MERRILL
LYNCH
BASIC VALUE
FUND, INC.
FUND LOGO
Quarterly Report March 31, 1994
This report is not authorized for use as an offer of sale
or a solicitation of an offer to buy shares of the Fund
unless accompanied or preceded by the Fund's current pro-
spectus. Past performance results shown in this report
should not be considered a representation of future per-
formance. Investment return and principal value of shares
will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
Merrill Lynch
Basic Value Fund, Inc.
Box 9011
Princeton, NJ
08543-9011
MERRILL LYNCH BASIC VALUE FUND, INC.
TO OUR SHAREHOLDERS
Inflationary expectations changed sharply during the March quarter.
Following better-than-expected economic results, Federal Reserve
Board Chairman Alan Greenspan indicated in Congressional testimony
in January that continued strong expansion of the economy would
lead the central bank to tighten monetary policy in an effort to
control inflation. On February 4, 1994, the central bank broke with
tradition and publicly announced a modest 25 basis point (0.25%)
increase in short-term interest rates. At the March 22 meeting of
the Federal Open Market Committee, the Federal Reserve Board again
raised the Federal Funds rate by 25 basis points, and also announ-
ced the increase.
<PAGE>
Rather than view the Federal Reserve Board's first tightening move
as a preemptive strike against inflation, fixed-income investors
focused on Chairman Greenspan's implicit promise of further tighten-
ing should the rate of inflation accelerate, and bond prices de-
clined sharply. The setback in the bond market was also reflected
in greater stock market volatility. While the second increase in
the Federal Funds rate was less of a surprise, investors remained
concerned that interest rates would trend upward sharply. As a result,
stock and bond prices continued to decline through the end of March.
The volatility in the US capital markets was mirrored in international
markets. Political and economic developments, along with concerns
of heightened global inflationary pressures, led to a sell-off in
most capital markets, especially the emerging markets that had
appreciated strongly in 1993.
In the weeks ahead, investors will continue to gauge the pace of
the economic expansion and watch for signs of an overheating economy.
At this time, there is little evidence that the rate of inflation
will increase rapidly. Therefore, although the secular long-term
trend toward lower interest rates may be over, it is not yet certain
whether the pace of economic activity will accelerate to the point
where significant Federal Reserve Board tightening will be necessary
to contain inflation.
Portfolio Matters
Security purchases during the first quarter of 1994 amounted to $291
million, while equity sales totaled $183 million. The over $100 mill-
ion disparity between purchases and sales was in response to the
sharp market weakness that developed during the quarter, following
the Federal Reserve Board's move to increase interest rates on Feb-
ruary 4, 1994. In keeping with our long-standing practice, we gen-
erally buy into periods of stock market weakness and sell on balance
when stock prices are advancing.
Most of our first quarter purchase activity was concentrated late
in the quarter, and over 80% was dedicated to increasing established
positions. The largest addition was to Philip Morris Cos. Inc.,
which has been battered by negative publicity. The stock is now
one of the our ten largest holdings, and we believe it provides
excellent value in a decidedly out-of-favor area. The company in-
creased its dividend during the March quarter, and we believe the
substantially above-average yield combined with improving profits
later in the year will tend to support the stock price.
<PAGE>
We also continue to add to the Sears, Roebuck & Co. position, which
remains the Fund's largest holding. We discussed Sears, Roebuck &
Co. in our year-end 1993 report, and the stock came under selling
pressure during the first three months of the year. Although some
of the stock price weakness can be attributed to overall market con-
ditions, the bulk of the decline is more related to larger-than-
normal catastrophe losses at 80%-owned Allstate Corp. These casualty
losses will adversely affect nearby profits for Sears, Roebuck & Co.
but with the dramatic turnaround in merchandising operations con-
tinuing, the long-term earnings outlook is excellent and we expect
it to eventually support a substantially higher stock price.
We made a large addition to Citicorp, Inc., which propelled the
stock to the list of top-ten holdings. We also added to other bank
positions, and industry holdings remain our second-largest commit-
ment after the petroleum positions. Conventional wisdom suggests
that higher interest rates are negative for the banks, but we dis-
agree and believe an improving economy will enhance loan demand,
which we expect to lead to higher earnings. There is some concern
relative to the consistency of trading profits for banks, but we
feel this uncertainty is already reflected in very modest price/
earnings ratios.
