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Seligman
Growth
Fund, Inc.
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A Growth Stock Fund
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232nd Quarterly Report
March 31, 1995
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[LOGO OMITTED]
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To the Shareholders
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Seligman Growth Fund ended the first quarter of 1995 on March 31 with the net
asset value of Class A shares at $4.75, up from $4.54 at December 31, 1994, and
Class D shares at $4.57 per share, up from $4.38. Total returns for the three
months were 4.63% for Class A shares and 4.34% for Class D shares, which
compares to the 9.74% total return of the Standard & Poor's 500 Composite Stock
Price Index. (Total return reflects change in net asset value and assumes
distributions paid within the period, if any, are reinvested in additional
shares. Class A returns do not, however, reflect the effect of the maximum
initial sales charge of 4.75%, and Class D returns do not reflect the effect of
the 1% contingent deferred sales load.)
For both Class A and D shares, net realized gain per share from investment
transactions for the first quarter totaled $0.28. At March 31, net unrealized
gain per share totaled $0.64. Long-term performance results follow the
portfolio.
After seven short-term interest rate increases by the Federal Reserve Board
in 1994, the economy began to show signs of slowing in the first quarter of
1995. For instance, sales of previously owned homes fell to their lowest level
in two years, reflecting the delayed impact of higher interest rates on the
housing market. Retail sales were also sluggish, as consumers have backed off in
the past several months. Nevertheless, consumer confidence still remains
relatively high.
Investors, encouraged by signs of slower economic growth and by hopes of a
less stringent monetary policy, boosted financial markets in the first quarter.
The bond market bounced back from the lows experienced in late 1994, and the
stock market reached new highs, notwithstanding several negative factors
including Mexico's currency crisis, the collapse of Barings (the U.K.'s oldest
and one of its most prestigious banks), and the continual weakening of the U.S.
dollar. However, by quarter end, the plunging dollar had caused both bonds and
stocks to lose some ground.
We are optimistic that the economy will continue to expand at a moderate
pace in 1995, with inflation remaining in check. This, combined with the gradual
strengthening of the economies of U.S. trading partners, is expected to provide
a good foundation for a positive investment environment.
In the past quarter, your Manager increased both the consumer staples,
which included health care issues and consumer companies with foreign exposure,
and selected financial stocks that are expected to benefit from the
stabilization of interest rates. In addition, your Fund took profits in the
technology sector while still maintaining an overweighted position. The outlook
for technology remains positive due mainly to a strong capital equipment cycle
under way in the U.S. and a continuing strong new product cycle.
Looking ahead, the economic environment appears favorable for growth-stock
investing. This is based on positive relative earnings trends, as corporate
earnings generally begin to slow down while selected growth company earnings
remain at well above-average levels. In addition, growth stocks, as a group,
continue to sell at a moderate premium to the general market.
By order of the Board of Directors,
/s/ /William C. Morris
William C. Morris
Chairman
/s/ Ronald T. Schroeder
Ronald T. Schroeder
President
April 28, 1995
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Important Telephone Numbers
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<S> <C> <C> <C> <C> <C>
(800) 221-2450 Shareholder Services (800) 445-1777 Retirement Plan (800) 622-4597 24-Hour Automated
Services Telephone Access Service
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Portfolio of Investments (unaudited) March 31, 1995
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Shares Value
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Common Stocks--97.8%
Automotive and Related--4.6%
Autoliv (ADRs)+* ................. 50,000 $ 1,896,875
Echlin ........................... 200,000 7,700,000
Ford Motor ....................... 100,000 2,700,000
Harley-Davidson .................. 500,000 12,000,000
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24,296,875
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Building and Construction--0.2%
Wolseley ......................... 200,000 1,167,120
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Business Services--8.7%
Alco Standard .................... 50,000 3,625,000
Asatsu ........................... 27,000 1,040,619
First Data ....................... 225,000 11,671,875
General Motors (Class E) ......... 200,000 7,775,000
Interpublic Group of Companies ... 300,000 11,212,500
Reynolds & Reynolds (Class A) .... 200,000 5,500,000
SunGard Data Systems* ............ 125,000 5,757,813
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46,582,807
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Chemicals--2.4%
Air Products & Chemicals ......... 150,000 7,818,750
Bayer AG ......................... 5,700 1,402,250
Morton International ............. 100,000 2,900,000
Toyo Ink Manufacturing ........... 119,000 740,145
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12,861,145
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Consumer Goods and Services--7.5%
Coca-Cola ........................ 150,000 8,475,000
Gillette ......................... 100,000 8,162,500
LVMH Moet-Hennessy ............... 10,000 1,959,277
Outback Steakhouse* .............. 150,000 3,815,625
PepsiCo .......................... 150,000 5,850,000
Procter & Gamble ................. 175,000 11,593,750
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39,856,152
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Drugs and Health Care--17.6%
Arjo ............................. 50,000 819,561
Cardinal Health .................. 40,000 1,905,000
Columbia/HCA Healthcare .......... 350,000 15,050,000
Cordis* .......................... 50,000 3,643,750
Forest Laboratories .............. 100,000 4,762,500
Genzyme* ......................... 75,000 2,925,000
Healthcare Compare ............... 125,000 4,148,438
