0000793347falseN-CSRST. ROWE PRICE CAPITAL APPRECIATION FUND, INC.N-1A2026-06-3000007933472026-01-012026-06-300000793347trp:C000005427Member2026-01-012026-06-300000793347trp:C000005427Member2026-06-300000793347trp:C000005427Membertrp:A0BNYMinus594918104SectorMember2026-06-300000793347trp:C000005427Membertrp:A0BNYMinus91282CQD6SectorMember2026-06-300000793347trp:C000005427Membertrp:Other0BNYMinus91282CQD6CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingUSTreasuryNotesBNYMinus91282CQD6CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingAlphabetBNYMinus02079K305CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingMicrosoftBNYMinus594918104CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingAmazoncomBNYMinus023135106CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingNVIDIABNYMinus67066G104CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingCenterPointEnergyBNYMinus15189T107CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingHUBInternationalBNYMinusBL4978526CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingBroadcomBNYMinus11135F101CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingMetaPlatformsBNYMinus30303M102CTIMember2026-06-300000793347trp:C000005427Membertrp:Top10HoldingTransDigmBNYMinusBL5229432CTIMember2026-06-300000793347trp:C000005428Member2026-01-012026-06-300000793347trp:C000005428Member2026-06-300000793347trp:C000005428Membertrp:A0BNYMinus594918104SectorMember2026-06-300000793347trp:C000005428Membertrp:A0BNYMinus91282CQD6SectorMember2026-06-300000793347trp:C000005428Membertrp:Other0BNYMinus91282CQD6CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingUSTreasuryNotesBNYMinus91282CQD6CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingAlphabetBNYMinus02079K305CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingMicrosoftBNYMinus594918104CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingAmazoncomBNYMinus023135106CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingNVIDIABNYMinus67066G104CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingCenterPointEnergyBNYMinus15189T107CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingHUBInternationalBNYMinusBL4978526CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingBroadcomBNYMinus11135F101CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingMetaPlatformsBNYMinus30303M102CTIMember2026-06-300000793347trp:C000005428Membertrp:Top10HoldingTransDigmBNYMinusBL5229432CTIMember2026-06-300000793347trp:C000166317Member2026-01-012026-06-300000793347trp:C000166317Member2026-06-300000793347trp:C000166317Membertrp:A0BNYMinus594918104SectorMember2026-06-300000793347trp:C000166317Membertrp:A0BNYMinus91282CQD6SectorMember2026-06-300000793347trp:C000166317Membertrp:Other0BNYMinus91282CQD6CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingUSTreasuryNotesBNYMinus91282CQD6CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingAlphabetBNYMinus02079K305CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingMicrosoftBNYMinus594918104CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingAmazoncomBNYMinus023135106CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingNVIDIABNYMinus67066G104CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingCenterPointEnergyBNYMinus15189T107CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingHUBInternationalBNYMinusBL4978526CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingBroadcomBNYMinus11135F101CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingMetaPlatformsBNYMinus30303M102CTIMember2026-06-300000793347trp:C000166317Membertrp:Top10HoldingTransDigmBNYMinusBL5229432CTIMember2026-06-30iso4217:USDxbrli:sharesiso4217:USDxbrli:sharesxbrli:pureutr:Dtrp:Holding

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: 811-04519

T. Rowe Price Capital Appreciation Fund, Inc.

 

(Exact name of registrant as specified in charter)

1307 Point Street, Baltimore, MD 21231

 

(Address of principal executive offices)

David Oestreicher

1307 Point Street, Baltimore, MD 21231

 

(Name and address of agent for service)

Registrant’s telephone number, including area code: (410) 345-2000

Date of fiscal year end: December 31

Date of reporting period: June 30, 2026

Item 1. Reports to Shareholders

(a) Report pursuant to Rule 30e-1

Image

Semi-Annual Shareholder Report

June 30, 2026

Capital Appreciation Fund

Investor Class (PRWCX)

This semi-annual shareholder report contains important information about Capital Appreciation Fund (the "fund") for the period of January 1, 2026 to June 30, 2026. You can find the fund’s prospectus, financial information on Form N‑CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1‑800‑638‑5660 or info@troweprice.com or contacting your intermediary. 

What were the fund costs for the last six months? (based on a hypothetical $10,000 investment)

Table Summary
 
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Capital Appreciation Fund - Investor Class
$36
0.70%

What are some fund statistics?

Fund Statistics

Table Summary
Total Net Assets (000s)
$70,384,396
Number of Portfolio Holdings
279
Table Summary
Portfolio Turnover Rate
55.5%

What did the fund invest in?

Security Allocation (as a % of Net Assets)

Table Summary
Common and Preferred Stocks
63.4%
Bonds
30.4
Reserves
6.2

Top Ten Holdings (as a % of Net Assets)

Table Summary
U.S. Treasury Notes
15.3%
Alphabet
4.0
Microsoft
3.3
Amazon.com
3.2
NVIDIA
2.7
CenterPoint Energy
2.7
HUB International
2.7
Broadcom
2.5
Meta Platforms
2.1
TransDigm
1.9

If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.

Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.

202505-4461501

F72-053 8/26

Capital Appreciation Fund 

Investor Class (PRWCX)

T. Rowe Price Investment Services, Inc.

1307 Point Street

Baltimore, Maryland 21231

Image
Image

Semi-Annual Shareholder Report

June 30, 2026

Capital Appreciation Fund

Advisor Class (PACLX)

This semi-annual shareholder report contains important information about Capital Appreciation Fund (the "fund") for the period of January 1, 2026 to June 30, 2026. You can find the fund’s prospectus, financial information on Form N‑CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1‑800‑638‑5660 or info@troweprice.com or contacting your intermediary. 

What were the fund costs for the last six months? (based on a hypothetical $10,000 investment)

Table Summary
 
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Capital Appreciation Fund - Advisor Class
$49
0.96%

What are some fund statistics?

Fund Statistics

Table Summary
Total Net Assets (000s)
$70,384,396
Number of Portfolio Holdings
279
Table Summary
Portfolio Turnover Rate
55.5%

What did the fund invest in?

Security Allocation (as a % of Net Assets)

Table Summary
Common and Preferred Stocks
63.4%
Bonds
30.4
Reserves
6.2

Top Ten Holdings (as a % of Net Assets)

Table Summary
U.S. Treasury Notes
15.3%
Alphabet
4.0
Microsoft
3.3
Amazon.com
3.2
NVIDIA
2.7
CenterPoint Energy
2.7
HUB International
2.7
Broadcom
2.5
Meta Platforms
2.1
TransDigm
1.9

If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.

Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.

202505-4461501

F272-053 8/26

Capital Appreciation Fund 

Advisor Class (PACLX)

T. Rowe Price Investment Services, Inc.

1307 Point Street

Baltimore, Maryland 21231

Image
Image

Semi-Annual Shareholder Report

June 30, 2026

Capital Appreciation Fund

I Class (TRAIX)

This semi-annual shareholder report contains important information about Capital Appreciation Fund (the "fund") for the period of January 1, 2026 to June 30, 2026. You can find the fund’s prospectus, financial information on Form N‑CSR (which includes required tax information for dividends), holdings, proxy voting information, and other information atwww.troweprice.com/prospectus. You can also request this information without charge by contacting T. Rowe Price at 1‑800‑638‑5660 or info@troweprice.com or contacting your intermediary. 

What were the fund costs for the last six months? (based on a hypothetical $10,000 investment)

Table Summary
 
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Capital Appreciation Fund - I Class
$29
0.57%

What are some fund statistics?

Fund Statistics

Table Summary
Total Net Assets (000s)
$70,384,396
Number of Portfolio Holdings
279
Table Summary
Portfolio Turnover Rate
55.5%

What did the fund invest in?

Security Allocation (as a % of Net Assets)

Table Summary
Common and Preferred Stocks
63.4%
Bonds
30.4
Reserves
6.2

Top Ten Holdings (as a % of Net Assets)

Table Summary
U.S. Treasury Notes
15.3%
Alphabet
4.0
Microsoft
3.3
Amazon.com
3.2
NVIDIA
2.7
CenterPoint Energy
2.7
HUB International
2.7
Broadcom
2.5
Meta Platforms
2.1
TransDigm
1.9

If you invest directly with T. Rowe Price, you can elect to receive future shareholder reports or other important documents through electronic delivery by enrolling at www.troweprice.com/paperless. If you invest through a financial intermediary such as an investment advisor, a bank, retirement plan sponsor or a brokerage firm, please contact that organization and ask if it can provide electronic delivery.

Visit www.troweprice.com/en/us/market-data-disclosures for additional legal notices & disclaimers.

202505-4461501

F434-053 8/26

Capital Appreciation Fund 

I Class (TRAIX)

T. Rowe Price Investment Services, Inc.

1307 Point Street

Baltimore, Maryland 21231

Image

Item 1. (b) Notice pursuant to Rule 30e-3.

Not applicable.

Item 2. Code of Ethics.

A code of ethics, as defined in Item 2 of Form N-CSR, applicable to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions is filed as an exhibit to the registrant’s annual Form N-CSR. No substantive amendments were approved or waivers were granted to this code of ethics during the registrant’s most recent fiscal half-year.

Item 3. Audit Committee Financial Expert.

Disclosure required in registrant’s annual Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Disclosure required in registrant’s annual Form N-CSR.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Investments.

(a) Not applicable. The complete schedule of investments is included in Item 7 of this Form N-CSR.

(b) Not applicable.

Item 7. Financial Statements and Financial Highlights for Open-End Management Investment Companies.

(a – b) Report pursuant to Regulation S-X.

 

