# EDGAR Filing Document

**Accession Number:** 0000018748
**File Stem:** 0001387131-23-001684
**Filing Date:** 2023-2
**Character Count:** 120472
**Document Hash:** 5527ff6ade4f2513f9b296e44d6aa815
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001387131-23-001684.hdr.sgml**: 20230210

**ACCESSION NUMBER**: 0001387131-23-001684

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 5

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230210

**DATE AS OF CHANGE**: 20230210

**EFFECTIVENESS DATE**: 20230210

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CENTRAL SECURITIES CORP
- **CENTRAL INDEX KEY:** 0000018748
- **IRS NUMBER:** 131875970
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-00179
- **FILM NUMBER:** 23609028

**BUSINESS ADDRESS:**
- **STREET 1:** 630 FIFTH AVENUE
- **STREET 2:** SUITE 820
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10111
- **BUSINESS PHONE:** 212-698-2020

**MAIL ADDRESS:**
- **STREET 1:** 630 FIFTH AVENUE
- **STREET 2:** SUITE 820
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10111

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** TRANS CENTRAL SECURITIES CORP
- **DATE OF NAME CHANGE:** 19700722

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** BUERGER LADET & RADINSKY INC
- **DATE OF NAME CHANGE:** 19671026

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM N-CSR**

**CERTIFIED SHAREHOLDER REPORT OF REGISTERED** 

**MANAGEMENT INVESTMENT COMPANIES**

Investment Company Act File Number 811-00179

**<u>Central Securities Corporation</u>**

(Name of registrant as specified in charter)

<u>630 Fifth Avenue, Suite 820, New York, New York 10111</u>

(Address of principal executive offices)

Marlene A. Krumholz

Central Securities Corporation

630 Fifth Avenue

Suite 820

<u>New York, New York 10111</u>

(Name and address of agent for service)

Registrant's telephone number, including area code: 212-698-2020

Date of fiscal year end: December 31

Date of reporting period: December 31, 2022

**CENTRAL SECURITIES CORPORATION**

------

**NINETY-** **FOURTH** **ANNUAL REPORT**

**202** **2**

[2]

SIGNS OF THE TIMES

"Five big technology stocks accounted for about a quarter of the U.S. stock market's total declines last year, a bruising selloff reminiscent of the dot-com bust two decades ago" (Gunjan Banerji, *The Wall Street Journal*, January 2, 2023)

"Mortgage rates recorded their largest increase in any calendar year in 2022, a consequence of the Federal Reserve's aggressive moves to calm inflation. The higher rates can add hundreds of dollars or more to a monthly mortgage payment, putting homeownership further out of reach for many in a market where prices remain elevated." (Gina Heeb, *The Wall Street Journal*, December 29, 2022)

"America's debt is now six times what it was at the start of the 21st century. It is the largest it has been, compared with the size of the U.S. economy, since World War II, and it's projected to grow an average of about $1.3 trillion a year for the next decade." (Jim Tankersley, *The New York Times*, January 22, 2023)

"Academics, higher education consultants and cognitive scientists across the world have suggested universities develop new modes of assessment in response to the threat to academic integrity posed by AI. ChatGPT is a large language model trained on millions of data points, including large chunks of text and books. It produces convincing and coherent replies to questions by predicting the next plausible word in a sequence of words, but often its answers are inaccurate and require fact-checking." (Christina Criddle and Bethany Staton, *Financial Times*, December 18, 2022)

"An MIT study examined a data set of 126,000 tweets in all categories of information – from science to terrorism to finance – and sorted them based on factual accuracy. The time taken for falsehoods to reach 1,500 people, they found, was six times shorter than it was for the truth. Meanwhile, 7 in 10 U.S. adult Twitter users say they get news on the site, and 80% of all tweets come from 10% of its users." (Scott Galloway, *Adrift*, (page 126), September 2022)

"A study of how retail investors use cryptocurrency exchange apps suggests about three-quarters have lost money on Bitcoin, according to the Bank of International Settlements. Data spanning 95 countries from 2015 to 2022 indicates that the vast majority of app downloads occurred when Bitcoin's price was above $20,000, the working paper from the Basel, Switzerland-based BIS says. The analysis says if we assume each new user bought $100 of Bitcoin in the month they installed the app and each month thereafter, 81% would have lost money." (Sunil Jagtiani, *Bloomberg*, November 16, 2022)

"…a bubble needs three elements to inflate, just as a fire needs three elements - fuel, heat and oxygen – to keep burning. For a financial bubble, it's marketability, speculation and cheap money." (Tim Harford, *Financial Times*, January 26, 2023)

[3]

"Eight of the 10 largest private U.S. employers track the productivity metrics of individual workers, many in real time, according to an examination by The New York Times. Now digital productivity monitoring is also spreading among white-collar jobs and roles that require graduate degrees. Many employees, whether working remotely or in person, are subject to trackers, scores, 'idle' buttons, or just quiet, constantly accumulating records. Pauses can lead to penalties, from lost pay to lost jobs." (Jodi Kantor and Arya Sundaram, *The New York Times*, August 14, 2022)

"The United States still has a stranglehold on the silicon chips that gave Silicon Valley its name, though its position has weakened dangerously. China now spends more money each year importing chips than it spends on oil. These semiconductors are plugged into all manner of devices, from smartphones to refrigerators, that China consumes at home or exports worldwide. Armchair strategists theorize about China's 'Malacca Dilemma'—a reference to the main shipping channel between the Pacific and Indian Oceans—and the country's ability to access supplies of oil and other commodities amid a crisis. Beijing, however, is more worried about a blockade measured in bytes rather than barrels. China is devoting its best minds and billions of dollars to developing its own semiconductor technology in a bid to free itself from America's chip choke. If Beijing succeeds, it will remake the global economy and reset the balance of military power." (Chris Miller, *Chip War* (page XVIII), October 2022)

"Pandemic-related shortages combined with efforts to reduce carbon emissions are leading corporate executives to reconsider far-flung suppliers in low-cost jurisdictions. Growing tension between China and the west is also changing the calculus – German direct investment in China tailed off during Covid and has not rebounded. As companies decide which plants to modernize and when it makes sense to start over somewhere else, energy costs will clearly play a role. And here, the US has a crucial advantage over Europe: natural gas supplies are local, reliable and consistently cheaper, although the price gap has fluctuated wildly." (Brooke Masters, *Financial Times*, November 2, 2022)

"The Inflation Reduction Act, signed into law by President Biden in August, was designed to promote battery-powered vehicles while providing incentives for companies to make them in North America. It is also designed to exclude rivals like China and Russia from the supply chain. But the details of how to apply those principles were left to the Treasury, which has had only four months to work through scores of brain-numbing technical details not fully addressed in the legislation. For example, to qualify for credits, at least 40 percent of the minerals in a vehicle's battery, measured by their value, must come from the United States or a trade ally. The quota rises in steps to 80 percent in 2027. But it is devilishly difficult to track the origin of raw materials. And the law didn't specify which countries should be considered trade allies." (Jack Ewing, *The New York Times*, December 29, 2022)

"Many of the most prominent office developers in the U.S. are shifting gears, looking to buy or build real estate that isn't office. Boston Properties Inc. is planning to develop 2,000 residential units up and down the East Coast. The firm, which owns more U.S. office space than any other publicly traded company, also is developing millions of square feet of lab and life-science space.… The efforts come as the Covid-19 pandemic and rise of remote work have reordered American habits around the workplace, dimming the importance of office towers that populate city business districts. Shares of publicly traded office owners have broadly declined as investors and analysts worry that the companies' growth prospects have been hurt by the likelihood of a long-term decline in office demand." (Peter Grant, *The Wall Street Journal*, January 10, 2023)

[4]

CENTRAL SECURITIES CORPORATION

(Organized on October 1, 1929 as an investment company, registered as such with the <br>Securities and Exchange Commission under the provisions of the Investment Company Act of 1940)

25-YEAR HISTORICAL DATA

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | Per Share of Common Stock | Per Share of Common Stock | Per Share of Common Stock | Per Share of Common Stock | Per Share of Common Stock |  |  |
|  |  | Net <br>asset<br>value | Source of dividends<br>and distributions | Source of dividends<br>and distributions |  | Total <br>dividends <br>and<br>distributions |  | Unrealized <br>appreciation <br>of investments<br>at end of year |
| Year Ended<br>December 31, | Total<br>net assets | Net <br>asset<br>value | Ordinary<br>income\* | Long-term<br>capital gains\* |  | Total <br>dividends <br>and<br>distributions |  | Unrealized <br>appreciation <br>of investments<br>at end of year |
| 1997 | $434423053<br>| $29.97<br>|  |  |  |  |  | $273760444<br>|
| 1998 | 476463575 | 31.43 | $.29<br>| $1.65<br>|  | $1.94<br>|  | 301750135 |
| 1999 | 590655679 | 35.05 | .26 | 2.34 |  | 2.60 |  | 394282360 |
| 2000 | 596289086 | 32.94 | .32 | 4.03 |  | 4.35 |  | 363263634 |
| 2001 | 539839060 | 28.54 | .22 | 1.58 | \*\* | 1.80 | \*\* | 304887640 |
| 2002 | 361942568 | 18.72 | .14 | 1.11 |  | 1.25 |  | 119501484 |
| 2003 | 478959218 | 24.32 | .11 | 1.29 |  | 1.40 |  | 229388141 |
| 2004 | 529468675 | 26.44 | .11 | 1.21 |  | 1.32 |  | 271710179 |
| 2005 | 573979905 | 27.65 | .28 | 1.72 |  | 2.00 |  | 302381671 |
| 2006 | 617167026 | 30.05 | .58 | 1.64 |  | 2.22 |  | 351924627 |
| 2007 | 644822724 | 30.15 | .52 | 1.88 |  | 2.40 |  | 356551394 |
| 2008 | 397353061 | 17.79 | .36 | 2.10 |  | 2.46 |  | 94752477 |
| 2009 | 504029743 | 22.32 | .33 | .32 |  | .65 |  | 197256447 |
| 2010 | 593524167 | 26.06 | .46 | .44 |  | .90 |  | 281081168 |
| 2011 | 574187941 | 24.96 | .43 | .57 |  | 1.00 |  | 255654966 |
| 2012 | 569465087 | 24.53 | .51 | .43 |  | .94 |  | 247684116 |
| 2013 | 648261868 | 26.78 | .12 | 3.58 |  | 3.70 |  | 305978151 |
| 2014 | 649760644 | 26.18 | .16 | 1.59 |  | 1.75 |  | 293810819 |
| 2015 | 582870527 | 23.53 | .12 | 1.86 |  | 1.98 |  | 229473007 |
| 2016 | 674683352 | 27.12 | .30 | .68 |  | .98 |  | 318524775 |
| 2017 | 826331789 | 32.86 | .28 | .72 |  | 1.00 |  | 460088116 |
| 2018 | 765342588 | 30.02 | .56 | .89 |  | 1.45 |  | 392947674 |
| 2019 | 994595051 | 38.42 | .57 | .78 |  | 1.35 |  | 607489748 |
| 2020 | 1036336494 | 39.49 | .75 | .95 |  | 1.70 |  | 638120894 |
| 2021 | 1332590581 | 48.87 | .92 | 2.83 |  | 3.75 |  | 894323472 |
| 2022 | 1132835676 | 40.48 | .55 | 1.90 |  | 2.45 |  | 668155780 |
|  Dividends and distributions for the 25-year period: | Dividends and distributions for the 25-year period: | Dividends and distributions for the 25-year period: | $9.25<br>| $38.09<br>|  | $47.34<br>|  |  |

---

------

\*Computed on the basis of the Corporation's status as a "regulated investment company" for Federal income tax purposes. Dividends from ordinary income include short-term capital gains.

