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

For the Period Ended September 30, 2012

To the Shareholders of Sequoia Fund, Inc.:

As of this writing, the Sequoia Fund is up 13.03% year-to-date versus an increase of 14.09% for the S&P 500 Index.

As a result of realized capital losses, we will not have a capital gains distribution during the year ended December 31, 2012. There will be no distribution of ordinary income this calendar year.


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

November 27, 2012



Sequoia Fund's results for the third quarter of 2012 are shown below with comparable results for the S&P 500 Index:

To September 30, 2012     Sequoia
      Standard &
Poor's 500
3 Months     6.48 %      6.35 % 
9 Months     12.09 %      16.44 % 
1 Year     26.19 %      30.20 % 
5 Years (Annualized)     5.13 %      1.05 % 
10 Years (Annualized)     7.26 %      8.01 % 

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.



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     0.03 % 
Total Annual Fund Operating Expenses*     1.03 % 
* 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, 2011, the Fund’s annual operating expenses net of such reimbursement was 1.00%.





Shares     Value (a)
       ADVERTISING (0.85%)           
933,743     Omnicom Group Inc.     $ 48,143,789  
       AEROSPACE/DEFENSE (6.93%)           
947,406     Precision Castparts Corp.       154,749,296  
23,161,200     Qinetiq Group plc (United Kingdom)       70,850,111  
12,376,114     Rolls-Royce Group plc (United Kingdom)       168,414,159  
       AUTO PARTS (5.44%)           
2,500,000     Advance Auto Parts, Inc.       171,100,000  
1,656,139     O’Reilly Automotive Inc. (b)       138,486,343  
       BIOTECHNOLOGY (1.01%)  
2,076,100     Novozymes A/S – B Shares (Denmark)       57,238,077  
       CONSTRUCTION EQUIPMENT (0.51%)           
1,520,736     Ritchie Bros. Auctioneers Incorporated       29,243,753  
       CRUDE OIL & GAS PRODUCTION (0.10%)           
179,508     Canadian Natural Resources Limited       5,527,051  
       DIVERSIFIED COMPANIES (11.02%)           
3,238     Berkshire Hathaway Inc. – Class A (b)       429,682,600  
2,234,592     Berkshire Hathaway Inc. – Class B (b)       197,091,014  
       DIVERSIFIED MANUFACTURING (0.74%)           
765,664     Danaher Corporation       42,226,370  
       ELECTRICAL & MECHANICAL SYSTEMS (0.39%)           
775,721     EMCOR Group Inc.       22,139,077  
       ELECTRICAL COMPONENTS (0.20%)           
193,321     Amphenol Corporation – Class A       11,382,741  
638,349     Trimble Navigation Limited (b)       30,423,713  
       FLOORING PRODUCTS (3.74%)           
2,656,923     Mohawk Industries Inc. (b)       212,606,978  
       FREIGHT TRANSPORTATION (0.14%)           
216,500     Expeditors International Inc.       7,871,940  
       GLASS TECHNOLOGY (0.70%)           
3,016,800     Corning Inc.       39,670,920  
       HEALTHCARE (12.29%)           
529,800     Perrigo Company       61,546,866  
11,320,000     Valeant Pharmaceuticals International Inc. (b)       625,656,400  
220,657     West Pharmaceutical Services, Inc.       11,710,267  