Financial
Highlights
Portfolio
of
Investments
Financial
Statements
and
Notes
Additional
Fund
Information
June
30,
2026
Financial
Statements
and
Other
Information
For
more
insights
from
T.
Rowe
Price
investment
professionals,
go
to
troweprice.com
.
T.
ROWE
PRICE
PRWCX
Capital
Appreciation
Fund
PACLX
Capital
Appreciation
Fund–
.
Advisor Class
TRAIX
Capital
Appreciation
Fund–
.
I Class
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Financial
Highlights
2
For
a
share
outstanding
throughout
each
period
Investor
Class
6
Months
.
Ended
6/30/26
..
Year
..
..
Ended
.
12/31/25
12/31/24
12/31/23
12/31/22
12/31/21
NET
ASSET
VALUE
Beginning
of
period
$
35
.75‌
$
34
.62‌
$
33
.91‌
$
29
.73‌
$
36
.96‌
$
34
.11‌
Investment
activities
Net
investment
income
(1)(2)
0
.30‌
0
.68‌
0
.81‌
0
.77‌
0
.49‌
0
.35‌
Net
realized
and
unrealized
gain/
loss
1
.82‌
3
.60‌
3
.49‌
4
.81‌
(
4
.91‌
)
5
.91‌
Total
from
investment
activities
2
.12‌
4
.28‌
4
.30‌
5
.58‌
(
4
.42‌
)
6
.26‌
Distributions
Net
investment
income
—‌
(
0
.68‌
)
(
0
.80‌
)
(
0
.71‌
)
(
0
.47‌
)
(
0
.35‌
)
Net
realized
gain
—‌
(
2
.47‌
)
(
2
.79‌
)
(
0
.69‌
)
(
2
.34‌
)
(
3
.06‌
)
Total
distributions
—‌
(
3
.15‌
)
(
3
.59‌
)
(
1
.40‌
)
(
2
.81‌
)
(
3
.41‌
)
NET
ASSET
VALUE
End
of
period
$
37
.87‌
$
35
.75‌
$
34
.62‌
$
33
.91‌
$
29
.73‌
$
36
.96‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Financial
Highlights
3
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Investor
Class
6
Months
.
Ended
6/30/26
..
Year
..
..
Ended
.
12/31/25
12/31/24
12/31/23
12/31/22
12/31/21
Ratios/Supplemental
Data
Total
return
(2)(3)
5
.93‌
%
12
.50‌
%
12
.69‌
%
18
.83‌
%
(
11
.94‌
)
%
18
.53‌
%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0
.73‌
%
(4)
0
.73‌
%
0
.72‌
%
0
.73‌
%
0
.73‌
%
0
.70‌
%
Net
expenses
after
waivers/
payments
by
Price
Associates
0
.70‌
%
(4)
0
.70‌
%
0
.70‌
%
0
.70‌
%
0
.71‌
%
0
.68‌
%
Net
investment
income
1
.68‌
%
(4)
1
.85‌
%
2
.23‌
%
2
.38‌
%
1
.45‌
%
0
.95‌
%
Portfolio
turnover
rate
55
.5‌
%
124
.7‌
%
85
.0‌
%
65
.1‌
%
83
.9‌
%
47
.8‌
%
Net
assets,
end
of
period
(in
millions)
$37,014
$37,424
$34,860
$31,624
$26,104
$40,460
0‌
%
0‌
%
0‌
%
0‌
%
0‌
%
0‌
%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
Annualized
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Financial
Highlights
4
For
a
share
outstanding
throughout
each
period
Advisor
Class
6
Months
.
Ended
6/30/26
..
Year
..
..
Ended
.
12/31/25
12/31/24
12/31/23
12/31/22
12/31/21
NET
ASSET
VALUE
Beginning
of
period
$
35
.08‌
$
34
.04‌
$
33
.39‌
$
29
.30‌
$
36
.49‌
$
33
.70‌
Investment
activities
Net
investment
income
(1)(2)
0
.25‌
0
.57‌
0
.70‌
0
.68‌
0
.40‌
0
.24‌
Net
realized
and
unrealized
gain/
loss
1
.79‌
3
.53‌
3
.45‌
4
.73‌
(
4
.85‌
)
5
.84‌
Total
from
investment
activities
2
.04‌
4
.10‌
4
.15‌
5
.41‌
(
4
.45‌
)
6
.08‌
Distributions
Net
investment
income
—‌
(
0
.59‌
)
(
0
.71‌
)
(
0
.63‌
)
(
0
.40‌
)
(
0
.23‌
)
Net
realized
gain
—‌
(
2
.47‌
)
(
2
.79‌
)
(
0
.69‌
)
(
2
.34‌
)
(
3
.06‌
)
Total
distributions
—‌
(
3
.06‌
)
(
3
.50‌
)
(
1
.32‌
)
(
2
.74‌
)
(
3
.29‌
)
NET
ASSET
VALUE
End
of
period
$
37
.12‌
$
35
.08‌
$
34
.04‌
$
33
.39‌
$
29
.30‌
$
36
.49‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Financial
Highlights
5
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Advisor
Class
6
Months
.
Ended
6/30/26
..
Year
..
..
Ended
.
12/31/25
12/31/24
12/31/23
12/31/22
12/31/21
Ratios/Supplemental
Data
Total
return
(2)(3)
5
.82‌
%
12
.16‌
%
12
.41‌
%
18
.52‌
%
(
12
.18‌
)
%
18
.22‌
%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0
.99‌
%
(4)
0
.99‌
%
0
.99‌
%
0
.99‌
%
0
.99‌
%
0
.99‌
%
Net
expenses
after
waivers/
payments
by
Price
Associates
0
.96‌
%
(4)
0
.97‌
%
0
.96‌
%
0
.96‌
%
0
.97‌
%
0
.97‌
%
Net
investment
income
1
.42‌
%
(4)
1
.59‌
%
1
.96‌
%
2
.12‌
%
1
.22‌
%
0
.66‌
%
Portfolio
turnover
rate
55
.5‌
%
124
.7‌
%
85
.0‌
%
65
.1‌
%
83
.9‌
%
47
.8‌
%
Net
assets,
end
of
period
(in
millions)
$817
$829
$790
$759
$654
$795
0‌
%
0‌
%
0‌
%
0‌
%
0‌
%
0‌
%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
Annualized
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Financial
Highlights
6
For
a
share
outstanding
throughout
each
period
I
Class
6
Months
.
Ended
6/30/26
..
Year
..
..
Ended
.
12/31/25
12/31/24
12/31/23
12/31/22
12/31/21
NET
ASSET
VALUE
Beginning
of
period
$
35
.73‌
$
34
.61‌
$
33
.90‌
$
29
.72‌
$
36
.99‌
$
34
.14‌
Investment
activities
Net
investment
income
(1)(2)
0
.33‌
0
.72‌
0
.85‌
0
.81‌
0
.56‌
0
.40‌
Net
realized
and
unrealized
gain/
loss
1
.82‌
3
.60‌
3
.50‌
4
.82‌
(
4
.95‌
)
5
.91‌
Total
from
investment
activities
2
.15‌
4
.32‌
4
.35‌
5
.63‌
(
4
.39‌
)
6
.31‌
Distributions
Net
investment
income
—‌
(
0
.73‌
)
(
0
.85‌
)
(
0
.76‌
)
(
0
.54‌
)
(
0
.40‌
)
Net
realized
gain
—‌
(
2
.47‌
)
(
2
.79‌
)
(
0
.69‌
)
(
2
.34‌
)
(
3
.06‌
)
Total
distributions
—‌
(
3
.20‌
)
(
3
.64‌
)
(
1
.45‌
)
(
2
.88‌
)
(
3
.46‌
)
NET
ASSET
VALUE
End
of
period
$
37
.88‌
$
35
.73‌
$
34
.61‌
$
33
.90‌
$
29
.72‌
$
36
.99‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Financial
Highlights
7
For
a
share
outstanding
throughout
each
period
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
I
Class
6
Months
.
Ended
6/30/26
..
Year
..
..
Ended
.
12/31/25
12/31/24
12/31/23
12/31/22
12/31/21
Ratios/Supplemental
Data
Total
return
(2)(3)
6
.02‌
%
12
.61‌
%
12
.84‌
%
18
.98‌
%
(
11
.84‌
)
%
18
.67‌
%
Ratios
to
average
net
assets:
(2)
Gross
expenses
before
waivers/
payments
by
Price
Associates
0
.60‌
%
(4)
0
.60‌
%
0
.60‌
%
0
.60‌
%
0
.60‌
%
0
.59‌
%
Net
expenses
after
waivers/
payments
by
Price
Associates
0
.57‌
%
(4)
0
.57‌
%
0
.57‌
%
0
.58‌
%
0
.58‌
%
0
.57‌
%
Net
investment
income
1
.81‌
%
(4)
1
.98‌
%
2
.35‌
%
2
.50‌
%
1
.67‌
%
1
.06‌
%
Portfolio
turnover
rate
55
.5‌
%
124
.7‌
%
85
.0‌
%
65
.1‌
%
83
.9‌
%
47
.8‌
%
Net
assets,
end
of
period
(in
millions)
$32,553
$32,336
$28,586
$24,084
$18,698
$12,654
0‌
%
0‌
%
0‌
%
0‌
%
0‌
%
0‌
%
(1)
Per
share
amounts
calculated
using
average
shares
outstanding
method.
(2)
Includes
the
impact
of
expense-related
arrangements
with
Price
Associates.
(3)
Total
return
reflects
the
rate
that
an
investor
would
have
earned
on
an
investment
in
the
fund
during
each
period,
assuming
reinvestment
of
all
distributions,
and
payment
of
no
redemption
or
account
fees,
if
applicable.
Total
return
is
not
annualized
for
periods
less
than
one
year.
(4)
Annualized
T.
ROWE
PRICE
Capital
Appreciation
Fund
June
30,
2026
Unaudited
8
Portfolio
of
Investments
‡
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
ASSET-BACKED
SECURITIES
 0.1%
Domino's
Pizza
Master
Issuer
Series 2017-1A,
Class
A23
4.118%,
7/25/47 (1)
22,249,988‌
22,105‌
Domino's
Pizza
Master
Issuer
Series 2019-1A,
Class
A2
3.668%,
10/25/49 (1)
17,777,472‌
17,056‌
Total
Asset-Backed
Securities
(Cost
$39,865)
39,161‌
BANK
LOANS
 7.1%
(2)
AmWINS
Group,
FRN
3M
TSFR
+
2.00%,
5.732%,
1/30/32 
435,008,691‌
424,982‌
Applied
Systems,
FRN
3M
TSFR
+
2.25%,
5.982%,
2/24/31 
867,223,140‌
850,963‌
Applied
Systems,
FRN
3M
TSFR
+
4.50%,
8.232%,
2/23/32 
127,875,360‌
125,918‌
Bending
Spoons
U.S.,
FRN
1M
TSFR
+
5.88%,
9.489%,
3/7/31 
171,256,200‌
168,259‌
Bending
Spoons
U.S.,
Tranche
B,
FRN
1M
TSFR
+
5.88%,
9.489%,
3/7/31 
12,593,310‌
12,354‌
Broadstreet
Partners,
FRN
1M
TSFR
+
2.50%,
6.144%,
6/13/31 
434,372,501‌
418,540‌
CPI
Holdco
B,
FRN
1M
TSFR
+
2.00%,
5.644%,
5/17/31 
180,164,652‌
179,358‌
Ellucian
Holdings,
FRN
1M
TSFR
+
2.50%,
6.144%,
10/9/29 
132,855,531‌
127,932‌
EP
Wealth
Advisors,
FRN
3M
TSFR
+
2.50%,
6.166%,
10/18/32 
20,761,000‌
20,744‌
Epicor
Software,
FRN
1M
TSFR
+
2.75%,
6.394%,
5/30/31 
90,288,374‌
86,112‌
Filtration
Group,
FRN
1M
EURIBOR
+
3.50%,
5.679%,
10/21/28
(EUR) 
65,339,526‌
74,918‌
Filtration
Group,
FRN
1M
TSFR
+
2.50%,
6.144%,
10/21/28 
204,117,976‌
204,118‌
Hilton
Domestic
Operating,
FRN
1M
TSFR
+
1.75%,
5.398%,
11/8/30 
212,355,459‌
212,657‌
HUB
International,
FRN
3M
TSFR
+
2.25%,
5.922%,
6/20/30 
802,026,322‌
800,711‌
Loire
Finco
Luxembourg,
FRN
1M
TSFR
+
4.00%,
7.644%,
1/21/30 
165,138,164‌
165,255‌
Mariner
Wealth
Advisors,
FRN
3M
TSFR
+
2.25%,
5.982%,
12/31/30 
102,875,460‌
102,710‌
Ryan
Specialty,
FRN
1M
TSFR
+
2.00%,
5.644%,
9/15/31 
8,178,965‌
8,156‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
9
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
SBA
Senior
Finance
II,
FRN
1M
TSFR
+
1.75%,
5.40%,
1/25/31 
100,698,978‌
100,762‌
Storable,
FRN
1M
TSFR
+
3.25%,
6.894%,
4/16/31 
56,147,491‌
49,925‌
TransDigm,
FRN
1M
TSFR
+
2.25%,
5.894%,
3/22/30 
283,346,742‌
283,364‌
TransDigm,
FRN
1M
TSFR
+
2.50%,
6.144%,
2/13/33 
30,516,000‌
30,511‌
USI,
FRN
3M
TSFR
+
2.25%,
5.982%,
11/21/29 
165,269,190‌
164,608‌
USI,
FRN
3M
TSFR
+
2.25%,
5.982%,
9/29/30 
165,673,282‌
164,803‌
Varsity
Brands,
FRN
3M
TSFR
+
2.75%,
6.482%,
8/26/31 
196,988,777‌
197,164‌
Wyndham
Hotels
&
Resorts,
FRN
1M
TSFR
+
1.75%,
5.394%,
5/24/30 
36,228,026‌
36,232‌
Total
Bank
Loans
(Cost
$5,053,186)
5,011,056‌
BOND
FUNDS
 1.4%
T.
Rowe
Price
Institutional
Floating
Rate
Fund
-
Institutional
Class,
6.58% (3)(4)
107,624,561‌
993,375‌
Total
Bond
Funds
(Cost
$1,035,764)
993,375‌
COMMON
STOCKS
 59.1%
COMMUNICATION
SERVICES
 6.1%
Interactive
Media
&
Services
 6.1%
Alphabet,
Class
A (5)
4,816,576‌
1,721,300‌
Alphabet,
Class
C 
3,082,239‌
1,089,047‌
Meta
Platforms,
Class
A (5)
2,664,941‌
1,501,135‌
Total
Communication
Services
4,311,482‌
CONSUMER
DISCRETIONARY
 5.3%
Broadline
Retail
 3.2%
Amazon.com (5)(6)
9,557,923‌
2,278,035‌
2,278,035‌
Hotels,
Restaurants
&
Leisure
 2.1%
DoorDash,
Class
A (6)
3,199,669‌
590,435‌
Starbucks 
4,026,162‌
411,433‌
Yum!
Brands (5)
3,127,492‌
499,961‌
1,501,829‌
Total
Consumer
Discretionary
3,779,864‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
10
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
CONSUMER
STAPLES
 0.7%
Beverages
 0.7%
Keurig
Dr
Pepper 
15,938,059‌
521,653‌
Total
Consumer
Staples
521,653‌
ENERGY
 1.0%
Energy
Equipment
&
Services
 0.0%
SLB 
687,261‌
31,951‌
31,951‌
Oil,
Gas
&
Consumable
Fuels
 1.0%
Canadian
Natural
Resources 
12,121,958‌
478,817‌
ConocoPhillips 
1,918,800‌
199,479‌
678,296‌
Total
Energy
710,247‌
FINANCIALS
 5.7%
Banks
 0.4%
JPMorgan
Chase 
783,000‌
256,299‌
256,299‌
Capital
Markets
 1.3%
Ares
Coinvest
DBA
EP
Wealth,
Acquisition
Date:
11/24/25,
Cost $92,115 (6)(7)(8)
91,884,429‌
91,884‌
iCapital,
Acquisition
Date:
3/10/25
-
4/17/25,
Cost $98,805 (6)
(7)(8)
7,057,619‌
119,980‌
KKR 
3,562,800‌
326,994‌
MSCI 
604,800‌
338,712‌
877,570‌
Financial
Services
 2.4%
Mastercard,
Class
A (5)
2,046,912‌
1,051,294‌
Visa,
Class
A (5)
1,939,076‌
665,278‌
1,716,572‌
Insurance
 1.6%
Ethos
DBA
Broadstreet,
Acquisition
Date:
7/16/25,
Cost $578,072 (3)(6)(7)(8)
578,072,525‌
439,335‌
Hockey
Parent
Holdings,
Acquisition
Date:
9/14/23
-
5/2/25,
Cost $701,067 (6)(7)(8)
552,165‌
701,995‌
1,141,330‌
Total
Financials
3,991,771‌
HEALTH
CARE
 9.9%
Biotechnology
 3.5%
Alnylam
Pharmaceuticals (6)
2,082,524‌
626,902‌
Arcellx,
CVR (6)(7)
1,379,542‌
—‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
11
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Ascendis
Pharma (3)(6)
3,364,767‌
897,451‌
CG
oncology (6)
2,541,033‌
180,540‌
Cytokinetics (6)
6,285,983‌
535,503‌
Denali
Therapeutics (6)
4,966,700‌
127,744‌
Dyne
Therapeutics (6)
3,279,669‌
72,841‌
2,440,981‌
Health
Care
Equipment
&
Supplies
 0.4%
Becton
Dickinson
&
Company (5)
1,964,921‌
297,352‌
297,352‌
Health
Care
Providers
&
Services
 2.0%
Cencora 
4,509,901‌
1,276,212‌
UnitedHealth
Group 
295,200‌
122,694‌
1,398,906‌
Life
Sciences
Tools
&
Services
 4.0%
Danaher 
4,102,500‌
781,444‌
Revvity (3)
11,237,061‌
1,250,235‌
Waters (6)
2,101,625‌
788,194‌
2,819,873‌
Total
Health
Care
6,957,112‌
INDUSTRIALS
&
BUSINESS
SERVICES
 2.8%
Aerospace
&
Defense
 1.1%
Lockheed
Martin 
842,240‌
429,087‌
Northrop
Grumman 
700,033‌
356,534‌
785,621‌
Commercial
Services
&
Supplies
 0.5%
Veralto 
4,068,700‌
360,812‌
360,812‌
Industrial
Conglomerates
 0.5%
Bending
Spoons,
Class
C,
Acquisition
Date:
10/28/25,
Cost $172,761
(EUR) (6)(8)
19,416,160‌
276,511‌
TeamShares,
Acquisition
Date:
11/14/25,
Cost $107,067 (3)(6)
(8)
11,637,732‌
90,879‌
367,390‌
Machinery
 0.7%
Ingersoll
Rand 
5,550,915‌
455,120‌
455,120‌
Total
Industrials
&
Business
Services
1,968,943‌
INFORMATION
TECHNOLOGY
 18.8%
Communications
Equipment
 0.9%
Arista
Networks (6)
3,229,008‌
548,544‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
12
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Ciena (6)
153,058‌
75,084‌
623,628‌
Semiconductors
&
Semiconductor
Equipment
 10.0%
Advanced
Micro
Devices (5)(6)
2,144,515‌
1,245,770‌
ASML
Holding 
209,117‌
416,026‌
Broadcom (5)
4,698,261‌
1,774,768‌
Micron
Technology 
630,280‌
727,526‌
NVIDIA (5)
9,471,990‌
1,895,250‌
Taiwan
Semiconductor
Manufacturing
(TWD) 
12,680,000‌
1,000,329‌
7,059,669‌
Software
 6.3%
Aurora
Innovation (3)(6)
161,681,204‌
1,102,666‌
Cadence
Design
Systems (6)
717,720‌
269,375‌
Microsoft (5)
6,196,714‌
2,311,498‌
PTC (6)
4,061,616‌
461,440‌
Synopsys (6)
567,200‌
253,011‌
4,397,990‌
Technology
Hardware,
Storage
&
Peripherals
 1.6%
Apple (5)
3,962,732‌
1,146,656‌
1,146,656‌
Total
Information
Technology
13,227,943‌
UTILITIES
 5.8%
Electric
Utilities
 1.0%
PPL 
18,825,912‌
684,322‌
684,322‌
Multi-Utilities
 4.8%
Ameren 
7,160,928‌
809,471‌
CenterPoint
Energy (3)
40,072,036‌
1,764,773‌
NiSource 
16,564,950‌
787,663‌
3,361,907‌
Total
Utilities
4,046,229‌
Total
Miscellaneous
Common
Stocks
 3.0% (9)
2,065,796‌
Total
Common
Stocks
(Cost
$29,468,360)
41,581,040‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
13
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
CONVERTIBLE
PREFERRED
STOCKS
 4.1%
CONSUMER
STAPLES
 0.9%
Beverages
 0.9%
Keurig
Dr
Pepper
PIPE,
Series
A,
Acquisition
Date:
12/24/25
-
2/23/26,
Cost $665,445 (7)(8)
651,325‌
651,325‌
Total
Consumer
Staples
651,325‌
INFORMATION
TECHNOLOGY
 3.2%
Software
 3.2%
Anthropic,
Series
F-1,
Acquisition
Date:
8/29/25,
Cost $172,875 (6)(7)(8)
1,226,347‌
722,330‌
Anthropic,
Series
H-1,
Acquisition
Date:
5/28/26,
Cost $70,799 (6)(7)(8)
120,200‌
70,799‌
OpenAI,
Series
C,
Acquisition
Date:
3/12/26,
Cost $158,521 (6)
(7)(8)
230,513‌
158,521‌
Waymo,
Series
A-2,
Acquisition
Date:
5/8/20,
Cost $183,922 (6)
(7)(8)
2,141,932‌
419,969‌
Waymo,
Series
B-2,
Acquisition
Date:
6/11/21,
Cost $16,282 (6)
(7)(8)
177,514‌
35,112‌
Waymo,
Series
C-2,
Acquisition
Date:
1/12/24
-
9/27/24,
Cost $279,599 (6)(7)(8)
3,575,381‌
682,683‌
Waymo,
Series
D-2,
Acquisition
Date:
2/2/26,
Cost $98,779 (6)
(7)(8)
601,154‌
114,784‌
Total
Information
Technology
2,204,198‌
Total
Convertible
Preferred
Stocks
(Cost
$1,646,222)
2,855,523‌
CORPORATE
BONDS
 7.9%
AmWINS
Group,
6.375%,
2/15/29 (1)
38,945,000‌
39,115‌
Booz
Allen
Hamilton,
4.00%,
7/1/29 (1)
23,437,000‌
22,856‌
Booz
Allen
Hamilton,
5.95%,
8/4/33 
34,614,000‌
34,772‌
Broadstreet
Partners
Group,
5.875%,
4/15/29 (1)
130,807,000‌
127,745‌
CenterPoint
Energy,
VR,
5.95%,
4/1/56 (3)(10)
126,719,000‌
126,555‌
Crowdstrike
Holdings,
3.00%,
2/15/29 
5,722,000‌
5,457‌
Ellucian
Holdings,
6.50%,
12/1/29 (1)
28,267,000‌
27,388‌
Entergy,
VR,
5.875%,
6/15/56 (10)
115,816,000‌
115,813‌
Entergy,
VR,
6.10%,
6/15/56 (10)
106,971,000‌
107,168‌
Fair
Isaac,
6.00%,
5/15/33 (1)
46,755,000‌
46,038‌
Hilton
Domestic
Operating,
3.625%,
2/15/32 (1)
114,947,000‌
105,263‌
Hilton
Domestic
Operating,
3.75%,
5/1/29 (1)
93,694,000‌
90,407‌
Hilton
Domestic
Operating,
4.00%,
5/1/31 (1)
138,883,000‌
131,237‌
Hilton
Domestic
Operating,
4.875%,
1/15/30 
85,067,000‌
84,849‌
Hilton
Domestic
Operating,
5.50%,
3/31/34 (1)
84,336,000‌
83,471‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
14
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Hilton
Domestic
Operating,
5.75%,
9/15/33 (1)
81,115,000‌
81,414‌
Hilton
Domestic
Operating,
5.875%,
4/1/29 (1)
45,179,000‌
45,699‌
Hilton
Worldwide
Finance,
4.875%,
4/1/27 
38,607,000‌
38,571‌
HUB
International,
5.625%,
12/1/29 (1)
74,890,000‌
74,462‌
HUB
International,
7.25%,
6/15/30 (1)
587,665,000‌
603,103‌
HUB
International,
7.375%,
1/31/32 (1)
327,386,000‌
333,390‌
IQVIA,
5.00%,
5/15/27 (1)
42,949,000‌
42,923‌
IQVIA,
6.50%,
5/15/30 (1)
27,385,000‌
27,944‌
KFC
Holding,
4.75%,
6/1/27 (1)
138,786,000‌
138,430‌
Korn
Ferry,
4.625%,
12/15/27 (1)
32,922,000‌
32,752‌
Life
Time,
6.00%,
11/15/31 (1)
37,730,000‌
38,306‌
Mirant,
EC,
7.90%,