\*\*Includes non-taxable return of capital of $.55.

The Common Stock is listed on the NYSE American under the symbol CET. On December 30, 2022 (the last trading day of the year), the closing market price was $33.39 per share.

[5]

*To the Stockholders of*

Central Securities Corporation:

Financial statements for the year 2022, as reported upon by our independent registered public accounting firm, and other pertinent information are submitted herewith.

Comparative net assets are as follows:

---

| | | |
|:---|:---|:---|
|  | December 31,<br>2022 | December 31,<br>2021 |
|  Net assets  | $1132835676<br>| $1332590581 |
|  Net assets per share of Common Stock  | 40.48 | 48.87 |
| &nbsp;&nbsp;&nbsp;&nbsp; Shares of Common Stock outstanding  | 27988252 | 27266384 |

---

Comparative operating results are as follows:

---

| | | |
|:---|:---|:---|
|  | Year 2022 | Year 2021 |
|  Net investment income  | $14664129<br>| $21810607<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Per share of Common Stock  | .54<br> \* | .83<br> \* |
|  Net realized gain from investment transactions  | 52832845 | 75563512 |
|  Increase (decrease) in net unrealized appreciation of investments  | (226167692) | 256202578 |
|  Increase (decrease) in net assets resulting from operations  | (158670718) | 353576697 |

---

------

\*Per-share data are based on the average number of Common shares outstanding during the year.

The Corporation declared two distributions to holders of Common Stock in 2022, $.20 per share paid on June 24 in cash and $2.25 per share paid on December 22 in cash or in additional shares of Common Stock at the stockholder's option. For Federal income tax purposes, of the total $2.45 paid, $.55 represents ordinary income and $1.90 represents long-term capital gains. A separate tax notice has been mailed to stockholders. With respect to state and local taxes, the character of distributions may vary. Stockholders should consult with their tax advisors on this matter.

In the distribution paid in December, the holders of 46% of the outstanding shares of Common Stock elected stock, and they received 797,817 Common shares at a price of $35.36 per share.

During 2022, the Corporation purchased 79,449 shares of its Common Stock at an average price of $34.36 per share. The Corporation may from time to time purchase its Common Stock in such amounts and at such prices as the Board of Directors deems advisable in the best interests of stockholders. Purchases may be made in the open market or in private transactions directly with stockholders.

[6]

Central's net asset value, adjusted for the reinvestment of distributions to shareholders declined by 11.5% during 2022. Over the same period, Central's shares returned -19.9%. For comparative purposes, the S&P 500 Index declined by 18.1% while the Russell 2000, a broad index composed of smaller companies, declined by 20.5%.

Long-term returns on an annualized basis are shown below.

---

| | | | |
|:---|:---|:---|:---|
| Years | NAV Return | Market Return | S&P 500 |
| 10 | 12.9% | 13.2% | 12.5% |
| 20 | 11.5% | 11.3% | 9.8% |
| 30 | 11.9% | 12.0% | 9.6% |
| 40 | 12.7% | 13.0% | 11.2% |
| 50 | 12.2% | 12.7% | 10.3% |

---

The fiscal and monetary stimulus response to the pandemic, combined with strong consumer demand and widespread supply shortages, led to an overheated economy in 2022. Unemployment neared its pre-pandemic multi-decade low, while inflation rose to the highest level seen in 40 years.

The Federal Reserve responded by reversing its policy of near-zero interest rates and active bond purchases. The Fed raised interest rates seven times during the year and constricted liquidity by slowly reducing its $9 trillion bond portfolio, resulting in deflationary pressure on asset prices and broad stock market declines. Residential mortgage rates nearly doubled.

Signs of a softening in inflation and some areas of consumer demand emerged as the year progressed, despite continued labor market strength. The index of leading economic indicators turned negative in July, while used car prices, home prices and housing transactions began to fall in the second half of the year. Leading companies including Alphabet, Amazon, Goldman Sachs, and Microsoft announced layoffs in early 2023.

Pandemic-related supply-chain snarls and Russia's invasion of Ukraine revived long-dormant concerns about geopolitical risks and economic dependencies, challenging the post-Cold War political and economic status quo and raising the possibility of structurally higher long-term inflation and interest rates.

In the face of this shifting economic landscape Central maintained its approach of investing for the long-term. Our portfolio turnover remained in the single digits. We initiated no new positions in 2022. We completed the sale of our long-term holding in industrial laser manufacturer Coherent, Inc., which was acquired by II-VI Incorporated. We added to our position in II-VI, which subsequently renamed itself Coherent Corp., leaving us with a smaller overall position in the combined company. We also added to our existing position in MercadoLibre. We exited positions in Bank of New York Mellon, Cogent Communications, Heritage-Crystal Clean, MKS Instruments, and Star Group. We modestly reduced our positions in Hess and Motorola Solutions. We ended the year with 28 holdings, down from 34 at year-end 2021.

The most significant positive contributors to Central's 2022 results on an absolute basis, in order of importance, were Hess, Progressive, and Merck. Our relative performance was helped by our overweight positions in financials and energy and our underweighting in consumer discretionary and technology companies. The largest detractors on an absolute basis, in order of importance, were Alphabet, Plymouth Rock, Meta Platforms, and Amazon.

Central's largest and most important investment remains Plymouth Rock, a privately held company in which we invested in 1982. The Plymouth Rock Group of Companies together write and manage $1.7 billion in personal and commercial auto, homeowners and umbrella insurance in Massachusetts, New Hampshire, Connecticut, New York, New Jersey and Pennsylvania. We currently own 23% of the shares outstanding.

[7]

In 2022 Plymouth Rock focused on addressing the industry-wide challenges of rate adequacy and loss cost severity in its home and auto businesses. A more complete discussion of Plymouth Rock's year will be contained in its 2022 annual report which we expect will be available in April. The most current annual report may be found at <u><u>www.plymouthrock.com/about/financial-information/annual-reports</u></u>.

Central is an independent, internally managed closed-end investment company. Our primary objective is long-term growth of capital through the ownership of equity stakes in select companies operating in diverse industries. We aspire to invest with a time horizon of at least five years. Honest and capable management working in the long-term interest of all stockholders is of the utmost importance in our appraisal of investments. Finally, we attempt to purchase investments at a reasonable, if not a bargain price. Our approach requires intimate knowledge of the business and management of the companies we own. We believe Central's ability to take a long-term view is advantageous to our stockholders.

A statement of Central's investment objective, principal investment policies and the principal risks associated with an investment in Central's common stock is provided beginning on page 25 of this report. We also include Management's Discussion of Performance, beginning on page 9.

Stockholder's inquiries are welcome.

John C. Hill Wilmot H. Kidd Andrew J. O'Neill

630 Fifth Avenue<br>New York, New York 10111<br>February 1, 2023

[8]

25-YEAR INVESTMENT RESULTS <br>ASSUMING AN INITIAL INVESTMENT OF $10,000

(unaudited)

![](cet-ncsr_123122img001.gif)

Central's results to December 31, 2022 versus the S&P 500 Index:

---

| | | | |
|:---|:---|:---|:---|
| <u><u>Average Annual Total Return</u></u> | Central's <br>NAV Return | Central's <br>Market <br>Return | S&P 500 <br>Index |
|  1 Year  | (11.47%) | (19.89%) | (18.13%) |
|  5 Year  | 10.71% | 10.59% | 9.41% |
|  10 Year  | 12.89% | 13.19% | 12.54% |
|  15 Year  | 9.09% | 8.72% | 8.79% |
|  20 Year  | 11.45% | 11.33% | 9.79% |
|  25 Year  | 9.31% | 8.35% | 7.63% |
|  Value of $10,000 invested for the 25-year period  | $92578<br>| $74195<br>| $62826<br>|

---

The Corporation's total returns reflect changes in market price or net asset value, as applicable, and assume reinvestment of all distributions. Distributions that are payable only in cash are assumed to be reinvested on the payable date of the distribution at the market price or net asset value, as applicable. Distributions that may be taken in shares are assumed to be reinvested at the price designated by the Corporation. Total returns do not reflect any transaction costs on investments or the deduction of taxes that investors may pay on distributions or the sale of shares.

The Standard & Poor's 500 Composite Stock Price Index (the "S&P 500 Index") is an unmanaged benchmark of large U.S. corporations that assumes reinvestment of all distributions, and excludes the effect of fees, expenses, taxes, and sales charges.

Performance data represents past performance and does not guarantee future investment results.

[9]

MANAGEMENT DISCUSSION OF PERFORMANCE

The Corporation's net asset value, adjusted for the reinvestment of distributions to stockholders, decreased by 11.5% during 2022 while Central's shares returned -19.9%. The dispersion between the NAV return and the share price return was driven by the Corporation's trading discount to net asset value widening by approximately 8.7 percentage points during 2022 from 8.8% to 17.5%, reversing the narrowing that occurred in late 2021. The S&P 500 Index returned -18.1% during 2022, and the Russell 2000 Index fell -20.5%.

The economic conditions that had improved during 2021 as a result of central bank and fiscal policy responses to the global pandemic began to reverse in 2022. Although the labor market and consumer demand remained strong, the increase in inflation that began in late 2021 continued in the first half of 2022. In response, the Federal Reserve raised interest rates seven times during the year and began slightly reducing the bond portfolio it had acquired during the pandemic. The Fed's actions resulted in a significant decline in asset prices both for equities and bonds.

The S&P 500 Index had its worst calendar year performance since 2008 after reaching an all-time high on January 3, 2022. The Index fell in October to its lowest level since early 2021 before rallying in the fourth quarter. Most sectors of the S&P 500 Index fell in 2022 as higher interest rates and fears of a recession reduced expectations for earnings, particularly for technology-related companies. Energy was the strongest sector, with oil prices sustaining levels above $80 per barrel, driven by the resumption of economic activity after the pandemic and the conflict in Ukraine.

Central maintained its approach of investing in a limited number of companies operating in diverse industries. We tend to hold these companies for the long-term, participating in the growth of earnings and cash flow over time rather than seeking to add value by trading between companies and sectors. We focus on bottom-up fundamentals rather than a top-down allocation of investments to economic sectors. We seek to construct a portfolio with opposing risks and without dependence upon any one theme or sector. During 2022, Central eliminated several positions that resulted in an increase in our average cash position to approximately 7% of assets. Our cash is invested in short-term U.S. Treasury bills or a money market fund also holding Treasury securities. This helped cushion the overall decline in the portfolio while providing a modest return as interest rates increased.

Significant positive contributors to Central's absolute result were Hess, Progressive and Merck. Hess engages in the exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids and natural gas. Hess benefited from supportive oil and natural gas prices and progress in production and exploration from the large Guyana oil discovery in which it partners with Exxon Mobil and CNOOC. Hess returned almost 90% to Central for the year.