Shares     Value (a)
       INDUSTRIAL & CONSTRUCTION SUPPLIES (5.25%)           
6,950,768     Fastenal Company       298,813,516  
       INDUSTRIAL GASES (1.26%)           
688,661     Praxair, Inc.       71,538,105  
       INDUSTRIAL MACHINERY (1.03%)           
4,020,749     IMI plc (United Kingdom)       58,413,441  
       INFORMATION PROCESSING (2.37%)           
298,457     MasterCard Inc.       134,747,366  
       INSURANCE BROKERS (0.52%)           
1,124,830     Brown & Brown Inc.       29,324,318  
       INTERNET SOFTWARE & SERVICES (2.15%)           
162,271     Google Inc. – Class A (b)       122,433,470  
       INVESTMENT BANKING & BROKERAGE (0.87%)           
435,000     The Goldman Sachs Group Incorporated       49,450,800  
       IT CONSULTING & OTHER SERVICES (1.74%)           
477,000     International Business Machines Corp.       98,953,650  
       PRECISION INSTRUMENTS (1.23%)           
841,700     Waters Corporation (b)       70,138,861  
       PROPERTY AND CASUALTY INSURANCE (0.89%)           
31,200     Admiral Group plc (United Kingdom)       530,338  
6,237,236     Hiscox Ltd. (United Kingdom)       48,931,116  
21,000     Verisk Analytics, Inc. – Class A (b)       999,810  
       RENEWABLE ENERGY (0.18%)           
294,225     First Solar, Inc. (b)       6,517,084  
99,785     SMA Solar Technology AG (Germany)       3,490,180  
       RETAILING (11.96%)           
39,666     Costco Wholesale Corporation       3,971,757  
1,471,375     Target Corporation       93,388,171  
853,000     Tiffany & Co.       52,783,640  
10,268,380     TJX Companies, Inc.       459,920,740  
949,032     Wal-Mart Stores, Inc.       70,038,562  
       SEMICONDUCTORS (0.05%)           
98,610     Linear Technology Corporation       3,140,729  
       SPECIALTY CHEMICALS (1.06%)           
1,534,809     Croda International plc (United Kingdom)       60,078,564  
       TRANSPORTATION SERVICES (1.93%)           
3,082,520     World Fuel Services Corp.       109,768,537  


Shares     Value (a)
       VETERINARY DIAGNOSTICS (3.53%)           
2,022,048     Idexx Laboratories Inc. (b)     $ 200,890,469  
       Miscellaneous Securities (3.44%) (c)       195,911,409  
       TOTAL COMMON STOCKS (Cost $2,406,557,937)     $ 4,779,936,098  


Principal Amount     Value (a)
    U.S. Treasury Bills, 0.035% – 0.100%
  due 10/11/2012 through 11/23/2012
    $ 897,975,491  
  (COST $897,975,491)
    $ 897,975,491  
       TOTAL INVESTMENTS (99.84%)
  (COST $3,304,533,428) ++
    $ 5,677,911,589  


Common Stocks     84.05 %    $ 4,779,936,098  
U.S. Government Obligations     15.79 %      897,975,491  
Net Cash & Receivables     0.16 %      9,357,336  
Net Assets   $ 5,687,268,925  
Number of Shares Outstanding     34,870,952  
Net Asset Value Per Share   $ 163.09  
++ The cost for federal income tax purposes is identical. At September 30, 2012 the aggregate gross tax basis unrealized appreciation and depreciation of securities were $2,447,568,171 and $74,190,010, 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, 2012, there were no significant transfers into and out of Level 1 and 2 measurements in the fair value hierarchy.

The following is a summary of the inputs used to value the Fund’s investments as of September 30, 2012:

Valuation Inputs   Common Stocks   U.S. Government Obligations   Total

Level 1 – 

Quoted Prices

  $ 4,779,936,098              $ 4,779,936,098  

Level 2 – 

Other Significant Observable Inputs

        $ 897,975,491       897,975,491  
Total   $ 4,779,936,098     $ 897,975,491     $ 5,677,911,589  


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.


767 Fifth Avenue, Suite 4701
New York, New York 10153-4798
(800) 686-6884


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


Richard T. Cunniff


Vice Chairman

Robert D. Goldfarb



David M. Poppe


Executive Vice President

Joseph Quinones, Jr.


Vice President, Secretary, Treasurer &
Chief Compliance Officer

Michael Valenti


Assistant Secretary


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


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


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