7/15/09 (1)(6)(7)
16,000,000‌
—‌
MSCI,
5.25%,
9/1/35 
90,885,000‌
88,969‌
Murphy
Oil
USA,
3.75%,
2/15/31 (1)
7,538,000‌
7,051‌
Murphy
Oil
USA,
5.875%,
6/1/34 (1)
28,439,000‌
28,520‌
NiSource,
VR,
5.75%,
7/15/56 (10)
194,862,000‌
194,629‌
PTC,
4.00%,
2/15/28 (1)
41,117,000‌
40,252‌
Ryan
Specialty,
4.375%,
2/1/30 (1)
24,807,000‌
23,937‌
Ryan
Specialty,
5.875%,
8/1/32 (1)
65,952,000‌
64,887‌
SBA
Communications,
3.125%,
2/1/29 
114,808,000‌
109,857‌
SBA
Communications,
3.875%,
2/15/27 
102,069,000‌
101,512‌
SBA
Tower
Trust,
6.599%,
1/15/28 (1)
2,575,000‌
2,601‌
Service
Corp.
International,
3.375%,
8/15/30 
25,624,000‌
23,772‌
Service
Corp.
International,
4.625%,
12/15/27 
5,256,000‌
5,226‌
Service
Corp.
International,
5.75%,
10/15/32 
34,085,000‌
34,220‌
Surgery
Center
Holdings,
7.25%,
4/15/32 (1)
27,373,000‌
27,722‌
TransDigm,
4.625%,
1/15/29 
47,592,000‌
46,853‌
TransDigm,
6.125%,
7/31/34 (1)
76,123,000‌
76,053‌
TransDigm,
6.25%,
1/31/34 (1)
11,838,000‌
12,080‌
TransDigm,
6.375%,
3/1/29 (1)
184,964,000‌
187,878‌
TransDigm,
6.375%,
5/31/33 (1)
189,144,000‌
191,067‌
TransDigm,
6.625%,
3/1/32 (1)
239,679,000‌
245,824‌
TransDigm,
6.75%,
8/15/28 (1)
28,464,000‌
28,749‌
TransDigm,
6.75%,
1/31/34 (1)
132,484,000‌
135,962‌
TransDigm,
7.125%,
12/1/31 (1)
106,169,000‌
109,917‌
USI,
7.50%,
1/15/32 (1)
130,072,000‌
131,436‌
Vail
Resorts,
6.50%,
5/15/32 (1)
31,752,000‌
32,322‌
Yum!
Brands,
3.625%,
3/15/31 
58,624,000‌
54,560‌
Yum!
Brands,
4.625%,
1/31/32 
102,997,000‌
98,551‌
Yum!
Brands,
4.75%,
1/15/30 (1)
46,930,000‌
46,163‌
Yum!
Brands,
5.35%,
11/1/43 
84,184,000‌
78,801‌
Yum!
Brands,
5.375%,
4/1/32 
121,510,000‌
120,784‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
15
Shares/Par
$
Value
(Cost
and
value
in
$000s)
‡
Yum!
Brands,
6.875%,
11/15/37 
36,509,000‌
39,559‌
Total
Miscellaneous
Corporate
Bonds
 0.8% (9)
607,062‌
Total
Corporate
Bonds
(Cost
$5,542,616)
5,601,904‌
PREFERRED
STOCKS
 0.2%
FINANCIALS
 0.2%
Insurance
 0.2%
AH
Parent,
Series
A,
Acquisition
Date:
9/27/24,
Cost $140,396 (7)(8)
142,534‌
141,821‌
Total
Financials
141,821‌
Total
Preferred
Stocks
(Cost
$140,396)
141,821‌
U.S.
GOVERNMENT
AGENCY
OBLIGATIONS
(EXCLUDING
MORTGAGE-BACKED)
 15.3%
U.S.
Treasury
Obligations
 15.3%
U.S.
Treasury
Notes,
3.50%,
11/30/30 
1,126,171,000‌
1,094,585‌
U.S.
Treasury
Notes,
3.50%,
2/28/31 
1,806,401,300‌
1,753,338‌
U.S.
Treasury
Notes,
3.625%,
10/31/30 
1,470,333,000‌
1,437,021‌
U.S.
Treasury
Notes,
3.625%,
12/31/30 
454,769,000‌
444,075‌
U.S.
Treasury
Notes,
3.75%,
1/31/31 
784,040,000‌
769,278‌
U.S.
Treasury
Notes,
3.75%,
2/28/33 
1,233,257,100‌
1,194,525‌
U.S.
Treasury
Notes,
3.875%,
3/31/31 
1,116,557,000‌
1,100,855‌
U.S.
Treasury
Notes,
3.875%,
12/31/32 
888,358,000‌
867,468‌
U.S.
Treasury
Notes,
4.00%,
1/31/33 
704,762,000‌
692,814‌
U.S.
Treasury
Notes,
4.25%,
5/31/33 
1,426,880,000‌
1,421,864‌
10,775,823‌
Total
U.S.
Government
Agency
Obligations
(Excluding
Mortgage-Backed)
(Cost
$10,929,284)
10,775,823‌
SHORT-TERM
INVESTMENTS
 4.5%
Money
Market
Funds
 4.5%
T.
Rowe
Price
Government
Reserve
Fund,
3.69% (3)(11)
3,167,810,003‌
3,167,810‌
Total
Short-Term
Investments
(Cost
$3,167,810)
3,167,810‌
Total
Investments
in
Securities
99.7%
of
Net
Assets
(Cost
$57,023,503)
$
70,167,513‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
16
‡
Shares/Par
and
Notional
Amount
are
denominated
in
U.S.
dollars
unless
otherwise
noted.
(1)
Security
was
purchased
pursuant
to
Rule
144A
under
the
Securities
Act
of
1933
and
may
be
resold
in
transactions
exempt
from
registration
only
to
qualified
institutional
buyers.
Total
value
of
such
securities
at
period-end
amounts
to
$3,523,525
and
represents
5.0%
of
net
assets.
(2)
Bank
loan
positions
may
involve
multiple
underlying
tranches.
In
those
instances,
the
position
presented
reflects
the
aggregate
of
those
respective
underlying
tranches
and
the
rate
presented
reflects
the
weighted
average
rate
of
the
settled
positions.
(3)
Affiliated
Companies
(4)
SEC
30-day
yield
(5)
At
June
30,
2026,
all
or
a
portion
of
this
security
is
pledged
as
collateral
and/
or
margin
deposit
to
cover
future
funding
obligations.
(6)
Non-income
producing
(7)
See
Note
2.
Level
3
in
fair
value
hierarchy.
(8)
Security
cannot
be
offered
for
public
resale
without
first
being
registered
under
the
Securities
Act
of
1933
and
related
rules
("restricted
security").
Acquisition
date
represents
the
day
on
which
an
enforceable
right
to
acquire
such
security
is
obtained
and
is
presented
along
with
related
cost
in
the
security
description.
The
fund
may
have
registration
rights
for
certain
restricted
securities.
Any
costs
related
to
such
registration
are
generally
borne
by
the
issuer.
The
aggregate
value
of
restricted
securities
(excluding
144A
holdings)
at
period
end
amounts
to
$4,717,928
and
represents
6.7%
of
net
assets.
(9)
The
identity
of
certain
securities
has
been
concealed
to
protect
the
fund
while
it
completes
a
purchase
or
selling
program
for
the
securities.
(10)
Security
is
a
fix-to-float
security,
which
carries
a
fixed
coupon
until
a
certain
date,
upon
which
it
switches
to
a
floating
rate.
Reference
rate
and
spread
are
provided
if
the
rate
is
currently
floating.
(11)
Seven-day
yield
T.
ROWE
PRICE
Capital
Appreciation
Fund
17
1M
EURIBOR
One
month
EURIBOR
(Euro
interbank
offered
rate)
1M
TSFR
One
month
term
SOFR
(Secured
overnight
financing
rate)
3M
TSFR
Three
month
term
SOFR
(Secured
overnight
financing
rate)
CVR
Contingent
Value
Rights
EC
Escrow
CUSIP;
represents
a
beneficial
interest
in
a
residual
pool
of
assets;
the
amount
and
timing
of
future
distributions,
if
any,
is
uncertain;
when
presented,
interest
rate
and
maturity
date
are
those
of
the
original
security.
EUR
Euro
FRN
Floating
Rate
Note
OTC
Over-the-counter
PIPE
Private
Investment
in
Public
Equity
TWD
Taiwan
Dollar
VR
Variable
Rate;
rate
shown
is
effective
rate
at
period-end.
The
rates
for
certain
variable
rate
securities
are
not
based
on
a
published
reference
rate
and
spread
but
are
determined
by
the
issuer
or
agent
and
based
on
current
market
conditions.
T.
ROWE
PRICE
Capital
Appreciation
Fund
18
(Amounts
in
000s,
except
for
contracts)
OPTIONS
WRITTEN
 (0.6)%
OTC
Options
Written (0.6)%
Counterparty
Description
Contracts
Notional
Amount
$
Value
Bank
of
America
Apple,
Call,
1/15/27
@
$300.00
4,074
117,885
(8,433‌)
Bank
of
America
Apple,
Call,
6/17/27
@
$340.00
1,598
46,240
(2,641‌)
Bank
of
America
Apple,
Call,
6/17/27
@
$350.00
1,597
46,211
(2,196‌)
Bank
of
America
Apple,
Call,
6/17/27
@
$360.00
1,598
46,240
(1,894‌)
Bank
of
America
Apple,
Call,
6/17/27
@
$370.00
1,598
46,240
(1,546‌)
Bank
of
America
DoorDash,
Class
A,
Call,
3/19/27
@
$175.00
2,285
42,165
(9,488‌)
Bank
of
America
DoorDash,
Class
A,
Call,
3/19/27
@
$180.00
2,285
42,165
(8,951‌)
Bank
of
America
DoorDash,
Class
A,
Call,
3/19/27
@
$185.00
2,286
42,184
(8,458‌)
Bank
of
America
DoorDash,
Class
A,
Call,
3/19/27
@
$190.00
2,286
42,184
(7,932‌)
Barclays
Bank
Mastercard,
Class
A,
Call,
1/15/27
@
$570.00
670
34,411
(1,333‌)
Barclays
Bank
Mastercard,
Class
A,
Call,
1/15/27
@
$580.00
1,097
56,342
(1,876‌)
Barclays
Bank
Mastercard,
Class
A,
Call,
1/15/27
@
$600.00
1,767
90,753
(2,218‌)
Barclays
Bank
Mastercard,
Class
A,
Call,
6/17/27
@
$550.00
716
36,774
(3,068‌)
Barclays
Bank
Mastercard,
Class
A,
Call,
6/17/27
@
$560.00
716
36,774
(2,875‌)
Barclays
Bank
Mastercard,
Class
A,
Call,
6/17/27
@
$580.00
716
36,774
(2,391‌)
Barclays
Bank
Mastercard,
Class
A,
Call,
6/17/27
@
$590.00
716
36,774
(2,105‌)
Citibank
UnitedHealth
Group,
Call,
6/17/27
@
$420.00
738
30,673
(4,291‌)
Citibank
UnitedHealth
Group,
Call,
6/17/27
@
$440.00
738
30,673
(3,590‌)
Citibank
UnitedHealth
Group,
Call,
6/17/27
@
$450.00
738
30,673
(3,249‌)
Citibank
UnitedHealth
Group,
Call,
6/17/27
@
$460.00
738
30,673
(3,035‌)
Citibank
Visa,
Class
A,
Call,
1/15/27
@
$345.00
860
29,506
(2,283‌)
T.
ROWE
PRICE
Capital
Appreciation
Fund
19
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
Citibank
Visa,
Class
A,
Call,
1/15/27
@
$360.00
1,544
52,973
(2,992‌)
Citibank
Visa,
Class
A,
Call,
1/15/27
@
$365.00
860
29,506
(1,505‌)
Citibank
Visa,
Class
A,
Call,
1/15/27
@
$375.00
1,544
52,973
(2,138‌)
Goldman
Sachs
Broadcom,
Call,
1/15/27
@
$390.00
2,544
96,100
(13,846‌)
Goldman
Sachs
Broadcom,
Call,
1/15/27
@
$410.00
2,544
96,100
(11,715‌)
Goldman
Sachs
Ingersoll
Rand,
Call,
1/15/27
@
$95.00
4,134
33,895
(2,005‌)
Goldman
Sachs
Ingersoll
Rand,
Call,
1/15/27
@
$100.00
4,134
33,895
(1,323‌)
Goldman
Sachs
Ingersoll
Rand,
Call,
3/19/27
@
$80.00
3,045
24,966
(3,791‌)
Goldman
Sachs
Ingersoll
Rand,
Call,
3/19/27
@
$85.00
3,045
24,966
(2,908‌)
Goldman
Sachs
Visa,
Class
A,
Call,
6/17/27
@
$360.00
1,081
37,088
(3,335‌)
Goldman
Sachs
Visa,
Class
A,
Call,
6/17/27
@
$370.00
1,081
37,088
(2,881‌)
Goldman
Sachs
Visa,
Class
A,
Call,
6/17/27
@
$380.00
1,081
37,088
(2,473‌)
Goldman
Sachs
Visa,
Class
A,
Call,
6/17/27
@
$390.00
1,081
37,088
(2,084‌)
JPMorgan
Chase
Advanced
Micro
Devices,
Call,
1/15/27
@
$310.00
1,677
97,419
(49,270‌)
JPMorgan
Chase
Advanced
Micro
Devices,
Call,
1/15/27
@
$320.00
1,677
97,419
(47,971‌)
JPMorgan
Chase
Alphabet,
Class
A,
Call,
1/15/27
@
$360.00
1,345
48,066
(5,404‌)
JPMorgan
Chase
Alphabet,
Class
A,
Call,
1/15/27
@
$370.00
1,345
48,066
(4,829‌)
JPMorgan
Chase
Alphabet,
Class
A,
Call,
1/15/27
@
$380.00
1,345
48,066
(4,274‌)
JPMorgan
Chase
Alphabet,
Class
A,
Call,
1/15/27
@
$400.00
2,518
89,986
(6,112‌)
JPMorgan
Chase
Alphabet,
Class
A,
Call,
1/15/27
@
$415.00
2,518
89,986
(5,149‌)
JPMorgan
Chase
Alphabet,
Class
C,
Call,
6/17/27
@
$430.00
1,123
39,679
(3,372‌)
JPMorgan
Chase
Alphabet,
Class
C,
Call,
6/17/27
@
$440.00
1,123
39,679
(3,069‌)
T.
ROWE
PRICE
Capital
Appreciation
Fund
20
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
JPMorgan
Chase
Alphabet,
Class
C,
Call,
6/17/27
@
$450.00
1,123
39,679
(2,830‌)
JPMorgan
Chase
Alphabet,
Class
C,
Call,
6/17/27
@
$460.00
1,123
39,679
(2,574‌)
JPMorgan
Chase
Canadian
Natural
Resources,
Call,
1/15/27
@
$50.00
4,641
18,332
(441‌)
JPMorgan
Chase
Canadian
Natural
Resources,
Call,
1/15/27
@
$52.50
4,641
18,332
(534‌)
JPMorgan
Chase
Canadian
Natural
Resources,
Call,
1/15/27
@
$55.00
4,641
18,332
(244‌)
JPMorgan
Chase
Canadian
Natural
Resources,
Call,
1/15/27
@
$57.50
4,641
18,332
(278‌)
JPMorgan
Chase
PTC,
Call,
1/15/27
@
$155.00
677
7,691
(228‌)
JPMorgan
Chase
PTC,
Call,
1/15/27
@
$160.00
677
7,691
(205‌)
JPMorgan
Chase
PTC,
Call,
1/15/27
@
$165.00
677
7,691
(144‌)
JPMorgan
Chase
PTC,
Call,
1/15/27
@
$170.00
677
7,691
(149‌)
Nomura
Securities
International
DoorDash,
Class
A,
Call,
1/15/27
@
$230.00
1,709
31,536
(2,833‌)
UBS
Investment
Bank
Alphabet,
Class
A,
Call,
1/15/27
@
$340.00
1,391
49,710
(7,070‌)
UBS
Investment
Bank
Alphabet,
Class
A,
Call,
1/15/27
@
$350.00
1,391
49,710
(6,312‌)
UBS
Investment
Bank
Alphabet,
Class
A,
Call,
1/15/27
@
$360.00
1,391
49,710
(5,588‌)
UBS
Investment
Bank
Amazon.com,
Call,
1/15/27
@
$300.00
1,826
43,521
(1,780‌)
UBS
Investment
Bank
Amazon.com,
Call,
1/15/27
@
$305.00
1,826
43,521
(1,621‌)
UBS
Investment
Bank
Amazon.com,
Call,
1/15/27
@
$310.00
1,826
43,521
(1,484‌)
UBS
Investment
Bank
Amazon.com,
Call,
1/15/27
@
$315.00
1,826
43,521
(1,369‌)
UBS
Investment
Bank
Amazon.com,
Call,
1/15/27
@
$320.00
1,826
43,521
(1,237‌)
UBS
Investment
Bank
Amazon.com,
Call,
6/17/27
@
$300.00
1,562
37,229
(3,097‌)
T.
ROWE
PRICE
Capital
Appreciation
Fund
21
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
UBS
Investment
Bank
Amazon.com,
Call,
6/17/27
@
$310.00
1,823
43,449
(3,213‌)
UBS
Investment
Bank
Amazon.com,
Call,
6/17/27
@
$320.00
1,823
43,449
(2,867‌)
UBS
Investment
Bank
Amazon.com,
Call,
6/17/27
@
$330.00
1,823
43,449
(2,589‌)
UBS
Investment
Bank
Starbucks,
Call,
1/15/27
@
$105.00
8,146
83,244
(6,761‌)
UBS
Investment
Bank
Starbucks,
Call,
1/15/27
@
$110.00
8,146
83,244
(5,010‌)
UBS
Investment
Bank
Starbucks,
Call,
1/15/27
@
$115.00
9,537
97,459
(4,315‌)
UBS
Investment
Bank
Yum!
Brands,
Call,
1/15/27
@
$165.00
2,799
44,745
(2,407‌)
UBS
Investment
Bank
Yum!
Brands,
Call,
1/15/27
@
$180.00
2,135
34,130
(811‌)
UBS
Investment
Bank
Yum!
Brands,
Call,
1/15/27
@
$185.00
2,135
34,130
(635‌)
UBS
Investment
Bank
Yum!
Brands,
Call,
6/17/27
@
$165.00
932
14,899
(1,282‌)
UBS
Investment
Bank
Yum!
Brands,
Call,
6/17/27
@
$170.00
932
14,899
(1,076‌)
UBS
Investment
Bank
Yum!
Brands,
Call,
6/17/27
@
$175.00
932
14,899
(895‌)
UBS
Investment
Bank
Yum!
Brands,
Call,
6/17/27
@
$180.00
932
14,899
(736‌)
Wells
Fargo
Bank
JPMorgan
Chase,
Call,
6/17/27
@
$340.00
2,610
85,433
(7,680‌)
Wells
Fargo
Bank
JPMorgan
Chase,
Call,
6/17/27
@
$350.00
2,610
85,433
(6,525‌)
Wells
Fargo
Bank
JPMorgan
Chase,
Call,
6/17/27
@
$360.00
2,610
85,433
(5,625‌)
Wells
Fargo
Bank
Meta
Platforms,
Class
A,
Call,
6/17/27
@
$740.00
1,003
56,498
(4,295‌)
Wells
Fargo
Bank
Meta
Platforms,
Class
A,
Call,
6/17/27
@
$760.00
1,003
56,498
(3,844‌)
Wells
Fargo
Bank
Microsoft,
Call,
6/17/27
@
$470.00
1,030
38,421
(2,853‌)
Wells
Fargo
Bank
Microsoft,
Call,
6/17/27
@
$490.00
1,030
38,421
(2,441‌)
Wells
Fargo
Bank
Microsoft,
Call,
6/17/27
@
$500.00
1,030
38,421
(2,251‌)
Wells
Fargo
Bank
Revvity,
Call,
12/18/26
@
$105.00
1,015
11,293
(1,822‌)
T.
ROWE
PRICE
Capital
Appreciation
Fund
22
(Amounts
in
000s,
except
for
contracts)
Counterparty
Description
Contracts
Notional
Amount
$
Value
Wells
Fargo
Bank
Revvity,
Call,
12/18/26
@
$110.00
1,015
11,293
(1,553‌)
Wells
Fargo
Bank
Revvity,
Call,
12/18/26
@
$115.00
1,015
11,293
(1,350‌)
Wells
Fargo
Bank
Revvity,
Call,
12/18/26
@
$120.00
1,015
11,293
(1,091‌)
Wells
Fargo
Bank
Waters,
Call,
1/15/27
@
$380.00
621
23,290
(2,565‌)
Wells
Fargo
Bank
Waters,
Call,
1/15/27
@
$390.00
621
23,290
(2,242‌)
Wells
Fargo
Bank
Waters,
Call,
1/15/27
@
$400.00
621
23,290
(2,021‌)
Wells
Fargo
Bank
Waters,
Call,
1/15/27
@
$410.00
621
23,290
(1,726‌)
Total
Options
Written
(Premiums
$(300,970))
$
(388,798‌)
T.
ROWE
PRICE
Capital
Appreciation
Fund
23
AFFILIATED
COMPANIES
($000s)
The
fund
may
invest
in
certain
securities
that
are
considered
affiliated
companies.
As
defined
by
the
1940
Act,
an
affiliated
company
is
one
in
which
the
fund
owns
5%
or
more
of
the
outstanding
voting
securities,
or
a
company
that
is
under
common
ownership
or
control.
The
following
securities
were
considered
affiliated
companies
for
all
or
some
portion
of
the
six
months
ended
June
30,
2026.
Net
realized
gain
(loss),
investment
income,
change
in
net
unrealized
gain/loss,
and
purchase
and
sales
cost
reflect
all
activity
for
the
period
then
ended.
Affiliate
Net
Realized
Gain
(Loss)
Change
in
Net
Unrealized
Gain/Loss
Investment
Income
Ascendis
Pharma 
$
—‌
$
143,046‌
$
—‌
Aurora
Innovation 
—‌
478,253‌
—‌
CenterPoint
Energy 
—‌
205,078‌
17,040‌
CenterPoint
Energy,
VR,
5.95%,
4/1/56 
—‌
(572‌)
3,191‌
Ethos
DBA
Broadstreet 
—‌
(138,737‌)
—‌
NiSource 
116,178‌
71,675‌
16,265‌
NiSource,
VR,
5.75%,
7/15/56 
—‌
(1,517‌)
5,377‌
PTC 
(200,074‌)
(234,531‌)
—‌
PTC,
4.00%,
2/15/28 
—‌
(238‌)
823‌
Revvity 
(82,383‌)
269,725‌
1,996‌
T.
Rowe
Price
Institutional
Floating
Rate
Fund
-
Institutional
Class,
6.58% 
—‌
(19,953‌)
32,523‌
TeamShares ^^
—‌
(17,003‌)
—‌
T.
Rowe
Price
Government
Reserve
Fund,
3.69%
—‌
—‌
48,611‌
Affiliates
not
held
at
period
end
326,742‌
(145‌)
—‌
Totals
$
160,463‌#
$
755,081‌
$
125,826‌+
T.
ROWE
PRICE
Capital
Appreciation
Fund
24
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
AFFILIATED
COMPANIES
(CONTINUED)
($000s)
Supplementary
Investment
Schedule
Affiliate
Value
12/31/25
Purchase
Cost
Sales
Cost
Value
6/30/26
Apogee
Therapeutics 
$
*
$
295,771‌
$
393,869‌
$
—‌
Ascendis
Pharma 
—‌
754,405‌
—‌
897,451‌
Aurora
Innovation 
603,781‌
20,632‌
—‌
1,102,666‌
CenterPoint
Energy 
1,368,456‌
191,239‌
—‌
1,764,773‌
CenterPoint
Energy,
VR,
5.95%,
4/1/56 
93,002‌
34,125‌
—‌
126,555‌
Ethos
DBA
Broadstreet 
*
—‌
1‌
439,335‌
NiSource 
1,323,855‌
16,875‌
624,742‌
*
NiSource,
VR,
5.75%,
7/15/56 
182,497‌
13,649‌
—‌
*
PTC 
1,257,843‌
127,393‌
689,265‌
*
PTC,
4.00%,
2/15/28 
40,490‌
—‌
—‌
*
Revvity 
1,389,967‌
—‌
409,457‌
1,250,235‌
T.
Rowe
Price
Institutional
Floating
Rate
Fund
-
Institutional
Class,
6.58% 
980,961‌
32,367‌
—‌
993,375‌
TeamShares ^^
107,882‌
107,067‌
107,067‌
90,879‌
T.
Rowe
Price
Government
Reserve
Fund,
3.69%
1,840,158‌
 ¤
 ¤
3,167,810‌
Total
$
9,833,079‌^
^^
Includes
previously
reported
affiliates
Live
Oak
Acquisition