Progressive is one of the largest automobile, home and specialty insurance companies in the U.S. It returned almost 27% for the year, helped by its domestic US exposure and its better-than-industry profitability. Progressive's early recognition of loss cost inflation exiting the pandemic and its steps to improve rates and shed unprofitable customers has positioned it to benefit from a hardening personal lines market.

Merck provides health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products. It returned 49% for Central this year thanks to positive clinical trial results for its new drug pipeline and the defensive nature of healthcare stocks.

Central maintained its significant investment in The Plymouth Rock Company, a privately issued, illiquid security. Plymouth Rock was a negative contributor to Central's absolute performance in 2022, although its return outpaced the S&P 500 Index. While Plymouth Rock's 2022 full year financial information is not yet available,

[10]

we expect that the company's book value will decrease from the prior year due to the performance of its equity investments. We believe that the company avoided significant operating losses from adverse weather events. Plymouth Rock paid one dividend to Central that added to our return in 2022.

Other significant detractors on an absolute basis were Alphabet, Meta Platforms and Amazon.com. All three were impacted by a slowdown in growth resulting from consumer shifts back to in-person activities and a normalization of online behavior after the pandemic. Alphabet, the parent company of Google, provides web-based search, advertising, mobile software and other internet services. Alphabet shares declined 39% for Central in 2022. Meta Platforms, the parent company of Facebook and Instagram, engages in the development of social media applications. It builds technology that helps people connect, find communities, and grow businesses. Meta shares declined 64% in 2022. Amazon.com provides online retail shopping services and supports the technology of other companies through its Web Services business. Amazon shares declined 50%.

Among the Corporation's other large investments, Charles Schwab and AON each generated positive returns helped by the rise in inflation and interest rates; Analog Devices and Motorola Solutions were down modestly but less than the broader stock market.

[11]

TEN LARGEST INVESTMENTS

December 31, 2022

(unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Cost (mil.)  | Value (mil.)  | % of <br>Net Assets | Year First Acquired |
|  **The Plymouth Rock Company** **Class A**  | $0.7<br>| $258.7<br>| 22.8% | 1982 |
| Plymouth Rock underwrites and services $1.7 billion in automobile and homeowner's insurance premiums in the Northeast. Founded in 1982, it has grown both organically and by acquisition. |  |  |  |  |
|  **Analog Devices, Inc.**  | 5.8 | 73.0 | 6.4 | 1987 |
| Analog Devices designs, manufactures and markets integrated circuits used in analog and digital signal processing and power management. It has $12 billion in global product sales to industrial, communications, automotive and consumer end-markets. |  |  |  |  |
|  **Hess Corporation**  | 18.9 | 63.8 | 5.6 | 2017 |
| Hess Corporation engages in the exploration, development, production, transportation, purchase and sale of crude oil, natural gas liquids and natural gas. Hess has production in the U.S., Asia and South America. |  |  |  |  |
|  **Motorola Solutions, Inc.**  | 10.6 | 61.9 | 5.5 | 2000 |
| Motorola Solutions, with sales of almost $9 billion, is a leading provider of emergency-response and public-safety communication infrastructure, devices, software and services to governments and enterprises globally. |  |  |  |  |
|  **Progressive Corporation**  | 25.7 | 56.4 | 5.0 | 2015 |
| Progressive earns $48 billion in auto, home and other specialty insurance premiums from direct and agent-marketed personal and commercial customers in the U.S. |  |  |  |  |
|  **The** **Charles Schwab Corporation**  | 20.3 | 50.0 | 4.4 | 2016 |
| Charles Schwab provides brokerage, banking and investment services to individuals, advisors and institutions and has $7 trillion in client assets. Schwab's revenues were almost $21 billion in 2022. |  |  |  |  |
|  **AON plc Class A**  | 29.1 | 45.0 | 4.0 | 2020 |
| AON is a professional services provider, comprised of risk, insurance brokerage consulting and human capital advisory services, with almost $13 billion in revenues. |  |  |  |  |
|  **Alphabet Inc. Class A**  | 26.0 | 44.1 | 3.9 | 2015 |
| Alphabet provides web-based search, advertising, mobile software and other internet services at global scale. Alphabet's $250 billion in revenues are predominantly from advertising. |  |  |  |  |
|  **American Express Company**  | 24.0 | 39.9 | 3.5 | 2015 |
| American Express is a global payments and travel company, offering charge and credit cards and travel services to consumers and businesses. AmEx generates revenues of over $50 billion. |  |  |  |  |
|  **Keysight Technologies, Inc.**  | 2.3 | 34.2 | 3.0 | 2005 |
| Keysight Technologies offers electronic measurement products and services using wireless, modular and software solutions with $5.4 billion in revenues. |  |  |  |  |

---

[12]

DIVERSIFICATION OF INVESTMENTS

December 31, 2022

(unaudited)

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | Percent of <br>Net Assets <br>December 31, | Percent of <br>Net Assets <br>December 31, |
|  | Issues | Cost | Value | 2022 | 2021 |
|  **Common Stocks:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance Underwriters  | 2 | $26445787 <br>| $315082250 <br>| 27.8% | 25.3% |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Financial  | 3 | 61826600  | 117736500  | 10.4  | 10.8  |
| &nbsp;&nbsp;&nbsp;&nbsp; Technology Hardware and Equipment  | 3 | 37208808  | 109402400  | 9.7  | 13.4  |
| &nbsp;&nbsp;&nbsp;&nbsp; Semiconductor  | 3 | 13824938  | 95830750  | 8.5  | 8.9  |
| &nbsp;&nbsp;&nbsp;&nbsp; Health Care  | 4 | 39972249  | 64211700  | 5.7  | 4.9  |
| &nbsp;&nbsp;&nbsp;&nbsp; Energy  | 1 | 18946754  | 63819000  | 5.6  | 2.9  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diversified Industrial  | 3 | 26394285  | 57964860  | 5.1  | 6.4  |
| &nbsp;&nbsp;&nbsp;&nbsp; Communication Services  | 2 | 56316118  | 56149000  | 5.0  | 9.7  |
| &nbsp;&nbsp;&nbsp;&nbsp; Insurance Brokers  | 1 | 29112181  | 45021000  | 4.0  | 3.4  |
| &nbsp;&nbsp;&nbsp;&nbsp; Real Estate  | 2 | 31441757  | 38802000  | 3.4  | 3.9  |
| &nbsp;&nbsp;&nbsp;&nbsp; Retailing  | 2 | 17052361  | 27788640  | 2.4  | 3.6  |
| &nbsp;&nbsp;&nbsp;&nbsp; Other  | 2 | 17537282  | 52426800  | 4.6  | 5.5  |
|  **Short-Term Investments**  | 3 | 87134686  | 87134686  | 7.7  | 1.2  |

---

PRINCIPAL PORTFOLIO CHANGES

October 1 to December 31, 2022

(unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | Number of Shares | Number of Shares | Number of Shares |
|  | Purchased | Sold | Held<br>December 31, 2022 |
|  Coherent Corp.  | 45,000 |  | 380,000 |
|  Hess Corporation  |  | 10,000 | 450,000 |
|  Motorola Solutions, Inc.  |  | 10,000 | 240,000 |
|  Star Group L.P.  |  | 211,186 |  |

---

[13]

STATEMENT OF INVESTMENTS

December 31, 2022

---

| | | |
|:---|:---|:---|
| *Shares*  |  | *Value*  |
|  **COMMON STOCKS 92.2%** | **COMMON STOCKS 92.2%** | **COMMON STOCKS 92.2%** |
|  | **Banks 2.7%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 230000  | &nbsp;&nbsp;&nbsp;&nbsp; JPMorgan Chase & Co.  | $30843000<br>|
|  | **Communications Services 5.0%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 500000  | &nbsp;&nbsp;&nbsp;&nbsp; Alphabet Inc. Class A (a)  | 44115000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 100000  | &nbsp;&nbsp;&nbsp;&nbsp; Meta Platforms Inc. Class A (a)  | 12034000 |
|  |  | 56149000 |
|  | **Diversified Financial 10.4%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 270000  | &nbsp;&nbsp;&nbsp;&nbsp; American Express Company  | 39892500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 300000  | &nbsp;&nbsp;&nbsp;&nbsp; Capital One Financial Corporation  | 27888000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 600000  | &nbsp;&nbsp;&nbsp;&nbsp; The Charles Schwab Corporation  | 49956000 |
|  |  | 117736500 |
|  | **Diversified Industrial 5.1%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 400000  | &nbsp;&nbsp;&nbsp;&nbsp; AerCap Holdings N.V. (a)  | 23328000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 240000  | &nbsp;&nbsp;&nbsp;&nbsp; Brady Corporation Class A  | 11304000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 54000  | &nbsp;&nbsp;&nbsp;&nbsp; Roper Technologies, Inc.  | 23332860 |
|  |  | 57964860 |
|  | **Energy 5.6%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 450000  | &nbsp;&nbsp;&nbsp;&nbsp; Hess Corporation  | 63819000 |
|  | **Health Care 5.7%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 90000  | &nbsp;&nbsp;&nbsp;&nbsp; Johnson & Johnson  | 15898500 |
| &nbsp;&nbsp;&nbsp;&nbsp; 185000  | &nbsp;&nbsp;&nbsp;&nbsp; Medtronic plc  | 14378200 |
| &nbsp;&nbsp;&nbsp;&nbsp; 200000  | &nbsp;&nbsp;&nbsp;&nbsp; Merck & Co., Inc.  | 22190000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 300000  | &nbsp;&nbsp;&nbsp;&nbsp; Roche Holding AG ADR  | 11745000 |
|  |  | 64211700 |
|  | **Insurance Brokers 4.0%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 150000  | &nbsp;&nbsp;&nbsp;&nbsp; AON plc Class A  | 45021000 |
|  | **Insurance Underwriters 27.8%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 28424  | &nbsp;&nbsp;&nbsp;&nbsp; The Plymouth Rock Company Class A (b)(c)  | 258658400 |
| &nbsp;&nbsp;&nbsp;&nbsp; 435000  | &nbsp;&nbsp;&nbsp;&nbsp; Progressive Corporation  | 56423850 |
|  |  | 315082250 |
|  | **Real Estate 3.4%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 1000000  | &nbsp;&nbsp;&nbsp;&nbsp; Kennedy-Wilson Holdings, Inc.  | 15730000  |
| &nbsp;&nbsp;&nbsp;&nbsp; 700000  | &nbsp;&nbsp;&nbsp;&nbsp; Rayonier Inc.  | 23072000  |
|  |  | 38802000 |

---

[14]

