ITEM 1. |
REPORT TO STOCKHOLDERS
|
Company
|
Market Value
|
Percentage of Portfolio
|
||||||
Berkshire Hathaway Inc. B
|
$
|
7,489,860
|
17.4
|
%
|
||||
Franklin Resources, Inc.
|
$
|
2,472,570
|
5.8
|
%
|
||||
Alphabet, Inc. A
|
$
|
2,374,730
|
5.5
|
%
|
||||
Markel Corp.
|
$
|
2,371,233
|
5.5
|
%
|
||||
Charles Schwab Corp.
|
$
|
2,339,200
|
5.4
|
%
|
||||
T. Rowe Price Group Inc.
|
$
|
2,196,876
|
5.1
|
%
|
||||
Illinois Tool Works Inc.
|
$
|
1,833,580
|
4.3
|
%
|
||||
PepsiCo, Inc.
|
$
|
1,698,400
|
4.0
|
%
|
||||
Colgate-Palmolive Company
|
$
|
1,673,910
|
3.9
|
%
|
||||
Diamond Hill Investment Group, Inc.
|
$
|
1,585,690
|
3.7
|
%
|
Luke E. Sims
|
David C. Sims
|
||
Email:
|
Email:
|
||
Phone:
|
414/530-5680
|
Phone:
|
414/765-1107
|
1-year
|
5-year
|
10-year
|
||||||||||
Net Asset Value Return
|
12.18
|
%
|
12.48
|
%
|
9.55
|
%
|
||||||
Market Price Return
|
14.44
|
%
|
11.91
|
%
|
8.72
|
%
|
||||||
Returns are annualized average returns for periods greater than one year.
|
Assets
|
||||||||
Common stock--at market value (cost $20,779,575)
|
$
|
40,156,528
|
||||||
Money market funds (cost $2,776,123)
|
2,776,123
|
|||||||
Dividend and interest receivable
|
55,799
|
|||||||
Prepaid fees
|
13,565
|
|||||||
Total assets
|
$
|
43,002,015
|
||||||
Liabilities
|
||||||||
Accrued expenses
|
$
|
32,500
|
||||||
Investment advisor fee payable
|
32,226
|
|||||||
Total liabilities
|
$
|
64,726
|
||||||
Total net assets
|
$
|
42,937,289
|
||||||
Shareholders’ Equity
|
||||||||
Net Assets are Comprised of:
|
||||||||
Paid-in capital $0.001 par value per share; authorized 50,000,000 shares, outstanding 3,967,836 shares
|
23,560,335
|
|||||||
Distributable earnings
|
19,376,954
|
|||||||
Total net assets
|
$
|
42,937,289
|
||||||
Net asset value per share
|
$
|
10.82
|
Investment Income
|
||||||||||||
Dividends
|
$
|
591,672
|
||||||||||
Interest
|
144,303
|
|||||||||||
Total investment income
|
$
|
735,975
|
||||||||||
Expenses
|
||||||||||||
Advisory fees
|
$
|
308,572
|
||||||||||
Legal fees
|
15,113
|
|||||||||||
Insurance
|
13,564
|
|||||||||||
Transfer agent
|
46,537
|
|||||||||||
Directors’ fees and expenses
|
89,750
|
|||||||||||
Custodian fees
|
9,892
|
|||||||||||
Audit/Tax Fee
|
32,500
|
|||||||||||
Listing fee
|
15,000
|
|||||||||||
Other fees and expenses
|
18,359
|
|||||||||||
Total expenses
|
$
|
549,287
|
||||||||||
Net investment income
|
$
|
186,688
|
||||||||||
Realized Gain and Change in Unrealized Appreciation on Investments
|
||||||||||||
Realized gain on investments:
|
||||||||||||
Net realized gain on investments
|
$
|
1,107,684
|
||||||||||
Unrealized appreciation on investments:
|
||||||||||||
Net change in unrealized appreciation on investments
|
$
|
3,318,062
|
||||||||||
Net realized gain and change in unrealized appreciation on investments
|
$
|
4,425,746
|
||||||||||
Net increase from operations
|
$
|
4,612,434
|
Year Ended
|
Year Ended
|
|||||||
December 31, 2022
|
December 31, 2023
|
|||||||
From Operations:
|
||||||||
Net investment income
|
$
|
81,389
|
$
|
186,688
|
||||
Net realized gain on investments
|
1,336,088
|
1,107,684
|
||||||
Net change in unrealized appreciation (depreciation) on investments
|
(3,223,386
|
)
|
3,318,062
|