V
SPAC/TeamShares
PIPE,
Class
A
acquired
through
a
corporate
action.
#
Capital
gain
distributions
from
underlying
Price
funds
represented
$0
of
the
net
realized
gain
(loss).
+
Investment
income
comprised
$116,435
of
dividend
income
and
$9,391
of
interest
income.
*
On
the
date
indicated,
issuer
was
held
but
not
considered
an
affiliated
company.
¤
Purchase
and
sale
information
not
shown
for
cash
management
funds.
^
The
cost
basis
of
investments
in
affiliated
companies
was
$8,795,387.
T.
ROWE
PRICE
Capital
Appreciation
Fund
June
30,
2026
Unaudited
Statement
of
Assets
and
Liabilities
25
($000s,
except
shares
and
per
share
amounts)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Assets
Investments
in
securities,
at
value
(cost
$57,023,503)
$
70,167,513‌
Receivable
for
investment
securities
sold
947,801‌
Interest
and
dividends
receivable
199,168‌
Cash
56,415‌
Receivable
for
shares
sold
39,983‌
Foreign
currency
(cost
$33,652)
33,092‌
Other
assets
674‌
Total
assets
71,444,646‌
Liabilities
Payable
for
investment
securities
purchased
576,397‌
Options
written
(premiums
$300,970)
388,798‌
Payable
for
shares
redeemed
51,129‌
Investment
management
fees
payable
31,984‌
Due
to
affiliates
745‌
Payable
to
directors
39‌
Other
liabilities
11,158‌
Total
liabilities
1,060,250‌
NET
ASSETS
$
70,384,396‌
Net
Assets
Consist
of:
Total
distributable
earnings
(loss)
$
17,543,905‌
Paid-in
capital
applicable
to
1,858,545,178
shares
of
$0.0001
par
value
capital
stock
outstanding;
4,000,000,000
shares
authorized
52,840,491‌
NET
ASSETS
$
70,384,396‌
NET
ASSET
VALUE
PER
SHARE
Investor
Class
(Net
assets:
$37,013,985;
Shares
outstanding:
977,267,449)
$
37.87‌
Advisor
Class
(Net
assets:
$816,741;
Shares
outstanding:
22,001,300)
$
37.12‌
I
Class
(Net
assets:
$32,553,670;
Shares
outstanding:
859,276,429)
$
37.88‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Statement
of
Operations
26
($000s)
6
Months
Ended
6/30/26
Investment
Income
(Loss)
Income
.
  Interest
$
548,182‌
Dividend
(net
of
foreign
taxes
of
$2,187)
272,418‌
Other
8‌
Total
income
820,608‌
Expenses
Investment
management
200,534‌
Shareholder
servicing
Investor
Class
$
25,521‌
Advisor
Class
620‌
I
Class
1,637‌
27,778‌
Rule
12b-1
fees
Advisor
Class
989‌
Prospectus
and
shareholder
reports
Investor
Class
266‌
Advisor
Class
6‌
I
Class
133‌
405‌
Registration
821‌
Custody
and
accounting
692‌
Directors
95‌
Legal
and
audit
37‌
Miscellaneous
215‌
Waived
/
paid
by
Price
Associates
(
8,907‌
)
Total
expenses
222,659‌
Net
investment
income
597,949‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Statement
of
Operations
27
($000s)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
6/30/26
Realized
and
Unrealized
Gain
/
Loss
–
Net
realized
gain
(loss)
Securities
3,135,055‌
Options
written
104,979‌
Foreign
currency
transactions
(
2,829‌
)
Net
realized
gain
3,237,205‌
Change
in
net
unrealized
gain
/
loss
Securities
231,710‌
Options
written
(
33,632‌
)
Other
assets
and
liabilities
denominated
in
foreign
currencies
(
983‌
)
Change
in
net
unrealized
gain
/
loss
197,095‌
Net
realized
and
unrealized
gain
/
loss
3,434,300‌
INCREASE
IN
NET
ASSETS
FROM
OPERATIONS
$
4,032,249‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Statement
of
Changes
in
Net
Assets
28
($000s)
6
Months
Ended
6/30/26
Year
Ended
12/31/25
Increase
(Decrease)
in
Net
Assets
Operations
Net
investment
income
$
597,949‌
$
1,289,092‌
Net
realized
gain
3,237,205‌
5,152,694‌
Change
in
net
unrealized
gain
/
loss
197,095‌
1,512,291‌
Increase
in
net
assets
from
operations
4,032,249‌
7,954,077‌
Distributions
to
shareholders
Net
earnings
Investor
Class
–‌
(
3,059,499‌
)
Advisor
Class
–‌
(
66,846‌
)
I
Class
–‌
(
2,691,447‌
)
Decrease
in
net
assets
from
distributions
–‌
(
5,817,792‌
)
Capital
share
transactions
*
Shares
sold
Investor
Class
2,243,029‌
5,929,693‌
Advisor
Class
37,845‌
81,487‌
I
Class
1,653,913‌
4,886,792‌
Distributions
reinvested
Investor
Class
–‌
2,977,021‌
Advisor
Class
–‌
65,431‌
I
Class
–‌
2,578,270‌
Shares
redeemed
Investor
Class
(
4,775,250‌
)
(
7,513,960‌
)
Advisor
Class
(
95,583‌
)
(
134,748‌
)
I
Class
(
3,300,543‌
)
(
4,653,365‌
)
Increase
(decrease)
in
net
assets
from
capital
share
transactions
(
4,236,589‌
)
4,216,621‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
Statement
of
Changes
in
Net
Assets
29
($000s)
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
Months
Ended
6/30/26
Year
Ended
12/31/25
Net
Assets
Increase
(decrease)
during
period
(
204,340‌
)
6,352,906‌
Beginning
of
period
70,588,736‌
64,235,830‌
End
of
period
$
70,384,396‌
$
70,588,736‌
*Share
information
(000s)
Shares
sold
Investor
Class
62,011‌
162,372‌
Advisor
Class
1,066‌
2,280‌
I
Class
45,610‌
134,062‌
Distributions
reinvested
Investor
Class
–‌
84,455‌
Advisor
Class
–‌
1,891‌
I
Class
–‌
73,163‌
Shares
redeemed
Investor
Class
(
131,649‌
)
(
206,716‌
)
Advisor
Class
(
2,693‌
)
(
3,762‌
)
I
Class
(
91,232‌
)
(
128,185‌
)
Increase
(decrease)
in
shares
outstanding
(
116,887‌
)
119,560‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
Unaudited
NOTES
TO
FINANCIAL
STATEMENTS
30
T.
Rowe
Price
Capital
Appreciation
Fund,
Inc. (the
corporation)
is
registered
under
the
Investment
Company
Act
of
1940
(the
1940
Act).
The
Capital
Appreciation
Fund
(the
fund)
is a
diversified, open-end
management
investment
company
established
by
the
corporation. The
fund
seeks long-term
capital
appreciation
by
investing
primarily
in
common
stocks.
It
may
also
hold
fixed-income
and
other
securities
to
help
preserve
principal
value.
The
fund
has three classes
of
shares:
the
Capital
Appreciation
Fund
(Investor
Class),
the
Capital
Appreciation
Fund–Advisor
Class
(Advisor
Class)
and
the
Capital
Appreciation
Fund–I
Class
(I
Class).
Advisor
Class
shares
are
sold
only
through
various
brokers
and
other
financial
intermediaries.
I
Class
shares
require
a
$500,000
initial
investment
minimum,
although
the
minimum
generally
is
waived
or
reduced
for
financial
intermediaries,
eligible
retirement
plans,
and
certain
other
accounts.
The
Advisor
Class
operates
under
a
Board-approved
Rule
12b-1
plan
pursuant
to
which
the
class
compensates
financial
intermediaries
for
distribution,
shareholder
servicing,
and/or
certain
administrative
services;
the
Investor
and
I
Classes
do
not
pay
Rule
12b-1
fees. Each
class
has
exclusive
voting
rights
on
matters
related
solely
to
that
class;
separate
voting
rights
on
matters
that
relate
to
all
classes;
and,
in
all
other
respects,
the
same
rights
and
obligations
as
the
other
classes. 
NOTE
1
-
SIGNIFICANT
ACCOUNTING
POLICIES 
Basis
of
Preparation
 The fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
in
the
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standards
Codification
Topic
946
(ASC
946).
The
accompanying
financial
statements
were
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(GAAP),
including,
but
not
limited
to,
ASC
946.
GAAP
requires
the
use
of
estimates
made
by
management.
Management
believes
that
estimates
and
valuations
are
appropriate;
however,
actual
results
may
differ
from
those
estimates,
and
the
valuations
reflected
in
the
accompanying
financial
statements
may
differ
from
the
value
ultimately
realized
upon
sale
or
maturity.
Investment
Transactions,
Investment
Income,
and
Distributions
 Investment
transactions
are
accounted
for
on
the
trade
date
basis.
Income
and
expenses
are
recorded
on
the
accrual
basis.
Realized
gains
and
losses
are
reported
on
the
identified
cost
basis. Premiums
and
discounts
on
debt
securities
are
amortized
for
financial
reporting
purposes. Paydown
gains
and
losses
are
T.
ROWE
PRICE
Capital
Appreciation
Fund
31
recorded
as
an
adjustment
to
interest
income. Income
tax-related
interest
and
penalties,
if
incurred,
are
recorded
as
income
tax
expense. Dividends
received
from other
investment
companies are
reflected
as
dividend income;
capital
gain
distributions
are
reflected
as
realized
gain/loss. Dividend
income and
capital
gain
distributions
are
recorded
on
the
ex-dividend
date. Non-cash
dividends,
if
any,
are
recorded
at
the
fair
market
value
of
the
asset
received. Proceeds
from
litigation
payments,
if
any,
are
included
in
either
net
realized
gain
(loss)
or
change
in
net
unrealized
gain/loss
from
securities. Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date. Income
distributions,
if
any,
are
declared
and
paid
by
each
class annually. A
capital
gain
distribution,
if
any, may
also
be
declared
and
paid
by
the
fund
annually.
Currency
Translation
 Assets,
including
investments,
and
liabilities
denominated
in
foreign
currencies
are
translated
into
U.S.
dollar
values
each
day
at
the
prevailing
exchange
rate,
using
the
mean
of
the
bid
and
asked
prices
of
such
currencies
against
U.S.
dollars
as
provided
by
an
outside
pricing
service.
Purchases
and
sales
of
securities,
income,
and
expenses
are
translated
into
U.S.
dollars
at
the
prevailing
exchange
rate
on
the
respective
date
of
such
transaction.
The
effect
of
changes
in
foreign
currency
exchange
rates
on
realized
and
unrealized
security
gains
and
losses
is
not
bifurcated
from
the
portion
attributable
to
changes
in
market
prices.
Class
Accounting
 Shareholder
servicing,
prospectus,
and
shareholder
report
expenses
incurred
by
each
class
are
charged
directly
to
the
class
to
which
they
relate.
Expenses
common
to
all
classes,
investment
income,
and
realized
and
unrealized
gains
and
losses
are
allocated
to
the
classes
based
upon
the
relative
daily
net
assets
of
each
class.
The
Advisor
Class
pays
Rule
12b-1
fees,
in
an
amount
not
exceeding
0.25%
of
the
class’s
average
daily
net
assets.
Capital
Transactions
 Each
investor’s
interest
in
the
net
assets
of
the
fund
is
represented
by
fund
shares.
The
fund’s
net
asset
value
(NAV)
per
share
is
computed
at
the
close
of
the
New
York
Stock
Exchange
(NYSE),
normally
4
p.m.
Eastern
time,
each
day
the
NYSE
is
open
for
business.
However,
the
NAV
per
share
may
be
calculated
at
a
time
other
than
the
normal
close
of
the
NYSE
if
trading
on
the
NYSE
is
restricted,
if
the
NYSE
closes
earlier,
or
as
may
be
permitted
by
the
SEC.
Purchases
and
redemptions
of
fund
shares
are
transacted
at
the
next-computed
NAV
per
share,
after
receipt
of
the
transaction
order
by
T.
Rowe
Price
Associates,
Inc.,
or
its
agents.
T.
ROWE
PRICE
Capital
Appreciation
Fund
32
Indemnification
 In
the
normal
course
of
business, the
fund
may
provide
indemnification
in
connection
with
its
officers
and
directors,
service
providers,
and/or
private
company
investments. The
fund’s
maximum
exposure
under
these
arrangements
is
unknown;
however,
the
risk
of
material
loss
is
currently
considered
to
be
remote.
NOTE
2
-
VALUATION 
Fair
Value
  The
fund’s
financial
instruments
are
valued
at
the
close
of
the
NYSE
and
are
reported
at
fair
value,
which
GAAP
defines
as
the
price
that
would
be
received
to
sell
an
asset
or
paid
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date. The fund’s
Board
of
Directors
(the
Board)
has
designated
T.
Rowe
Price
Associates,
Inc.
as
the
fund’s
valuation
designee
(Valuation
Designee).
Subject
to
oversight
by
the
Board,
the
Valuation
Designee
performs
the
following
functions
in
performing
fair
value
determinations:
assesses
and
manages
valuation
risks;
establishes
and
applies
fair
value
methodologies;
tests
fair
value
methodologies;
and
evaluates
pricing
vendors
and
pricing
agents.
The
duties
and
responsibilities
of
the
Valuation
Designee
are
performed
by
its
Valuation
Committee. The
Valuation
Designee provides
periodic
reporting
to
the
Board
on
valuation
matters.
Various
valuation
techniques
and
inputs
are
used
to
determine
the
fair
value
of
financial
instruments.
GAAP
establishes
the
following
fair
value
hierarchy
that
categorizes
the
inputs
used
to
measure
fair
value:
Level
1
–
quoted
prices
(unadjusted)
in
active
markets
for
identical
financial
instruments
that
the
fund
can
access
at
the
reporting
date
Level
2
–
inputs
other
than
Level
1
quoted
prices
that
are
observable,
either
directly
or
indirectly
(including,
but
not
limited
to,
quoted
prices
for
similar
financial
instruments
in
active
markets,
quoted
prices
for
identical
or
similar
financial
instruments
in
inactive
markets,
interest
rates
and
yield
curves,
implied
volatilities,
and
credit
spreads)
Level
3
–
unobservable
inputs
(including
the Valuation
Designee’s assumptions
in
determining
fair
value)
Observable
inputs
are
developed
using
market
data,
such
as
publicly
available
information
about
actual
events
or
transactions,
and
reflect
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
Unobservable
inputs
are
those
for
which
market
data
are
not
available
and
are
developed
T.
ROWE
PRICE
Capital
Appreciation
Fund
33
using
the
best
information
available
about
the
assumptions
that
market
participants
would
use
to
price
the
financial
instrument.
GAAP
requires
valuation
techniques
to
maximize
the
use
of
relevant
observable
inputs
and
minimize
the
use
of
unobservable
inputs.
When
multiple
inputs
are
used
to
derive
fair
value,
the
financial
instrument
is
assigned
to
the
level
within
the
fair
value
hierarchy
based
on
the
lowest-level
input
that
is
significant
to
the
fair
value
of
the
financial
instrument.
Input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level
but
rather
the
degree
of
judgment
used
in
determining
those
values.
Valuation
Techniques 
Equity
securities,
including
exchange-traded
funds, listed
or
regularly
traded
on
a
securities
exchange
or
in
the
over-the-
counter
(OTC)
market
are
valued
at
the
last
quoted
sale
price
or,
for
certain
markets,
the
official
closing
price
at
the
time
the
valuations
are
made.
OTC
Bulletin
Board
securities
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices.
A
security
that
is
listed
or
traded
on
more
than
one
exchange
is
valued
at
the
quotation
on
the
exchange
determined
to
be
the
primary
market
for
such
security.
Listed
securities
not
traded
on
a
particular
day
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices
for
domestic
securities
and
the
last
quoted
sale
or
closing
price
for
international
securities.
The
last
quoted
prices
of
non-U.S.
equity
securities
may
be
adjusted
to
reflect
the
fair
value
of
such
securities
at
the
close
of
the
NYSE,
if
the Valuation
Designee
determines
that
developments
between
the
close
of
a
foreign
market
and
the
close
of
the
NYSE
will
affect
the
value
of
some
or
all
of
the
fund’s portfolio
securities.
Each
business
day,
the
Valuation
Designee uses
information
from
outside
pricing
services
to
evaluate
the
quoted
prices
of
portfolio
securities
and,
if
appropriate,
decides whether
it
is
necessary
to
adjust
quoted
prices
to
reflect
fair
value
by
reviewing
a
variety
of
factors,
including
developments
in
foreign
markets,
the
performance
of
U.S.
securities
markets,
and
the
performance
of
instruments
trading
in
U.S.
markets
that
represent
foreign
securities
and
baskets
of
foreign
securities. The Valuation
Designee
uses
outside
pricing
services
to
provide
it
with
quoted
prices
and
information
to
evaluate
or
adjust
those
prices.
The Valuation
Designee
cannot
predict
how
often
it
will
use
quoted
prices
or how
often
it
will
determine
it
necessary
to
adjust
those
prices
to
reflect
fair
value.
Debt
securities
are
generally traded
in
the over-the-counter
(OTC)
market
and
are
valued
at
prices
furnished
by
independent
pricing
services
or
by
broker
dealers
who
make
markets
in
such
securities.
When
valuing
securities,
the
T.
ROWE
PRICE
Capital
Appreciation
Fund
34
independent
pricing
services
consider
factors
such
as,
but
not
limited
to,
the
yield
or
price
of
bonds
of
comparable
quality,
coupon,
maturity,
and
type,
as
well
as
prices
quoted
by
dealers
who
make
markets
in
such
securities.
Investments
in
mutual
funds
are
valued
at
the
mutual
fund’s
closing
NAV
per
share
on
the
day
of
valuation.
Listed
options,
and
OTC
options
with
a
listed
equivalent,
are
valued
at
the
mean
of
the
closing
bid
and
asked
prices
and
exchange-traded
options
on
futures
contracts
are
valued
at
closing
settlement
prices.
Assets
and
liabilities
other
than
financial
instruments,
including
short-
term
receivables
and
payables,
are
carried
at
cost,
or
estimated
realizable
value,
if
less,
which
approximates
fair
value.
Investments
for
which
market
quotations are
not
readily
available
or
deemed
