|UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549FORM N-QQUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTEREDMANAGEMENT INVESTMENT COMPANYInvestment Company Act file number:811-01728NICHOLAS FUND, INC.(Exact Name of Registrant as Specified in Charter)700 North Water Street, Milwaukee, Wisconsin 53202(Address of Principal Executive Offices) (Zip Code)Jeffrey T. May, Senior Vice President, Secretary and Treasurer700 North Water StreetMilwaukee, Wisconsin 53202(Name and Address of Agent for Service)
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|Registrant's Telephone Number, Including Area Code:414-272-4650Date of Fiscal Year End:03/31/2010Date of Reporting Period:12/31/2009
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|Item 1. Schedule of Investments.
|--------------------------------

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|                                    |  | NICHOLAS FUND, INC.                                   |  |               
|----------------------------------- |  | ----------------------------------------------------- |  | --------------
|SCHEDULE OF INVESTMENTS (UNAUDITED)
|                                    |  | AS OF 12/31/09                                        |  |               
|                                   
|                                    |  |                                                       |  | VALUE         
|                                    |  |                                                       |  | --------------
|                                   
|COMMON STOCKS - 95.87%              |  |                                                      
|                                    |  | Consumer Discretionary - Durables & Apparel - 0.77%   |  |               
|550,000                             |  | Mattel, Inc.                                          |  | $ 10,989,000  
|                                    |  |                                                       |  | --------------
|                                    |  | Consumer Discretionary - Retail - 9.34%               |  |               
|205,000                             |  | Aaron's, Inc.                                         |  | 5,684,650     
|429,400                             |  | Jos. A. Bank Clothiers, Inc. *                        |  | 18,116,386    
|650,000                             |  | Kohl's Corporation *                                  |  | 35,054,500    
|400,000                             |  | LKQ Corporation *                                     |  | 7,836,000     
|1,192,476                           |  | O'Reilly Automotive, Inc. *                           |  | 45,457,185    
|576,160                             |  | Penske Automotive Group, Inc.                         |  | 8,746,109     
|1,130,886                           |  | Sally Beauty Company, Inc. *                          |  | 8,651,278     
|156,600                             |  | Signet Jewelers Limited *                             |  | 4,184,352     
|                                    |  |                                                       |  | --------------
|                                    |  |                                                       |  | 133,730,460   
|                                    |  |                                                       |  | --------------
|                                    |  | Consumer Discretionary - Services - 2.94%             |  |               
|1,022,255                           |  | DineEquity, Inc.                                      |  | 24,830,574    
|493,200                             |  | Yum! Brands, Inc.                                     |  | 17,247,204    
|                                    |  |                                                       |  | --------------
|                                    |  |                                                       |  | 42,077,778    
|                                    |  |                                                       |  | --------------
|                                    |  | Consumer Staples - Food & Staple Retail - 3.72%       |  |               
|1,450,000                           |  | Walgreen Co.                                          |  | 53,244,000    
|                                    |  |                                                       |  | --------------
|                                    |  | Consumer Staples - Food, Beverage & Tobacco - 3.80%   |  |               
|200,000                             |  | Altria Group, Inc.                                    |  | 3,926,000     
|700,000                             |  | Philip Morris International Inc.                      |  | 33,733,000    
|280,000                             |  | Ralcorp Holdings, Inc. *                              |  | 16,718,800    
|                                    |  |                                                       |  | --------------
|                                    |  |                                                       |  | 54,377,800    
|                                    |  |                                                       |  | --------------
|                                    |  | Energy - 14.21%                                       |  |               
|400,000                             |  | Apache Corporation                                    |  | 41,268,000    
|724,939                             |  | Bristow Group Inc. *                                  |  | 27,873,905    
|931,300                             |  | Inergy, L.P.                                          |  | 33,228,784    