|||||
Net increase (decrease) from operations
|
(1,805,909
|
)
|
4,612,434
|
|||||
Distributions to Shareholders from:
|
||||||||
Distributions
|
(1,453,013
|
)
|
(1,388,743
|
)
|
||||
From Capital Stock Transactions:
|
||||||||
Reinvested capital from distribution of shares
|
623,319
|
-
|
||||||
Share repurchases
|
(680,000
|
)
|
-
|
|||||
Decrease from capital stock transactions
|
(56,681
|
)
|
-
|
|||||
Total Net Assets:
|
||||||||
Beginning of year
|
43,029,202
|
39,713,598
|
||||||
End of year
|
$
|
39,713,598
|
$
|
42,937,289
|
||||
Shares:
|
||||||||
Shares outstanding at beginning of year
|
3,991,647
|
3,967,836
|
||||||
Shares issued, due to the distribution
|
61,189
|
-
|
||||||
Shares repurchased
|
(85,000
|
)
|
-
|
|||||
Shares outstanding at end of period
|
3,967,836
|
3,967,836
|
For the periods ended December 31:
|
2019
|
2020
|
2021
|
2022
|
2023
|
|||||||||||||||
Net asset value at beginning of year
|
$
|
8.15
|
$
|
9.21
|
$
|
9.53
|
$
|
10.78
|
$
|
10.01
|
||||||||||
Net investment income (A)
|
0.09
|
0.05
|
0.03
|
0.02
|
0.05
|
|||||||||||||||
Net realized gain and unrealized appreciation (loss) on investments
|
1.61
|
0.82
|
2.15
|
(0.47
|
)
|
1.11
|
||||||||||||||
Total from investment operations
|
1.70
|
0.87
|
2.18
|
(0.45
|
)
|
1.16
|
||||||||||||||
Distribution from:
|
||||||||||||||||||||
Net investment income
|
(0.07
|
)
|
(0.06
|
)
|
(0.02
|
)
|
(0.03
|
)
|
(0.07
|
)
|
||||||||||
Realized gains
|
(0.49
|
)
|
(0.49
|
)
|
(0.95
|
)
|
(0.34
|
)
|
(0.28
|
)
|
||||||||||
Total distributions
|
(0.56
|
)
|
(0.55
|
)
|
(0.97
|
)
|
(0.37
|
)
|
(0.35
|
)
|
||||||||||
Impact of capital share transactions
|
(0.04
|
)
|
-
|
0.04
|
0.05
|
-
|
||||||||||||||
Net asset value at end of year
|
$
|
9.21
|
$
|
9.53
|
$
|
10.78
|
$
|
10.01
|
$
|
10.82
|
||||||||||
Per share market price, end of year last traded price
|
$
|
8.02
|
$
|
7.98
|
$
|
9.51
|
$
|
8.57
|
$
|
9.36
|
||||||||||
Total Investment Return:
|
||||||||||||||||||||
Average annual return, based on market value (B):
|
18.13
|
%
|
6.36
|
%
|
30.70
|
%
|
-6.57
|
%
|
14.44
|
%
|
||||||||||
Average annual return, based on net asset value:
|
21.35
|
%
|
10.75
|
%
|
24.05
|
%
|
-3.73
|
%
|
12.18
|
%
|
||||||||||
Net assets, end of year (000s omitted)
|
$
|
37,530
|
$
|
38,842
|
$
|
43,029
|
$
|
39,714
|
$
|
42,937
|
||||||||||
Ratios to average net assets:
|
||||||||||||||||||||
Expenses to average net assets
|
1.29
|
%
|
1.30
|
%
|
1.26
|
%
|
1.36
|
%
|
1.34
|
%
|
||||||||||
Net investment income to average net assets
|
0.95
|
%
|
0.57
|
%
|
0.30
|
%
|
0.20
|
%
|
0.45
|
%
|
||||||||||
Portfolio turnover
|
26
|
%
|
19
|
%
|
5
|
%
|
10
|
%
|
11
|
%
|
||||||||||
Average commission paid per share
|
$
|
0.05
|
$
|
0.04
|
$
|
0.01
|
$
|
0.01
|
$
|
0.01
|
Common Stock (93.5% of total investments)
|
||||||||||||||||
Industry
|
Shares
|
Cost
|
Fair Value
|
Percent of
|
||||||||||||
Net Assets
|
||||||||||||||||
Advertising
|
||||||||||||||||
Alphabet, Inc. A*
|
17,000
|
$
|
1,376,922
|
$
|
2,374,730
|
|||||||||||
MediaAlpha, Inc.*
|
9,876
|
166,690
|
110,117
|
|||||||||||||
2,484,847
|
5.8
|
%
|
||||||||||||||
Bank
|
||||||||||||||||
JPMorgan Chase & Co
|
3,000
|
390,311
|
510,300
|
|||||||||||||
US Bancorp.