unreliable
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Valuation
Designee.
The
Valuation
Designee
has
adopted
methodologies
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
or
deemed
unreliable,
including
the
use
of
other
pricing
sources.
Factors
used
in
determining
fair
value
vary
by
type
of
investment
and
may
include
market
or
investment
specific
considerations.
The
Valuation
Designee typically
will
afford
the
greatest
weight
to
actual
prices
in
arm’s
length
transactions,
to
the
extent
they
represent
orderly
transactions
between
market
participants,
transaction
information
can
be
reliably
obtained,
and
prices
are
deemed
representative
of
fair
value.
However,
the
Valuation
Designee may
also
consider
other
valuation
methods
such
as
market-based
valuation
multiples;
a
discount
or
premium
from
market
value
of
a
similar,
freely
traded
security
of
the
same
issuer;
discounted
cash
flows;
yield
to
maturity;
or
some
combination.
Fair
value
determinations
are
reviewed
on
a
regular
basis.
Because
any
fair
value
determination
involves
a
significant
amount
of
judgment,
there
is
a
degree
of
subjectivity
inherent
in
such
pricing
decisions. Fair
value
prices
determined
by
the
Valuation
Designee could
differ
from
those
of
other
market
participants,
and
it
is
possible
that
the
fair
value
determined
for
a
security
may
be
materially
different
from
the
value
that
could
be
realized
upon
the
sale
of
that
security.
T.
ROWE
PRICE
Capital
Appreciation
Fund
35
Valuation
Inputs
  The
following
table
summarizes
the
fund’s
financial
instruments,
based
on
the
inputs
used
to
determine
their
fair
values
on
June
30,
2026
(for
further
detail
by
category,
please
refer
to
the
accompanying
Portfolio
of
Investments): 
Following
is
a
reconciliation
of
the
fund’s
Level
3
holdings
for
the
six
months ended
June
30,
2026.
Gain
(loss)
reflects
both
realized
and
change
in
unrealized
gain/loss
on
Level
3
holdings
during
the
period,
if
any,
and
is
included
on
the
accompanying
Statement
of
Operations.
The
change
in
unrealized
gain/loss
($000s)
Level
1
Level
2
Level
3
Total
Value
Assets
Fixed
Income
Securities
1
$
—
$
15,826,040
$
—
$
15,826,040
Bond
Funds
993,375
—
—
993,375
Common
Stocks
38,860,127
1,367,719
1,353,194
41,581,040
Convertible
Preferred
Stocks
—
—
2,855,523
2,855,523
Corporate
Bonds
—
5,601,904
—
5,601,904
Preferred
Stocks
—
—
141,821
141,821
Short-Term
Investments
3,167,810
—
—
3,167,810
Total
$
43,021,312
$
22,795,663
$
4,350,538
$
70,167,513
Liabilities
Options
Written
$
—
$
388,798
$
—
$
388,798
1
Includes
Asset-Backed
Securities,
Bank
Loans
and
U.S.
Government
Agency
Obligations
(Excluding
Mortgage-Backed).
T.
ROWE
PRICE
Capital
Appreciation
Fund
36
on
Level
3
instruments
held
at
June
30,
2026,
totaled $534,967,000 for
the
six
months ended
June
30,
2026.
During
the
six
months,
transfers
out
of
Level
3
were
because
observable
market
data
became
available
for
the
security.
In
accordance
with
GAAP,
the
following
table
provides
quantitative
information
about
significant
unobservable
inputs
used
to
determine
the
fair
valuations
of
the
fund’s
Level
3
assets,
by
class
of
financial
instrument.
Because
the
Valuation
Designee considers
a
wide
variety
of
factors
and
($000s)
Beginning
Balance
12/31/25
Gain
(Loss)
During
Period
Total
Purchases
Total
Sales
Transfer
Out
of
Level
3
Ending
Balance
6/30/26
Investment
in
Securities
Bank
Loans
$
204,021‌
$
(5,801‌)
$
—‌
$
(30,432‌)
$
(167,788‌)
$
—‌
Common
Stocks
1,644,903‌
(117,563‌)
—‌
—‌
(174,146‌)
1,353,194‌
Convertible
Preferred
Stocks
1,449,923‌
654,342‌
751,258‌
—‌
—‌
2,855,523‌
Corporate
Bonds
—‌
—‌
—‌
—‌
—‌
—‌
Preferred
Stocks
143,634‌
(1,813‌)
—‌
—‌
—‌
141,821‌
Total
$
3,442,481‌
$
529,165‌
$
751,258‌
$
(30,432‌)
$
(341,934‌)
$
4,350,538‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
37
inputs,
both
observable
and
unobservable,
in
determining
fair
values,
the
unobservable
inputs
presented
do
not
reflect
all
inputs
significant
to
the
fair
value
determination.
Investments
in
Securities
Value
(000s)
Valuation
Technique(s)+
Significant
Unobservable
Input(s)
Value
or
Range
of
Input(s)
Weighted
Average
of
Input(s)*
Impact
to
Valuation
from
an
Increase
in
Input**
Common
Stocks
$1,353,194
Recent
comparable
transaction
price(s)
—#
—#
—#
—#
Market
comparable
Enterprise
value
to
EBITDA
multiple
14.2x
-
17.1x
16.0x
Increase
Discount
to
public
company
multiples
11%
-
12%
12%
Decrease
Convertible
Preferred
Stocks
$2,855,523
Recent
comparable
transaction
price(s)
—#
—#
—#
—#
Market
comparable
Enterprise
value
to
sales
multiple
3.9x
-
6.0x
5.0x
Increase
Sales
growth
rate
101%
101%
Increase
Enterprise
value
to
EBITDA
multiple
13.4x
13.4x
Increase
Premium
to
public
company
multiples
48%
-
92%
64%
Increase
Corporate
Bonds
$
—
Recent
comparable
transaction
price(s)
Discount
for
uncertainty
100%
100%
Decrease
T.
ROWE
PRICE
Capital
Appreciation
Fund
38
+
Valuation
techniques
may
change
in
order
to
reflect the
Valuation
Designee’s
judgment
of
current
market
participant
assumptions. 
*
Unobservable
inputs
were
weighted
by
the
relative
fair
value
of
the
instruments.
**
Represents
the
directional
change
in
the
fair
value
of
the
Level
3
investment(s)
that
would
have
resulted
from
an
increase
in
the
corresponding
input
at
period
end.
A
decrease
in
the
unobservable
input
would
have
had
the
opposite
effect.
Significant
increases
and
decreases
in
these
inputs
in
isolation
could
result
in
significantly
higher
or
lower
fair
value
measurements.
#
No
quantitative
unobservable
inputs
significant
to
the
valuation
technique
were
created
by
the
Valuation
Designee.
NOTE
3
-
DERIVATIVE
INSTRUMENTS 
During
the
six
months ended
June
30,
2026,
the
fund
invested
in
derivative
instruments.
As
defined
by
GAAP,
a
derivative
is
a
financial
instrument
whose
value
is
derived
from
an
underlying
security
price,
foreign
exchange
rate,
interest
rate,
index
of
prices
or
rates,
or
other
variable;
it
requires
little
or
no
initial
investment
and
permits
or
requires
net
settlement
or
delivery
of
cash
or
other
assets.
The
fund
invests
in
derivatives
only
if
the
expected
risks
and
rewards
are
consistent
with
its
investment
objectives,
policies,
and
overall
risk
profile,
as
described
in
its
prospectus
and
Statement
of
Additional
Information.
The
fund
may
use
derivatives
for
a
variety
of
purposes
and
may
use
them
to
establish
both
long
and
short
positions
within
the
fund’s
portfolio.
Potential
uses
include
to
hedge
against
declines
in
principal
value,
increase
yield,
invest
in
an
asset
with
greater
efficiency
and
at
a
lower
cost
than
is
possible
through
direct
investment,
to
enhance
return,
or
to
adjust
credit
exposure.
The
risks
associated
with
the
use
of
derivatives
are
different
from,
and
potentially
much
greater
than,
the
risks
associated
with
investing
directly
in
the
instruments
on
which
the
derivatives
are
based.
The
fund
values
its
derivatives
at
fair
value
and
recognizes
changes
in
fair
value
currently
in
its
results
of
operations.
Accordingly,
the
fund
does
not
follow
hedge
accounting,
even
for
derivatives
employed
as
economic
hedges.
Generally,
the
fund
accounts
for
its
derivatives
on
a
gross
basis.
It
does
not
offset
the
fair
Investments
in
Securities
Value
(000s)
Valuation
Technique(s)+
Significant
Unobservable
Input(s)
Value
or
Range
of
Input(s)
Weighted
Average
of
Input(s)*
Impact
to
Valuation
from
an
Increase
in
Input**
Preferred
Stocks
$
141,821
Discounted
cash
flow
Discount
rate
11%
11%
Decrease
T.
ROWE
PRICE
Capital
Appreciation
Fund
39
value
of
derivative
liabilities
against
the
fair
value
of
derivative
assets
on
its
financial
statements,
nor
does
it
offset
the
fair
value
of
derivative
instruments
against
the
right
to
reclaim
or
obligation
to
return
collateral.
The
following
table
summarizes
the
fair
value
of
the
fund’s
derivative
instruments
held
as
of
June
30,
2026,
and
the
related
location
on
the
accompanying
Statement
of
Assets
and
Liabilities,
presented
by
primary
underlying
risk
exposure: 
Additionally,
the
amount
of
gains
and
losses
on
derivative
instruments
recognized
in
fund
earnings
during
the
six
months ended
June
30,
2026,
and
the
related
location
on
the
accompanying
Statement
of
Operations
is
summarized
in
the
following
table
by
primary
underlying
risk
exposure: 
Counterparty
Risk
and
Collateral
 The
fund
invests
in
derivatives,
such
as
non-cleared
bilateral
swaps,
forward
currency
exchange
contracts,
and/or
OTC
options,
that
are
transacted
and
settle
directly
with
a
counterparty
(bilateral
derivatives),
and
thereby
may
expose
the
fund
to
counterparty
risk.
To
mitigate
this
risk,
the
fund
has
entered
into
master
netting
arrangements
(MNAs)
with
certain
counterparties
that
permit
net
settlement
under
specified
conditions
($000s)
Location
on
Statement
of
Assets
and
Liabilities
Fair
Value
Liabilities
Equity
derivatives
Options
Written
$
388,798‌
Total
$
388,798‌
($000s)                                              
Location
of
Gain
(Loss)
on
Statement
of
Operations
Options
Written
Realized
Gain
(Loss)
Equity
derivatives
$
104,979‌
Total
$
104,979‌
Change
in
Unrealized
Gain
(Loss)
Equity
derivatives
$
(33,632‌)
Total
$
(33,632‌)
T.
ROWE
PRICE
Capital
Appreciation
Fund
40
and,
for
certain
counterparties,
also
require
the
exchange
of
collateral
to
cover
mark-to-market
exposure.
MNAs
may
be
in
the
form
of
International
Swaps
and
Derivatives
Association
master
agreements
(ISDAs),
with
a
Credit
Support
Annex
(CSA),
if
any,
that
governs
the
collateralization
process,
or
foreign
exchange
letter
agreements
(FX
letters).
MNAs
govern
the
ability
to
offset
amounts
the
fund
owes
a
counterparty
against
amounts
the
counterparty
owes
the
fund
(net
settlement).
Both
ISDAs
and
FX
letters
generally
allow
termination
of
transactions
and
net
settlement
upon
the
occurrence
of
contractually
specified
events,
such
as
failure
to
pay
or
bankruptcy.
In
addition,
ISDAs
specify
other
events,
such
as
Additional
Termination
Events, the
occurrence
of
which
would
allow
one
of
the
parties
to
terminate.
For
example,
a
downgrade
in
credit
rating
of
a
counterparty
below
a
specified
rating
would
allow
the
fund
to
terminate,
while
a
decline
in
the
fund’s
net
assets
of
more
than
a
specified
percentage
would
allow
the
counterparty
to
terminate.
Upon
termination,
all
transactions
with
that
counterparty
would
be
liquidated
and
a
net
termination
amount
determined.
ISDAs
typically
include
collateral
agreements,
such
as
a
CSA,
whereas
FX
letters
do
not.
Collateral
requirements
are
determined
daily
based
on
the
net
aggregate
unrealized
gain
or
loss
on
all
bilateral
derivatives
with
each
counterparty,
subject
to
minimum
transfer
amounts
that
typically
range
from
$100,000
to
$250,000.
Any
additional
collateral
required
due
to
changes
in
security
values
is
typically
transferred
the
next
business
day.
Collateral may
be
in
the
form
of
cash,
debt
securities
issued
by
the
U.S.
government
or
related
agencies,
or
equity
securities,
although
other
securities
may
be
used
depending
on
the
terms
outlined
in
the
applicable
MNA.
Cash
posted
by
the
fund
is
reflected
as
cash
deposits
in
the
accompanying
financial
statements
and
generally
is
restricted
from
withdrawal
by
the
fund;
securities
posted
by
the
fund
are
so
noted
in
the
accompanying
Portfolio
of
Investments;
both
remain
in
the
fund’s
assets.
Collateral
pledged
by
counterparties
is
not
included
in
the
fund’s
assets
because
the
fund
does
not
obtain
effective
control
over
those
assets.
For
bilateral
derivatives,
collateral
posted
or
received
by
the
fund
is
held
in
a
segregated
account
at
the
fund’s
custodian.
While
typically
not
sold
in
the
same
manner
as
equity
or
fixed
income
securities,
OTC
and
bilateral
derivatives
may
be
unwound
with
counterparties
or
transactions
assigned
to
other
counterparties
to
allow
the
fund
to
exit
the
transaction.
This
ability
is
subject
to
the
liquidity
of
underlying
positions. As
of
June
30,
2026,
securities
valued
at $218,664,000
had
been
posted
by
the
fund
to
counterparties
for
bilateral
derivatives. As
of
June
30,
2026,
no
collateral
was
pledged
by
counterparties
to
the
fund
for
bilateral
derivatives.
T.
ROWE
PRICE
Capital
Appreciation
Fund
41
Options 
 The
fund
is
subject
to equity
price
risk in
the
normal
course
of
pursuing
its
investment
objectives
and
uses
options
to
help
manage
such
risk.
The
fund
may
use
options
to
manage
exposure
to
security
prices,
interest
rates,
foreign
currencies,
and
credit
quality;
as
an
efficient
means
of
adjusting
exposure
to
all
or
a
part
of
a
target
market;
to
enhance
income;
as
a
cash
management
tool;
or
to
adjust
credit
exposure.
The
fund
may
buy
or
sell
options
that
can
be
settled
either
directly
with
the
counterparty
(OTC
options)
or
through
a
central
clearinghouse
(exchange-traded
options).
Options
are
included
in
net
assets
at
fair
value,
options
purchased
are
included
in
Investments
in
Securities,
and
options
written
are
separately
reflected
as
a
liability
on
the
accompanying
Statement
of
Assets
and
Liabilities.
Premiums
on
unexercised,
expired
options
are
recorded
as
realized
gains
or
losses
on
the
accompanying
Statement
of
Operations;
premiums
on
exercised
options
are
recorded
as
an
adjustment
to
the
proceeds
from
the
sale
or
cost
of
the
purchase.
The
difference
between
the
premium
and
the
amount
received
or
paid
in
a
closing
transaction
is
also
treated
as
realized
gain
or
loss
on
the
accompanying
Statement
of
Operations.
In
return
for
a
premium
paid,
call
and
put
options
give
the
holder
the
right,
but
not
the
obligation,
to
purchase
or
sell,
respectively,
a
security
at
a
specified
exercise
price. Risks related
to
the
use
of
options
include
possible
illiquidity
of
the
options
markets;
trading
restrictions
imposed
by
an
exchange
or
counterparty;
possible
failure
of
counterparties
to
meet
the
terms
of
the
agreements;
movements
in
the
underlying
asset
values
and,
for
options
written,
the
potential
for
losses
to
exceed
any
premium
received
by
the
fund.
During
the
six
months ended
June
30,
2026,
the
volume
of
the
fund’s
activity
in
options,
based
on
underlying
notional
amounts,
was
generally
between
3%
and
6%
of
net
assets. 
NOTE
4
-
OTHER
INVESTMENT
TRANSACTIONS 
Consistent
with
its
investment
objective, the
fund
engages
in
the
following
practices
to
manage
exposure
to
certain
risks
and/or
to
enhance
performance.
The
investment
objective,
policies,
program,
and
risk
factors
of the
fund
are
described
more
fully
in the
fund’s prospectus
and
Statement
of
Additional
Information.
Noninvestment-Grade
Debt
 The
fund
invests,
either
directly
or
through
its
investment
in
other
T.
Rowe
Price
funds,
in
noninvestment-grade
debt,
including
“high
yield”
or
“junk”
bonds
or
leveraged
loans.
Noninvestment-grade
debt
issuers
are
more
likely
to
suffer
an
adverse
change
in
financial
condition
that
would
result
in
the
inability
to
meet
a
financial
obligation.
The
noninvestment-
T.
ROWE
PRICE
Capital
Appreciation
Fund
42
grade
debt
market
may
experience
sudden
and
sharp
price
swings
due
to
a
variety
of
factors
that
may
decrease
the
ability
of
issuers
to
make
principal
and
interest
payments
and
adversely
affect
the
liquidity
or
value,
or
both,
of
such
securities.
Accordingly,
securities
issued
by
such
companies
carry
a
higher
risk
of
default
and
should
be
considered
speculative. 
Restricted
Securities
 The
fund
invests
in
securities
that
are
subject
to
legal
or
contractual
restrictions
on
resale.
Prompt
sale
of
such
securities
at
an
acceptable
price
may
be
difficult
and
may
involve
substantial
delays
and
additional
costs.
Bank
Loans
 The
fund
invests
in
bank
loans,
which
represent
an
interest
in
amounts
owed
by
a
borrower
to
a
syndicate
of
lenders.
Bank
loans
are
generally
noninvestment-grade
and
often
involve
borrowers
whose
financial
condition
is
highly
leveraged.
The
fund
may
invest
in
fixed
and
floating
rate
loans,
which
may
include
senior
floating
rate
loans;
secured
and
unsecured
loans,
second
lien
or
more
junior
loans;
and
bridge
loans
or
bridge
facilities.
Certain
bank
loans
may
be
revolvers
which
are
a
form
of
senior
bank
debt,
where
the
borrower
can
draw
down
the
credit
of
the
revolver
when
it
needs
cash
and
repays
the
credit
when
the
borrower
has
excess
cash.
Certain
loans
may
be
“covenant-lite”
loans,
which
means
the
