NICHOLAS FUND, INC.
May 24, 1995
Report to Shareholders:
Nicholas Fund completed its fiscal year ended March 31, 1995
with a +0.04% annual total return with distributions
reinvested. In comparison, the Standard & Poor's 500
increased 1.46% and the NASDAQ OTC was up 7.73% for the same
period. The Fund's cash position was 7.4% at fiscal year-
end.
As our investment strategy stresses patience, we would like
to emphasize long-term results. Shown below are results for
various time periods ended March 31, 1995.
<TABLE>
<CAPTION>
Average Annual Total Return*
______________________________
July 14, 1969**
5 years 10 years 15 years 24.7 years
_______ ________ ________ __________
<S> <C> <C> <C> <C>
Nicholas Fund
(Distributions Reinvested) +12.09% +14.18% +17.03% +12.89%
Standard & Poor's 500
(Income Reinvested) +12.09% +14.75% +14.89% +10.67%
NASDAQ OTC
(Excludes Income) +12.82% +11.48% +12.23% N/A
Consumer Price Index +2.9% +3.6% +3.6% +4.7%
Ending value of $10,000
invested in Nicholas Fund
(Distributions Reinvested) $17,691 $37,656 $105,742 $200,181
</TABLE>
*Total returns are historical and include change in share
price and reinvestment of dividends and capital gain
distributions. Past performance is no guarantee of future
results. Principal value and return will fluctuate so an
investment, when redeemed, may be worth more or less than
original cost.
**Date of initial public offering
The economy continues to gain strength, and interest rates
are rising. Despite the recent 10% correction in stock
prices, equities are still relatively high by most standards.
Nevertheless, a few industry groups and special situations
have some attractiveness at current price levels. In this
climate, stock selection is paramount in achieving good
investment results.
Management would like to thank all shareholders for the
confidence they have placed in the long-term investment
philosophy of the Fund. We appreciate your patience and
support.
Sincerely,
/s/ Albert O. Nicholas
Albert O. Nicholas
President
Schedule of Investments
March 31, 1995
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
_________ _____________
(Note 1 (a))
<S> <C>
COMMON STOCKS - 93.0%
Banks and Finance - 17.6%
250,000 Capital One Financial Corporation * $ 4,781,250
272,000 Edwards (A.G.), Inc. 5,984,000
1,505,300 Federal Home Loan Mortgage Corporation 91,070,650
1,100,000 Federal National Mortgage Association 89,512,500
731,500 Fifth Third Bancorp 37,855,125
674,700 Firstar Corporation 19,903,650
313,200 First Bank System, Inc. 12,645,450
250,000 FirstFed Michigan Corporation 6,062,500
660,000 First Security Corporation 15,840,000
900,000 Fleet Financial Group, Inc. 29,137,500
2,154,000 Marshall & Ilsley Corporation 45,234,000
1,156,900 Mercury Finance Company 18,655,013
900,000 Norwest Corporation 22,837,500
465,750 Regions Financial Corporation 16,999,875
275,500 Security Capital Corporation (WI) * 13,086,250
300,000 Signet Banking Corporation 6,112,500
1,000,000 Travelers, Inc. 38,625,000
350,000 Wells Fargo & Company 54,731,250
_____________
529,074,013
_____________
Broadcasting - 0.1%
54,600 Pulitzer Publishing Company 2,102,100
_____________
Business Services - 2.3%
646,000 Cintas Corporation 24,225,000
248,300 First Financial Management Corporation 17,939,675
573,200 UniFirst Corporation 6,735,100
612,300 Wallace Computer Services, Inc. 19,670,137
_____________
68,569,912
_____________
Consumer Products and Services - 11.0%