|
24,000
|
857,537
|
1,038,720
|
|||||||||||||
Wells Fargo & Co.
|
10,000
|
403,661
|
492,200
|
|||||||||||||
2,041,220
|
4.8
|
%
|
||||||||||||||
Brokerage
|
||||||||||||||||
Charles Schwab Corp.
|
34,000
|
1,760,697
|
2,339,200
|
|||||||||||||
2,339,200
|
5.4
|
%
|
||||||||||||||
Conglomerate
|
||||||||||||||||
Berkshire Hathaway Inc. B*
|
21,000
|
3,205,343
|
7,489,860
|
|||||||||||||
7,489,860
|
17.4
|
%
|
||||||||||||||
Consumer
|
||||||||||||||||
Colgate-Palmolive Company
|
21,000
|
626,458
|
1,673,910
|
|||||||||||||
Procter & Gamble Company
|
2,000
|
145,879
|
293,080
|
|||||||||||||
1,966,990
|
4.6
|
%
|
||||||||||||||
Credit Card
|
||||||||||||||||
Mastercard Inc
|
1,000
|
219,636
|
426,510
|
|||||||||||||
Visa Inc.
|
1,500
|
225,957
|
390,525
|
|||||||||||||
817,035
|
1.9
|
%
|
||||||||||||||
Data Processing
|
||||||||||||||||
Automatic Data Processing, Inc.
|
3,000
|
82,775
|
698,910
|
|||||||||||||
Paychex, Inc.
|
6,000
|
140,075
|
714,660
|
|||||||||||||
1,413,570
|
3.3
|
%
|
||||||||||||||
Drug/Medical Device
|
||||||||||||||||
Johnson & Johnson
|
3,071
|
34,933
|
481,349
|
|||||||||||||
Stryker Corp.
|
4,500
|
19,055
|
1,347,570
|
|||||||||||||
1,828,919
|
4.3
|
%
|
||||||||||||||
Food
|
||||||||||||||||
Kraft Heinz Company
|
29,000
|
772,000
|
1,072,420
|
|||||||||||||
PepsiCo, Inc.
|
10,000
|
168,296
|
1,698,400
|
|||||||||||||
2,770,820
|
6.5
|
%
|
||||||||||||||
Industrial
|
||||||||||||||||
Danaher Corporation
|
1,000
|
225,262
|
231,340
|
|||||||||||||
Illinois Tool Works Inc.
|
7,000
|
295,051
|
1,833,580
|
|||||||||||||
Veralto Corporation
|
333
|
29,705
|
27,393
|
|||||||||||||
Waters Corp.*
|
2,000
|
100,780
|
658,460
|
|||||||||||||
2,750,773
|
6.4
|
%
|
||||||||||||||
Insurance
|
||||||||||||||||
Markel Corp.*
|
1,670
|
1,296,670
|
2,371,233
|
|||||||||||||
2,371,233
|
5.5
|
%
|
Industry
|
Shares
|
Cost
|
Fair Value
|
Percent of
|
||||||||||||
Net Assets
|
||||||||||||||||
Mutual Fund Management
|
||||||||||||||||
Diamond Hill Investment Group, Inc.
|
9,576
|
$
|
1,338,331
|
$
|
1,585,690
|
|||||||||||
Franklin Resources, Inc.
|
83,000
|
2,108,376
|
2,472,570
|
|||||||||||||
T. Rowe Price Group Inc.
|
20,400
|
2,591,590
|
2,196,876
|
|||||||||||||
6,255,136
|
14.6
|
%
|
||||||||||||||
Restaurant
|
||||||||||||||||
Starbucks Corp.
|
12,000
|
588,432
|
1,152,120
|
|||||||||||||
1,152,120
|
2.7
|
%
|
||||||||||||||
Retail
|
||||||||||||||||
AutoZone Inc.*
|
600
|
319,026
|
1,551,366
|
|||||||||||||
eBay Inc.
