0002000324-24-003115.txt : 20241106 0002000324-24-003115.hdr.sgml : 20241106 20241106133123 ACCESSION NUMBER: 0002000324-24-003115 CONFORMED SUBMISSION TYPE: NPORT-P PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20240930 FILED AS OF DATE: 20241106 DATE AS OF CHANGE: 20241106 PERIOD START: 20241231 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL SECURITIES CORP CENTRAL INDEX KEY: 0000018748 ORGANIZATION NAME: IRS NUMBER: 131875970 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: NPORT-P SEC ACT: 1940 Act SEC FILE NUMBER: 811-00179 FILM NUMBER: 241430088 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 NPORT-P 1 primary_doc.xml NPORT-P false 0000018748 XXXXXXXX CENTRAL SECURITIES CORPORATION 811-00179 0000018748 549300D87MQ4TEVRK235 630 Fifth Avenue Suite 820 NY 10111 212-698-2020 N/A N/A 2024-12-31 2024-09-30 N 1599315869 4861173 1594454696 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N AerCap Holdings N.V. 549300SZYINBBLJQU475 Common Stock N00985106 120000 NS USD 11366400 0.71 Long EC CORP NL N 1 N N N Alphabet Inc. 5493006MHB84DD0ZWV18 Common Stock - Class A 02079K305 450000 NS USD 74632500 4.68 Long EC CORP US N 1 N N N Amazon.com, Inc. ZXTILKJKG63JELOEG630 Common Stock 023135106 225000 NS USD 41924250 2.63 Long EC CORP US N 1 N N N American Express Company R4PP93JZOLY261QX3811 Common Stock 025816109 170000 NS USD 46104000 2.89 Long EC CORP US N 1 N N N Analog Devices, Inc. GYVOE5EZ4GDAVTU4CQ61 Common Stock 032654105 400000 NS USD 92068000 5.77 Long EC CORP US N 1 N N N Aon plc VVT2B79I2Z4U3R6BY589 Common Stock - Class A G0403H108 100000 NS USD 34599000 2.17 Long EC CORP IE N 1 N N N Arthur Gallagher 54930049QLLMPART6V29 Common Stock 363576109 105000 NS USD 29543850 1.85 Long EC CORP US N 1 N N N Ashtead Group plc 2138007UTBN8X9K1A235 ADR 045055100 85000 NS USD 26255650 1.65 Long EC CORP GB N 1 N N N Brady Corporation 549300G2LEQOFQC8GY34 Common Stock - Class A 104674106 200000 NS USD 15326000 0.96 Long EC CORP US N 1 N N N Capital One Financial Corporation ZUE8T73ROZOF6FLBAR73 Common Stock 14040H105 300000 NS USD 44919000 2.82 Long EC CORP US N 1 N N N Coherent Corp. 549300O5C25A0MMHHU33 Common Stock 19247G107 200000 NS USD 17782000 1.12 Long EC CORP US N 1 N N N Hess Corporation UASVRYNXNK17ULIGK870 Common Stock 42809H107 275000 NS USD 37345000 2.34 Long EC CORP US N 1 N N N Intel Corporation KNX4USFCNGPY45LOCE31 Common Stock 458140100 400000 NS USD 9384000 0.59 Long EC CORP US N 1 N N N Johnson & Johnson 549300G0CFPGEF6X2043 Common Stock 478160104 90000 NS USD 14585400 0.91 Long EC CORP US N 1 N N N JPMorgan Chase & Co. 8I5DZWZKVSZI1NUHU748 Common Stock 46625H100 180000 NS USD 37954800 2.38 Long EC CORP US N 1 N N N Keysight Technologies, Inc. 549300GLKVIO8YRCYN02 Common Stock 49338L103 200000 NS USD 31786000 1.99 Long EC CORP US N 1 N N N Medtronic plc 549300GX3ZBSQWUXY261 Common Stock G5960L103 185000 NS USD 16655550 1.04 Long EC CORP IE N 1 N N N Mercadolibre, Inc. 549300DKPDN9M5S8GB14 Common Stock 58733R102 13000 NS USD 26675480 1.67 Long EC CORP US N 1 N N N Merck & Co., Inc. 4YV9Y5M8S0BRK1RP0397 Common Stock 58933Y105 160000 NS USD 18169600 1.14 Long EC CORP US N 1 N N N Meta Platforms, Inc. BQ4BKCS1HXDV9HN80Z93 Common Stock - Class A 30303M102 100000 NS USD 57244000 3.59 Long EC CORP US N 1 N N N Microsoft Corporation INR2EJN1ERAN0W5ZP974 Common Stock 594918104 80000 NS USD 34424000 2.16 Long EC CORP US N 1 N N N Motorola Solutions, Inc. 6S552MUG6KGJVEBSEC55 Common Stock 620076307 145000 NS USD 65196350 4.09 Long EC CORP US N 1 N N N Progressive Corporation 529900TACNVLY9DCR586 Common Stock 743315103 420000 NS USD 106579200 6.68 Long EC CORP US N 1 N N N Rayonier Inc. HGV8VDVNL0W6SF2U9C50 Common Stock 754907103 1150000 NS USD 37007000 2.32 Long EC CORP US N 1 N N N Roper Technologies, Inc. 54930003T4SXCIWVXY35 Common Stock 776696106 55000 NS USD 30604200 1.92 Long EC CORP US N 1 N N N Teledyne Technologies Incorporated 549300VSMO9KYQWDND94 Common Stock 879360105 60000 NS USD 26259600 1.65 Long EC CORP US N 1 N N N The Charles Schwab Corporation 549300VSGCJ7E698NM85 Common Stock 808513105 800000 NS USD 51848000 3.25 Long EC CORP US N 1 N N N Visa Inc. 549300JZ4OKEHW3DPJ59 Common Stock - Class A 92826C839 75000 NS USD 20621250 1.29 Long EC CORP US N 1 N N N The Plymouth Rock Company Incorporated 98450064D596453C6420 Common Stock - Class A N/A 28424 NS USD 397936000 24.96 Long EC CORP US Y 3 N N N Fidelity Colchester Street Trust 549300NPOIO5VXBKJA04 Treasury Only Portfolio Class I 233809300 49866125 NS USD 49866125 3.13 Long STIV RF US N 1 N N N U.S. Government N/A Treasury Bill 912797LU9 50000000 PA USD 49746939 3.12 Long DBT UST US N 2 2024-10-22 None 4.67 N N N N N N U.S. Government N/A Treasury Bill 912797LS4 40000000 PA USD 39962589 2.51 Long DBT UST US N 2 2024-10-08 None 4.89 N N N N N N 2024-11-06 CENTRAL SECURITIES CORPORATION /s/ Joseph T. Malone Joseph T. Malone Vice President and Treasurer XXXX NPORT-EX 2 csc-nport_093024.htm SCHEDULE OF INVESTMENTS

