0002000324-23-000008.txt : 20231109 0002000324-23-000008.hdr.sgml : 20231109 20231109151727 ACCESSION NUMBER: 0002000324-23-000008 CONFORMED SUBMISSION TYPE: NPORT-P PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20230930 FILED AS OF DATE: 20231109 DATE AS OF CHANGE: 20231109 PERIOD START: 20231231 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL SECURITIES CORP CENTRAL INDEX KEY: 0000018748 IRS NUMBER: 131875970 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: NPORT-P SEC ACT: 1940 Act SEC FILE NUMBER: 811-00179 FILM NUMBER: 231391943 BUSINESS ADDRESS: STREET 1: 630 FIFTH AVENUE STREET 2: SUITE 820 CITY: NEW YORK STATE: NY ZIP: 10111 BUSINESS PHONE: 212-698-2020 MAIL ADDRESS: STREET 1: 630 FIFTH AVENUE STREET 2: SUITE 820 CITY: NEW YORK STATE: NY ZIP: 10111 FORMER COMPANY: FORMER CONFORMED NAME: TRANS CENTRAL SECURITIES CORP DATE OF NAME CHANGE: 19700722 FORMER COMPANY: FORMER CONFORMED NAME: BUERGER LADET & RADINSKY INC DATE OF NAME CHANGE: 19671026 NPORT-P 1 primary_doc.xml NPORT-P false 0000018748 XXXXXXXX CENTRAL SECURITIES CORPORATION 811-00179 0000018748 549300D87MQ4TEVRK235 630 Fifth Avenue Suite 820 NY 10111 212-698-2020 N/A N/A 2023-12-31 2023-09-30 N 1223274283 4366820 1218907463 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N AerCap Holdings N.V. 549300SZYINBBLJQU475 Common Stock N00985106 450000 NS USD 28201500 2.31 Long EC CORP NL N 1 N N N Alphabet Inc. 5493006MHB84DD0ZWV18 Common Stock - Class A 02079K305 500000 NS USD 65430000 5.37 Long EC CORP US N 1 N N N Amazon.com, Inc. ZXTILKJKG63JELOEG630 Common Stock 023135106 225000 NS USD 28602000 2.35 Long EC CORP US N 1 N N N American Express Company R4PP93JZOLY261QX3811 Common Stock 025816109 230000 NS USD 34313700 2.82 Long EC CORP US N 1 N N N Analog Devices, Inc. GYVOE5EZ4GDAVTU4CQ61 Common Stock 032654105 440000 NS USD 77039600 6.32 Long EC CORP US N 1 N N N Aon plc VVT2B79I2Z4U3R6BY589 Common Stock - Class A G0403H108 150000 NS USD 48633000 3.99 Long EC CORP IE N 1 N N N Brady Corporation 549300G2LEQOFQC8GY34 Common Stock - Class A 104674106 200000 NS USD 10984000 0.9 Long EC CORP US N 1 N N N Capital One Financial Corporation ZUE8T73ROZOF6FLBAR73 Common Stock 14040H105 300000 NS USD 29115000 2.39 Long EC CORP US N 1 N N N Coherent Corp. 549300O5C25A0MMHHU33 Common Stock 19247G107 400000 NS USD 13056000 1.07 Long EC CORP US N 1 N N N Hess Corporation UASVRYNXNK17ULIGK870 Common Stock 42809H107 365000 NS USD 55845000 4.58 Long EC CORP US N 1 N N N Intel Corporation KNX4USFCNGPY45LOCE31 Common Stock 458140100 400000 NS USD 14220000 1.17 Long EC CORP US N 1 N N N Johnson & Johnson 549300G0CFPGEF6X2043 Common Stock 478160104 90000 NS USD 14017500 1.15 Long EC CORP US N 1 N N N JPMorgan Chase & Co. 8I5DZWZKVSZI1NUHU748 Common Stock 46625H100 200000 NS USD 29004000 2.38 Long EC CORP US N 1 N N N Kennedy-Wilson Holdings, Inc. 549300MOI1T78144X610 Common Stock 489398107 1000000 NS USD 14740000 1.21 Long EC CORP US N 1 N N N Keysight Technologies, Inc. 549300GLKVIO8YRCYN02 Common Stock 49338L103 200000 NS USD 26462000 2.17 Long EC CORP US N 1 N N N Medtronic plc 549300GX3ZBSQWUXY261 Common Stock G5960L103 185000 NS USD 14496600 1.19 Long EC CORP IE N 1 N N N Mercadolibre, Inc. 549300DKPDN9M5S8GB14 Common Stock 58733R102 11000 NS USD 13946680 1.14 Long EC CORP US N 1 N N N Merck & Co., Inc. 4YV9Y5M8S0BRK1RP0397 Common Stock 58933Y105 200000 NS USD 20590000 1.69 Long EC CORP US N 1 N N N Meta Platforms, Inc. BQ4BKCS1HXDV9HN80Z93 Common Stock - Class A 30303M102 100000 NS USD 30021000 2.46 Long EC CORP US N 1 N N N Microsoft Corporation INR2EJN1ERAN0W5ZP974 Common Stock 594918104 80000 NS USD 25260000 2.07 Long EC CORP US N 1 N N N Motorola Solutions, Inc. 6S552MUG6KGJVEBSEC55 Common Stock 620076307 170000 NS USD 46280800 3.8 Long EC CORP US N 1 N N N Progressive Corporation 529900TACNVLY9DCR586 Common Stock 743315103 435000 NS USD 60595500 4.97 Long EC CORP US N 1 N N N Rayonier Inc. HGV8VDVNL0W6SF2U9C50 Common Stock 754907103 700000 NS USD 19922000 1.63 Long EC CORP US N 1 N N N Roche Holding AG 549300U41AUUVOAAOB37 ADR 771195104 300000 NS USD 10179000 0.84 Long EC CORP CH N 1 N N N Roper Technologies, Inc. 54930003T4SXCIWVXY35 Common Stock 776696106 54000 NS USD 26151120 2.15 Long EC CORP US N 1 N N N Teledyne Technologies Incorporated 549300VSMO9KYQWDND94 Common Stock 879360105 30000 NS USD 12257400 1.01 Long EC CORP US N 1 N N N The Charles Schwab Corporation 549300VSGCJ7E698NM85 Common Stock 808513105 700000 NS USD 38430000 3.15 Long EC CORP US N 1 N N N Visa Inc. 549300JZ4OKEHW3DPJ59 Common Stock - Class A 92826C839 65000 NS USD 14950650 1.23 Long EC CORP US N 1 N N N Wolfspeed, Inc. 549300OGU88P3AW3TO93 Common Stock 977852102 170000 NS USD 6477000 0.53 Long EC CORP US N 1 N N N The Plymouth Rock Company Incorporated 98450064D596453C6420 Common Stock - Class A N/A 28424 NS USD 284240000 23.32 Long EC CORP US Y 3 N N N U.S. Government N/A Treasury Bill 912797FA0 40000000 PA USD 39935833 3.28 Long DBT UST US N 2 2023-10-12 None 5.359 N N N N N N U.S. Government N/A Treasury Bill 912797HC4 40000000 PA USD 39865578 3.27 Long DBT UST US N 2 2023-10-24 None 5.367 N N N N N N 2023-11-09 CENTRAL SECURITIES CORPORATION /s/ Lawrence P. Vogel Lawrence P. Vogel Vice President and Treasurer XXXX NPORT-EX 2 cet-nportex_093023.htm STATEMENT OF INVESTMENTS
 