|
3,000
|
68,886
|
130,860
|
|||||||||||||
O’Reilly Automotive Inc.*
|
1,500
|
305,534
|
1,425,120
|
|||||||||||||
3,107,346
|
7.2
|
%
|
||||||||||||||
Technology Services
|
||||||||||||||||
Amazon.com Inc.*
|
9,000
|
915,707
|
1,367,460
|
|||||||||||||
1,367,460
|
3.2
|
%
|
||||||||||||||
Total common stock investments (Cost $20,779,575)
|
40,156,528
|
|||||||||||||||
Money Market Funds
|
||||||||||||||||
Morgan Stanley Inst. Liq. Fund, Treasury, Institutional Class, 5.18%**
|
2,776,123
|
2,776,123
|
6.5
|
%
|
||||||||||||
(Cost $2,776,123)
|
2,776,123
|
|||||||||||||||
Total investments (Cost $23,555,698)
|
$
|
42,932,652
|
||||||||||||||
Other assets in excess of liabilities
|
4,637
|
|||||||||||||||
Total net assets
|
$
|
42,937,289
|
||||||||||||||
*Non-dividend paying security
|
||||||||||||||||
**7-day yield
|
(1) |
Organization.
|
(2) |
Significant Accounting Policies.
|
Gross unrealized appreciation
|
$
|
20,001,224
|
||
Gross unrealized depreciation
|
(624,270
|
)
|
||
Net unrealized appreciation
|
$
|
19,376,954
|
||
Cost basis of securities on tax basis:
|
$
|
23,555,698
|
Undistributed ordinary income
|
$
|
-
|
||
Unrealized appreciation on investments
|
19,376,954
|
|||
Total accumulated earnings
|
$
|
19,376,954
|
(3) |
Service Providers Arrangements
|
(4) |
Dividend Reinvestment and Cash Purchase Plan.
|
(5) |
Distributions to Shareholders.
|
2022
|
2023
|
|||||||
Distributions paid from:
|
||||||||
Ordinary income
|
$
|
116,925
|
$
|
281,059
|
||||
Short-term capital gains
|
934
|
114,033
|
||||||
Long-term capital gains
|
1,335,154
|
993,651
|
(6) |
Fund Investment Transactions.
|
(7) |
Subsequent Events.
|
(8) |
Guarantees and indemnifications.
|
Name,
Address and
Age
|
Position(s)
Held with
Fund
|
Term of
Office and
Length of
Time Served
|
Principal Occupation(s) During Past
Five Years (in addition to positions
held in the Fund)
|
Number of
Portfolios in
Fund
Complex
Overseen by
Director or
Nominee for
Director
|
Other
Directorships
Held by Director
or Nominee for
Director
(Public
Companies)
|
||||||
David C. Sims*, age 42
|
VP, CFO, CCO,
Treasurer, Secretary, and Director
|
Term of office expires 2024 (Class II); nominee for director. Served as a director since 2015.
|
President of Sims Capital Management LLC (investment advisor to the Fund); Manager of Peregrine Investment Fund LLC (private investment fund); and roles with the Fund as previously identified.
|
One
|
None
|
||||||
Luke E. Sims**, age 74
|
President, CEO and Director
|
Term of office expires 2025 (Class III). Served as a director since 2002
|
President and Chief Executive Officer of the Fund; Chairman of Sims Capital Management LLC (the Advisor to the Fund); and Retired Partner of Foley & Lardner LLP (national law firm) where he was affiliated from 1976 through 2010.
|
One
|
None
|
Name, Address
and Age*
|
Position(s)
Held with
Fund
|
Term of Office
and Length of
Time Served
|
Principal Occupation(s) During Past
Five Years
|
Number of
Portfolios in Fund
Complex Overseen
by Director or
Nominee for
Director
|
Other Directorships
Held by Director or
Nominee for
Director
(Public
Companies)
|
||||||
Jason W. Allen, age 52
|
Director
|
Term of office expires 2026 (Class I). Served as a director since 2021.
|
Partner of Foley & Lardner LLP (law firm) where he has been a practicing corporate lawyer since 1999.
|
One
|
None
|
||||||
Robert M. Bilkie, Jr., age 63
|
Chairman; Director
|
Term of office expires 2026 (Class I). Served as a director since 2006.