loans
contain
fewer
maintenance
covenants
than
other
loans
(in
some
cases,
none)
and
do
not
include
terms
which
allow
the
lender
to
monitor
the
performance
of
the
borrower
and
declare
a
default
if
certain
criteria
are
breached.
As
a
result
of
these
risks,
the
fund’s
exposure
to
losses
may
be
increased.
Bank
loans
may
be
in
the
form
of
either
assignments
or
participations.
A
loan
assignment
transfers
all
legal,
beneficial,
and
economic
rights
to
the
buyer,
and
transfer
typically
requires
consent
of
both
the
borrower
and
agent.
In
contrast,
a
loan
participation
generally
entitles
the
buyer
to
receive
the
cash
flows
from
principal,
interest,
and
any
fee
payments
on
a
portion
of
a
loan;
however,
the
seller
continues
to
hold
legal
title
to
that
portion
of
the
loan.
As
a
result,
the
buyer
of
a
loan
participation
generally
has
no
direct
recourse
against
the
borrower
and
is
exposed
to
credit
risk
of
both
the
borrower
and
seller
of
the
participation.
Bank
loans
often
have
extended
settlement
periods,
generally
may
be
repaid
at
any
time
at
the
option
of
the
borrower,
and
may
require
additional
principal
to
be
funded
at
the
borrowers’
discretion
at
a
later
date
(e.g.
unfunded
commitments
and
revolving
debt
instruments).
Until
settlement,
the
fund
maintains
liquid
assets
sufficient
to
settle
its
unfunded
loan
commitments.
The
fund
reflects
both
the
funded
portion
of
a
bank
loan
as
well
as
its
unfunded
commitment
in
T.
ROWE
PRICE
Capital
Appreciation
Fund
43
the
Portfolio
of
Investments.
However,
if
a
credit
agreement
provides
no
initial
funding
of
a
tranche,
and
funding
of
the
full
commitment
at
a
future
date(s)
is
at
the
borrower’s
discretion
and
considered
uncertain,
a
loan
is
reflected
in
the
Portfolio
of
Investments
only
if,
and
only
to
the
extent
that,
the
fund
has
actually
settled
a
funding
commitment.
Private
Investments
Issued
by
Special
Purpose
Acquisition
Companies
Special purpose
acquisition
companies
(SPACs)
are
shell
companies
that
have
no
operations
but
are
formed
to
raise
capital
with
the
intention
of
merging
with
or
acquiring
a
company
with
the
proceeds
of
the
SPAC’s
initial
public
offering
(IPO).
The
fund
may
enter
into
a
contingent
commitment
with
a
SPAC
to
purchase
private
investments
in
public
equity
(PIPE)
if
and
when
the
SPAC
completes
its
merger
or
acquisition.
The
fund
maintains
liquid
assets
sufficient
to
settle
its
commitment
to
purchase
the
PIPE.
However,
if
the
commitment
expires,
then
no
shares
are
purchased.
Purchased
PIPE
shares
will
be
restricted
from
trading
until
the
registration
statement
for
the
shares
is
declared
effective.
Upon
registration,
the
shares
can
be
freely
sold;
however,
in
certain
circumstances,
the
issuer
may
have
the
right
to
temporarily
suspend
trading
of
the
shares
in
the
first
year
after
the
merger
or
acquisition.
The
securities
issued
by
a
SPAC
may
be
considered
illiquid,
more
difficult
to
value,
and/or
be
subject
to
restrictions
on
resale.
Other 
Purchases
and
sales
of
portfolio
securities
other
than
in-kind
transactions,
if
any, short-term
and
U.S.
government securities
aggregated $27,888,350,000 and
$33,018,473,000,
respectively,
for
the
six
months ended
June
30,
2026. Purchases
and
sales
of
U.S.
government
securities
aggregated $9,364,509,000 and
$9,842,089,000,
respectively,
for
the
six
months ended
June
30,
2026.
NOTE
5
-
FEDERAL
INCOME
TAXES
Generally,
no
provision
for
federal
income
taxes
is
required
since
the
fund
intends
to continue
to
qualify
as
a
regulated
investment
company
under
Subchapter
M
of
the
Internal
Revenue
Code
and
distribute
to
shareholders
all
of
its taxable
income
and
gains.
Distributions
determined
in
accordance
with
federal
income
tax
regulations
may
differ
in
amount
or
character
from
net
investment
income
and
realized
gains
for
financial
reporting
purposes.
Financial
reporting
records
are
adjusted
for
permanent
book/tax
differences
to
reflect
tax
character
but
are
not
adjusted
for
temporary
differences.
The
amount
and
T.
ROWE
PRICE
Capital
Appreciation
Fund
44
character
of
tax-basis
distributions
and
composition
of
net
assets
are
finalized
at
fiscal
year-end;
accordingly,
tax-basis
balances
have
not
been
determined
as
of
the
date
of
this
report. 
At
June
30,
2026,
the
cost
of
investments
(including
derivatives,
if
any)
for
federal
income
tax
purposes
was
$56,949,048,000.
Net
unrealized
gain
aggregated
$12,829,149,000
at
period-end,
of
which
$14,113,141,000
related
to
appreciated
investments
and
$1,283,992,000
related
to
depreciated
investments.
NOTE
6
-
FOREIGN TAXES
The
fund
is
subject
to
foreign
income
taxes
imposed
by
certain
countries
in
which
it
invests.
Additionally,
capital
gains
realized
upon
disposition
of
securities
issued
in
or
by
certain
foreign
countries
are
subject
to
capital
gains
tax
imposed
by
those
countries.
All
taxes
are
computed
in
accordance
with
the
applicable
foreign
tax
law,
and,
to
the
extent
permitted,
capital
losses
are
used
to
offset
capital
gains.
Taxes
attributable
to
income
are
accrued
by
the
fund
as
a
reduction
of
income.
Current
and
deferred
tax
expense
attributable
to
capital
gains
is
reflected
as
a
component
of
realized
or
change
in
unrealized
gain/
loss
on
securities
in
the
accompanying
financial
statements.
To
the
extent
that
the
fund
has
country
specific
capital
loss
carryforwards,
such
carryforwards
are
applied
against
net
unrealized
gains
when
determining
the
deferred
tax
liability.
Any
deferred
tax
liability
incurred
by
the
fund
is
included
in
either
Other
liabilities
or
Deferred
tax
liability
on
the
accompanying
Statement
of
Assets
and
Liabilities.
NOTE
7
-
RELATED
PARTY
TRANSACTIONS
The
fund
is
managed
by
T.
Rowe
Price
Associates,
Inc.
(Price
Associates),
a
wholly
owned
subsidiary
of
T.
Rowe
Price
Group,
Inc.
(Price
Group). Price
Associates
has
entered
into
a
sub-advisory
agreement(s)
with
one
or
more
of
its
wholly
owned
subsidiaries,
to
provide
investment
advisory
services
to
the
fund. The
investment
management
agreement
between
the
fund
and
Price
Associates
provides
for
an
annual
investment
management
fee,
which
is
computed
daily
and
paid
monthly.
The
fee
consists
of
an
individual
fund
fee,
equal
to
0.30%
of
the fund’s
average
daily
net
assets,
and
a
group
fee.
The
group
fee
rate
is
calculated
based
on
the
combined
net
assets
of
certain
mutual
funds
sponsored
by
Price
Associates
(the
group)
applied
to
a
graduated
fee
schedule,
with
rates
ranging
from
0.48%
for
the
first
$1
billion
T.
ROWE
PRICE
Capital
Appreciation
Fund
45
of
assets
to
0.26%
for
assets
in
excess
of
$845
billion.
The
fund’s
group
fee
is
determined
by
applying
the
group
fee
rate
to
the
fund’s
average
daily
net
assets.
At June
30,
2026,
the
effective
annual
group
fee
rate
was
0.28%.
Effective
April
30,
2019,
Price
Associates
has
contractually
agreed,
at
least
through
February
29,
2028,
to
waive
a
portion
of
its management
fee
so
that
an
individual
fund
fee
of 0.27%
is
applied
to
the
fund’s
average
daily
net
assets
that
are
equal
to
or
greater
than $27.5 billion.
Thereafter,
this
agreement
will
automatically
renew
for
one-year
terms
unless
terminated
by
the
fund’s
Board.
Any
fees
waived
under
this
agreement
are
not
subject
to
reimbursement
to
Price
Associates
by
the
fund. The
total
management
fees
waived
were $6,228,000
and
allocated
ratably
in
the
amounts
of
$3,296,000
for
the
Investor
Class,
$73,000
for
the
Advisor
Class,
and
$2,859,000
for
the
I
Class,
for
the
six
months
ended
June
30,
2026. 
The
Investor
Class
and
Advisor
Class
are
each
subject
to
a
contractual
expense
limitation
through
the
expense
limitation
dates
indicated
in
the
table
below.
This
agreement
will
continue
through
the
expense
limitation
dates
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval
by
the
fund’s
Board.
During
the
limitation
period,
Price
Associates
is required
to
waive
or
pay
any
expenses
(excluding
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage;
non-recurring,
extraordinary
expenses;
and
acquired
fund
fees
and
expenses)
that
would
otherwise
cause
the class’s ratio
of
annualized
total
expenses
to
average
net
assets
(net
expense
ratio)
to
exceed
its
expense
limitation.
Each
class
is
required
to
repay
Price
Associates
for
expenses
previously
waived/paid
to
the
extent
the
class’s net
assets
grow
or
expenses
decline
sufficiently
to
allow
repayment
without
causing
the class’s net
expense
ratio
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
expense
limitation
in
place
at
the
time
such
amounts
were
waived;
or
(2)
the class’s
current
expense
limitation.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver.
The
I
Class
is
also
subject
to
an
operating
expense
limitation
(I
Class
Limit)
pursuant
to
which
Price
Associates
is
contractually
required
to
pay
all
operating
expenses
of
the
I
Class,
excluding
management
fees;
interest;
expenses
related
to
borrowings,
taxes,
and
brokerage; non-recurring,
extraordinary expenses; and
acquired
fund
fees
and
expenses, to
the
extent
such
operating
expenses,
on
an
annualized
basis,
exceed
the
I
Class
Limit. This
agreement
will
continue
through
the
expense
limitation
date
indicated
in
the
table
below,
and
may
be
renewed,
revised,
or
revoked
only
with
approval by
the
fund’s
Board.
The
I
Class
is
required
to
repay
Price
Associates
for
expenses
previously
paid
to
the
extent
the
class’s
net
assets
grow
or
expenses
decline
sufficiently
to
allow
T.
ROWE
PRICE
Capital
Appreciation
Fund
46
repayment
without
causing
the
class’s
operating
expenses
(after
the
repayment
is
taken
into
account)
to
exceed
the
lesser
of:
(1)
the
I
Class
Limit
in
place
at
the
time
such
amounts
were
paid;
or
(2)
the
current
I
Class
Limit.
However,
no
repayment
will
be
made
more
than
three
years
after
the
date
of
a
payment
or
waiver. 
In
addition,
the
fund
has
entered
into
service
agreements
with
Price
Associates
and
two
wholly
owned
subsidiaries
of
Price
Associates,
each
an
affiliate
of
the
fund
(collectively,
Price).
Price
Associates
provides
certain
accounting
and
administrative
services
to
the
fund.
T.
Rowe
Price
Services,
Inc.
provides
shareholder
and
administrative
services
in
its
capacity
as
the
fund’s
transfer
and
dividend-disbursing
agent.
T.
Rowe
Price
Retirement
Plan
Services,
Inc.
provides
subaccounting
and
recordkeeping
services
for
certain
retirement
accounts
invested
in
the
Investor
Class
and
Advisor
Class.
For
the
six
months
ended
June
30,
2026,
expenses
incurred
pursuant
to
these
service
agreements
were
$64,000
for
Price
Associates;
$4,551,000
for
T.
Rowe
Price
Services,
Inc.;
and
$489,000
for
T.
Rowe
Price
Retirement
Plan
Services,
Inc.
All
amounts
due
to
and
due
from
Price,
exclusive
of
investment
management
fees
payable,
are
presented
net
on
the
accompanying
Statement
of
Assets
and
Liabilities.
T.
Rowe
Price
Investment
Services,
Inc.
(Investment
Services)
serves
as
distributor
to
the
fund.
Pursuant
to
an
underwriting
agreement,
no
compensation
for
any
distribution
services
provided
is
paid
to
Investment
Services
by
the
fund
(except
for
12b-1
fees
under
a
Board-approved
Rule
12b-1
plan).
The fund
may
invest
its
cash
reserves
in
certain
open-end
management
investment
companies
managed
by
Price
Associates
and
considered
affiliates
of
the
fund:
the
T.
Rowe
Price
Government
Reserve
Fund
or
the
T.
Rowe
Price
Treasury
Reserve
Fund,
organized
as
money
market
funds
(together,
the
Price
Reserve
Funds).
The
Price
Reserve
Funds
are
offered
as
short-term
investment
options
to
mutual
funds,
trusts,
and
other
accounts
managed
by
Price
Associates
or
its
affiliates
and
are
not
available
for
direct
purchase
by
members
of
the
Investor
Class
Advisor
Class
I
Class
Expense
limitation/I
Class
Limit
0.94%
1.19%
0.05%
Expense
limitation
date
02/29/28
02/29/28
02/29/28
(Waived)/repaid
during
the
period
($000s)
$—
$—
$—
T.
ROWE
PRICE
Capital
Appreciation
Fund
47
public.
Cash
collateral
from
securities
lending,
if
any,
is
invested
in
the
T.
Rowe
Price
Treasury Reserve Fund. The
Price
Reserve
Funds
pay
no
investment
management
fees.
The
fund
may
also
invest
in
certain
other
T.
Rowe
Price
funds
(Price
Funds)
as
a
means
of
gaining
efficient
and
cost-effective
exposure
to
certain
markets.
The
fund
does
not
invest
for
the
purpose
of
exercising
management
or
control;
however,
investments
by
the
fund
may
represent
a
significant
portion
of
an
underlying
Price
Fund’s
net
assets.
Each
underlying
Price
Fund
is
an
open-end
management
investment
company
managed
by
Price
Associates
and
is
considered
an
affiliate
of
the
fund.
To
ensure
that
the
fund
does
not
incur
duplicate
management
fees
(paid
by
the
underlying
Price
Fund(s)
and
the
fund),
Price
Associates
has
agreed
to
permanently
waive
a
portion
of
its
management
fee
charged
to
the
fund
in
an
amount
sufficient
to
fully
offset
that
portion
of
management
fees
paid
by
each
underlying
Price
Fund
related
to
the
fund’s
investment
therein.
Annual
management
fee
rates
and
amounts
waived
related
to
investments
in
the
underlying
Price
Fund(s)
for
the
six
months
ended
June
30,
2026,
are
as
follows:
Total
management
fee
waived
was
allocated
ratably
in
the
amounts
of
$1,418,000,
$31,000
and
$1,230,000 for
the
Investor
Class,
Advisor
Class
and
I
Class,
respectively,
for
the
six
months ended
June
30,
2026. 
As
of
June
30,
2026,
T.
Rowe
Price
Group,
Inc.,
or
its
wholly
owned
subsidiaries,
owned
316,785
shares
of
the
Investor
Class,
representing
less
than
1%
of
the
Investor
Class's
net
assets,
and
6,416,310
shares
of
the
I
Class,
representing
less
than
1%
of
the
I
Class's
net
assets. 
The fund may
participate
in
securities
purchase
and
sale
transactions
with
other
funds
or
accounts
advised
by
Price
Associates
(cross
trades),
in
accordance
with
procedures
adopted
by the
fund’s
Board
and
Securities
and
Exchange
Commission
rules,
which
require,
among
other
things,
that
such
purchase
and
sale
cross
trades
be
effected
at
the
independent
current
market
price
of
($000s)
Effective
Management
Fee
Rate
Management
Fee
Waived
T.
Rowe
Price
Institutional
Floating
Rate
Fund
-
Institutional
Class
0.55%
$
2,679‌
Total
Management
Fee
Waived
$
2,679‌
T.
ROWE
PRICE
Capital
Appreciation
Fund
48
the
security.
During
the
six
months
ended
June
30,
2026,
the
fund
had
no
purchases
or
sales
cross
trades
with
other
funds
or
accounts
advised
by
Price
Associates.
Price
Associates
has voluntarily
agreed
to
reimburse
the
fund
from
its
own
resources
on
a
monthly
basis
for
the
cost
of
brokerage
commissions
embedded
in
the
cost
of
the
fund’s
foreign
currency
transactions. This
agreement
may
be
rescinded
at
any
time. For
the
six
months ended
June
30,
2026,
this
reimbursement
amounted
to
$338,000,
which
is
included
in
Net
realized
gain
(loss)
on
Securities
in
the
Statement
of
Operations.
NOTE
8
-
SEGMENT
REPORTING
Operating segments
are
defined
as
components
of
a
company
that
engage
in
business
activities
and
for
which
discrete
financial
information
is
available
and
regularly
reviewed
by
the
chief
operating
decision
maker
(CODM)
in
deciding
how
to
allocate
resources
and
assess
performance.
The
Management
Committee
of
Price Group
acts
as
the
fund’s
CODM.
The
fund
makes
investments
in
accordance
with
its
investment
objective
as
outlined
in
the
Prospectus
and
is
considered
one
reportable
segment
because
the
CODM
allocates
resources
and
assesses
the
operating
results
of
the
fund
on
the
whole.
The
fund’s
revenue
is
derived
from
investments
in
a
portfolio
of
securities.
The
CODM
allocates
resources
and
assesses
performance
based
on
the
operating
results
of
the
fund,
which
is
consistent
with
the
results
presented
in
the
statement
of
operations,
statement
of
changes
in
net
assets
and
financial
highlights.
The
CODM
compares
the
fund’s
performance
to
its
benchmark
index
and
evaluates
the
positioning
of
the
fund
in
relation
to
its
investment
objective.
The
measure
of
segment
assets
is
net
assets
of
the
fund
which
is
disclosed
in
the
statement
of
assets
and
liabilities.
The accounting
policies
of
the
segment
are
the
same
as
those
described
in
the
summary
of
significant
accounting
policies.
The
financial
statements
include
all
details
of
the
segment
assets,
segment
revenue
and
expenses;
and
reflect
the
financial
results
of
the
segment.
T.
ROWE
PRICE
Capital
Appreciation
Fund
49
NOTE
9
-
OTHER
MATTERS
Unpredictable environmental,
political,
