Sequoia Fund, Inc. 767 Fifth Avenue, Suite 4701
New York, NY 10153
(800) 686-6884

QUARTERLY REPORT
For the Period Ended March 31, 2004

To the Shareholders of Sequoia Fund, Inc.:

Dear Shareholder:

Sequoia Fund's results for the first quarter of 2004 are as shown below with the usual comparable data for the leading market indexes:

March 31, 2004 Sequoia
Fund
Dow Jones
Industrials
Standard &
Poor's 500



First Quarter +6.00% -0.43% +1.69%
1 Year +34.09% +32.55% +35.12%
5 Years (Annualized) +6.67% +3.08% -1.20%
10 Years (Annualized) +16.74% +13.35% +11.68%
The S&P 500 Index is an unmanaged, capitalization-weighted index of the common stocks of 500 major US corporations. The Dow Jones Industrial Average is an unmanaged, price-weighted index of 30 actively traded blue chip stocks. The performance data quoted represents past performance and assumes reinvestment of dividends. 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.


The Sequoia Fund annual meeting was held on May 7th in New York. Enclosed is a summary of our comments at the meeting. We thought it would be useful to provide all of our stockholders with this review.

We are also enclosing our Privacy Notice describing our policies relating to personal client information as required by the Gramm-Leach-Bliley Act.

Sincerely,

Richard T. Cunniff
Vice Chairman
Robert D. Goldfarb
President
David M. Poppe
Executive Vice President
William J. Ruane
Chairman

July 20, 2004

SEQUOIA FUND, INC.

STATEMENT OF INVESTMENTS

MARCH 31, 2004 (UNAUDITED)

COMMON STOCKS (88.81%)

Shares     Value (a)


  BANK HOLDING COMPANIES (9.66%)    
7,152,441 Fifth Third Bancorp   $396,030,658
83,853 Mercantile Bankshares Corporation   3,603,163

      399,633,821

  BUILDING MATERIALS (3.02%)    
2,324,198 Fastenal Company   124,786,191
     
  DIVERSIFIED COMPANIES (36.40%)    
16,137 Berkshire Hathaway Inc. Class A (c)   1,505,582,100
213 Berkshire Hathaway Inc. Class B (c)   662,643
     
      1,506,244,743
     
  FREIGHT TRANSPORTATION (1.94%)    
2,036,184 Expeditors International, Inc.   80,408,906
     
  HOME FURNISHINGS (1.98%)    
1,982,249 Ethan Allen Interiors, Inc. (b)   81,787,594
     
  INSURANCE (12.68%)    
5,987,433 Progressive Corporation   524,499,131
     
  MANUFACTURING (0.43%)    
336,096 Harley Davidson, Inc.   17,927,361
     
  PROCESS CONTROL INSTRUMENTS (0.49%)    
216,576 Danaher Corporation   20,221,701
     
  RETAILING (10.79%)    
44,881 Costco Wholesale Corporation   1,685,730
1,313,896 Tiffany & Company   50,151,410
12,868,396 TJX Companies, Inc.   316,047,806
2,390,498 Walgreen Company   78,766,909
     
      446,651,855
     
  TEXTILE - CARPETS (7.35%)    
3,692,151 Mohawk Industries Inc.   304,048,635
     
  Miscellaneous Securities (1.08%)   168,057,635
     
  TOTAL COMMON STOCKS   $3,674,267,573
     

Principal
Amount
   

U.S. GOVERNMENT OBLIGATIONS (15.41%)    
$638,389,000 U.S. Treasury Bills due 04/01/04 through 05/27/04   $637,857,472
     
  TOTAL U.S. GOVERNMENT OBLIGATIONS   $637,857,472
SUMMARY  

Common Stocks  88.81% $3,674,267,573
U.S. Government Obligations  15.41% 637,857,472
Net Liabilities  (4.22%) (174,469,569)
     
Net Assets    $4,137,655,476
     

Number of Shares Outstanding    26,446,276
     

Net Asset Value Per Share    $156.46


  

(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; 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.
(b) Affiliated Companies: Investment in portfolio companies 5% or more of whose outstanding voting securities are held by the Fund are defined in the Investment Company Act of 1940 as "affiliated companies."
(c) Non-income producing.

SEQUOIA FUND, INC.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798
Website : www.sequoiafund.com

DIRECTORS

William J. Ruane
Richard T. Cunniff
Robert D. Goldfarb
David M. Poppe
Vinod Ahooja
Roger Lowenstein
Francis P. Matthews
C. William Neuhauser
Robert L. Swiggett

OFFICERS

William J. Ruane Chairman of the Board
Richard T. Cunniff Vice Chairman
Robert D. Goldfarb President
David M. Poppe Executive Vice President
Joseph Quinones, Jr. Vice President, Secretary & Treasurer

INVESTMENT ADVISER & DISTRIBUTOR

Ruane, Cunniff & Co., Inc.
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798

CUSTODIAN

The Bank of New York
MF Custody Administration Department
100 Church Street, 10th Floor
New York, New York 10286

REGISTRAR AND SHAREHOLDER SERVICING AGENT

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

LEGAL COUNSEL

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

This report has been prepared for the information of shareholders of Sequoia Fund, Inc.