---

| | | |
|:---|:---|:---|
| *Shares*  |  | *Value*  |
|  | **Retailing 2.4%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 220000  | &nbsp;&nbsp;&nbsp;&nbsp; Amazon.com, Inc. (a)  | $18480000<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; 11000  | &nbsp;&nbsp;&nbsp;&nbsp; Mercadolibre, Inc. (a)  | 9308640 |
|  |  | 27788640 |
|  | **Semiconductor 8.5%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 445000  | &nbsp;&nbsp;&nbsp;&nbsp; Analog Devices, Inc.  | 72993350 |
| &nbsp;&nbsp;&nbsp;&nbsp; 420000  | &nbsp;&nbsp;&nbsp;&nbsp; Intel Corporation  | 11100600 |
| &nbsp;&nbsp;&nbsp;&nbsp; 170000  | &nbsp;&nbsp;&nbsp;&nbsp; Wolfspeed, Inc. (a)  | 11736800 |
|  |  | 95830750 |
|  | **Software and Services 1.9%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 90000  | &nbsp;&nbsp;&nbsp;&nbsp; Microsoft Corporation  | 21583800 |
|  | **Technology Hardware and Equipment 9.7%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 380000  | &nbsp;&nbsp;&nbsp;&nbsp; Coherent Corp. (a)(d)  | 13338000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 200000  | &nbsp;&nbsp;&nbsp;&nbsp; Keysight Technologies, Inc. (a)  | 34214000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 240000  | &nbsp;&nbsp;&nbsp;&nbsp; Motorola Solutions, Inc.  | 61850400 |
|  |  | 109402400 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Common Stocks (cost $376,079,120)  | 1044234900 |
|  **SHORT-TERM INVESTMENTS 7.7%**  | **SHORT-TERM INVESTMENTS 7.7%**  | **SHORT-TERM INVESTMENTS 7.7%**  |
|  | **Money Market Fund 2.4%** |  |
| &nbsp;&nbsp;&nbsp;&nbsp; 27307570  | &nbsp;&nbsp;&nbsp;&nbsp; Fidelity Investments Money Market Fund  |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury Only Portfolio Class I  | 27307570 |
| *Principal*  |  |  |
|  | **U.S. Treasury Bills 5.3%** |  |
| $60000000 <br>| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; U.S. Treasury Bills 3.92%-4.00%, due 1/10/23-2/14/23 (e)  | 59827116 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Short-Term Investments (cost $87,134,686)  | 87134686 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Investments (cost $463,213,806) (99.9%)  | 1131369586 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash, receivables and other assets less liabilities (0.1%)  | 1466090 |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net Assets (100%)  | $1132835676<br>|

---

------

(a)Non-dividend paying.

(b)Affiliate as defined in the Investment Company Act of 1940 and restricted. See Note 5 and Note 6.

(c)Valued based on Level 3 inputs. See Note 2.

(d)Formerly II-VI Incorporated.

(e)Valued based on Level 2 inputs. See Note 2.

See accompanying notes to financial statements.

[15]

STATEMENT OF ASSETS AND LIABILITIES

December 31, 2022

---

| | | |
|:---|:---|:---|
|  Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Investments: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities of unaffiliated companies (cost $375,368,520) (Note 2)  | $785576500<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities of affiliated companies (cost $710,600) (Notes 2, 5 and 6)  | 258658400 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term investments (cost $87,134,686) (Note 2)  | 87134686 | $1131369586<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Cash, receivables and other assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash  | 641277 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends receivable  | 908904 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use asset  | 2730902 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other assets  | 223665 | 4504748 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Assets  |  | 1135874334 |
|  Liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other liabilities  | 134467 |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liability  | 2904191 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total Liabilities  |  | 3038658 |
|  Net Assets  |  | $1132835676<br>|
|  Net Assets are represented by: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Common Stock $1 par value: authorized 40,000,000 shares; <br>issued 28,008,924 (Note 3)  |  | $28008924<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Surplus: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Paid-in  | $432750426<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total distributable earnings, including net unrealized <br>appreciation of investments  | 672777452 | 1105527878 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury Stock, at cost (20,672 shares of Common Stock) (Note 3)  |  | (701126) |
|  Net Assets  |  | $1132835676<br>|
|  Net Asset Value Per Common Share (27,988,252 shares outstanding)  |  | &nbsp;&nbsp;&nbsp;&nbsp; $40.48 |
| See accompanying notes to financial statements. | See accompanying notes to financial statements. | See accompanying notes to financial statements. |

---

[16]

STATEMENT OF OPERATIONS

For the year ended December 31, 2022

---

| | | |
|:---|:---|:---|
|  Investment Income |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Income: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends from unaffiliated companies <br>(net of foreign withholding taxes of $130,274)  | $10435815<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends from affiliated companies (Note 5)  | 9344958 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest  | 905872 | $20686645<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment research  | 2343202 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Administration and operations  | 2009370 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Occupancy and office operating expenses  | 429791 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Directors' fees  | 342030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Information services and software  | 208420 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal, auditing and tax preparation fees  | 203142 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stockholder communications and meetings  | 110059 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Franchise and miscellaneous taxes  | 101965 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transfer agent, registrar and custodian fees and expenses  | 99503 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous  | 175034 | 6022516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net investment income  |  | 14664129 |
|  Net Realized and Unrealized Gain (Loss) on Investments |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain from unaffiliated companies  | 52832845 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in net unrealized appreciation of investments <br>in unaffiliated companies  | (192058892 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in net unrealized appreciation of investments <br>in affiliated companies (Note 5)  | (34108800 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net loss on investments  |  | (173334847) |
|  Decrease in Net Assets Resulting from Operations  |  | $158670718) |
| See accompanying notes to financial statements. | See accompanying notes to financial statements. | See accompanying notes to financial statements. |

---

[17]

STATEMENTS OF CHANGES IN NET ASSETS

For the years ended December 31, 2022 and 2021

---

| | | |
|:---|:---|:---|
|  | 2022 | 2021 |
|  From Operations: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net investment income  | $14664129<br>| $21810607<br>|
| &nbsp;&nbsp;&nbsp;&nbsp; Net realized gain from investment transactions  | 52832845 | 75563512 |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in net unrealized appreciation of investments  | (226167692) | 256202578 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in net assets resulting from operations  | (158670718) | 353576697 |
|  Distributions To Stockholders: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; From distributable earnings  | (66706890) | (98414637) |
|  From Capital Share Transactions: (Notes 3 and 8) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Distribution to stockholders reinvested in Common Stock  | 28210809 | 40607897 |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of shares of Common Stock to directors and employees  | 142030 | 484130 |
| &nbsp;&nbsp;&nbsp;&nbsp; Cost of treasury stock purchased  | (2730136) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in net assets from capital share transactions  | 25622703 | 41092027 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total increase (decrease) in net assets  | (199754905) | 296254087 |
|  Net Assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Beginning of year  | 1332590581 | 1036336494 |
| &nbsp;&nbsp;&nbsp;&nbsp; End of year  | $1132835676<br>| $1332590581<br>|
| See accompanying notes to financial statements. | See accompanying notes to financial statements. | See accompanying notes to financial statements. |

---

[18]

STATEMENT OF CASH FLOWS

For the year ended December 31, 2022

---

| | | |
|:---|:---|:---|
|  Cash Flows from Operating Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Decrease in net assets from operations  |  | ($158670718) |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments to decrease in net assets from operations:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Proceeds from securities sold  | $100654762<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchases of securities  | (4184112) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Return of capital received from portfolio companies  | 953434 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net increase in short-term investments  | (70800363) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net realized gain from investments  | (52832845) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in net unrealized appreciation of investments  | 226167692 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash operating lease expense  | 173289 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Non-cash stock compensation  | 142030 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization  | 7392 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in dividends receivable  | (216422) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in other assets  | (107578) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease in accrued expenses and other liabilities  | (31928) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total adjustments  |  | 199925351 |
|  Net cash provided by operating activities  |  | 41254633 |
|  Cash Flows from Financing Activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dividends and distributions paid  | (38496081) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Treasury stock purchased  | (2730136) |  |
|  Cash used in financing activities  |  | (41226217) |
|  Net increase in cash  |  | 28416 |
|  Cash at beginning of year  |  | 612861 |
|  Cash at end of year  |  | $641277<br>|
|  Supplemental Disclosure of Cash Flow Information: |  |  |
|  Non-cash operating activities not included herein consist of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Increase to operating lease right-of-use asset and liability from lease modification  | $2799993<br>|  |
|  Non-cash financing activities not included herein consist of: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Reinvestment of dividends and distributions to stockholders  | $28210809<br>|  |
| &nbsp;&nbsp;&nbsp;&nbsp; Issuance of shares of Common Stock to directors  | $142030<br>|  |
| See accompanying notes to financial statements. | See accompanying notes to financial statements. | See accompanying notes to financial statements. |

---

[19]

NOTES TO FINANCIAL STATEMENTS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. *Significant Accounting Policies*—Central Securities Corporation (the "Corporation") is registered under the Investment Company Act of 1940, as amended, as a non-diversified, closed-end management investment company. The following is a summary of the significant accounting policies consistently followed by the Corporation in the preparation of its financial statements. These policies are in conformity with U.S. generally accepted accounting principles.

*Security Valuation*—Marketable common stocks are valued at the last or closing sale price or, if unavailable, at the closing bid price. Investments in money market funds are valued at net asset value per share. Other short-term investments are valued at amortized cost, which approximates fair value. Securities for which no ready market exists are valued at estimated fair value pursuant to procedures adopted by the Board of Directors. The determination of fair value involves subjective judgments. As a result, using fair value to price a security may result in a price materially different from the price used by other investors or the price that may be realized upon the actual sale of the security.

*Federal Income Taxes*—It is the Corporation's policy to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable income and net capital gains to its stockholders. Management has analyzed positions taken on the Corporation's tax returns and has determined that no provision for income taxes is required in the accompanying financial statements. The Corporation's Federal, state and local tax returns for the current and previous three fiscal years remain subject to examination by the relevant taxing authorities.

*Use of Estimates*—The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported. Actual results may differ from those estimates.

*Leases*—The Corporation recognizes operating leases on its statement of assets and liabilities at the lease commencement date as (1) a liability representing its obligation to make lease payments over the lease term and (2) a corresponding right-of-use ("ROU") asset for its right to use the underlying asset over the lease term. The lease liability is measured at the inception of the lease at the present value of the unpaid fixed and certain variable lease payments using the rate of interest the Corporation would have paid on a collateralized basis to borrow an amount equal to the lease payments under similar terms. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term and is included in Occupancy and office operating expenses in the Statement of Operations. Variable payments for utilities and for increases in building operating expenses and real estate taxes are expensed as incurred and also are included in Occupancy and office operating expenses. See Note 9.

*Other*—Security transactions are accounted for as of the trade date, and cost of securities sold is determined by specific identification. Dividend income and distributions to stockholders are recorded on the ex-dividend date. Interest income is accrued daily.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. *Fair Value Measurements*—The Corporation's investments are categorized below in three broad hierarchical levels based on market price observability as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 1—Quoted prices in active markets for identical investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 2—Other significant observable inputs obtained from independent sources, for example, quoted prices in active markets for similar investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Level 3—Significant unobservable inputs including the Corporation's own assumptions based upon the best information available. The Corporation's only Level 3 investment is The Plymouth Rock Company Class A Common Stock ("Plymouth Rock").

The designated Level for a security is not necessarily an indication of the risk associated with investing in that security.