A significant new position was General Mills Inc. one of the premier
companies in the out-of-favor food industry. The stock has under-
performed in recent years, and at our entry price the issue provided
an above-average yield and reasonable price/earnings ratio based on
growth prospects. We believe the risk/reward ratio is in our favor.
On the sell side we eliminated five positions, including American
Express Co. and Pacific Telesis Group, at worthwhile profits. Also,
we sold remaining small positions in Aluminum Co. of America and
McDonnell Douglas Corp. at substantial gains. Finally, we bought
and sold JDN Realty Corp. at a modest profit, and sold Rayonier Inc.,
a spinoff from ITT Corp.
In Conclusion
So far in 1994, the equity market has experienced its first mean-
ingful correction in over three years. Throughout 1993 we had pre-
maturely expressed concerns over valuation levels and the probability
of increased market volatility. Accordingly, our cash position last
year went from about 8% to about 20% at year-end.
To a large extent the stock market advance over the past few years
has been liquidity driven, and with increases in interest rates, the
flow of funds into the stock market may diminish. Therefore, dramatic
short-term fluctuations in stock prices may continue.
We increased our cash position even further to 22% during the March
quarter since we experienced a very positive cash flow of $157 million
into the Fund, larger than the $108 million by which security purch-
ases exceeded sales.
Volatility in stock prices creates opportunities, and we will attempt
to capitalize on this anticipated unsettling market environment.
Thank you for your investment in Merrill Lynch Basic Value Fund, Inc.,
and we look forward to reviewing our outlook and strategy again in our
upcoming annual report to shareholders.
<PAGE>
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Paul M. Hoffmann)
Paul M. Hoffmann
Vice President and Portfolio Manager
April 12, 1994
OFFICERS AND DIRECTORS
Arthur Zeikel, President and Director
Donald Cecil, Director
M. Colyer Crum, Director
Edward H. Meyer, Director
Jack B. Sunderland, Director
J. Thomas Touchton, Director
Terry K. Glenn, Executive Vice President
Norman R. Harvey, Executive Vice President
Donald C. Burke, Vice President
Paul M. Hoffmann, Vice President and Portfolio Manager
Gerald M. Richard, Treasurer
Mark B. Goldfus, Secretary
Custodian
National Westminster Bank NJ
10 Exchange Place
Jersey City, New Jersey 07302
Transfer Agent
Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
PERFORMANCE DATA
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of Class
A and Class B Shares will fluctuate so that shares, when redeemed,
may be worth more or less than their original cost. "Results of a
$1,000 Investment Since Inception" chart measures performance since
inception and may not reflect results of investments made at any
other time.
<PAGE>
Results of a $1,000 Investment Since Inception--Class A Shares
GRAPHIC MATERIAL APPEARS HERE. SEE APPENDIX
GRAPHIC AND IMAGE MATERIAL: Item 1
<TABLE>
Recent Performance Results*
<CAPTION>
12 Month 3 Month
3/31/94 12/31/93 3/31/93 % Change % Change
<S> <C> <C> <C> <C> <C>
ML Basic Value Fund Class A Shares $22.93 $23.37 $22.44 +5.45%(1) -1.88%
ML Basic Value Fund Class B Shares 22.70 23.19 22.24 +5.35(1) -2.11
Dow Jones Industrial Average** 3,635.96 3,754.09 3,435.11 +5.85 -3.15
Standard & Poor's 500 Index** 445.77 466.45 451.67 -1.31 -4.43
ML Basic Value Fund Class A Shares--Total Return +8.64(2) -1.88
ML Basic Value Fund Class B Shares--Total Return +7.57(3) -2.11
Dow Jones Industrial Average--Total Return** +8.80 -2.52
Standard & Poor's 500 Index--Total Return** +1.46 -3.81
<FN>
(1)Percent change includes reinvestment of $0.726 per share capital gains
distributions.
(2)Percent change includes reinvestment of $0.702 per share ordinary income
dividends and $0.726 per share capital gains distributions.
(3)Percent change includes reinvestment of $0.484 per share ordinary income
dividends and $0.726 per share capital gains distributions.
*Investment results shown for the 3-month and 12-month periods are before
the deduction of any sales charges.