500,000 Amway Asia Pacific Ltd. 18,625,000
511,800 Clayton Homes, Inc. 8,764,575
50,000 Colgate-Palmolive Company 3,300,000
999,200 Cooper Tire & Rubber Company 28,352,300
497,400 CSS Industries, Inc. * 8,828,850
450,000 Eastman Kodak Company 23,906,250
402,100 Gillette Company (The) 32,821,413
1,050,000 Hasbro, Inc. 35,437,500
683,500 Hillenbrand Industries, Inc. 19,565,187
265,000 Leggett & Platt, Incorporated 11,130,000
200,000 Loewen Group Inc. (The) 5,450,000
100,000 Microsoft Corporation * 7,112,500
134,000 Monro Muffler Brake, Inc. * 2,479,000
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
_________ _____________
(Note 1 (a))
<S> <C>
Consumer Products and Services - 11.0%
600,200 Newell Co. $ 15,305,100
521,500 Russell Corporation 15,449,438
263,200 Sherwin-Williams Company (The) 8,915,900
255,000 Sonoco Products Company 6,183,750
846,300 Valspar Corporation (The) 31,418,887
898,400 Walt Disney Company (The) 47,952,100
____________
330,997,750
____________
Environmental Services - 0.3%
1,112,000 Waste Management International plc * 9,174,000
____________
Food and Beverage - 5.7%
350,000 Brinker International, Inc. * 5,818,750
700,000 Coca-Cola Company (The) 39,550,000
475,000 Cracker Barrel Old Country Store, Inc. 10,628,125
1,683,000 International Dairy Queen, Inc. - Class A * + 29,873,250
720,000 International Dairy Queen, Inc. - Class B * + 12,960,000
550,000 McDonald's Corporation 18,768,750
640,200 Panamerican Beverages,Inc. - Class A-Nonvoting 16,725,225
800,000 Tyson Foods, Inc. - Class A 19,300,000
1,050,000 Wendy's International, Inc. 17,193,750
____________
170,817,850
____________
Health Care - 17.5%
1,090,000 Abbott Laboratories 38,831,250
234,000 American Home Products Corporation 16,672,500
325,000 Amgen Inc. * 21,896,875
600,000 Bristol-Myers Squibb Company 37,800,000
850,000 Cardinal Health, Inc. 40,481,250
1,650,000 Charter Medical Corporation * + 30,731,250
910,000 Columbia/HCA Healthcare Corporation 39,130,000
800,000 Dentsply International Inc. 27,800,000
605,900 Elan Corporation PLC * 22,569,775
187,800 Forest Laboratories, Inc. * 8,943,975
277,200 Health Management Associates, Inc. - Class A * 8,004,150
85,000 Homedco Group, Inc. * 4,653,750
100,000 Johnson & Johnson 5,950,000
280,000 Medtronic, Inc. 19,425,000
700,000 Pfizer Inc. 60,025,000
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
_________ _____________
(Note 1 (a))
<S> <C>
COMMON STOCKS - 93.0% (Continued)
Health Care - 17.5% (Continued)
668,100 Schering-Plough Corporation $ 49,689,938
770,000 Stryker Corporation 35,227,500
862,593 Vivra Incorporated * 27,818,624
400,000 Warner-Lambert Company 31,300,000
____________
526,950,837
____________
Industrial Products and Services - 10.9%
555,000 General Motors Corporation Class H 22,893,750
602,200 Grainger (W.W.), Inc. 37,938,600
423,150 McWhorter Technologies, Inc. * 6,770,400
1,290,000 Schulman (A.), Inc. 39,345,000
170,000 Sigma-Aldrich Corporation 6,587,500
1,074,000 Stant Corporation + 14,767,500
29,500 Teleflex Incorporated 1,187,375
652,500 Thermo Electron Corporation * 33,195,938
355,400 Treadco, Inc. + 5,508,700
1,038,500 Tyco International LTD. 54,910,687
2,066,625 Unifi, Inc. 55,798,875
1,857,000 Watts Industries, Inc. 40,854,000
295,000 Wausau Paper Mills Company 6,563,750
____________
326,322,075
____________
Insurance - 17.7%
251,500 AFLAC Incorporated 10,154,313
845,000 AMBAC Inc. 34,328,125