[20]

NOTES TO FINANCIAL STATEMENTS — Continued

The Corporation's investments as of December 31, 2022 are classified as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Level 1 | Level 2 | Level 3 | Total Value |
|  Common stocks  | $785576500<br>|  | $258658400<br>| $1044234900<br>|
|  Short-term investments  | 27307570 | $59827116<br>|  | 87134686 |
|  Total  | $812884070<br>| $59827116<br>| $258658400<br>| $1131369586<br>|

---

The following is a reconciliation of the change in the value of Level 3 investments:

---

| | |
|:---|:---|
|  Balance as of December 31, 2021  | $292767200<br>|
|  Change in unrealized appreciation of investments <br>in affiliated companies included in decrease in net <br>assets from operations  | (34108800) |
|  Balance as of December 31, 2022  | $258658400<br>|

---

Unrealized appreciation of Level 3 investments still held as of December 31, 2022 decreased during the year by $34,108,800, which is included in the above table.

Management assists the Board of Directors in the determination of fair value of Plymouth Rock. In valuing the Plymouth Rock Level 3 investment as of December 31, 2022, management considered Plymouth Rock's financial condition and results of operations, the insurance industry outlook, and any transactions in Plymouth Rock's shares. Management used significant unobservable inputs to develop a range of values for the investment. It used a comparable company approach that utilized the following valuation multiples from selected publicly traded companies: price-to-book value (range: 1.0–2.3; average: 1.7); price-to-historical earnings (range: 12.4–33.9; average: 20.7); and price-to-forward earnings estimates (range: 14.5–34.9; average: 22.8). Management also used Plymouth Rock's book value and a discounted cash flow model based on a forecasted return on equity of approximately 12% and a cost of capital of approximately 12%. The average of these values was then discounted for lack of marketability and control of the Plymouth Rock shares. Management considered a discount range of 25% to 40%, a range management believes market participants would apply. An independent valuation of Plymouth Rock's shares obtained by Plymouth Rock was also considered. Management presented and discussed the above information with the Corporation's directors, who determined the value for the investment.

Increases (decreases) in the price-to-book value multiple, price-to-historical earnings multiple, price-to-forward earnings estimate multiple, return on equity rate and book value in isolation would result in a higher (lower) range of fair values. Increases (decreases) in the discount for lack of marketability and control or cost of capital in isolation would result in a lower (higher) range of fair values.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. *Common Stock and Dividend Distributions*—The Corporation purchased 79,449 shares of its Common Stock in 2022 at an average price of $34.36 per share representing an average discount from net asset value of 16.2%. It may from time to time purchase Common Stock in such amounts and at such prices as the Board of Directors may deem advisable in the best interests of the stockholders. Purchases will only be made at less than net asset value per share, thereby increasing the net asset value of shares held by the remaining stockholders. Shares so acquired may be held as treasury stock available for stock distributions, or may be retired.

The Corporation declared two distributions to holders of Common Stock in 2022, $.20 per share paid on June 24 in cash and $2.25 per share paid on December 22 in cash or in additional shares of Common Stock at the stockholder's option. In connection with the December 22 distribution, 58,777 treasury shares were distributed and 739,040 shares of Common Stock were issued, all at a price of $35.36 per share.

The tax character of dividends and distributions paid during the year was ordinary income, $14,975,253 and long-term capital gain $51,731,637; for 2021, it was $24,144,391 and $74,270,246, respectively. As of December 31, 2022, for tax purposes, undistributed ordinary income was $1,190,593 and undistributed long-term realized capital gain was $3,789,491. Dividends and distributions are determined in accordance with income tax

[21]

NOTES TO FINANCIAL STATEMENTS — Continued

regulations which may differ from generally accepted accounting principles. Financial statements are adjusted for permanent book-tax differences; for the year ended December 31, 2022 such adjustments were approximately $456,000 primarily due to non-deductible employee compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. *Investment Transactions*—The aggregate cost of securities purchased and the aggregate proceeds of securities sold during the year ended December 31, 2022, excluding short-term investments, were $4,184,112 and $100,654,762, respectively.

As of December 31, 2022, the tax cost of investments was $463,213,806. Net unrealized appreciation was $668,155,780 consisting of gross unrealized appreciation and gross unrealized depreciation of $703,834,664 and $35,678,884, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. *Affiliated Companies*—Plymouth Rock is an affiliated company as defined in the Investment Company Act of 1940 due to the Corporation's ownership of 5% or more of the company's outstanding voting securities. During the year ended December 31, 2022, unrealized appreciation from the Corporation's investment in Plymouth Rock decreased by $34,108,800 and the Corporation received dividends of $9,344,958 from Plymouth Rock. The Chairman of the Corporation is a director of Plymouth Rock. The Chief Executive Officer and President of the Corporation is a director of certain subsidiaries of Plymouth Rock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. *Restricted Securities*—The Corporation may from time to time invest in securities the resale of which is restricted. On December 31, 2022, the Corporation's only restricted security was 28,424 shares of Plymouth Rock Class A stock that were acquired on December 15, 1982 at a cost of $710,600. This security had an estimated fair value of $258,658,400 at December 31, 2022, which was equal to 22.8% of the Corporation's net assets. The Corporation does not have the right to demand registration of this security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. *Bank Line of Credit*—The Corporation has entered into a $25 million uncommitted, secured revolving line of credit with UMB Bank, n.a. ("UMB"), the Corporation's custodian. All borrowings are payable on demand of UMB. Interest on any borrowings is payable monthly at a rate based on the federal funds rate, subject to a minimum annual rate of 2.50%. No borrowings were made during the year ended December 31, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. *Compensation and Benefit Plans*—The aggregate remuneration paid to all officers during the year ended December 31, 2022 was $3,433,000.

Officers and other employees participate in a 401(k) profit sharing plan. The Corporation has agreed to contribute 3% of each participant's qualifying compensation to the plan, which is immediately vested. Contributions in excess of 3% may be made at the discretion of the Board of Directors and vest after three years of service. During the year ended December 31, 2022, the Corporation contributed $229,350 to the plan, which represented 15% of total qualifying compensation.

Until March 20, 2022, the Corporation maintained an incentive compensation plan (the "2012 Plan") which permitted the granting of awards of unrestricted stock, restricted stock, restricted stock units and cash to full-time employees and non-employee directors of the Corporation. The 2012 Plan was administered by the Corporation's Compensation and Nominating Committee.

Pursuant to the terms of the 2012 Plan, each non-employee director was awarded 500 shares of vested unrestricted Common Stock upon re-election at the Corporation's annual meeting. During the year ended December 31, 2022, non-employee directors were granted a total of 3,500 shares of Common Stock at a grant date value of $40.58 per share. The value was the average of the high and low prices of the Corporation's Common Stock on the grant date. The aggregate share value of $142,030 plus cash payments of $200,000 made to all non-employee directors are included in Directors' fees expense in the accompanying Statement of Operations. No awards were made to employees during 2022.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. *Operating Lease*—The Corporation leased office space under a lease that was scheduled to expire on June 30, 2022. The lease included fixed payments for occupancy and certain utilities and variable payments relating to the Corporation's share of increases in building operating expenses and real estate taxes. Effective April 27,

[22]

NOTES TO FINANCIAL STATEMENTS — Continued

2022, the lease was amended to extend the lease term until June 30, 2033. Under the amended lease, utility costs will no longer be fixed monthly payments. The landlord has also agreed to abate the fixed rent for 12 months commencing July 1, 2022 and to reimburse the Corporation for certain renovation costs that the Corporation expects to incur. After June 30, 2027, the landlord may offer the Corporation comparable substitute space under similar terms; if the Corporation does not accept the substitute space, it may terminate the lease 10 months after it delivers notice of such non-acceptance.

The lease extension is accounted for as a lease modification as of the effective date. The Corporation determined that the lease was an operating lease. As of the effective date of the lease extension, the Corporation measured its lease liability and corresponding right-of-use asset at approximately $2.9 million, which was the present value of the fixed payments less estimated incentive payments to be received under the lease using a discount rate of 4.89%.

Total lease expense for the year ended December 31, 2022 was $365,426 substantially all of which was operating lease cost.

Fixed amounts due under the lease as of December 31, 2022 are as follows:

---

| | |
|:---|:---|
| 2023  | $206737<br>|
| 2024  | 413475 |
| 2025  | 413475 |
| 2026  | 413475 |
| 2027  | 413475 |
| 2028-2033  | 2439503 |
|  Total undiscounted lease payments  | 4300140 |
|  Less: lease incentives receivable  | (413475) |
| Less: imputed interest  | (982474) |
| Total lease liability  | $2904191<br>|

---

[23]

FINANCIAL HIGHLIGHTS

The following table shows per share operating performance data, total returns, ratios and supplemental data for each year in the five-year period ended December 31, 2022. This information has been derived from information contained in the financial statements and market price data for the Corporation's shares.

The Corporation's total returns reflect changes in market price or net asset value, as applicable, and assume reinvestment of all distributions. Distributions that are payable only in cash are assumed to be reinvested at the market price or net asset value, as applicable, on the payable date of the distribution. Distributions that may be taken in shares are assumed to be reinvested at the price designated by the Corporation.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 2022 | 2021 | 2020 | 2019 | 2018 |
|  **Per Share Operating Performance:** |  |  |  |  |  |
|  Net asset value, beginning of year  | $48.87 | $39.49 | $38.42 | $30.02 | $32.86 |
|  Net investment income (a)  | .54 | .83 | .70 | .47 | .54 |
|  Net realized and unrealized gain (loss) <br>on securities (a)  | (6.35) | 12.64 | 2.20 | 9.38 | (1.91) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total from investment operations  | (5.81) | 13.47 | 2.90 | 9.85 | (1.37) |
|  Less: |  |  |  |  |  |
|  Dividends from net investment income  | .55 | .86 | .70 | .47 | .55 |
|  Distributions from capital gains  | 1.90 | 2.89 | 1.00 | .88 | .90 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total distributions  | 2.45 | 3.75 | 1.70 | 1.35 | 1.45 |
|  Net change from capital share transactions  | (.13) | (.34) | (.13) | (.10) | (.02) |
|  Net asset value, end of year  | $40.48 | $48.87 | $39.49 | $38.42 | $30.02 |
|  Per share market value, end of year  | $33.39 | $44.58 | $32.64 | $33.10 | $24.83 |
|  **Total return based on market (%)**  | (19.89) | 49.39 | 4.12 | 39.03 | (4.51) |
|  **Total return based on NAV (%)**  | (11.47) | 35.26 | 8.39 | 33.31 | (3.88) |
|  **Ratios/Supplemental Data:** |  |  |  |  |  |
|  Net assets, end of year (000)  | $1132836 | $1332591 | $1036336 | $994595 | $765343 |
|  Ratio of expenses to average net assets (%)  | .50 | .54 | .66 | .66 | .69 |
|  Ratio of net investment income to average <br>net assets (%)  | 1.22 | 1.75 | 1.94 | 1.32 | 1.63 |
|  Portfolio turnover rate (%)  | .37 | 9.12 | 11.93 | 7.00 | 8.04 |

---

------

(a)Based on the average number of shares outstanding during the year.

See accompanying notes to financial statements.