**An unmanaged broad-based index comprised of common stocks. Total investment
returns for unmanaged indexes are based on estimates.
</TABLE>
<PAGE>
PERFORMANCE DATA (concluded)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
7/1/77--12/31/77 $ 9.60 $ 9.91 -- -- + 3.23%
1978 9.91 9.61 $ 0.270 $ 0.490 + 4.65
1979 9.61 11.46 0.460 0.550 +31.24
1980 11.46 12.46 0.940 0.600 +23.92
1981 12.46 10.62 1.370 0.690 + 1.12
1982 10.62 12.28 0.310 0.680 +28.25
1983 12.28 14.31 0.920 0.610 +30.52
1984 14.31 13.38 1.130 0.680 + 7.08
1985 13.38 15.79 1.020 0.640 +32.17
1986 15.79 17.06 0.860 0.580 +17.86
1987 17.06 15.75 1.338 0.973 + 4.36
1988 15.75 17.90 0.655 0.749 +22.73
1989 17.90 19.94 0.226 0.872 +17.54
1990 19.94 16.09 0.303 0.969 -13.07
1991 16.09 19.36 0.272 0.772 +27.23
1992 19.36 20.34 0.325 0.680 +10.36
1993 20.34 23.37 0.726 0.702 +22.16
1/1/94--3/31/94 23.37 22.93 -- -- - 1.88
------- -------
Total $11.125 Total $11.237
Cumulative total return as of 3/31/94: +992.55%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do
not include sales charge; results would be lower if sales charge
was included.
</TABLE>
<PAGE>
<TABLE>
Performance Summary--Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<C> <C> <C> <C> <C> <C>
10/21/88--12/31/88 $18.79 $17.89 $0.352 $0.361 - 0.96%
1989 17.89 19.83 0.226 0.756 +16.33
1990 19.83 16.01 0.303 0.781 -13.92
1991 16.01 19.25 0.272 0.583 +25.91
1992 19.25 20.21 0.325 0.481 + 9.24
1993 20.21 23.19 0.726 0.484 +20.93
1/1/94--3/31/94 23.19 22.70 -- -- - 2.11
------ ------
Total $2.204 Total $3.446
Cumulative total return as of 3/31/94: +61.46%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the ex-dividend date, and do
not reflect deduction of any sales charge; results would be lower
if sales charge was deducted.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 3/31/94 + 8.64% + 1.58%
Five Years Ended 3/31/94 +10.16 + 8.69
Ten Years Ended 3/31/94 +14.04 +13.28
<FN>
*Maximum sales charge is 6.5%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
Year Ended 3/31/94 +7.57 +3.57%
Five Years Ended 3/31/94 +9.05 +9.05
Inception (10/21/88)
through 3/31/94 +9.20% +9.20
<FN>
*Maximum contingent deferred sales charge is 4% and is reduced
to 0% after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
<PAGE>
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS
<CAPTION>
Shares Percent of
Industry Held Stocks Cost Value Net Assets
Discount from Book Value
<S> <C> <S> <C> <C> <C>
Metals/Non-Ferrous 1,400,000 ASARCO Inc. $ 35,255,430 $ 31,325,000 0.8%
Insurance 800,000 Aetna Life & Casualty Co. 35,195,218 42,500,000 1.1
Savings & Loans 1,850,000 Ahmanson (H.F.) & Co. 32,200,305 31,218,750 0.8
Insurance 260,000 American National Insurance Co. 9,749,442 12,350,000 0.3
Insurance 650,000 CIGNA Corp. 34,208,142 38,593,750 1.0
Savings & Loans 400,000 Coast Savings Financial, Inc. 6,687,030 5,550,000 0.1
Insurance 850,000 Continental Corp. 29,293,263 19,231,250 0.5
Information Processing 1,700,000 Data General Corp. 23,653,243 13,600,000 0.4
Information Processing 2,000,000 Digital Equipment Corp. 97,582,338 59,000,000 1.5
Savings & Loans 330,000 SFFed Corp. 5,711,230 5,692,500 0.2
