CENTRAL SECURITIES CORPORATION
STATEMENT OF INVESTMENTS
March 31, 2026
(unaudited)

 

Shares      Value 
    COMMON STOCK 93.7%    
        Banks & Diversified Financial 13.5%
 140,000   American Express Co.  $42,347,200 
 350,000   Capital One Financial Corp.   63,850,500 
 700,000   Charles Schwab Corp. (The)   65,786,000 
 140,000   JPMorgan Chase & Co.   41,182,400 
 75,000   Visa, Inc. Class A   22,668,000 
         235,834,100 
         
        Communications Services 9.6%
 400,000   Alphabet, Inc. Class A   115,024,000 
 90,000   Meta Platforms, Inc. Class A   51,491,700 
         166,515,700 
         
        Consumer Discretionary 6.2%
 260,000   Amazon.com, Inc. (a)   54,150,200 
 15,500   MercadoLibre, Inc. (a)   26,799,810 
 500,000   NIKE, Inc. Class B   26,410,000 
         107,360,010 
         
        Diversified Industrial 4.4%
 200,000   Brady Corp. Class A   16,248,000 
 100,000   Equifax, Inc.   18,007,000 
 600,000   Sunbelt Rentals Holdings, Inc. (b)   39,054,000 
 225,000   WillScot Holdings Corp.   3,906,000 
         77,215,000 
         
        Energy 3.0%
 256,250   Chevron Corp.   53,018,125 
         
        Health Care 3.3%
 70,000   Johnson & Johnson   17,110,800 
 250,000   Medtronic plc   21,662,500 
 150,000   Merck & Co., Inc.   18,043,500 
         56,816,800 
         
        Insurance Brokers 3.7%
 80,000   Aon plc Class A   25,822,400 
 135,000   Arthur J Gallagher & Co.   29,238,300 
 500,000   TWFG, Inc. Class A (a)   9,195,000 
         64,255,700 
         
        Insurance Underwriters 28.7%
 400,000   Progressive Corp. (The)   79,296,000 
 28,424   The Plymouth Rock Company Incorporated Class A (c)(d)   420,646,776 
         499,942,776 
         
        Real Estate 1.5%
 1,260,130   Rayonier, Inc.   25,983,881 

 

 

Shares      Value 
     Semiconductor 7.9%     
 350,000   Analog Devices, Inc.   111,349,000 
 80,000   Taiwan Semiconductor Manufacturing Co. Ltd. ADR   27,036,000 
         138,385,000 
           
    

Software and Services 2.7% 

     
 80,000   Microsoft Corp.   29,613,600 
 50,000   Roper Technologies, Inc.   17,693,000 
         47,306,600 
           
    

Technology Hardware and Equipment 9.2% 

     
 200,000   Keysight Technologies, Inc. (a)   56,474,000 
 140,000   Motorola Solutions, Inc.   60,755,800 
 70,000   Teledyne Technologies, Inc. (a)   42,350,700 
         159,580,500 
           
     Total Common Stock (Cost $490,937,763)   1,632,214,192 
           
    

SHORT TERM INVESTMENTS 6.2%

     
           
     Money Market Fund 4.2%     
 73,436,968   JPMorgan 100% U.S. Treasury Securities Money Market Fund Institutional Class 3.51%   73,436,968 
           

Principal

  

U.S. Treasury Bills 2.0% 

     
$35,000,000   U.S. Treasury Bills 3.66% due 4/7/2026 (e)   34,978,971 
           
     Total Short Term Investments (Cost $108,415,939)   108,415,939 
     Total Investments (Cost $599,353,703) (99.9%)   1,740,630,131 
     Cash, receivables and other assets less liabilities (0.1%)   882,249 
     Net Assets (100%)  $1,741,512,380 

 

(a)Non-dividend paying.
(b)Formerly known as Ashtead Group plc.
(c)Affiliate as defined in the Investment Company Act of 1940 and restricted. See Note 3 and Note 4.
(d)Valued based on Level 3 significant unobservable inputs. See Note 2.
(e)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 March 31, 2026, the tax cost of investments was $599,353,703. Net unrealized appreciation was $1,141,276,428 consisting of gross unrealized appreciation and gross unrealized depreciation of $1,173,598,246 and $32,321,818, 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 March 31, 2026 are classified as follows:

 

   Level 1   Level 2   Level 3   Total 
Common stocks  $1,211,567,416   $   $420,646,776   $1,632,214,192 
Short-term investments   73,436,968    34,978,971        108,415,939 
Total investments  $1,285,004,384   $34,978,971   $420,646,776   $1,740,630,131 

 

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

 

Balance as of December 31, 2025  $443,471,248 
Change in net unrealized appreciation of investments in affiliated companies included in decrease in net assets from operations   (22,824,472)
Balance as of March 31, 2026  $420,646,776 

 

Unrealized appreciation of Level 3 investments still held as of March 31, 2026 decreased during the three months ended March 31, 2026 by $22,824,472, 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 March 31, 2026, 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: 1.0–2.1; average: 1.5); price-to-historical earnings (range: 11.6–22.1; average: 17.3); and price-to-forward earnings estimates (range: 8.8–17.4; average: 13.4). Management also used a discounted cash flow model based on a forecasted return on equity of approximately 13% and a cost of capital of approximately 10%. 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 March 31, 2026, the Corporation’s only restricted security consisted of 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 a value of $420,646,776 at March 31, 2026, which was equal to 24.2% 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 three months ended March 31, 2026, unrealized appreciation from the Corporation’s investment in Plymouth Rock decreased by $22,824,472 and the Corporation received dividends of $14,219,674 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.