social
and
economic
events,
including
but
not
limited
to,
environmental
or
natural
disasters,
war
and
conflict,
terrorism,
geopolitical
and
regulatory
developments
(including
trading
and
tariff
arrangements),
and
public
health
epidemics
or
threats,
may
significantly
affect
the
economy
and
the
markets
and
issuers
in
which
a
fund
invests.
The
extent
and
duration
of
such
events
and
resulting
market
disruptions
cannot
be
predicted.
These
and
other
similar
events
may
cause
instability
across
global
markets,
including
reduced
liquidity
and
disruptions
in
trading
markets,
while
some
events
may
affect
certain
geographic
regions,
countries,
sectors,
and
industries
more
significantly
than
others,
and
exacerbate
other
pre-
existing
political,
social,
and
economic
risks.
The
fund’s
performance
could
be
negatively
impacted
if
the
value
of
a
portfolio
holding
were
harmed
by
these
or
such
events.
T.
ROWE
PRICE
Capital
Appreciation
Fund
50
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
AND
SUBADVISORY
AGREEMENT
Each
year,
the
fund’s
Board
of
Directors
(Board)
considers
the
continuation
of
the
investment
management
agreement
(Advisory
Contract)
between
the
fund
and
its
investment
adviser,
T.
Rowe
Price
Associates,
Inc.
(Adviser),
as
well
as
the
investment
subadvisory
agreement
(Subadvisory
Contract)
that
the
Adviser
has
entered
into
with
T.
Rowe
Price
Investment
Management,
Inc.
(Subadviser)
on
behalf
of
the
fund.
In
that
regard,
at
a
meeting
held
on
March
11-12,
2026
(Meeting),
the
Board,
including
all
of
the
fund’s
independent
directors
who
were
present
in
person
at
the
Meeting,
approved
the
continuation
of
the
fund’s
Advisory
Contract
and
Subadvisory
Contract.
At
the
Meeting,
the
Board
considered
the
factors
and
reached
the
conclusions
described
below
relating
to
the
selection
of
the
Adviser
and
Subadviser
and
the
approval
of
the
Advisory
Contract
and
Subadvisory
Contract.
The
independent
directors
were
assisted
in
their
evaluation
of
the
Advisory
Contract
and
Subadvisory
Contract
by
independent
legal
counsel
from
whom
they
received
separate
legal
advice
and
with
whom
they
met
separately.
In
providing
information
to
the
Board,
the
Adviser
was
guided
by
a
detailed
set
of
requests
for
information
submitted
by
independent
legal
counsel
on
behalf
of
the
independent
directors.
In
considering
and
approving
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract,
the
Board
considered
the
information
it
believed
was
relevant,
including,
but
not
limited
to,
the
information
discussed
below.
The
Board
considered
not
only
the
specific
information
presented
in
connection
with
the
Meeting
but
also
the
knowledge
gained
over
time
through
interaction
with
the
Adviser
and
Subadviser
about
various
topics
and
information
provided
to
it
by
the
Adviser.
The
Board
also
considered
that
the
Subadviser
has
its
own
investment
platform
and
investment
management
leadership,
and
the
Adviser
and
Subadviser
have
implemented
information
barriers
restricting
the
sharing
of
investment
information
and
voting
activity.
The
Board
meets
regularly
and,
at
each
of
its
meetings,
covers
an
extensive
agenda
of
topics
and
materials
and
considers
factors
that
are
relevant
to
its
annual
consideration
of
the
renewal
of
the
T.
Rowe
Price
funds’
advisory
contracts,
including
performance
and
the
services
and
support
provided
to
the
funds
and
their
shareholders.
Services
Provided
by
the
Adviser
and
Subadviser
The
Board
considered
the
nature,
quality,
and
extent
of
the
services
provided
to
the
fund
by
the
Adviser
and
Subadviser.
These
services
include,
but
are
not
limited
to,
directing
the
fund’s
investments
in
accordance
with
its
investment
program
and
the
overall
management
of
the
fund’s
portfolio,
as
well
as
a
variety
of
related
activities
such
as
financial,
investment
operations,
and
administrative
services;
compliance
and
infrastructure,
as
well
as
compliance
with
new
and
evolving
regulatory
requirements
(e.g.,
derivatives
and
liquidity
risk
management);
maintaining
the
fund’s
records
and
registrations;
and
shareholder
communications.
However,
the
Board
noted
that
there
are
information
barriers
between
investment
personnel
of
T.
ROWE
PRICE
Capital
Appreciation
Fund
51
the
Adviser
and
Subadviser
that
restrict
the
sharing
of
certain
information,
such
as
investment
research,
trading,
and
proxy
voting.
The
Board
also
reviewed
the
background
and
experience
of
the
Adviser’s
and
Subadviser’s
senior
management
teams
and
investment
personnel
involved
in
the
management
of
the
fund,
as
well
as
the
Adviser’s
compliance
record.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
nature,
quality,
and
extent
of
the
services
provided
by
the
Adviser
and
Subadviser,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract.
Investment
Performance
of
the
Fund
The
Board
took
into
account
discussions
with
the
Adviser
and
detailed
reports
that
it
regularly
receives
throughout
the
year
on
relative
and
absolute
performance
for
the
T.
Rowe
Price
funds.
In
connection
with
the
Meeting,
the
Board
reviewed
information
provided
by
the
Adviser
that
compared
the
fund’s
total
returns,
as
well
as
a
wide
variety
of
other
previously
agreed-upon
performance
measures
and
market
data,
against
relevant
benchmark
indexes
and
(as
applicable)
peer
groups
of
funds
with
similar
investment
programs
for
various
periods
through
December
31,
2025.
Additionally,
the
Board
reviewed
the
fund’s
relative
performance
information
as
of
September
30,
2025,
which
ranked
the
returns
of
the
fund’s
Investor
Class
for
various
periods
against
a
universe
of
funds
with
similar
investment
programs
selected
by
Broadridge,
an
independent
provider
of
investment
company
data.
In
the
course
of
its
deliberations,
the
Board
considered
performance
information
provided
throughout
the
year
and
in
connection
with
the
Advisory
Contract
review
at
the
Meeting,
as
well
as
information
provided
during
investment
review
meetings
conducted
with
portfolio
managers
and
senior
investment
personnel
during
the
course
of
the
year
regarding
the
fund’s
performance.
The
Board
also
considered
relevant
factors,
such
as
overall
market
conditions
and
trends
that
could
adversely
impact
the
fund’s
performance,
length
of
the
fund’s
performance
track
record,
and
how
closely
the
fund’s
strategies
align
with
its
benchmarks
and
peer
groups.
The
Board
concluded
that
the
information
it
considered
with
respect
to
the
fund’s
performance,
as
well
as
the
other
factors
considered
at
the
Meeting,
supported
the
Board’s
approval
of
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract.
Costs,
Benefits,
Profits,
and
Economies
of
Scale
The
Board
reviewed
detailed
information
regarding
the
revenues
received
by
the
Adviser
under
the
Advisory
Contract
and
other
direct
and
indirect
benefits
that
the
Adviser
(and
its
affiliates,
including
the
Subadviser)
may
have
realized
from
its
relationship
with
the
fund,
including
any
research
received
under
soft-dollar
arrangements
with
broker-dealers.
In
considering
soft-dollar
arrangements,
the
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
AND
SUBADVISORY
AGREEMENT
(continued)
T.
ROWE
PRICE
Capital
Appreciation
Fund
52
Board
noted
that
the
Adviser
may
use
brokerage
commissions
in
connection
with
certain
T.
Rowe
Price
funds’
securities
transactions
to
pay
for
research
when
permissible,
and
the
Board
considered
that
the
Adviser
may
receive
some
benefit
from
soft-dollar
arrangements
pursuant
to
which
research
is
received
from
broker-
dealers
that
execute
the
applicable
fund’s
portfolio
transactions.
The
Board
received
information
on
the
estimated
costs
incurred
and
profits
realized
by
the
Adviser
from
managing
the
T.
Rowe
Price
funds.
The
Board
also
reviewed
estimates
of
the
profits
realized
from
managing
the
fund
in
particular,
and
the
Board
concluded
that
the
Adviser’s
profits
were
reasonable
in
light
of
the
services
provided
to
the
fund.
The
Board
also
considered
whether
the
fund
benefits
under
the
fee
levels
set
forth
in
the
Advisory
Contract
or
otherwise
from
any
economies
of
scale
potentially
realized
by
the
Adviser.
Under
the
Advisory
Contract,
the
fund
pays
a
management
fee
to
the
Adviser
for
investment
management
services
composed
of
two
components
–
a
group
fee
rate
based
on
the
combined
average
net
assets
of
most
of
the
T.
Rowe
Price
mutual
funds
and
ETFs
(including
the
fund)
(“group
fee
rate
assets”)
that
declines
at
certain
asset
levels
and
an
individual
fund
fee
rate
based
on
the
fund’s
average
daily
net
assets
–
and
the
fund
pays
its
own
expenses
of
operations.
Under
the
Subadvisory
Contract,
the
Adviser
may
pay
the
Subadviser
up
to
60%
of
the
advisory
fees
that
the
Adviser
receives
from
the
fund.
The
group
fee
schedule
is
graduated
so
the
group
fee
rate
decreases
as
total
group
fee
rate
assets
increase
and
the
group
fee
rate
increases
as
total
group
fee
rate
assets
decrease.
As
a
result,
shareholders
benefit
from
overall
growth
in
T.
Rowe
Price
fund
assets,
which
reduces
the
management
fee
rate
for
any
fund
that
has
a
group
fee
component
to
its
management
fee,
and
reflects
that
certain
resources
utilized
to
operate
the
fund
are
shared
with
other
T.
Rowe
Price
funds
thus
allowing
shareholders
of
those
funds
to
share
potential
economies
of
scale.
In
addition,
the
fund’s
individual
fund
fee
contains
a
breakpoint
that
reduces
the
individual
fund
fee
rate
once
the
fund’s
assets
reach
a
certain
level
and
provides
additional
opportunities
for
sharing
potential
economies
of
scale.
The
fund’s
shareholders
also
benefit
from
potential
economies
of
scale
through
a
decline
in
certain
operating
expenses
as
the
fund
grows
in
size.
However,
the
fund
is
also
subject
to
contractual
expense
limitations
that
require
the
Adviser
to
waive
its
management
fees
and/or
bear
any
operating
expenses
that
would
otherwise
cause
the
expenses
of
a
share
class
of
the
fund
to
exceed
a
certain
percentage
based
on
the
class’s
net
assets.
The
expense
limitations
mitigate
the
potential
for
an
increase
in
operating
expenses
above
a
certain
level
that
could
impact
shareholders.
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
AND
SUBADVISORY
AGREEMENT
(continued)
T.
ROWE
PRICE
Capital
Appreciation
Fund
53
In
addition,
the
Board
noted
that
the
fund
shares
in
potential
economies
of
scale
through
the
Adviser’s
ongoing
investments
in
its
business
in
support
of
the
T.
Rowe
Price
funds,
including
investments
in
trading
systems,
technology,
and
regulatory
support
enhancements,
and
the
ability
to
possibly
negotiate
lower
fee
arrangements
with
third-party
service
providers.
The
Board
concluded
that
the
management
fee
structure
for
the
fund
provides
for
a
reasonable
sharing
of
benefits
from
potential
economies
of
scale
with
the
fund
and
its
investors.
Fees
and
Expenses
The
Board
was
provided
with
information
regarding
industry
trends
in
management
fees
and
expenses.
Among
other
things,
the
Board
reviewed
data
for
peer
groups
that
were
compiled
by
Broadridge,
which
compared:
(i)
contractual
management
fees,
actual
management
fees,
and
total
expenses
of
the
fund’s
Investor
Class
and
I
Class
with
a
group
of
competitor
funds
selected
by
Broadridge
(Expense
Group);
and
(ii)
actual
management
fees
and
total
expenses
of
the
fund’s
Investor
Class
and
I
Class
with
a
broader
set
of
funds
within
the
Lipper
investment
classification
(Expense
Universe).
The
Board
considered
the
fund’s
contractual
management
fee
rate,
actual
management
fee
rate
(which
reflects
the
management
fees
actually
received
from
the
fund
by
the
Adviser
after
any
applicable
waivers,
reductions,
or
reimbursements),
operating
expenses,
and
total
expenses
(which
reflect
the
net
total
expense
ratio
of
the
fund
after
any
waivers,
reductions,
or reimbursements)
in
comparison
with
the
information
for
the
Broadridge
peer
groups.
Broadridge
generally
constructed
the
peer
groups
by
seeking
the
most
comparable
funds
based
on
similar
investment
classifications
and
objectives,
expense
structure,
asset
size,
and
operating
components
and
attributes
and
ranked
funds
into
quintiles,
with
the
first
quintile
representing
the
funds
with
the
lowest
relative
expenses
and
the
fifth
quintile
representing
the
funds
with
the
highest
relative
expenses.
The
information
provided
to
the
Board
for
the
fund’s
Investor
Class
indicated
that
the
contractual
management
fee
ranked
in
the
second
quintile
(Expense
Group),
the
actual
management
fee
rate
ranked
in
the
second
quintile
(Expense
Group
and
Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
second
quintile
(Expense
Group
and
Expense
Universe).
The
information
provided
to
the
Board
for
the
fund’s
I
Class
indicated
that
the
contractual
management
fee
ranked
in
the
second
quintile
(Expense
Group),
the
actual
management
fee
rate
ranked
in
the
second
quintile
(Expense
Group
and
Expense
Universe),
and
the
fund’s
total
expenses
ranked
in
the
second
quintile
(Expense
Group)
and
first
quintile
(Expense
Universe).
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
AND
SUBADVISORY
AGREEMENT
(continued)
T.
ROWE
PRICE
Capital
Appreciation
Fund
54
The
Board
was
provided
the
fee
schedules
and
other
account
fee
information
for
certain
comparable
investment
portfolios
that
are
advised
or
subadvised
by
the
Adviser
and
its
affiliates,
including
separately
managed
accounts
for
institutional
investors;
subadvised
funds;
and
other
sponsored
investment
portfolios
that
are
not
registered
investment
companies,
including
collective
investment
trusts
and
pooled
vehicles
organized
and
offered
to
investors
outside
the
United
States.
The
fee
schedules
and
account
fee
information,
which
are
subject
to
change,
may
be
negotiated
under
certain
circumstances
and
may
differ
across
regions.
Management
provided
the
Board
with
information
about
the
Adviser’s
responsibilities
and
services
provided
to
subadvisory
clients
and
other
types
of
clients,
including
information
about
how
the
requirements,
economics
and
risks
of
the
domestic
and
international
businesses
may
differ
from
those
of
the
proprietary
mutual
fund
and
ETF
(“registered
fund”)
business.
The
Board
considered
information
showing
that
the
Adviser’s
proprietary
registered
fund
business
is
generally
more
complex
from
a
business
and
regulatory
perspective
than
its
other
domestic
and
international
businesses
and
considered
various
relevant
factors,
such
as
the
broader
scope
of
operations
and
oversight,
more
extensive
shareholder
communication
infrastructure,
heightened
business
risks,
and
differences
in
applicable
laws
and
regulations
associated
with
the
Adviser’s
proprietary
registered
fund
business.
In
assessing
the
reasonableness
of
the
fund’s
management
fee
rate,
the
Board
considered
the
differences
in
the
nature
of
the
services
required
for
the
Adviser
to
manage
its
registered
fund
business
versus
managing
a
discrete
pool
of
assets
as
a
subadviser
to
another
institution’s
mutual
fund
or
for
an
institutional
account
and
that
the
Adviser
generally
performs
significant
additional
services
and
assumes
greater
risk
in
managing
the
fund
and
other
T.
Rowe
Price
funds
than
it
does
for
institutional
account
clients,
including
subadvised
funds.
On
the
basis
of
the
information
provided
and
the
factors
considered,
the
Board
concluded
that
the
fees
paid
by
the
fund
under
the
Advisory
Contract
are
reasonable.
Approval
of
the
Advisory
Contract
and
Subadvisory
Contract
As
noted,
the
Board
approved
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract.
No
single
factor
was
considered
in
isolation
or
to
be
determinative
to
the
decision.
Rather,
the
Board
concluded,
in
light
of
a
weighting
and
balancing
of
all
factors
considered,
that
it
was
in
the
best
interests
of
the
fund
and
its
shareholders
for
the
Board
to
approve
the
continuation
of
the
Advisory
Contract
and
Subadvisory
Contract
(including
the
fees
to
be
charged
for
services
thereunder).
APPROVAL
OF
INVESTMENT
MANAGEMENT
AGREEMENT
AND
SUBADVISORY
AGREEMENT
(continued)
1307
Point
Street
Baltimore,
Maryland
21231
T.
Rowe
Price
Investment
Services,
Inc.
Call
1-800-638-5660
to
request
a
prospectus
or
summary
prospectus;
each
includes
investment
objectives,
risks,
fees,
expenses,
and
other
information
that
you
should
read
and
consider
carefully
before
investing.
F72-051
8/26