 

CENTRAL SECURITIES CORPORATION

STATEMENT OF INVESTMENTS

September 30, 2023

(unaudited)

 

Shares      Value 
COMMON STOCKS 91.4%
     Banks 2.4%     
 200,000   JPMorgan Chase & Co.  $29,004,000 
           
     Communications Services 7.8%     
 500,000   Alphabet Inc. Class A (a)   65,430,000 
 100,000   Meta Platforms, Inc. Class A (a)   30,021,000 
         95,451,000 
           
     Diversified Financial 9.6%     
 230,000   American Express Company   34,313,700 
 300,000   Capital One Financial Corporation   29,115,000 
 700,000   The Charles Schwab Corporation   38,430,000 
 65,000   Visa Inc. Class A   14,950,650 
         116,809,350 
           
     Diversified Industrial 3.2%     
 450,000   AerCap Holdings N.V. (a)   28,201,500 
 200,000   Brady Corporation Class A   10,984,000 
         39,185,500 
           
     Energy 4.6%     
 365,000   Hess Corporation   55,845,000 
           
     Health Care 4.9%     
 90,000   Johnson & Johnson   14,017,500 
 185,000   Medtronic plc   14,496,600 
 200,000   Merck & Co., Inc.   20,590,000 
 300,000   Roche Holding AG ADR   10,179,000 
         59,283,100 
           
     Insurance Brokers 4.0%     
 150,000   Aon plc Class A   48,633,000 
           
     Insurance Underwriters 28.3%     
 28,424   The Plymouth Rock Company Class A (b)(c)   284,240,000 
 435,000   Progressive Corporation   60,595,500 
         344,835,500 
           
     Real Estate 2.8%     
 1,000,000   Kennedy-Wilson Holdings Inc.   14,740,000 
 700,000   Rayonier Inc.   19,922,000 
         34,662,000 

 

 

 

 

Shares      Value 
    Retailing 3.5%    
 225,000   Amazon.com, Inc. (a)  $28,602,000 
 11,000   Mercadolibre, Inc. (a)   13,946,680 
         42,548,680 
           
     Semiconductor 8.0%     
 440,000   Analog Devices, Inc.   77,039,600 
 400,000   Intel Corporation   14,220,000 
 170,000   Wolfspeed, Inc., Inc. (a)   6,477,000 
         97,736,600 
           
     Software and Services 4.2%     
 80,000   Microsoft Corporation   25,260,000 
 54,000   Roper Technologies, Inc.   26,151,120 
         51,411,120 
           