1,401,900 Aon Corporation 51,169,350
239,000 Chubb Corporation (The) 18,881,000
420,000 Cincinnati Financial Corporation 21,840,000
572,277 Foremost Corporation of America + 21,174,249
50,000 General Re Corporation 6,600,000
2,430,000 Mercury General Corporation + 69,862,500
2,025,600 MGIC Investment Corporation 82,543,200
511,100 Mutual Risk Management Ltd. 14,246,912
262,500 PacifiCare Health Systems, Inc. -Class B * 18,965,625
900,000 Protective Life Corporation + 41,850,000
300,000 Selective Insurance Group, Inc. 8,625,000
700,000 SunAmerica, Inc. 30,362,500
325,000 TIG Holdings, Inc. 7,312,500
1,147,900 Torchmark Corporation 47,637,850
100,000 United Wisconsin Services, Inc. 3,937,500
650,000 U.S. Healthcare, Inc. 28,762,500
436,500 WellPoint Health Networks Inc. * 15,277,500
____________
533,530,624
____________
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
_________ ____________
(Note 1 (a))
<S> <C>
Investment Management - 0.8%
250,000 Franklin Resources, Inc. $ 9,718,750
350,900 United Asset Management Corporation 13,465,787
____________
23,184,537
____________
Retail Trade - 7.5%%
30,000 Arbor Drugs, Inc. 712,500
700,000 Charming Shoppes, Inc. 3,937,500
2,500,000 Circuit City Stores, Inc. 65,937,500
757,500 Consolidated Stores Corporation * 15,244,688
830,000 Dillard Department Stores, Inc. - Class A 22,928,750
2,069,000 Heilig-Meyers Company 45,259,375
665,000 Home Depot, Inc. (The) 29,426,250
549,800 Kohl's Corporation 24,328,650
150,000 Limited, Inc. (The) 3,468,750
100,000 Toys `R' Us, Inc. 2,562,500
225,000 Walgreen Co. 10,828,125
____________
224,634,588
____________
Utilities - 0.3%
250,000 Ameritech Corporation 10,312,500
____________
Miscellaneous - 1.3%
1,700 Berkshire Hathaway Inc. * 8,505,000
_____________
TOTAL COMMON STOCKS
(cost $1,945,482,261) 2,794,175,786
_____________
SHORT-TERM INVESTMENTS - 6.8%
Commercial Paper - 6.2%
$10,000,000 FIserv, Inc.
6.25%, due April 4, 1995 9,998,264
4,000,000 Tyson Foods, Inc.
6.10%, due April 5, 1995 3,998,645
10,000,000 Marriott International Inc.
6.12%, due April 6, 1995 9,994,900
5,000,000 Mosinee Paper Corp.
6.15%, due April 7, 1995 4,996,583
14,000,000 Columbia/HCA Healthcare Corporation
6.20%, due April 10, 1995 13,983,122
10,000,000 Marriott International Inc.
6.12%, due April 10, 1995 9,988,100
15,000,000 NEC Industries Inc.
6.17%, due April 10, 1995 14,982,004
14,000,000 Sprint Corporation
6.20%, due April 10, 1995 13,983,122
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
_________ __________
(Note 1 (a))
<S> <C>
SHORT-TERM INVESTMENTS - 6.8% (Continued)
Commercial Paper - 6.2% (Continued)
$ 2,000,000 Mosinee Paper Corp.
6.20%, due April 11, 1995 $ 1,997,245
4,000,000 Payco American Corporation
6.15%, due April 11, 1995 3,994,533
7,000,000 Crown Cork & Seal Company Inc.
6.12%, due April 18, 1995 6,982,150
10,500,000 Columbia/HCA Healthcare Corporation
6.13%, due April 19, 1995 10,471,393
5,000,000 A.O. Smith Corporation
6.20%, due April 20, 1995 4,985,361
3,000,000 Banta Corporation
6.25%, due April 24, 1995 2,989,063
7,000,000 Columbia/HCA Healthcare Corporation
6.17%, due April 25, 1995 6,973,606
10,000,000 Ryder System, Inc.
6.14%, due April 25, 1995 9,962,478
7,000,000 Quad/Graphics, Inc.
6.20%, due April 28, 1995 6,969,861
5,000,000 Johnson Worldwide Associates, Inc.
6.25%, due May 2, 1995 4,974,827
15,000,000 International Paper Co.
6.15%, due May 3, 1995 14,923,125
14,000,000 NEC Industries Inc.
