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Central Securities Corporation was organized on October 1, 1929, and has operated as a closed-end management investment company since its incorporation. It is the policy of Central Securities to operate as a non-diversified investment company.
Our Common Stock is traded on the NYSE American under the symbol CET.
The Corporation’s investment objective is long-term growth of capital. Income received from investments is a secondary consideration.
In pursuing Central’s investment objective, we invest primarily in equity securities that we believe are undervalued at the time of purchase and have the potential for growth. It is our goal to own companies that we believe will generate superior returns when compared with the broad market and preserve the Corporation’s capital in an inflationary environment. A guiding principle is the consideration of equity securities as units of ownership of a business and the purchase of them when the price appears to be low in relation to the value of the total enterprise.
Central owns a limited number of companies, and it invests for the long-term. Honest management working in the interests of all shareholders is of the utmost importance in the appraisal of investments. We may sell securities for a variety of reasons, including excessive valuation, deteriorating results or to redeploy assets into more promising opportunities.
Central is not restricted as to the types of securities (e.g., equity, fixed income) in which it invests. We may invest in securities of issuers with any market capitalization. Central is not required to be fully invested in securities and generally maintains a portion of its total assets in cash and securities considered to be cash equivalents.
After managing the Corporation since 1973, Wilmot H. Kidd stepped down as Chief Executive Officer effective December 31, 2021. Central Securities is now managed by John C. Hill, Chief Executive Officer, who joined the Corporation in 2016. Mr. Hill is assisted by Andrew J. O’Neill, Vice President, who joined the Corporation in 2009. Wilmot Kidd continues to serve the Corporation as Chairman of the Board.
The net asset value (“NAV”) is calculated every Friday and is reported every Monday in The Wall Street Journal under the heading “Closed-End Funds.” The NAV and closing market price, updated weekly, may also be found on this website.
Central Securities’ dividend and distribution policy is to pay out substantially all net investment income and realized capital gains. The amount of our dividends and distributions may vary significantly from year to year.
It has been the Corporation’s policy to make two payments to holders of Common Stock each year. A smaller cash payment is generally made at mid-year, and a distribution consisting primarily of realized capital gains is made at year-end when available. Stockholders have been given the opportunity of receiving the year-end distribution either in additional shares of stock or in cash, at their election.
As with any investment, you could lose all or part of your investment in the Corporation, and the Corporation’s investment performance could trail that of other investments. Investment in the Corporation is subject to certain risks, any of which may adversely affect the Corporation’s NAV, trading price, yield, total return and ability to meet its investment objective.
For more information regarding Central’s investment objective, principal investment policies and principal risks, please see our most recent annual report.
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