|230,000                             |  | Kayne Anderson Energy Development Company             |  | 3,346,500     
|700,000                             |  | Kayne Anderson Energy Total Return Fund, Inc.         |  | 16,170,000    
|700,000                             |  | Kayne Anderson MLP Investment Company                 |  | 17,528,000    
|1,173,753                           |  | Kinder Morgan Management, LLC *                       |  | 64,133,866    
|                                    |  |                                                       |  | --------------
|                                    |  |                                                       |  | 203,549,055   
|                                    |  |                                                       |  | --------------
|                                    |  | Financials - Diversified - 6.57%                      |  |               
|900,000                             |  | Affiliated Managers Group, Inc. *                     |  | 60,615,000    
|475,000                             |  | Duff & Phelps Corporation - Cl ass A                  |  | 8,673,500     
|1,044,785                           |  | Leucadia National Corporation                         |  | 24,855,435    
|                                    |  |                                                       |  | --------------
|                                    |  |                                                       |  | 94,143,935    
|                                    |  |                                                       |  | --------------
|                                    |  | Financials - Insurance - 2.28%                        |  |               
|900,000                             |  | Loews Corporation                                     |  | 32,715,000    
|                                    |  |                                                       |  | --------------
|                                    |  | Financials - Real Estate - 0.64%                      |  |               
|1,520,950                           |  | Cohen & Steers Quality Income Realty Fund, Inc.       |  | 9,232,166     
|                                    |  |                                                       |  | --------------
|                                    |  | Health Care - Equipment - 6.26%                       |  |               
|280,000                             |  | Alcon, Inc.                                           |  | 46,018,000    
|507,500                             |  | Covidien plc                                          |  | 24,304,175    
|525,000                             |  | St. Jude Medical, Inc. *                              |  | 19,309,500    
|                                    |  |                                                       |  | --------------
|                                    |  |                                                       |  | 89,631,675    
|                                    |  |                                                       |  | --------------
|                                    |  | Health Care - Pharmaceuticals & Biotechnology - 8.47% |  |               
|278,000                             |  | Charles River Laboratories International, Inc. *      |  | 9,365,820     
|800,000                             |  | Gilead Sciences, Inc. *                               |  | 34,624,000    
|325,400                             |  | Mettler-Toledo International Inc. *                   |  | 34,163,746    
|905,688                             |  | Thermo Fisher Scientific Inc. *                       |  | 43,192,261    
|                                    |  |                                                       |  | --------------
|                                    |  |                                                       |  | 121,345,827   
|                                    |  |                                                       |  | --------------
|                                    |  | Health Care - Services - 5.09%                        |  |               
|850,000                             |  | DaVita, Inc. *                                        |  | 49,929,000    
|920,000                             |  | VCA Antech, Inc. *                                    |  | 22,926,400    
|                                    |  |                                                       |  | --------------
|                                    |  |                                                       |  | 72,855,400    
|                                    |  |                                                       |  | --------------
|                                    |  | Industrials - Capital Goods - 12.47%                  |  |               
|375,000                             |  | AECOM Technology Corporation *                        |  | 10,312,500    
|900,000                             |  | Chicago Bridge & Iron Company N.V.                    |  | 18,198,000    
|236,100                             |  | Curtiss-Wright Corporation                            |  | 7,394,652     
|400,000                             |  | Fastenal Company                                      |  | 16,656,000    
|1,783,300                           |  | Oshkosh Corporation *                                 |  | 66,035,599    
|425,000                             |  | W.W. Grainger, Inc.                                   |  | 41,152,750    
|733,695                             |  | Woodward Governor Company                             |  | 18,907,320    
|                                    |  |                                                       |  | --------------