Item 8. Changes in and Disagreements with Accountants for Open-End Management Investment Companies.

Not applicable.

Item 9. Proxy Disclosures for Open-End Management Investment Companies.

Not applicable.

Item 10. Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies.

Remuneration paid to Directors is included in Item 7 of this Form N-CSR.

Item 11. Statement Regarding Basis for Approval of Investment Advisory Contract.

If applicable, see Item 7.

Item 12. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 13. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 14. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 15. Submission of Matters to a Vote of Security Holders.

There has been no change to the procedures by which shareholders may recommend nominees to the registrant’s board of directors.

Item 16. Controls and Procedures.

(a) The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized, and reported timely.

(b) The registrant’s principal executive officer and principal financial officer are aware of no 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.

Item 17. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.

Not applicable.

Item 18. Recovery of Erroneously Awarded Compensation.

Not applicable.

 

Item 19. Exhibits.

 

(a)(1)    

The registrant’s code of ethics pursuant to Item 2 of Form N-CSR is filed with the registrant’s annual Form N-CSR.

    (2)    

Listing standards relating to recovery of erroneously awarded compensation: Not applicable.

    (3)    

Separate certifications by the registrant’s principal executive officer and principal financial officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached.

(b)       

A certification by the registrant’s principal executive officer and principal financial officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and required by Rule 30a-2(b) under the Investment Company Act of 1940, is attached.

 

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.

 

T. Rowe Price Capital Appreciation Fund, Inc.
By  

/s/ David Oestreicher

      
  David Oestreicher  
  Principal Executive Officer  
Date    August 19, 2026  

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 capacities and on the dates indicated.

 

By  

/s/ David Oestreicher

      
  David Oestreicher  
  Principal Executive Officer  
Date    August 19, 2026  

 

By  

/s/ Alan S. Dupski

      
  Alan S. Dupski  
  Principal Financial Officer  
Date   

August 19, 2026

  
 
ATTACHMENTS / EXHIBITS

ATTACHMENTS / EXHIBITS

302 CERTIFICATIONS

906 CERTIFICATIONS

XBRL TAXONOMY EXTENSION SCHEMA

IDEA: R1.htm

IDEA: R2.htm

IDEA: R3.htm

IDEA: FilingSummary.xml

IDEA: MetaLinks.json

IDEA: d101656dncsrs_htm.xml