6.17%, due May 15, 1995 13,899,223
</TABLE>
<TABLE>
<CAPTION>
Shares or Quoted
Principal Market
Amount Value
__________ ____________
(Note 1 (a))
<S> <C>
SHORT-TERM INVESTMENTS - 6.8% (Continued)
Commercial Paper - 6.2% (Continued)
$ 7,500,000 Quad/Graphics, Inc.
6.20%, due May 19, 1995 $ 7,440,583
7,500,000 Quad/Graphics, Inc.
6.20%, due May 26, 1995 7,431,542
____________
185,919,730
____________
Variable Demand Notes - 0.6%
17,856,500 Sara Lee Corporation
5.71%, due April 3, 1995 17,856,500
____________
TOTAL SHORT-TERM
INVESTMENTS
(cost $202,937,825) 203,776,230
_____________
TOTAL INVESTMENTS 2,997,952,016
_____________
CASH AND RECEIVABLES, NET
OF LIABILITIES - 0.2% 6,450,899
____________
TOTAL NET ASSETS
(Basis of percentages
disclosed above) $3,004,402,915
_____________
_____________
</TABLE>
+This company is affiliated with the Fund; that is, the Fund
holds 5% or more of its outstanding voting securities. Such
companies are defined in Section 2(a)(3), of the Investment
Company Act of 1940. The Fund holds less than 10% of their
voting securities. (Note 5)
*Nondividend paying security.
Statement of Assets
and Liabilities
March 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investments in securities at market value (Note 1 (a))
Nonaffiliated issuers (cost $2,027,135,185) - see
accompanying schedule of investments $2,771,224,567
Affiliated issuers (cost $121,284,901) - see
accompanying schedule of investments (Note 5) 226,727,449
_____________
Total investments 2,997,952,016
_____________
Receivables -
Dividends and interest 2,877,876
Investment securities sold 35,889,429
_____________
Total receivables 38,767,305
_____________
Total assets 3,036,719,321
_____________
LIABILITIES:
Payables -
Investment securities purchased 29,684,894
Management fee (Note 2) 1,756,925
Other payables and accrued expenses 874,587
____________
Total liabilities 32,316,406
_____________
Total net assets $3,004,402,915
_____________
_____________
NET ASSETS CONSIST OF:
Fund shares issued and outstanding $2,080,933,722
Net unrealized appreciation on investments (Note 3) 848,693,525
Accumulated undistributed net realized gains on
investments 66,131,860
Accumulated undistributed net investment income 8,643,808
_____________
$3,004,402,915
_____________
_____________
NET ASSET VALUE PER SHARE ($.50 par value,
200,000,000 shares authorized) offering
price and redemption price ($3,004,402,915 ./.
57,536,667 shares outstanding) $52.22
_____
_____
</TALBE>
</TABLE>
<TABLE>
Statement of Operations
For the Year Ended
March 31, 1995
<S> <C>
INCOME:
Dividends -
Nonaffiliated issuers $ 43,792,349
Affiliated issuers (Note 5) 3,371,305
Interest 14,530,548
Other 83,487
___________
61,777,689
___________
EXPENSES:
Management fee (Note 2) 19,010,314
Transfer agent fees 2,436,292
Postage 351,209
Custodian fees 307,888
Printing 162,762
Registration fees 95,710
Telephone 60,508
Legal fees 35,734
Insurance 26,272
Directors' fees 15,172
Audit and tax consulting fees 14,850
Other operating expenses 4,603
___________
22,521,314
___________
Net investment income 39,256,375
___________
NET REALIZED GAINS ON INVESTMENTS (Note 1 (b)):
Nonaffiliated issuers 137,416,251
Affiliated issuers (Note 5) 11,187,868
___________
148,604,119
___________
NET INCREASE IN UNREALIZED APPRECIATION ON INVESTMENTS 114,302,325
___________
Net gains on investments 262,906,444
___________
Net increase in net assets resulting from operations $302,162,819
___________
___________
</TABLE>
<TABLE>
Statements of Changes in Net Assets
For the Years Ended March 31, 1995 and 1994
<CAPTION>
1995 1994
_____________ _____________
<C> <C>
OPERATIONS:
Net investment income $ 39,256,375 $ 43,207,341
Net realized gains on investments
(Note 1 (b)) 148,604,119 147,440,481
Net increase (decrease) in unrealized
appreciation on investments 114,302,325 (182,453,948)
_____________ _____________
Net increase in net assets resulting
from operations 302,162,819 8,193,874