Communications 1,000,000 Telefonica de Espana, S.A. (ADR)* 26,254,230 36,000,000 0.9
------------- ------------- -----
335,789,871 295,061,250 7.6
<CAPTION>
Below-Average Price/Earnings Ratio
<S> <C> <S> <C> <C> <C>
Insurance 600,000 Allstate Corp. 16,316,532 14,400,000 0.4
Insurance 2,000,000 American General Corp. 34,620,231 55,250,000 1.4
Steel 1,650,000 Bethlehem Steel Corp. 25,329,517 33,000,000 0.8
Banking 1,800,000 Chase Manhattan Corp. 42,534,600 58,275,000 1.5
Banking 2,000,000 Citicorp, Inc. 45,918,686 75,000,000 1.9
Savings & Loans 400,000 Cragin Financial Corp. 4,320,769 15,000,000 0.4
Financial Services 800,000 Dean Witter Discover & Co. 20,456,508 26,100,000 0.7
Farm & Construction
Equipment 1,000,000 Deere & Co., Inc. 43,861,789 84,000,000 2.2
Retail 700,000 Federated Department Stores, Inc. 8,331,220 15,400,000 0.4
Banking 1,280,000 First Interstate Bancorp 58,964,582 93,760,000 2.4
Automotive 850,000 Ford Motor Co. 31,008,078 49,937,500 1.3
Automotive 900,000 General Motors Corp. 35,087,215 48,600,000 1.3
Conglomerates 1,400,000 ITT Corp. 65,603,387 120,050,000 3.1
Retail 1,400,000 K mart Corp. 27,262,460 25,375,000 0.7
Aerospace & Defense 450,000 Lockheed Corp. 16,415,936 28,912,500 0.7
Pharmaceutical 1,500,000 Merck & Co., Inc. 48,546,835 44,625,000 1.2
Savings & Loans 350,000 NBB Bancorp, Inc. 6,371,617 14,437,500 0.4
Semiconductors 1,250,000 National Semiconductor Corp. 11,267,861 26,250,000 0.7
Banking 1,500,000 NationsBank Corp. 60,787,427 68,625,000 1.8
Banking 1,650,000 Norwest Corp. 17,127,711 39,393,750 1.0
Insurance 1,400,000 PartnerRe Holdings Ltd. 29,498,937 26,950,000 0.7
Electrical Equipment 2,800,000 Philips N.V. Corp. 50,735,011 75,600,000 2.0
Retail 2,900,000 Sears, Roebuck & Co. 104,593,812 124,700,000 3.2
Insurance 1,150,000 Travelers Inc. 46,928,884 40,393,750 1.0
Information Processing 2,100,000 Unisys Corp. 27,928,345 31,237,500 0.8
Savings & Loans 600,000 Washington Mutual Savings Bank 7,538,145 11,475,000 0.3
Chemicals 440,000 Zeneca Group PLC (ADR)* 12,980,000 14,080,000 0.4
------------- ------------- ------
900,336,095 1,260,827,500 32.7
<PAGE>
<CAPTION>
Above-Average Yield
<S> <C> <S> <C> <C> <C>
Real Estate Investment
Trust 600,000 Avalon Properties, Inc. 12,413,018 13,200,000 0.3
Communications 650,000 Bell Atlantic Corp. 24,933,951 33,637,500 0.9
Pharmaceutical 1,000,000 Bristol-Myers Squibb Co. 57,283,941 51,625,000 1.3
Oil--International 550,000 Chevron Corp. 29,812,184 46,337,500 1.2
Banking 700,000 Citicorp, Inc. (Pfd. P) 10,325,000 13,825,000 0.4
Utilities 1,000,000 Consolidated Edison Co. of New York 21,723,966 29,125,000 0.8
Utilities 637,500 DPL Inc. 6,204,369 12,670,313 0.3
Utilities 1,000,000 Entergy Corp. 19,799,508 31,750,000 0.8
Oil--International 700,000 Exxon Corp. 30,199,738 44,012,500 1.1
Utilities 500,000 FPL Group, Inc. 16,500,010 16,562,500 0.4
Chemicals 430,000 Imperial Chemical Industries PLC (ADR)* 27,795,155 19,726,250 0.5
Real Estate Investment
Trust 400,000 Irvine Apartment Communities, Inc. 7,075,747 7,950,000 0.2
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (continued)