Page 1

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|                               |  |                                                      |  | 178,656,821   
|------------------------------ |  | ---------------------------------------------------- |  | --------------
|                               |  |                                                      |  | --------------
|                               |  | Industrials - Commercial Services & Supplies - 3.22% |  |               
|756,500                        |  | Copart, Inc. *                                       |  | 27,710,595    
|650,000                        |  | Republic Services, Inc.                              |  | 18,401,500    
|                               |  |                                                      |  | --------------
|                               |  |                                                      |  | 46,112,095    
|                               |  |                                                      |  | --------------
|                               |  | Industrials - Transportation - 1.09%                 |  |               
|450,000                        |  | Kirby Corporation *                                  |  | 15,673,500    
|                               |  |                                                      |  | --------------
|                               |  | Information Technology - Semiconductors              |  |               
|                               |  | & Semiconductor Equipment - 0.61%                    |  |               
|300,000                        |  | Microchip Technology Incorporated                    |  | 8,718,000     
|                               |  |                                                      |  | --------------
|                               |  | Information Technology - Software & Services - 5.96% |  |               
|785,000                        |  | Fiserv, Inc. *                                       |  | 38,056,800    
|600,000                        |  | Hewitt Associates, Inc. *                            |  | 25,356,000    
|608,800                        |  | Solera Holdings, Inc.                                |  | 21,922,888    
|                               |  |                                                      |  | --------------
|                               |  |                                                      |  | 85,335,688    
|                               |  |                                                      |  | --------------
|                               |  | Materials - 7.28%                                    |  |               
|450,000                        |  | Airgas, Inc.                                         |  | 21,420,000    
|350,000                        |  | AptarGroup, Inc.                                     |  | 12,509,000    
|700,000                        |  | Ball Corporation                                     |  | 36,190,000    
|300,000                        |  | Bemis Company, Inc.                                  |  | 8,895,000     
|300,000                        |  | RPM International, Inc.                              |  | 6,099,000     
|294,700                        |  | Stepan Company                                       |  | 19,099,507    
|                               |  |                                                      |  | --------------
|                               |  |                                                      |  | 104,212,507   
|                               |  |                                                      |  | --------------
|                               |  | Utilities - 1.15%                                    |  |               
|700,000                        |  | Allegheny Energy, Inc.                               |  | 16,436,000    
|                               |  |                                                      |  | --------------
|                               |  | TOTAL COMMON STOCKS (cost $1,023,853,217)            |  | 1,373,036,707 
|                               |  |                                                      |  | --------------
|                              
|                              
|SHORT-TERM INVESTMENTS - 4.01% |  |                                                     
|                               |  | Commercial Paper - 3.86%                             |  |               
|$3,000,000                     |  | Volkswagen of America, Inc. 01/04/10, 0.24%          |  | 3,000,000     
|1,825,000                      |  | Hitachi Capital America Corp. 01/05/10, 0.30%        |  | 1,824,985     
|3,000,000                      |  | Hitachi Capital America Corp. 01/05/10, 0.30%        |  | 2,999,975     
|3,500,000                      |  | Wisconsin Energy Corporation 1/06/10, 0.23%          |  | 3,499,955     
|1,900,000                      |  | Wisconsin Energy Corporation 01/07/10, 0.25%         |  | 1,899,960     
|5,950,000                      |  | XTO Energy Inc. 01/07/10, 0.25%                      |  | 5,949,876     
|3,000,000                      |  | Wisconsin Energy Corporation 01/08/10, 0.23%         |  | 2,999,923     
|5,000,000                      |  | Wisconsin Energy Corporation 01/08/10, 0.23%         |  | 4,999,872     
|3,600,000                      |  | BMW US Capital, LLC 01/11/10, 0.25%                  |  | 3,599,825     
|4,000,000                      |  | BMW US Capital, LLC 01/12/10, 0.30%                  |  | 3,999,733     
|1,250,000                      |  | Time Warner Cable, Inc. 01/14/10, 0.40%              |  | 1,249,861     
|3,375,000                      |  | Wisconsin Energy Corporation 01/15/10, 0.20%         |  | 3,374,794     
|4,000,000                      |  | Wisconsin Energy Corporation 01/15/10, 0.20%         |  | 3,999,756     
|4,000,000                      |  | Franklin Resources, Inc. 01/20/10, 0.15%             |  | 3,999,733     
|2,550,000                      |  | Wisconsin Energy Corporation 01/22/10, 0.25%         |  | 2,549,681     
|2,650,000                      |  | H.J. Heinz Finance Company 01/25/10, 0.22%           |  | 2,649,660     
|2,675,000                      |  | H.J. Heinz Finance Company 01/29/10, 0.20%           |  | 2,674,629     
|                               |  |                                                      |  | --------------
|                               |  |                                                      |  | 55,272,218    
|                               |  |                                                      |  | --------------
|                               |  | Variable Rate Security - 0.15%                       |  |               
|2,074,628                      |  | American Family Financial Services, Inc.             |  |               
|                               |  | 01/04/10, 0.10%                                      |  | 2,074,628     
|                               |  |                                                      |  | --------------
|                               |  | TOTAL SHORT-TERM INVESTMENTS (cost $57,346,846)      |  | 57,346,846    
|                               |  |                                                      |  | --------------
|                              
|                               |  | TOTAL SECURITY HOLDINGS                              |  |               
|                               |  | (cost $1,081,200,063) - 99.88%                       |  | 1,430,383,553 
|                               |  |                                                      |  | --------------
|                              
|                               |  | OTHER ASSETS, NET OF LIABILITIES - 0.12%             |  | 1,747,474     
|                               |  |                                                      |  | --------------
|                               |  | TOTAL NET ASSETS                                     |  | $1,432,131,027
|                               |  |                                                      |  | --------------
|                               |  |                                                      |  | --------------
|                              
|                              
|% OF NET ASSETS                |  |                                                     
|* NON-INCOME PRODUCING         |  |                                                     