Johnson & Johnson ................ 100,000 5,950,000
Medtronic ........................ 100,000 6,937,500
Merck ............................ 100,000 4,262,500
Mylan Laboratories ............... 100,000 3,175,000
Oxford Health Plans* ............. 40,000 2,235,000
Pacificare Health Systems
(Class B)* .................. 100,000 7,237,500
Pfizer ........................... 100,000 8,575,000
Protein Design Laboratories* ..... 125,000 2,523,438
Pyxis* ........................... 50,000 1,034,375
United Healthcare ................ 300,000 14,025,000
U.S. Healthcare .................. 100,000 4,412,500
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93,622,062
Energy--0.5%
Huaneng Power International (ADRs)* 73,000 1,158,875
YPF Sociedad Anonima (ADRs) ...... 75,000 1,425,000
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2,583,875
Financial Services--10.7%
American International Group ..... 150,000 15,637,500
Den Norske Bank* ................. 850,000 2,271,623
First USA ........................ 125,000 5,250,000
General Re ....................... 50,000 6,600,000
Green Tree Financial ............. 200,000 8,200,000
Internationale Nederlanden Bank .. 33,000 1,627,544
MGIC Investment .................. 150,000 6,112,500
Norwest .......................... 150,000 3,806,250
UTD Overseas Bank ................ 190,000 1,882,519
Wells Fargo ...................... 35,000 5,473,125
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56,861,061
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Food and Food Services--1.0%
McDonald's ....................... 150,000 5,118,750
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Industrial Equipment--1.9%
BBC Brown Boverie ................ 2,000 1,901,060
FKI Babcock ...................... 700,000 1,730,418
Foster Electric* ................. 98,000 590,307
Glory Kogyo ...................... 25,000 758,712
Illinois Tool Works .............. 75,000 3,665,625
Keyence .......................... 6,500 684,803
Tsudakoma ........................ 140,000 1,042,003
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10,372,928
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Leisure and Entertainment--11.4%
Capital Cities/ABC ............... 100,000 8,825,000
Carnival (Class A) ............... 200,000 4,675,000
Disney, Walt ..................... 150,000 8,006,250
Gaylord Entertainment (Class A) .. 150,000 3,937,500
Granada Group .................... 230,000 2,087,848
Hospitality Franchise Systems* ... 200,000 6,400,000
MGM Grand ........................ 200,000 6,050,000
Mirage Resorts* .................. 225,000 6,300,000
Scandinavian Broadcast System .... 125,000 2,906,250
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Shares Value
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Viacom (Class B) ................. 200,000 $ 8,950,000
Videotron Holdings ............... 160,000 2,790,000
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60,927,848
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Metals--0.7%
Nucor ............................ 50,000 2,812,500
Sumitomo Sitix ................... 80,000 1,024,694
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3,837,194
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Printing and Publishing--0.4%
Elsevier ......................... 200,000 2,099,805
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Retail Trade--7.8%
Aiya ............................. 40,000 544,657
Barnes & Noble* .................. 200,000 6,075,000
Eckerd* .......................... 100,000 2,937,500
Home Depot ....................... 250,000 11,062,500
Hornbach Baumarkt ................ 2,500 1,451,379
Nordstrom ........................ 300,000 12,150,000
PETsMART* ........................ 75,000 2,606,250
Renown ........................... 240,000 1,010,847
Stop & Shop* ..................... 150,000 3,600,000
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41,438,133
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Technology--13.4%
Applied Materials* ............... 100,000 5,506,250
EMC* ............................. 400,000 6,700,000
Hewlett-Packard .................. 25,000 3,009,375
Informix* ........................ 50,000 1,712,500
Intel ............................ 150,000 12,721,875
International Business Machines .. 75,000 6,140,625
Lam Research* .................... 150,000 6,731,250
Linear Technology ................ 75,000 4,181,250
Microsoft* ....................... 100,000 7,106,250
Oracle Systems* .................. 187,500 5,847,656
Silicon Graphics* ................ 100,000 3,550,000
3Com* ............................ 50,000 2,825,000
Xilinx* .......................... 80,000 5,410,000
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71,442,031
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Telecommunications--4.5%
American Telephone & Telegraph ... 100,000 5,175,000
Century Telephone Enterprises .... 200,000 6,075,000
Indosat (ADSs)* .................. 15,500 546,375
Motorola ......................... 150,000 8,193,750
Telecom Italia ................... 600,000 1,392,982
Telefonica de Espana ............. 120,000 1,516,177
Telefonos de Mexico, S.A. (ADRs) . 30,000 855,000
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23,754,284
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Tobacco--1.8%
Philip Morris .................... 100,000 6,525,000
UST .............................. 100,000 3,175,000
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9,700,000
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Transportation--0.4%
Kvaerner Industries .............. 36,815 1,544,393
Namura Shipbuilding .............. 60,000 415,417
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1,959,810
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Miscellaneous--2.3%
European Vinyls* ................. 41,210 1,717,306
Jurong Shipyard .................. 180,000 1,541,401
Olsten ........................... 50,000 1,756,250
Sensormatic Electronics .......... 75,000 2,100,000
Tyco International ............... 100,000 5,287,500
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12,402,457
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Total Investments--97.8%
(Cost $449,125,655) ........... 520,884,337
Other Assets
Less Liabilities--2.2% ........ 11,695,997
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Net Assets--100.0% ............... $532,580,334
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* Non-income producing security.