 

CENTRAL SECURITIES CORPORATION

STATEMENT OF INVESTMENTS

September 30, 2024

(unaudited)

 
Shares      Value 
COMMON STOCKS 91.2%
    Banks 2.4%
 180,000   JPMorgan Chase & Co.  $37,954,800 
           
     Communications Services 8.3%     
 450,000   Alphabet Inc. Class A   74,632,500 
 100,000   Meta Platforms, Inc. Class A   57,244,000 
         131,876,500 
           
     Diversified Financial 10.3%     
 170,000   American Express Company   46,104,000 
 300,000   Capital One Financial Corporation   44,919,000 
 800,000   The Charles Schwab Corporation   51,848,000 
 75,000   Visa Inc. Class A   20,621,250 
         163,492,250 
           
     Diversified Industrial 3.3%     
 120,000   AerCap Holdings N.V.   11,366,400 
 85,000   Ashtead Group plc ADR   26,255,650 
 200,000   Brady Corporation Class A   15,326,000 
         52,948,050 
           
     Energy 2.3%     
 275,000   Hess Corporation   37,345,000 
           
     Health Care 3.1%     
 90,000   Johnson & Johnson   14,585,400 
 185,000   Medtronic plc   16,655,550 
 160,000   Merck & Co., Inc.   18,169,600 
         49,410,550 
           
     Insurance Brokers 4.0%     
 100,000   Aon plc Class A   34,599,000 
 105,000   Arthur J. Gallagher & Co.   29,543,850 
         64,142,850 
           
     Insurance Underwriters 31.6%     
 28,424   The Plymouth Rock Company Class A (b)(c)   397,936,000 
 420,000   Progressive Corporation   106,579,200 
         504,515,200 
           
     Real Estate 2.3%     
 1,150,000   Rayonier Inc.   37,007,000 
           

 

 

 

 

 Shares      Value  
     Retailing 4.3%     
 225,000   Amazon.com, Inc. (a)  $41,924,250 
 13,000   Mercadolibre, Inc. (a)   26,675,480 
         68,599,730 
           