As of December 31, 2009, investment cost for federal tax purposes was $1,081,046,653 and the tax basis components of unrealized appreciation/depreciation were as follows:

|Unrealized appreciation     |  | $410,470,677
|--------------------------- |  | ------------
|Unrealized depreciation     |  | (61,133,777)
|                            |  | ------------
|Net unrealized appreciation |  | $349,336,900
|                            |  | ------------
|                            |  | ------------

Page 2

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For information on the Fund's policies regarding the valuation of investments and other significant accounting policies, please refer to the Fund's most recent Semiannual or Annual Report
to Shareholders.

Various inputs are used in determining the value of the Fund's investments relating to Accounting Standards Classification 820-10.

The three-tier hierarchy of inputs is summarized in the three broad Levels listed below.

Level 1  quoted prices in active markets for identical investments

Level 2  other significant observable inputs (including quoted prices for similar investments, 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.

The following is a summary of the inputs used as of December 31, 2009 in valuing the Funds investments carried at value:

|Valuation Inputs       |  | Investments in Securities
|---------------------- |  | -------------------------
|Level 1 -              |  |                          
|Common Stocks          |  | $1,373,036,707           
|Level 2 -              |  |                          
|Commercial Paper       |  | 55,272,218               
|Variable Rate Security |  | 2,074,628                
|Level 3 -              |  |                          
|None                   |  | --                       
|                       |  | --------------           
|Total                  |  | $1,430,383,553           
|                       |  | --------------           
|                       |  | --------------           

Page 3

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Item 2. Controls and Procedures.

(a) The Fund's principal executive officer and principal financial officer have concluded that the Fund's disclosure controls and procedures are sufficient to ensure that information
required to be disclosed by the Fund in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, based upon such officers' evaluation of these
controls and procedures as of a date within 90 days of the filing date of the report.

(b) There were no significant changes or corrective actions with regard to significant deficiencies or material weaknesses in the Fund's internal controls or in other factors that
could significantly affect the Fund's internal controls during the last fiscal quarter.

Item 3. Exhibits.

Certifications of Principal Executive Officer and Principal Financial Officer pursuant to Rule 30a-2(a) under the Act, attached hereto as part of EX-99.CERT.



|SIGNATURES
|----------

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)NICHOLAS FUND, INC.



|By:/s/ Albert O. NicholasName: Albert O. NicholasTitle: Principal Executive OfficerDate:FEBRUARY 10, 2010
|---------------------------------------------------------------------------------------------------------

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following
persons on behalf of the registrant and in the capacities and on the dates indicated.



|By:/s/ Albert O. NicholasName: Albert O. NicholasTitle: Principal Executive OfficerDate:FEBRUARY 10, 2010By:/s/ Jeffrey T. MayName: Jeffrey T. MayTitle: Principal Financial OfficerDate:FEBRUARY 10, 2010
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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