     Technology Hardware and Equipment 8.1%     
 400,000   Coherent Corp. (a)   13,056,000 
 200,000   Keysight Technologies, Inc. (a)   26,462,000 
 170,000   Motorola Solutions, Inc.   46,280,800 
 30,000   Teledyne Technologies Incorporated (a)   12,257,400 
         98,056,200 
           
     Total Common Stocks (cost $397,230,427)   1,113,461,050 
           
     SHORT-TERM INVESTMENTS 6.5%     
           
Principal   U.S. Treasury Bills 6.5%    
$80,000,000   U.S. Treasury Bills 5.359% - 5.367% due 10/12/23 - 10/24/23 (d)   79,801,411 
           
     Total Short-Term Investments (cost $79,801,411)   79,801,411 
           
     Total Investments (cost $477,031,838) (97.9%)   1,193,262,461 
           
     Cash, receivables and other assets less liabilities (2.1%)   25,645,002 
           
     Net Assets (100%)  $1,218,907,463 

 

 
(a)Non-dividend paying.
(b)Affiliate as defined in the Investment Company Act of 1940 and restricted.  See Note 3 and Note 4.
(c)Valued based on Level 3 inputs.  See Note 2.
(d)Valued based on Level 2 inputs.  See Note 2.

 

See accompanying notes to statement of investments.

 

 

 

 

CENTRAL SECURITIES CORPORATION
(the “Corporation”)
NOTES TO STATEMENT OF INVESTMENTS
(unaudited)

 

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

 

As of September 30, 2023, the tax cost of investments was $477,031,838. Net unrealized appreciation was $716,230,623 consisting of gross unrealized appreciation and gross unrealized depreciation of $730,644,403 and $14,413,780, respectively.

 

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

●Level 1 – Quoted prices in active markets for identical investments;
●Level 2 – Other significant observable inputs obtained from independent sources, for example, quoted prices in active markets for similar investments;
●Level 3 – Significant unobservable inputs including the Corporation’s own assumptions based upon the best information available. The Corporation’s only Level 3 investment is The Plymouth Rock Company Class A Common Stock (“Plymouth Rock”).

 

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

 

The Corporation’s investments as of September 30, 2023 are classified as follows:

 

   Level 1   Level 2   Level 3   Total 
Common stocks  $829,221,050    —   $284,240,000   $1,113,461,050 
Short-term investments   —    79,801,411    —    79,801,411 
Total investments  $829,221,050   $79,801,411   $284,240,000   $1,193,262,461 

 

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

 

Balance at December 31, 2022  $258,658,400 
Change in net unrealized appreciation of investments in affiliated companies included in net increase in net assets resulting from operations   25,581,600 
Balance at September 30, 2023  $284,240,000 

 

Unrealized appreciation of Level 3 investments held as of September 30, 2023 increased during the nine months ended September 30, 2023 by $25,581,600, which is included in the above table.

 

Management assists the Board of Directors in the determination of fair value of Plymouth Rock. In valuing the Plymouth Rock Level 3 investment as of September 30, 2023, management considered Plymouth Rock’s financial condition and results of operations, the insurance industry outlook, and any transactions in Plymouth Rock’s shares. Management used significant unobservable inputs to develop a range of values for the investment. It used a comparable company approach that utilized the following valuation multiples from selected publicly traded companies: price-to-book value (range: 1.0–2.0; average: 1.3); price-to-historical earnings (range: 10.0–39.7; average: 23.0); and price-to-forward earnings estimates (range: 24.1–36.6; average: 28.6). Management also used Plymouth Rock’s book value and a discounted cash flow model based on a forecasted return on equity of approximately 11% and a cost of capital of approximately 12%. The average of these values was then discounted for lack of marketability and control of the Plymouth Rock shares. Management considered a discount range of 25% to 40%, a range management believes market participants would apply. An independent valuation of Plymouth Rock’s shares obtained by Plymouth Rock was also considered. Management presented and discussed the above information with the Corporation’s directors, who determined the value for the investment.

 

 

 

 

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

 

3. Restricted Securities - The Corporation may from time to time invest in securities the resale of which is restricted. On September 30, 2023, the Corporation’s only restricted security consisted of 28,424 shares of Plymouth Rock that were acquired on December 15, 1982 at a cost of $710,600. This security had a value of $284,240,000 at September 30, 2023, which was equal to 23.3% of the Corporation’s net assets. The Corporation does not have the right to demand registration of this security.

 

4. Affiliated Companies – Plymouth Rock is an affiliated company as defined in the Investment Company Act of 1940 due to the Corporation’s ownership of 5% or more of the company’s outstanding voting securities. During the nine months ended September 30, 2023, unrealized appreciation from the Corporation’s investment in Plymouth Rock increased by $25,581,600 and the Corporation received dividends of $7,224,244 from Plymouth Rock. The Chairman of the Corporation is a director of Plymouth Rock. The Chief Executive Officer of the Corporation is a director of certain subsidiaries of Plymouth Rock.