|
President and Chief Executive Officer of Sigma Investment Counselors, Inc. (a registered investment advisor) since 1987; member of the Better Investing Securities Review Committee and of the Better Investing Editorial Advisory Committee
(non-remunerative).
|
One
|
None
|
||||||
Phillip J. Hanrahan,
age 84
|
Director
|
Term of office expires 2026 (Class I). Served as a director since 2008.
|
Retired partner of Foley & Lardner LLP (law firm) since February 2007 and, prior thereto, active partner of that firm since 1973.
|
One
|
None
|
||||||
Carl A. Holth,
age 91
|
Director
|
Term of office expires 2024 (Class II); nominee for director. Served as a director since 1989.
|
Retired.
|
One
|
None
|
||||||
Anne M. Nichols, age 62
|
Director
|
Term of office expires 2024 (Class II); nominee for director. Served as a director since 2021.
|
Managing director at Fern Capital Inc, an investment advisor.
|
One
|
None
|
||||||
Donald G. Tyler,
age 71
|
Director
|
Term of office expires 2025 (Class III). Served as a director since 2010.
|
Retired. Director of Administrative Services, County of Milwaukee, 2012 to 2014. Retired Interim President & Executive Director, Milwaukee Symphony Orchestra 2010; Vice President of Investment Products and Services, Northwestern
Mutual, 2003-2010.
|
One
|
None
|
||||||
Neal F. Zalenko, age 78
|
Director
|
Term of office expires 2025 (Class III). Served as a director since 2008.
|
Retired; Founder and Managing Partner of Zalenko & Associates, P.C. (accounting firm), that merged with Baker Tilly in early 2005.
|
One
|
None
|
Name, Position
|
Aggregate
Compensation
From Fund
|
Pension or Retirement
Benefits Accrued as
part of Fund
Expenses
|
Estimated
Annual
Benefits upon
Retirement
|
Total
Compensation
from Fund and
Complex paid
to Directors
|
David C. Sims,
VP, CFO, CCO,
Treasurer, Secretary,
and Director
|
None
|
None
|
None
|
None
|
Luke E. Sims,
Director, President,
CEO
|
None
|
None
|
None
|
None
|
Name, Position
|
Aggregate
Compensation
From Fund
|
Pension or Retirement
Benefits Accrued as
part of Fund
Expenses
|
Estimated
Annual
Benefits upon
Retirement
|
Total
Compensation
from Fund and
Complex paid
to Directors
|
Jason W. Allen,
Director
|
$12,000
|
None
|
None
|
$12,000
|
Robert M. Bilkie, Jr.,
Director
|
$12,000
|
None
|
None
|
$12,000
|
Phillip J. Hanrahan,
Director
|
$13,250
|
None
|
None
|
$13,250
|
Carl A. Holth,
Director
|
$13,250
|
None
|
None
|
$13,250
|
Anne M. Nichols,
Director
|
$12,000
|
None
|
None
|
$12,000
|
Donald G. Tyler,
Director
|
$13,250
|
None
|
None
|
$13,250
|
Neal F. Zalenko,
Director
|
$14,000
|
None
|
None
|
$14,000
|
Jason W. Allen
Director
Fox Point, WI
|
Robert M. Bilkie, Jr.
Chairman of the Board
Northville, MI
|
Phillip J. Hanrahan
Director
Whitefish Bay, WI
|
Carl A. Holth
Director
Dearborn, MI
|
Anne M. Nichols
Director
Huntington Woods, MI
|
Luke E. Sims
President & CEO
Milwaukee, WI
|
David C. Sims
VP, Treasurer, CFO, CCO
Secretary & Director
Bayside, WI
|
Donald G. Tyler
Director
Whitefish Bay, WI
|
Neal F. Zalenko
Director
Birmingham, MI
|
ITEM 2. |
CODE OF ETHICS
|
ITEM 3. |
AUDIT COMMITTEE FINANCIAL EXPERT
|
ITEM 4. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES
|
ITEM 5. |
AUDIT COMMITTEE OF LISTED REGISTRANTS
|
ITEM 6. |
SCHEDULE OF INVESTMENTS
|
ITEM 7. |
DISCLOSURE OF PROXY VOTING AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
|
ITEM 8. |
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
ITEM 9. |
PURCHASE OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
|
ITEM 10. |
SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS.
|
ITEM 11. |
CONTROLS AND PROCEDURES.
|
ITEM 12. |
DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
ITEM 13. |
EXHIBITS
|