_____________ _____________
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income
($0.7070 and $0.8175 per share,
respectively) (40,135,350) (47,509,926)
Distributions from net realized gains on
investment transactions ($3.317 and
$1.047 per share, respectively) (188,467,392) (60,849,425)
_____________ _____________
Total distributions (228,602,742) (108,359,351)
_____________ _____________
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued (3,921,537 and
8,461,156 shares, respectively) 198,203,207 445,699,790
Net asset value of shares issued in
distributions from net investment
income and net realized gains (4,478,750
and 1,948,918 shares, respectively) 216,305,903 102,160,049
Cost of shares redeemed (8,417,904 and
9,810,020 shares, respectively) (424,829,482) (519,971,090)
_____________ _____________
(Decrease) increase in net assets
derived from capital share
transactions (10,320,372) 27,888,749
_____________ _____________
Total increase (decrease) in net
assets 63,239,705 (72,276,728)
_____________ _____________
NET ASSETS, at the beginning of the year
(including undistributed net investment
income of $9,522,783 and $13,825,368,
respectively) 2,941,163,210 3,013,439,938
_____________ _____________
NET ASSETS, at the end of the year (including
undistributed net investment income of
$8,643,808 and $9,522,783, respectively) $3,004,402,915 $2,941,163,210
______________ ______________
______________ ______________
</TABLE>
Financial Highlights
(For a share outstanding throughout each year)
<TABLE>
<CAPTION> Year ended March 31,
____________________________________________________________________________
1995 1994 1993 1992 1991 1990 1989 1988 1987 1986
____ ____ ____ ____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF YEAR $51.10 $52.91 $49.68 $42.99 $37.72 $35.27 $32.15 $39.94 $35.26 $29.24
INCOME FROM
INVESTMENT
OPERATIONS:
Net investment income .69 .74 .75 .70 .80 .96 .97 1.07 1.03 .89
Net gains or (losses on
securities (realized
and unrealized) 4.46 (.68) 5.20 7.49 5.48 3.46 3.63 (2.99) 4.72 6.31
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____
Total from
investment
operations 5.15 .06 5.95 8.19 6.28 4.42 4.60 (1.92) 5.75 7.20
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____
LESS DISTRIBUTIONS:
Dividends (from net
investment income) (.71) (.82) (.68) (.68) (.79) (.92) (1.03) (1.84) (.88) (.57)
Distributions (from
capital gains) (3.32) (1.05) (2.04) (.82) (.22) (1.05) (.45) (4.03) (.19) (.61)
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____
Total distributions (4.03) (1.87) (2.72) (1.50) (1.01) (1.97) (1.48) (5.87) (1.07) (1.18)
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____
NET ASSET VALUE,
END OF YEAR $52.22 $51.10 $52.91 $49.68 $42.99 $37.72 $35.27 $32.15 $39.94 $35.26
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____
_____ _____ _____ _____ _____ _____ _____ _____ _____ _____
TOTAL RETURN 10.88% 0.04% 12.41% 19.33% 17.13% 12.55% 14.81% (3.74%) 16.75% 25.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year
(millions) $3,004.4 $2,941.2 $3,013.4 $2,234.1 $1,642.8 $1,389.5 $1,172.3 $1,117.8 $1,299.0 $955.4
Ratio of expenses to
average net assets 0.77% .78% .76% .78% .81% .82% .86% .86% .86% .86%
Ratio of net investment
income to average net
assets 1.34% 1.40% 1.53% 1.60% 2.17% 2.56% 2.84% 3.04% 3.13% 4.11%
Portfolio turnover rate 29.82% 33.39% 10.20% 14.58% 21.85% 21.31% 24.03% 31.63% 27.29% 13.60%
</TABLE>
Notes to Financial Statements
March 31, 1995
(1) Summary of Significant Accounting Policies -
The following is a summary of the significant accounting
policies of Nicholas Fund, Inc. (the "Fund"):
(a) Each security, excluding short-term investments, is
valued at the last sale price reported by the principal
security exchange on which the issue is traded, or if no sale
is reported, the latest bid price. Variable demand notes are
valued at cost which approximates market value. U.S.