[24]

REPORT OF INDEPENDENT REGISTERED <br>PUBLIC ACCOUNTING FIRM

The Board of Directors and Stockholders of <br>Central Securities Corporation:

**Opinion on the** **Financial Statements**

We have audited the accompanying statement of assets and liabilities of Central Securities Corporation (the Corporation), including the statement of investments, as of December 31, 2022, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Corporation as of December 31, 2022, the results of its operations and cash flows for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

**Basis** **for Opinion**

These financial statements and financial highlights are the responsibility of the Corporation's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2022, by correspondence with the custodian or the investee directly. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

We or our predecessor firms have served as the Corporation's auditor since 1930.

New York, New York<br>February 2, 2023

[25]

INVESTMENT OBJECTIVE, PRINCIPAL INVESTMENT POLICIES, <br>AND PRINCIPAL RISKS

Investment Objective and Principal Investment Policies

The Corporation's investment objective is long-term growth of capital. Income received from investments is a secondary consideration.

In pursuing its investment objective, the Corporation invests primarily in equity securities that it believes are undervalued at the time of purchase and have the potential for growth. It is Central's goal to own companies that it believes will generate superior returns when compared with the broad market and preserve the Corporation's capital in an inflationary environment. A guiding principle is the consideration of equity securities as units of ownership of a business and the purchase of them when the price appears to be low in relation to the value of the total enterprise. The Corporation's objective may be changed without a vote of a majority of the Corporation's voting securities.

Central owns a limited number of companies, and it invests for the long-term. Honest management working in the interests of all shareholders is of the utmost importance in the appraisal of investments. The Corporation may sell securities for a variety of reasons, including excessive valuation, deteriorating results or to redeploy assets into more promising opportunities.

The Corporation is not restricted as to the types of securities (e.g., equity, fixed income) in which it invests. The Corporation may invest in securities of issuers with any market capitalization. The Corporation is not required to be fully invested in securities and generally maintains a portion of its total assets in cash and securities considered to be cash equivalents.

The Corporation has not adopted the practice of concentrating its investments in any particular industry or group of industries and does not contemplate changing its policy or restricting its field of investment. The Corporation is permitted to borrow money, subject to the limits of the Investment Company Act of 1940, as amended. These are fundamental policies and may not be changed without a vote of a majority of the Corporation's voting securities.

The Corporation also has fundamental policies relating to the issuance of senior securities, the underwriting of securities of other issuers, the purchase or sale of real estate, the purchase or sale of commodities or commodity contracts, and the making of loans. These policies may not be changed without a vote of a majority of the Corporation's voting securities. The Corporation has a non-fundamental policy permitting it to engage in the writing, sale and purchase of options and may make short sales. The Corporation has not utilized these policies in recent years and does not contemplate using any one of them in an amount greater than 5% of the Corporation's assets unless stockholders are notified of such intention at least 60 days in advance.

Principal Risks

As with any investment, you could lose all or part of your investment in the Corporation, and the Corporation's investment performance could trail that of other investments. Investment in the Corporation is subject to certain risks, including the principal risks noted below, any of which may adversely affect the Corporation's net asset value per share ("NAV"), trading price, yield, total return and ability to meet its investment objective.

An investment in the Corporation is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

[26]

The Corporation has a substantial portion of its assets invested in the common stock of The Plymouth Rock Company Incorporated, a privately issued, illiquid security. The investment in Plymouth Rock is subject to many of the risks described further below.

*Market Risk.* The market values of the Corporation's investments may decline, perhaps sharply and unpredictably, or fail to rise, for various reasons including changes or potential or perceived changes in U.S. or foreign economies, financial markets, interest rates, the liquidity of investments and other factors including terrorism, war, natural disasters and public health events and crises.

*Active Management Risk.* Performance of individual securities can vary widely. The investment decisions of management of the Corporation may cause the Corporation to underperform other investments or benchmark indices. The Corporation may also underperform other investment companies with similar investment objectives or strategies. Management may be incorrect in assessing a particular industry or company. An issuer in which the Corporation invests may perform poorly or below expectations, and the value of its securities may therefore decline, which may negatively affect the Corporation's performance. The Corporation may not buy securities at the lowest possible prices or sell securities at the highest possible prices.

*Non-Diversification Risk.* The Corporation is a "non-diversified" investment company, meaning that it invests its assets in a smaller number of companies than many other funds. As a result, your investment in the Corporation has the risk that changes in the value of a single security may have a significant effect, either negative or positive, on the Corporation's NAV.

*Sector Risk.* At times, the Corporation may have a significant portion of its assets invested in securities of companies conducting business within one or more broad economic sectors. Companies in the same economic sector may be similarly affected by economic, regulatory, political or market events or conditions, which may make the Corporation more vulnerable to unfavorable developments in that economic sector than funds that invest more broadly. In addition, at times, an economic sector that the Corporation is invested in may be out of favor and underperform other sectors or the market as a whole.

*Illiquid Investments Risk.* The Corporation may invest a significant portion of its net assets in illiquid investments. An illiquid investment is any investment that the Corporation reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without significantly changing the market value of the investment. To the extent the Corporation holds illiquid investments, the illiquid investments may reduce the returns of the Corporation because the Corporation may be unable to transact at advantageous times or prices. An inability to sell securities, at the Corporation's desired price or at all, can adversely affect the Corporation's value or prevent the Corporation from being able to take advantage of other investment opportunities.

*Privately Issued Securities Risk.* The Corporation may invest in privately issued securities. Privately issued securities are securities that have not been registered under the Securities Act of 1933, as amended, and as a result may be subject to legal restrictions on resale. Privately issued securities are generally not traded on established markets. As a result of the absence of a public trading market, privately issued securities may be deemed to be illiquid investments, may be more difficult to value than publicly traded securities and may be subject to wide fluctuations in value. Delay or difficulty in selling such securities may result in a loss to the Corporation.

*Valuation Risk.* The price the Corporation could receive upon the sale of a security or other asset may differ from the Corporation's valuation of the security or other asset, particularly for securities or other assets for which there is no public market, that trade in low volume or volatile markets, or that are valued using an estimated fair

[27]

value methodology. In addition, the value of the securities or other assets in the Corporation's portfolio may change on days or during time periods when stockholders will not be able to purchase or sell the Corporation's shares.

*Market Price of Shares Risk.* Shares of common stock of closed-end investment companies like the Corporation often trade in the market at prices lower than (discount to) or higher than (premium to) their NAV. The Corporation cannot predict whether its listed stock will trade at, below or above NAV. Market price risk is a risk separate and distinct from the risk that the Corporation's NAV will decrease. The Corporation's shares have generally traded at a discount to the Corporation's NAV.

In addition to NAV, the market price of shares may be affected by such factors as the Corporation's dividend and distribution levels and stability, market liquidity, market supply and demand, unrealized gains, general market and economic conditions, and other factors.

*Leverage Risk.* The Corporation may borrow money from banks or financial institutions. The Corporation may borrow money to make additional investments or as a temporary measure for extraordinary or emergency purposes, including the payment of dividends or other distributions and the settlement of securities transactions that otherwise might require untimely dispositions of the Corporation's holdings. The use of borrowed money is known as "leverage."

The use of leverage creates certain risks for the Corporation's stockholders, including the greater likelihood of higher volatility of the Corporation's return, its NAV and the market price of its Common Stock. To the extent the income or capital appreciation derived from securities purchased with funds received from leverage exceeds the cost of leverage, the Corporation's return will be greater than if leverage had not been used. Conversely, if the income or capital appreciation from the securities purchased with such funds is not sufficient to cover the cost of leverage or if the Corporation incurs capital losses, the return of the Corporation will be less than if leverage had not been used, and therefore the amount available for distribution to shareholders could be reduced or potentially eliminated. The Corporation also may be required to sell investments in order to make interest or principal payments on borrowings used for leverage when it may be disadvantageous to do so.

*Stockholder Concentration Risk.* A significant portion of the Corporation's shares are held by a private foundation. This may result in a decreased market for the Corporation's shares or in downward pressure on the market price of the Corporation's shares if the foundation decided to sell all or a significant portion of its holding. Either of these factors may lead to the Corporation's shares trading at a lower price or at a larger discount to net asset value.

*Dependence on Key Personnel Risk.* The Corporation is internally-managed and has a small number of employees. The loss of the services of certain key employees without suitable replacement may adversely affect the operation of the Corporation.

*Status as a Regulated Investment Company.* The Corporation has qualified, and intends to remain qualified, for federal income tax purposes as a regulated investment company under Subchapter M of the Internal Revenue Code. Qualification requires, among other things, compliance by the Corporation with certain distribution and investment requirements. Failure by the Corporation to qualify as a regulated investment company could result in the Corporation paying corporate income taxes which would reduce the Corporation's investment performance.

[28]

OTHER INFORMATION

Direct Registration

The Corporation utilizes direct registration, a system that allows for book-entry ownership and the electronic transfer of the Corporation's shares. Stockholders may find direct registration a convenient way of managing their investment. Stockholders wishing certificates may request them.

A pamphlet which describes the features and benefits of direct registration, including the ability of shareholders to deposit certificates with our transfer agent, can be obtained by calling Computershare Trust Company at 1-800-756-8200, calling the Corporation at 1-866-593-2507 or visiting our website: www.centralsecurities.com under Contact Us.

Proxy Voting Policies and Procedures

The policies and procedures used by the Corporation to determine how to vote proxies relating to portfolio securities and the Corporation's proxy voting record for the twelve-month period ended June 30, 2022 are available: (1) without charge, upon request, by calling us at our toll-free telephone number (1-866-593-2507), (2) on the Corporation's website at www.centralsecurities.com and (3) on the Securities and Exchange Commission's website at www.sec.gov.

Quarterly Portfolio Information

The Corporation files its complete schedule of portfolio holdings with the SEC for the first and the third quarter of each fiscal year on Form N-PORT. The Corporation's Form N-PORT filings are available on the SEC's website at www.sec.gov. Those forms may be reviewed and copied at the SEC's Public Reference Room in Washington D.C. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Privacy Policy

In order to conduct its business, the Corporation, through its transfer agent, Computershare Trust Company, collects and maintains certain nonpublic personal information about our stockholders of record in connection with their transactions in shares of our securities. This information includes the shareholder's address, tax identification number and number of shares. We do not collect or maintain personal information about stockholders whose shares are held in "street name" by a financial institution such as a bank or broker.

We do not disclose any nonpublic personal information about our stockholders to third parties unless necessary to process a transaction, service an account or as otherwise permitted by law.

To protect your personal information internally, we restrict access to nonpublic personal information about our stockholders to those employees who need to know that information to provide services to our stockholders.

Forward-Looking Statements

This report may contain "forward-looking statements" within the meaning of the Securities Exchange Act of 1934. You can identify forward-looking statements by words such as "believe," "expect," "may," "anticipate," and other similar expressions when discussing prospects for particular portfolio holdings and/or markets, generally. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. We cannot assure future results and disclaim any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

[29]

SUMMARY OF CHANGE IN PORTFOLIO MANAGEMENT

The following information is a summary of certain changes since December 31, 2021. This information may not reflect all of the changes that have occurred since you purchased shares of the Corporation.

Effective January 1, 2022, John Hill, Chief Executive Officer and President of the Corporation, assumed primary responsibility for the day-to-day management of the Corporation's investment portfolio from Wilmot Kidd. Mr. Hill has worked closely with Mr. Kidd in managing the portfolio since 2016 when he joined the Corporation. See page 30 for a summary of Mr. Hill's background.