     Semiconductor 6.4%     
 400,000   Analog Devices, Inc.   92,068,000 
 400,000   Intel Corporation   9,384,000 
         101,452,000 
           
     Software and Services 4.1%     
 80,000   Microsoft Corporation   34,424,000 
 55,000   Roper Technologies, Inc.   30,604,200 
         65,028,200 
           
     Technology Hardware and Equipment 8.8%     
 200,000   Coherent Corp. (a)   17,782,000 
 200,000   Keysight Technologies, Inc. (a)   31,786,000 
 145,000   Motorola Solutions, Inc.   65,196,350 
 60,000   Teledyne Technologies Incorporated (a)   26,259,600 
         141,023,950 
           
     Total Common Stocks (cost $386,451,182)   1,454,796,080 
           
SHORT-TERM INVESTMENTS 8.8% 
           
     Money Market Fund 3.1%     
 49,746,940   Goldman Sachs Financial Square Treasury Investments Fund   49,746,940 
           
Principal   U.S. Treasury Bills 5.7%     
$90,000,000   U.S. Treasury Bills 4.67% - 4.89% due 10/8/24 - 10/22/24 (d)   89,828,714 
           
     Total Short-Term Investments (cost $139.575,654)   139,575,654 
           
     Total Investments (cost $526,026,836) (100.0%)   1,594,371,734 
           
     Cash, receivables and other assets less liabilities (0.0%)   82,962 
           
     Net Assets (100%)  $1,594,454,696 

 

 

(a) Non-dividend paying.

(b) Affiliate as defined in the Investment Company Act of 1940 and restricted.  See Note 3 and Note 4.

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

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

 

See accompanying notes to statement of investments.

 

 

 

 

CENTRAL SECURITIES CORPORATION

(the “Corporation”)

NOTES TO STATEMENT OF INVESTMENTS

(unaudited)

 

1. Security Valuation – Marketable common stocks are valued at the last or closing sale price or, if unavailable, at the closing bid price at the valuation date. 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.

 

As of September 30, 2024, the tax cost of investments was $526,026,836. Net unrealized appreciation was $1,068,344,898 consisting of gross unrealized appreciation and gross unrealized depreciation of $1,068,344,898 and $0, respectively. 

 

2. Fair Value Measurements – The Corporation’s investments are categorized below in three broad hierarchical levels based on market price observability as follows: 

●Level 1 – Quoted prices in active markets for identical investments;
●Level 2 – Other significant observable inputs obtained from independent sources, for example, quoted prices in active markets for similar investments;
●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.

 

The Corporation’s investments as of September 30, 2024 are classified as follows:

 

   Level 1   Level 2   Level 3   Total 
Common stocks  $1,056,860,080   $—   $397,936,000   $1,454,796,080 
Short-term investments   49,746,940    89,828,714    —    139,575,654 
Total investments  $1,106,607,020   $89,828,714   $397,936,000   $1,594,371,734 

 

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

 

Balance as of December 31, 2023  $304,136,800 
Change in net unrealized appreciation of investments in affiliated companies included in increase in net assets from operations   93,799,200 
Balance as of September 30, 2024  $397,936,000 

 

Unrealized appreciation of Level 3 investments still held as of September 30, 2024 increased during the nine months ended September 30, 2024 by $93,799,200, 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 September 30, 2024, 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: 1.0–3.0; average: 1.9); price-to-historical earnings (range: 18.0–52.3; average: 32.5); and price-to-forward earnings estimates (range: 12.1–29.5; average: 19.6). Management also used Plymouth Rock’s book value and a discounted cash flow model based on a forecasted return on equity of approximately 13% 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 35%, 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 approved 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 have resulted 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 have resulted in a lower (higher) range of fair values.

 

3. Restricted Securities – The Corporation may from time to time invest in securities the resale of which is restricted. On September 30, 2024, the Corporation’s only restricted security consisted of 28,424 shares of Plymouth Rock that were acquired on December 15, 1982 at a cost of $710,600. This security had a value of $397,936,000 at September 30, 2024, which was equal to 25.0% of the Corporation’s net assets. The Corporation does not have the right to demand registration of this security.

 

4. 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 nine months ended September 30, 2024, unrealized appreciation from the Corporation’s investment in Plymouth Rock increased by $93,799,200 and the Corporation received dividends of $8,060,762 from Plymouth Rock. The Chairman of the Corporation is a director of Plymouth Rock. The Chief Executive Officer of the Corporation is a director of certain subsidiaries of Plymouth Rock.