policies and procedures, and information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, without charge. Visit Sequoia Fund’s web site at and use the “Shareholder Information” link to obtain all proxy information. This information may also be obtained from the Securities and Exchange Commission’s web site at or by calling DST Systems, Inc. at (800) 686-6884.


9 West 57th Street, Suite 5000
New York, New York 10019-2701
(800) 686-6884


Robert D. Goldfarb
David M. Poppe
Edward Lazarus
Roger Lowenstein
C. William Neuhauser
Sharon Osberg, Chairperson of the Board
Robert L. Swiggett


Robert D. Goldfarb  —  President
David M. Poppe  —  Executive Vice President
Todd G. Ruoff  —  Executive Vice President & Secretary
Paul J. Greenberg  —  Treasurer
Michael Sloyer  —  Chief Compliance Officer
Michael Valenti  —  Assistant Secretary


Ruane, Cunniff & Goldfarb Inc.
9 West 57th Street, Suite 5000
New York, New York 10019-2701


Ruane, Cunniff & Goldfarb LLC
9 West 57th Street, Suite 5000
New York, New York 10019-2701


The Bank of New York
MF Custody Administration Department
One Wall Street, 25th Floor
New York, New York 10286


DST Systems, Inc.
P.O. Box 219477
Kansas City, Missouri 64121


Seward & Kissel LLP
One Battery Park Plaza
New York, New York 10004