[30]

BOARD OF DIRECTORS AND OFFICERS

---

| | | |
|:---|:---|:---|
| Name (age) | Principal Occupation <br>(last five years) and position with <br>the Corporation (if any) | Other Public Company <br>Directorships held by Directors |
| Independent Directors |  |  |
|  L. PRICE BLACKFORD (71)<br> Director since 2012 | Managing Director, Scott-Macon Group, Inc. (investment banking) |  |
|  SIMMS C. BROWNING (82)<br> Director since 2005 | Retired since 2003; Vice President, Neuberger Berman, LLC (asset management) prior thereto |  |
|  DONALD G. CALDER (85)<br> Director since 1982 | Chairman, Clear Harbor Asset Management, LLC 2010-2020; President, G.L. Ohrstrom & Co. Inc. (private investment firm) prior thereto | Brown-Forman Corporation (beverages); Carlisle Companies (industrials) and Roper Technologies, Inc. (manufacturing), each prior to 2010 |
|  DAVID C. COLANDER (75)<br> Director since 2009 | Professor of Economics, <br>Middlebury College |  |
|  JAY R. INGLIS (88)<br> Director since 1973 | Retired since 2014; Vice President and General Counsel, International Claims Management, Inc. prior thereto |  |
|  DAVID R. POPPE (58)<br> Director since 2020 | President, Giverny Capital Asset Management since 2020; Private Investor, 2019; Chief Executive Officer, Ruane, Cuniff & Goldfarb (asset management) prior thereto  |  |
| Interested Directors |  |  |
|  JOHN C. HILL (49)<br> Director since 2021 | Chief Executive Officer, Central Securities Corporation; President since 2018; Vice President, 2016-2018; Analyst, Davis Advisors, prior thereto |  |
|  WILMOT H. KIDD (81)<br> Director since 1972 | Chairman, Central Securities Corporation; Chief Executive Officer, 2018-2021; President, 1973-2018 | Silvercrest Asset Management Group, Inc. (2013-2020) |
|  WILMOT H. KIDD IV (43)<br> Director since 2017 | Independent photographer, cinematographer and film producer |  |
| Other Officers |  |  |
|  MARLENE A. KRUMHOLZ (59) | Vice President since 2009 and Secretary since 2001 | Vice President since 2009 and Secretary since 2001 |
|  ANDREW J. O'NEILL (50) | Vice President since 2011, Investment Analyst since 2009 | Vice President since 2011, Investment Analyst since 2009 |
|  LAWRENCE P. VOGEL (66) | Treasurer since 2010 and Vice President since 2009 | Treasurer since 2010 and Vice President since 2009 |

---

The Corporation is a stand-alone investment company. The address of each Director and officer is c/o Central Securities Corporation, 630 Fifth Avenue, New York, New York 10111. All Directors serve for a term of one year and are elected by stockholders at the Corporation's annual meeting. Officers serve at the pleasure of the Board of Directors.

BOARD OF DIRECTORS

Wilmot H. Kidd, Chairman<br>L. Price Blackford, Lead Independent Director<br>Simms C. Browning<br>Donald G. Calder<br>David C. Colander<br>John C. Hill<br>Jay R. Inglis<br>Wilmot H. Kidd IV<br>David M. Poppe

OFFICERS

John C. Hill, Chief Executive Officer and President<br>Marlene A. Krumholz, Vice President and Secretary<br>Andrew J. O'Neill, Vice President<br>Lawrence P. Vogel, Vice President and Treasurer

OFFICE

630 Fifth Avenue<br>New York, NY 10111<br>212-698-2020<br>866-593-2507 (toll-free)<br>www.centralsecurities.com

TRANSFER AGENT AND REGISTRAR

Computershare Trust Company, N.A.<br>P.O. Box 43078, Providence, RI 02940-3078<br>800-756-8200<br>www.computershare.com

CUSTODIAN

UMB Bank, n.a.<br>Kansas City, MO

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

KPMG LLP<br>New York, NY

**Item 2. Code of Ethics.**

(a) The Registrant has adopted a code of ethics that applies to its principal executive officer and principal financial officer.

(b) No information need be disclosed pursuant to this paragraph.

(c) Not applicable.

(d) The registrant has not granted any waivers, including implicit waivers from a provision of this code of ethics.

(e) Not applicable.

(f) This code of ethics is filed as an attachment on this form.

**Item 3. Audit Committee Financial Experts**.

(a) The Board of Directors of the Corporation has determined that none of the members of its Audit Committee meet the definition of "Audit
Committee Financial Expert" as the term has been defined by the Securities and Exchange Commission ("SEC"). The Board
of Directors considered the possibility of adding a member that would qualify as an Audit Committee Financial Expert, but has determined
that the Audit Committee collectively has sufficient expertise to perform its duties. In addition, the Audit Committee's charter
authorizes the Audit Committee to engage a financial expert should it determine that such assistance is required.

 **Item 4. Principal Accountant Fees and Services.**

---

| | | |
|:---|:---|:---|
|  | 2022 | 2021 |
| Audit fees | $141500<sup>(1)</sup> | $120500<sup>(1)</sup> |
| Audit-related fees | 0 | 0 |
| Tax fees | &nbsp;&nbsp;&nbsp;&nbsp;29000<sup>(2)</sup> | 26400<sup>(2)</sup> |
| All other fees | 0 | 0 |
| Total fees | $170500 | $146900 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Includes fees for review of the semi-annual report to stockholders and audit of the annual report to stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes fees for services performed with respect to tax compliance and tax planning.

Pursuant to its charter, the Audit Committee is responsible for recommending the selection, approving compensation and overseeing the independence, qualifications and performance of the independent accountants. The Audit Committee's policy is to pre-approve all audit and permissible non-audit services provided by the independent accountants. In assessing requests for services by the independent accountants, the Audit Committee considers whether such services are consistent with the auditor's independence; whether the independent accountants are likely to provide the most effective and efficient service based upon their familiarity with the Corporation; and whether the service could enhance the Corporation's ability to manage or control risk or improve audit quality. The Audit Committee may delegate pre-approval authority to one or more of its members. Any pre-approvals by a member under this delegation are to be reported to the Audit Committee at its next scheduled meeting.

All of the non-audit and tax services provided by KPMG LLP for fiscal year 2022 (described in the footnotes to the table above) and related fees were approved in advance by the Audit Committee or by a member of the Audit Committee to whom authority to grant such approvals has been delegated by the Audit Committee.

**Item 5. Audit Committee of Listed Registrants.** 

(a) The registrant has a separately-designated standing audit committee. Its members are: L. Price Blackford, Simms C. Browning, Donald G. Calder, David C. Colander, Jay R. Inglis and David M. Poppe.

(b) Not applicable.

**Item 6. Investments.** 

(a) Schedule is included as a part of the report to shareholders filed under Item 1 of this Form**.**

(b) Not applicable.

**Item 7. Disclose Proxy Voting Policies and Procedures for Closed-End Management Companies.**

**CENTRAL SECURITIES CORPORATION**

**PROXY VOTING GUIDELINES**

Central Securities Corporation is involved in many matters of corporate governance through the proxy voting process. We exercise our voting responsibilities with the primary goal of maximizing the long-term value of our investments. Our consideration of proxy issues is focused on the investment implications of each proposal.

Our management evaluates and votes each proxy ballot that we receive. We do not use a proxy voting service. Our Board of Directors has approved guidelines in evaluating how to vote a particular proxy ballot. We recognize that a company's management is entrusted with the day-to-day operations of the company, as well as longer term strategic planning, subject to the oversight of the company's board of directors. Our guidelines are based on the belief that a company's shareholders have a responsibility to evaluate company performance and to exercise the rights and duties pertaining to ownership.

When determining whether to invest in a particular company, one of the key factors we consider is the ability and integrity of its management. As a result, we believe that recommendations of management on any issue, particularly routine issues, should be given substantial weight in determining how proxies should be voted. Thus, on most issues, our votes are cast in accordance with the company's recommendations. When we believe management's recommendation is not in the best interest of our stockholders, we will vote against management's recommendation.

Due to the nature of our business and our size, it is unlikely that conflicts of interest will arise in our voting of proxies of public companies. We do not engage in investment banking nor do we have private advisory clients or any other businesses. In the unlikely event that we determine that a conflict does arise on a proxy voting issue, we will defer that proxy vote to our independent directors.

We have listed the following, specific examples of voting decisions for the types of proposals that are frequently presented. We generally vote according to these guidelines. We may, on occasion, vote otherwise when we believe it to be in the best interest of our stockholders:

**Election of Directors** – We believe that good governance starts with an independent board, unfettered by significant ties to management, in which all members are elected annually. In addition, key board committees should be entirely independent.

● We support the election of directors that result in a board made up of a majority of independent directors who do not appear to have been remiss in the performance of their oversight responsibilities.

● We will withhold votes for non-independent directors who serve on the audit, compensation or nominating committees of the board.

● We consider withholding votes for directors who missed more than one-fourth of the scheduled board meetings without good reason in the previous year.

● We generally oppose the establishment of classified boards of directors and will support proposals that directors stand for election annually.

● We generally oppose limits to the tenure of directors or requirements that candidates for directorships own large amounts of stock before being eligible for election.

**Compensation** - We believe that appropriately designed equity-based compensation plans can be an effective way to align the interests of long-term shareholders and the interests of management, employees, and directors. We are opposed to plans that substantially dilute our ownership interest in the company, provide participants with excessive awards, or have inherently objectionable structural features without offsetting advantages to the company's shareholders.

We evaluate proposals related to compensation on a case-by case basis.

● We generally support stock option plans that are incentive based and not excessive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● We generally oppose the ability to re-price options without compensating factors when the underlying stock has fallen in value.

● We support measures intended to increase the long-term stock ownership by executives including requiring stock acquired through option exercise to be held for a substantial period of time.

● We generally support stock purchase plans to increase company stock ownership by employees, provided that shares purchased under the plan are acquired for not less than 85% of their market value.

● We generally oppose change-in-control provisions in non-salary compensation plans, employment contracts, and severance agreements which benefit management and would be costly to shareholders if triggered.

**Corporate Structure and Shareholder Rights** - We generally oppose anti-takeover measures and other proposals designed to limit the ability of shareholders to act on possible transactions. We support proposals when management can demonstrate that there are sound financial or business reasons.

● We generally support proposals to remove super-majority voting requirements and oppose amendments to bylaws which would require a super-majority of shareholder votes to pass or repeal certain provisions.

● We will evaluate proposals regarding shareholders rights plans ("poison pills") on a case-by-case basis considering issues such as the term of the arrangement and the level of review by independent directors.

● We will review proposals for changes in corporate structure such as changes in the state of incorporation or mergers individually. We generally oppose proposals where management does not offer an appropriate rationale.

● We generally support share repurchase programs.

● We generally support the general updating of or corrective amendments to corporate charters and by-laws.

● We generally oppose the elimination of the rights of shareholders to call special meetings.

**Approval of Independent Auditors** – We believe that the relationship between the company and its auditors should be limited primarily to the audit engagement and closely related activities that do not, in the aggregate, raise the appearance of impaired independence.

● We generally support management's proposals regarding the approval of independent auditors.

