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

QUARTERLY REPORT
For the Period Ended March 31, 2005

To the Shareholders of Sequoia Fund, Inc.:


Dear Shareholder:

Sequoia Fund's results for the first quarter of 2005 are as shown below with the usual comparable data for the leading market indexes:

March 31, 2005
Sequoia
Fund
Dow Jones
Industrials
Standard &
Poor's 500



First Quarter -1.00% -1.59% -2.13%
1 Year -2.25% 3.99% 6.63%
5 Years (Annualized) 9.42% 1.31% -3.18%
10 Years (Annualized) 14.69% 11.93% 10.76%
 
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.


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

In our December report, we alerted our tax-paying shareholders that the current year's estimated capital gains distributions would be approximately $10 per share. Based on subsequent activity, we can now state that the capital gains distributions will be approximately $9.55 per share. Of this amount, a distribution of $3.26 per share will be distributed in June and the balance in December. However, the actual capital gains distribution in December may vary from this figure depending on market conditions during the rest of the year. We will do our best to keep you informed of any material changes in this amount.

Sincerely,

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

May 16, 2005

SEQUOIA FUND, INC.

STATEMENT OF INVESTMENTS

MARCH 31, 2005 (UNAUDITED)

 

COMMON STOCKS (88.54%)

Shares
 
 
Value (a)


  AUTO AND HOME SUPPLY STORES (1.20%)    
896,379 O'Reilly Automotive, Inc. (c)   $44,397,652

  BANK HOLDING COMPANIES (0.44%)    
367,000 Fifth Third Bancorp   15,773,660
9,915
Mercantile Bankshares Corporation
  504,277
     
      16,277,937
     
  BUILDING MATERIALS (3.24%)    
2,173,766 Fastenal Company   120,230,997
     
  COMPUTER PROGRAMMING SERVICES (1.40%)    
2,202,561 GTECH Holdings Corp.   51,826,260
     
  CHEMICAL DIAGNOSTIC SUBSTANCES (2.36%)    
1,612,446 Idexx Laboratories Inc. (c)   87,330,075
     
  DIVERSIFIED COMPANIES (35.45%)    
15,095 Berkshire Hathaway Inc. Class A (c)   1,313,265,000
125 Berkshire Hathaway Inc. Class B (c)   357,000
     
      1,313,622,000
     
  ELECTRONIC COMPUTER MANUFACTURING (1.81%)    
2,521,544 International Game Technology   67,224,363
     
  FREIGHT TRANSPORTATION (2.75%)    
1,904,393 Expeditors International, Inc.   101,980,245
     
  HOME FURNISHINGS (1.60%)    
1,853,950 Ethan Allen Interiors, Inc. (b)   59,326,400
     
  INSURANCE AGENTS & BROKERS (1.89%)    
1,523,295 Brown & Brown Inc.   70,208,667
     
  CASUALTY INSURANCE (13.86%)    
5,599,902 Progressive Corporation   513,847,008
     
  MEDICAL & HOSPITAL EQUIPMENT (0.17%)    
126,650 Patterson Companies Inc. (c)   6,326,168
     
  MOTORCYCLES MANUFACTURING (0.49%)    
314,343 Harley Davidson, Inc.   18,156,452
     
  PROCESS CONTROL INSTRUMENTS (0.58%)    
405,118 Danaher Corporation   21,637,352
     
  RETAILING (13.45%)    
41,976 Costco Wholesale Corporation   1,854,500
97,202 Petsmart, Inc.   2,794,557
1,228,856 Tiffany & Company   42,420,109
12,035,500 TJX Companies, Inc.   296,434,365
1,109,315 Wal-Mart Stores, Inc.   55,587,775
2,235,775 Walgreen Company   99,313,126
     
      498,404,432
     
  TEXTILE - CARPETS (7.85%)    
3,453,181 Mohawk Industries Inc. (b)(c)   $291,103,158
     
  TOTAL COMMON STOCKS   $3,281,899,166
     
 PREFERRED STOCKS (1.66%)    
  AUTOMOTIVE MANUFACTURING (1.66%)    
84,949 Porsche AG – Preferred (Germany)   61,652,586
     
  TOTAL PREFERRED STOCKS   $61,652,586
     
Principal
Amount
   

U.S. GOVERNMENT OBLIGATIONS (10.35%)    
$384,500,000 U.S. Treasury Bills due 04/07/05 through 05/12/05   $383,701,172
     
  TOTAL U.S. GOVERNMENT OBLIGATIONS   $383,701,172
   
SUMMARY    
Common Stocks  88.54% $3,281,899,166
Preferred Stocks 1.66% 61,652,586
U.S. Government Obligations  10.35% 383,701,172
Net Liabilities  (0.55%) (21,141,178)
     
Net Assets    $3,706,111,746
     
Number of Shares Outstanding    24,267,442
     
Net Asset Value Per Share    $152.72


(a)

Securities traded on a national securities exchange or on a foreign 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.

  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. Income and expenses are translated into U.S. dollars at the rates of exchange prevailing when accrued.
(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.

Other Information

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 http://www.sec.gov. 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 http://www.sequoiafund.com/fund_reports.htm.

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 www.sequoiafund.com 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 www.sec.gov.

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
Sharon Osberg
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 & Chief Compliance Officer

INVESTMENT ADVISER

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

DISTRIBUTOR

Ruane, Cunniff & Goldfarb LLC
767 Fifth Avenue, Suite 4701
New York, New York 10153-4798

CUSTODIAN

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