<CAPTION>
Shares Percent of
Industry Held Stocks Cost Value Net Assets
Above-Average Yield (concluded)
<S> <C> <S> <C> <C> <C>
Retail 550,000 K mart Corp. (Pfd. P) $ 24,266,763 $ 20,143,750 0.5%
Oil--International 1,450,000 Mobil Corp. 74,540,582 107,843,750 2.8
Utilities 750,000 NIPSCO Industries, Inc. 12,889,776 22,687,500 0.6
Oil--Domestic 2,400,000 Occidental Petroleum Corp. 51,424,946 38,700,000 1.0
Utilities 1,000,000 PECO Energy Co. (a) 23,703,530 27,750,000 0.7
Tobacco 1,500,000 Philip Morris Cos. Inc. 80,845,984 76,125,000 2.0
Utilities 850,000 Public Service Enterprise Group 22,490,010 23,693,750 0.6
Aluminum 200,000 Reynolds Metals Co. (Pfd. P) 9,584,200 9,800,000 0.3
Oil--International 1,100,000 Royal Dutch Petroleum Co. 65,619,858 109,312,500 2.8
Utilities 700,000 SCEcorp 13,495,605 11,550,000 0.3
Real Estate Investment
Trust 1,130,000 Simon Property Group, Inc. 25,891,365 28,956,250 0.8
Real Estate Investment
Trust 500,000 Summit Properties Inc. 9,602,500 10,000,000 0.3
Oil--International 1,000,000 Texaco Inc. 53,689,121 63,000,000 1.6
Utilities 800,000 Texas Utilities Corp. 25,913,086 29,900,000 0.8
Communications 600,000 U.S. West Inc. 14,129,797 24,450,000 0.6
------------- ------------- ------
772,153,710 924,334,063 23.9
<PAGE>
<CAPTION>
Special Situations
<S> <C> <S> <C> <C> <C>
Oil--International 700,000 British Petroleum Co. PLC (ADR)* 32,946,715 42,962,500 1.1
Information Processing 1,000,000 Ceridian Corp. 16,072,735 23,250,000 0.6
Oil Services &
Equipment 2,360,000 Dresser Industries, Inc. 46,208,319 50,150,000 1.3
Food Merchandising 770,800 Foodmaker Inc. 9,587,860 6,648,150 0.2
Foods 650,000 General Mills Inc. 36,438,912 36,156,250 0.9
Chemicals 500,000 Hercules, Inc. 19,235,727 57,375,000 1.5
Machinery 675,000 Ingersoll-Rand Co. 13,619,766 25,143,750 0.6
Computers 1,200,000 International Business Machines Corp. 76,946,963 65,400,000 1.7
Forest & Paper
Products 1,000,000 International Paper Co. 55,866,813 68,125,000 1.8
Hospital Management 1,600,000 National Medical Enterprises, Inc. 16,947,603 25,800,000 0.7
Aluminum 350,000 Reynolds Metals Co. 13,221,321 16,056,250 0.4
Information Processing 2,200,000 Tandem Computers Inc. 26,902,529 31,075,000 0.8
Steel 800,000 USX-US Steel Group, Inc. 21,961,346 29,700,000 0.8
Chemicals 1,750,000 Union Carbide Corp. 27,456,441 39,375,000 1.0
Aerospace & Defense 450,000 United Technologies Corp. 22,695,049 27,956,250 0.7
------------- ------------- ------
436,108,099 545,173,150 14.1
Total Stocks 2,444,387,775 3,025,395,963 78.3
<CAPTION>
Face
Amount Issue
Short-Term Securities
<S> <C> <S> <C> <C> <C>
Commercial $41,500,000 Bank One Diversified, 3.46% due 4/21/1994 41,416,239 41,416,239 1.1
Paper** Ciesco L.P.:
50,000,000 3.47% due 4/26/1994 49,874,694 49,874,694 1.3
50,000,000 3.62% due 5/06/1994 49,819,000 49,819,000 1.3
Du Pont (E.I.) de Nemours and Co.:
50,000,000 3.47% due 5/04/1994 49,836,139 49,836,139 1.3
40,000,000 3.60% due 5/18/1994 39,808,000 39,808,000 1.0
General Electric Capital Corp.:
6,071,000 3.50% due 4/01/1994 6,070,410 6,070,410 0.2
58,175,000 3.53% due 4/04/1994 58,152,182 58,152,183 1.5