+ Rule 144A security.
Note: Investments in stocks are valued at current market value or, in their
absence, at fair value determined in accordance with procedures approved by the
Board of Directors. Securities traded on national exchanges are valued at last
sales price or, in their absence and in the case of over-the-counter securities,
a mean of bid and asked prices.
Short-term holdings maturing in 60 days or less are valued at amortized cost.
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Major Portfolio Holdings
at March 31, 1995
Security Value
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American International Group ..... $15,637,500
Columbia/HCA Healthcare .......... 15,050,000
United Healthcare ................ 14,025,000
Intel ............................ 12,721,875
Nordstrom ........................ 12,150,000
Harley-Davidson .................. 12,000,000
First Data ....................... 11,671,875
Procter &Gamble .................. 11,593,750
Interpublic Group of Companies ... 11,212,500
Home Depot ....................... 11,062,500
Largest Portfolio Changes0
During Past Three Months
Shares
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Holdings
Additions Increase 3/31/95
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Air Products & Chemicals .......... 150,000 150,000
Applied Materials ................. 100,000 100,000
Hospitality Franchise Systems ..... 200,000 200,000
International Business Machines ... 75,000 75,000
MGIC Investment ................... 150,000 150,000
Medtronic ......................... 100,000 100,000
Pacificare Health Systems (Class B) 100,000 100,000
PepsiCo ........................... 150,000 150,000
Philip Morris ..................... 100,000 100,000
Wells Fargo ....................... 35,000 35,000
Holdings
Reductions Decrease 3/31/95
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Coca-Cola ......................... 150,000 150,000
Colgate-Palmolive ................. 150,000 --
Columbia/HCA Healthcare ........... 175,000 350,000
Home Depot ........................ 225,000 250,000
Michaels Stores ................... 180,000 --
Microsoft ......................... 125,000 100,000
Motorola .......................... 180,000 150,000
Nordstrom ......................... 150,000 300,000
Parametric Technology ............. 150,000 --
United Healthcare ................. 175,000 300,000
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0 Largest portfolio changes from previous quarter to current quarter are based
on cost of purchases and proceeds from sales of securities.
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Long-Term Investment Results
Average Annual Total Returns
March 31, 1995
Class A*
One Five Ten
Year Years Years
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With Sales Charge (0.53)% 9.45% 11.80%
Without Sales Charge 4.38 10.52 12.35
Class D**
Since
One Inception
Year 5/3/93
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With CDSL 1.27% n/a
Without CDSL 2.18 4.91%
*The maximum initial sales charge for Class Ashares is 4.75%. No adjustment
was made to performance for periods prior to January 1, 1993, the
commencement date for the annual Administration, Shareholder Services and
Distribution Plan fee of up to 0.25% of average daily net assets of Class A
shares.
**The returns for the one-year period for Class D shares are shown with and
without the effect of the 1% contingent deferred sales load ("CDSL")imposed
on certain shares redeemed within one year of purchase.
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These rates of return reflect changes in prices and assume that all
distributions within the period are reinvested in additional shares. The rates
of return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
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SELIGMAN FINANCIAL SERVICES, INC.
an affiliate of
[LOGO OMITTED]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 Park Avenue, New York, NY 10017
This report is intended only for the information of shareholders or those who
have received the offering prospectus covering shares of Capital Stock of
Seligman Growth Fund, Inc., which contains information about the sales charges,
management fee, and other costs. Please read the prospectus carefully before
investing or sending money.
EQGR3a 3/95