● We evaluate on a case-by-case basis instances in which the audit firm appears to have a substantial non-audit relationship with the company or companies affiliated with it.

**Social and Corporate Responsibility Issues** - We believe that ordinary business matters are primarily the responsibility of management and should be approved solely by the corporation's board of directors. Proposals in this category, initiated primarily by shareholders, typically request that the company disclose or amend certain business practices. We generally vote with management on these types of proposals, although we may make exceptions in certain instances where we believe a proposal has substantial economic implications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● We generally oppose shareholder proposals which apply restrictions related to social, political, or special interest issues which affect the ability of the company to do business or be competitive and which have significant financial impact.

● We generally oppose proposals which require that the company provide costly, duplicative, or redundant reports, or reports of a non-business nature.

**Item 8. Portfolio Managers of Closed-End Management Investment Companies.** 

(a) As of the date of this filing, Mr. John C. Hill, Chief Executive Officer and President, and Mr. Andrew J. O'Neill, Vice President, manage the Corporation's investments. Mr. Hill has been Chief Executive Officer of the Corporation since January 1, 2022. He has also served as President of the Corporation since 2018. Mr. Hill joined the Corporation as a Vice President in 2016. He worked as an investment analyst with Davis Selected Advisers LP prior thereto. Mr. O'Neill joined the Corporation in 2009, and was elected Vice President in 2011. Mr. Hill and Mr. O'Neill do not manage any other accounts, and accordingly, the Registrant is not aware of any material conflicts with their management of the Corporation's investments.

Mr. Hill's and Mr. O'Neill's compensation consists primarily of a fixed base salary and a bonus. Their compensation is reviewed and approved annually by the Compensation and Nominating Committee of the Board of Directors (the "Committee"), which is comprised solely of independent directors. Their compensation may be adjusted from year to year based on the Committee's perception of overall performance and their management responsibilities.

Each of Mr. Hill's and Mr. O'Neill's bonus in 2022 was at the discretion of the Committee. Mr. Hill and Mr. O'Neill also participate in the Corporation's 401k Profit Sharing Plan, pursuant to which the Corporation contributed a percentage of their eligible compensation.

As of December 31, 2022, the value of Mr. Hill's and Mr. O'Neill's investment in Central Securities common stock each exceeded $1 million.

(b) Not applicable.

**Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.** 

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;Period | &nbsp;&nbsp;(a) Total Number of Shares (or Units) Purchased | &nbsp;&nbsp;(b) Average Price Paid per Share (or Unit) |
| &nbsp;&nbsp;Month #1 (July 1 through July 31) | &nbsp;&nbsp;0 | &nbsp;&nbsp;NA |
| &nbsp;&nbsp;Month #2 (August 1 through August 31) | &nbsp;&nbsp;0 | &nbsp;&nbsp;NA |
| &nbsp;&nbsp;Month #3 (September 1 through September 30) | &nbsp;&nbsp;22406 | &nbsp;&nbsp;$34.24 &nbsp;&nbsp;NA |
| &nbsp;&nbsp;Month #4 (October 1 through October 31) | &nbsp;&nbsp;23961 | &nbsp;&nbsp;$34.78 &nbsp;&nbsp;NA |
| &nbsp;&nbsp;Month #5 (November 1 through November 30) | &nbsp;&nbsp;12410 | &nbsp;&nbsp;$34.53 &nbsp;&nbsp;NA |
| &nbsp;&nbsp;Month #6 (December 1 through December 31) | &nbsp;&nbsp;20672 | &nbsp;&nbsp;$33.92 &nbsp;&nbsp;NA |
| &nbsp;&nbsp;Total | &nbsp;&nbsp;79449 | &nbsp;&nbsp;$34.36 &nbsp;&nbsp;NA |

---

All purchases were made in open-market transactions.

**Item 10. Submission of Matters to a Vote of Security Holders.** There have been no changes to the procedures by which shareholders may recommend nominees to the registrant's board of directors as set forth in the Corporation's proxy statement dated February 7, 2023.

**Item 11. Controls and Procedures.**

(a) The Principal Executive Officer and Principal Financial Officer of Central Securities Corporation (the "Corporation") have concluded that the Corporation's Disclosure Controls and Procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) are effective as of a date within 90 days of the filing date of this report based on their evaluation of the Disclosure Controls and Procedures.

(b) There have been no changes in the Corporation's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during period covered by this report that has materially affected, or is reasonably likely to materially affect, the Corporation's internal control over financial reporting.

**Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.** 

(a) Not applicable.

(b) Not applicable.

**Item 13. Exhibits.**

(a) [(1) Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. Attached hereto.](ex99-coe.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;[(2) A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act. Attached hereto.](ex99-cert.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Not Applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Not Applicable.

(b) [Certifications pursuant to Rule 30a-2(b) under the 1940 Act are attached hereto.](ex99-906cert.htm)

**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.

Central Securities Corporation

---

| | |
|:---|:---|
| By: | /s/ John C. Hill |
|  | John C. Hill |
|  | Chief Executive Officer |

---

<u>February 10, 2023</u>

Date

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

---

| | |
|:---|:---|
| By: | /s/ John C. Hill |
|  | John C. Hill |
|  | Chief Executive Officer |

---

<u>February 10, 2023</u>

Date

---

| | |
|:---|:---|
| By: | /s/ Lawrence P. Vogel |
|  | Lawrence P. Vogel |
|  | Vice President and Treasurer |

---

<u>February 10, 2023</u>

Date

## Ex-99.Coe

[Central Securities Corp. N-CSR](cet-ncsr_123122.htm)

**Exhibit 99.COE**

**CENTRAL SECURITIES CORPORATION**

**CODE OF ETHICS**

**FOR PRINCIPAL EXECUTIVE AND SENIOR FINANCIAL OFFICERS**

**January 1, 2022**

**(for change in officers)**

**I.** **Covered Officers / Purpose of the Code** 

Central Securities Corporation's (the "Corporation") Principal Officer Code of Ethics (this "Code") applies to the Corporation's Principal Executive and Senior Financial Officers (the "Covered Officers," each of whom are set forth in Exhibit A) for the purpose of promoting:

● Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

● Full, fair, accurate, timely and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Corporation;

● Compliance with applicable laws and governmental rules and regulations;

● The prompt internal reporting of violations of this Code to an appropriate person or persons identified in this Code; and

● Accountability for adherence to this Code.

Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

**II.** **Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest** 

A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his service to, the Corporation. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Corporation.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Corporation and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Corporation because of their status as "affiliated persons" of the Corporation. The Corporation's compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside the parameters of this Code.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act. The primary principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Corporation.

Each Covered Officer must:

● Not use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Corporation whereby the Covered Officer would benefit personally to the detriment of the Corporation;

● Not cause the Corporation to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Corporation; and

● Not use material non-public knowledge of portfolio transactions made or contemplated for the Corporation to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.

**III.** **Disclosure and Compliance** 

● Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Corporation;

● Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Corporation to others, whether within or outside the Corporation, including to the Corporation's directors and auditors, and to governmental regulators and self-regulatory organizations;

● Each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Corporation with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Corporation files with, or submits to the SEC and in other public communications made by the Corporation; and

● It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

**IV.** **Reporting and Accountability** 

Each Covered Officer must:

● Upon adoption of this Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he has received, read, and understands this Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

● Annually thereafter affirm to the Board that he has complied with the requirements of this Code;

● Report at least annually certain affiliations and conflicts of interest as required by the Corporation's Director and Officer questionnaire;

● Not retaliate against any other Covered Officer or any employee of the Corporation for reports of potential violations that are made in good faith; and

● Notify the Chief Compliance Officer ("CCO") promptly if he knows of any violation of this Code.

The CCO is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. In performing this function, the CCO may consult with the members of the Audit Committee, counsel to the Corporation, or others as considered necessary.

The Corporation will follow these procedures in investigating and enforcing this Code:

● The CCO will take all appropriate action to investigate any potential violations reported;

● If after such investigation, the CCO believes that no violation has occurred, the CCO is not required to take any further action;

● Any matter that the CCO believes is a violation will be reported to the Audit Committee;

● If the Audit Committee concurs that a violation has occurred, it will inform and make a recommendation to the Board, which will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures, notification to appropriate personnel or a recommendation to dismiss the Covered Officer;

● The Audit Committee will be responsible for granting waivers, as appropriate; and

● Any changes to or waivers of this Code will, to the extent required, be disclosed as provided by the SEC's rules.

**V.** **Other Policies and Procedures** 

This Code shall be the sole code of ethics adopted by the Corporation for purposes of Section 406 of the Sarbanes-Oxley Act of 2002 and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Corporation govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Corporation's code of ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to the Covered Officers and others, and are not part of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**VI.** **Amendments** 

Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Board, including a majority of independent directors.

**VII.** **Confidentiality** 

All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Board of Directors of the Corporation.

**VIII.** **Internal Use** 

This Code is intended solely for the internal use by the Corporation and does not constitute an admission, by or on behalf of any Corporation, as to any fact, circumstance, or legal conclusion.

**Exhibit A as of January 1, 2022**

Persons Covered by this Code of Ethics

John C. Hill – Chief Executive Officer

Lawrence P. Vogel – Vice President and Treasurer

## Ex-99.Cert

[Central Securities Corp. N-CSR](cet-ncsr_123122.htm)

**Exhibit 99.CERT**

Certification pursuant to Section 302 of the Sarbanes-Oxley Act

I, John C. Hill, certify that:

1. I have reviewed this report on Form N–CSR of Central Securities Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: <u>February 10, 2023</u> | /s/ John C. Hill |
|  | John C. Hill |
|  | Chief Executive Officer |

---

Certification pursuant to Section 302 of the Sarbanes-Oxley Act

I, Lawrence P. Vogel, certify that:

1. I have reviewed this report on Form N–CSR of Central Securities Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | |
|:---|:---|
| Date: <u>February 10, 2023</u> | /s/ Lawrence P. Vogel |
|  | Lawrence P. Vogel |
|  | Vice President and Treasurer |

---

## Exhibit 99.906

[Central Securities Corp. N-CSR](cet-ncsr_123122.htm)

**Exhibit 99.906.CERT**

**Certification Pursuant to Section 906 of the Sarbanes-Oxley Act**

I, John C. Hill, Chief Executive Officer of Central Securities Corporation (the "Corporation"), certify that:

1. The Corporation's periodic report on Form N-CSR for the period ended December 31, 2022 (the "Report") fully complies
with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Corporation.

---

| | |
|:---|:---|
| <u>February 10, 2023</u> | /s/ John C. Hill |
| Date | John C. Hill |
|  | Chief Executive Officer |

---

**Certification Pursuant to Section 906 of the Sarbanes-Oxley Act**

I, Lawrence P. Vogel, Vice President and Treasurer of Central Securities Corporation (the "Corporation"), certify that:

1. The Corporation's periodic report on Form N-CSR for the period ended December 31, 2022 (the "Report") fully complies
with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Corporation.

---

| | |
|:---|:---|
| <u>February 10, 2023</u> | /s/ Lawrence P. Vogel |
| Date | Lawrence P. Vogel |
|  | Vice President and Treasurer |

---

A signed original of this written statement required by Section 906 has been provided to the Corporation and will be retained by the Corporation and furnished to the Securities and Exchange Commission or its staff upon request.