40,000,000 3.48% due 4/25/1994 39,903,333 39,903,333 1.0
50,000,000 Goldman Sachs & Co., 3.58% due 4/22/1994 49,890,611 49,890,611 1.3
41,000,000 Matterhorn Capital Corp., 3.50% due 4/18/1994 40,928,250 40,928,250 1.1
National Australia Funding:
50,000,000 3.49% due 4/07/1994 49,966,069 49,966,069 1.3
50,000,000 3.55% due 5/05/1994 49,827,431 49,827,431 1.3
</TABLE>
<PAGE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded)
<CAPTION>
Face Percent of
Amount Issue Cost Value Net Assets
Short-Term Securities (concluded)
<S> <C> <S> <C> <C> <C>
Commercial PHH Corp.:
Paper** $10,000,000 3.53% due 4/25/1994 $ 9,975,486 $ 9,975,486 0.2%
(concluded) 25,000,000 3.60% due 4/29/1994 24,927,500 24,927,500 0.6
50,000,000 Penney (J.C.) & Co., 3.52% due 4/19/1994 49,907,111 49,907,111 1.3
50,000,000 PepsiCo, Inc., 3.53% due 4/11/1994 49,946,069 49,946,069 1.3
53,000,000 Preferred Receivables Funding Corp., 3.45%
due 4/05/1994 52,974,604 52,974,604 1.4
25,000,000 Schering-Plough Corp., 3.58% due 5/03/1994 24,918,188 24,918,188 0.6
Federal Farm Credit Bank:
US Government 20,000,000 3.38% due 4/04/1994 19,992,489 19,992,489 0.5
& Agency 50,000,000 3.55% due 5/04/1994 49,832,361 49,832,361 1.3
Obligations** 50,000,000 Federal Home Loan Bank, 3.42%
due 4/11/1994 49,947,750 49,947,750 1.3
Total Short-Term Securities 857,913,916 857,913,917 22.2
Total Investments $3,302,301,691 3,883,309,880 100.5
==============
Liabilities in Excess of Other Assets (20,682,527) (0.5)
-------------- ------
Net Assets $3,862,627,353 100.0%
============== ======
<CAPTION>
<S> <S> <C>
Net Asset Value: Class A--Based on net assets of $2,204,180,301 and 96,108,502 shares outstanding $ 22.93
==============
Class B--Based on net assets of $1,658,447,052 and 73,067,629 shares outstanding $ 22.70
==============
<FN>
*American Depositary Receipt (ADR).
**Commercial Paper and certain US Government & Agency Obligations are
traded on a discount basis; the interest rates shown are the discount
rates paid at the time of purchase by the Fund.
(a)Formerly Philadelphia Electric Co.
</TABLE>
<PAGE>
PORTFOLIO INFORMATION
Ten Largest Percent of
Stock Holdings Net Assets
Sears, Roebuck & Co. 3.2%
ITT Corp. 3.1
Royal Dutch Petroleum Co. 2.8
Mobil Corp. 2.8
First Interstate Bancorp 2.4
Deere & Co., Inc. 2.2
Philip Morris Cos. Inc. 2.0
Philips N.V. Corp 2.0
Citicorp, Inc. 1.9
NationsBank Corp. 1.8
Portfolio Changes for the Quarter
Ended March 31, 1994
Additions
General Mills Inc.
*JDN Realty Corp.
*Rayonier Inc.
Reynolds Metals Co. (Pfd. P)
Summit Properties Inc.
Deletions
Aluminum Co. of America
American Express Co.
*JDN Realty Corp.
McDonnell Douglas Corp.
Pacific Telesis Group
*Rayonier Inc.
[FN]
*Added and deleted in the same quarter.
APPENDIX, GRAPHIC AND IMAGE MATERIAL.
Item 1:
Merrill Lynch Basic Value Fund, Inc.
Results of a $1,000 Investment Since Inception--Class A Shares
(6.5% sales charge--$935 net amount invested; assuming
reinvestment of all dividends and capital gains distributions.)
A mountain chart depicting the growth of an investment in the
Fund's Class A Shares from $935 on July 1, 1977 to $10, 215.34 on
March 31, 1994.
