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

QUARTERLY REPORT
For the Period Ended September 30, 2007

To the Shareholders of Sequoia Fund, Inc.:

Dear Shareholder:

Sequoia Fund's results for the third quarter of 2007 are shown below with comparable results for the leading market indexes:

September 30, 2007
Sequoia
Fund
Dow Jones
Industrials
Standard &
Poor's 500



3 months 1.82% 4.19% 2.03%
9 months 7.75% 13.31% 9.13%
1 Year 11.42% 21.69% 16.44%
5 Years (Annualized) 9.43% 15.44% 15.46%
10 Years (Annualized) 9.52% 7.85% 6.57%
 

The performance shown above represents past performance and does not guarantee future results. 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 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. 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)

Management Fees 1.00%
Other Expenses 0.03%
Total Annual Fund Operating Expenses 1.03%
Expense Reimbursement* 0.03%
Net Expenses 1.00%

* Reflects 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.



Sequoia's capital gain distribution will be approximately $21.23 per share, of which approximately $21.16 will be long-term. The Fund will also distribute a $0.42 per share ordinary dividend. The record date will be December 7th and the payment date will be December 10th.

Sincerely,

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

November 1, 2007

SEQUOIA FUND, INC.

STATEMENT OF INVESTMENTS

SEPTEMBER 30, 2007 (UNAUDITED)


COMMON STOCKS (95.20%)

Shares
 
 
Value (a)


  AEROSPACE/DEFENSE (2.07%)    
7,126,000
Rolls-Royce Group plc (United Kingdom)   $76,169,814

  AUTO PARTS (1.55%)    
1,699,697 O’Reilly Automotive Inc. (b)   56,786,877

  AUTOMOTIVE MANUFACTURING (5.50%)    
95,028 Porsche AG (Germany) (c)   201,844,889

  BUILDING PRODUCTS (5.50%)    
1,510,900 Martin Marietta Materials Inc.   201,780,695

  CASUALTY INSURANCE (4.97%)    
9,395,000 Progressive Corporation   182,356,950

  DIVERSIFIED COMPANIES (25.93%)    
8,032 Berkshire Hathaway Inc. Class A (b)   951,872,320
21
Berkshire Hathaway Inc. Class B (b)
  82,992
     
      951,955,312
     
  FINANCE (1.52%)    
376,378
MasterCard Inc.   55,692,653
     
  FOOD-RETAIL (1.21%)    
907,000
Whole Foods Market Inc.   44,406,720
     
  FREIGHT TRANSPORTATION (5.74%)    
2,997,624 Expeditors International Inc.   141,787,615
4,000,000
Knight Transportation Inc.
  68,840,000
     
      210,627,615
     
  INDUSTRIAL & CONSTRUCTION SUPPLIES (4.95%)    
4,003,023 Fastenal Company   181,777,274
     
  INSURANCE BROKERS (2.07%)    
2,888,441 Brown & Brown Inc.   75,965,998
     
  DIVERSIFIED MANUFACTURING (0.87%)    
384,088 Danaher Corporation   31,767,918
     
  RETAILING (21.51%)    
4,999,694 Bed Bath & Beyond Inc. (b)   170,589,559
39,797 Costco Wholesale Corporation   2,442,341
1,840,388 Lowe’s Companies, Inc.   51,567,672
2,212,730 Target Corporation   140,663,246
7,629,153 TJX Companies, Inc.   221,779,478
2,119,715 Walgreen Company   100,135,337
2,359,006 Wal-Mart Stores, Inc.   102,970,612
     
      790,148,245
     
  TEXTILE - CARPETS (7.25%)    
3,273,926 Mohawk Industries Inc. (b)   266,170,184
     
  VETERINARY DIAGNOSTICS (4.56%)    
1,528,744
Idexx Laboratories Inc. (b)   167,535,055
     
  TOTAL COMMON STOCKS   $3,494,986,199
     
Principal
Amount
   
Value (a)


U.S. GOVERNMENT OBLIGATIONS (4.28%)    
$158,000,000 U.S. Treasury Bills due 11/15/07 through 11/23/07   $157,217,442
     
  TOTAL U.S. GOVERNMENT OBLIGATIONS   $157,217,442
   
SUMMARY    
Common Stocks 95.20% $3,494,986,199
U.S. Government Obligations 4.28% 157,217,442
Net Cash & Receivables 0.52% 19,053,203
     
Net Assets   $3,671,256,844
     
Number of Shares Outstanding   23,096,093
     
Net Asset Value Per Share   $158.96


(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 last reported sales price 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 NYSE 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.
  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) Non-income producing.
(c) The Fund is invested in preference shares of Porsche AG which possess the same economic interest as Porsche common stock but have no voting rights.

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

Richard T. Cunniff
Robert D. Goldfarb
David M. Poppe
Vinod Ahooja
Roger Lowenstein
Francis P. Matthews
C. William Neuhauser
Sharon Osberg
Robert L. Swiggett
, Chairman of the Board

OFFICERS

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
Michael Valenti — Assistant Secretary

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
1 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 LLP
One Battery Park Plaza
New York, New York 10004

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