Treasury Bills and commercial paper are stated at market
value with the resultant difference between market value and
original purchase price being recorded as interest income.
Investment transactions are recorded no later than the first
business day after the trade date. Cost amounts, as reported
on the statement of assets and liabilities, are the same for
Federal income tax purposes.
(b) Net realized gains and losses on common stocks and
bonds were computed on the basis of specific certificates.
(c) Provision has not been made for Federal income taxes or
excise taxes since the Fund has elected to be taxed as a
"regulated investment company" and intends to distribute
substantially all taxable income to its shareholders and
otherwise comply with the provisions of the Internal Revenue
Code applicable to regulated investment companies.
(d) Dividend income and distributions to shareholders are
recorded on the ex-dividend date. Non-cash dividends, if
any, are recorded at fair market value on date of
distribution.
(2) Investment Adviser and Management Agreement -
The Fund has an agreement with Nicholas Company, Inc. (with
whom certain officers and directors of the Fund are
affiliated) to serve as investment adviser and manager.
Under the terms of the agreement, a monthly fee is paid to
the investment adviser based on 1/16th of 1% (.75 of 1% on an
annual basis) of the average net asset value up to and
including $50 million and 2/37th of 1% (.65 of 1% on an
annual basis) of the average net asset value in excess of $50
million. Also, the investment adviser may be reimbursed for
clerical and administrative services rendered by its
personnel. This advisory agreement is subject to an annual
review by the Directors of the Fund.
(3) Net Unrealized Appreciation -
Aggregate gross unrealized appreciation (depreciation) as of
March 31, 1995, based on investment cost for Federal tax
purposes is as follows:
Aggregate gross unrealized appreciation on investments $888,945,061
Aggregate gross unrealized depreciation on investments (40,251,536)
___________
Net unrealized appreciation $848,693,525
___________
___________
(4) Investment Transactions -
For the year ended March 31, 1995, the cost of purchases and
the proceeds from sales of investment securities, other than
short-term obligations, aggregated $788,861,506 and
$981,058,764, respectively.
(5) Transactions with Affiliates -
Following is an analysis of fiscal 1995 transactions with
"affiliated companies" as defined by the Investment Company
Act of 1940:
<TABLE>
<CAPTION>
Amount of
Amount of Capital Gain
Dividends Realized
Share Activity Credited on Sale
________________________________________ to Income of Shares
Balance Balance in Fiscal in Fiscal
Security Name 3/31/94 Purchases Sales 3/31/95 1995 1995
____________ _________ ___________ ________ _________ __________ ___________
<S> <C> <C> <C> <C> <C> <C>
Charter Medical Corporation 300,000 1,350,000 - 1,650,000 $ - $ -
Foremost Corporation of America 204,000 368,277 - 572,277 427,675 -
International Dairy Queen, Inc.
Class A 1,683,000 - - 1,683,000 - -
Class B 720,000 - - 720,000 - -
Mercury General Corporation 2,430,000 - - 2,430,000 1,761,750 -
Protective Life Corporation 1,016,200 - 116,200 900,000 1,100,120 2,620,327
Stant Corporation 525,000 549,000 - 1,074,000 72,880 -
TBC Corporation (a) 1,536,975 - 1,536,975 - - 8,567,541
Treadco, Inc. _ 355,400 _ 355,400 8,880 _
_________ __________
$3,371,305 $11,187,868
_________ __________
_________ __________
</TABLE>
(a) As of March 31, 1995, the Fund is no longer affiliated
with this company.
Historical Record (Unaudited)
<TABLE>
<CAPTION>
(Adjusted for Two-for-One Stock Split June 15, 1979)
Dollar Growth of
Weighted An
Net Dividend Capital Gain Average Initial
Asset Value Distributions Distributions Price/Earnings $10,000
Per Share Per Share Per Share Ratio** Investment***
___________ _____________ _____________ ______________ _____________
<S> <C> <C> <C> <C> <C>
July, 14, 1969* $ 6.59 $ - $ - - $ 10,000
March 31, 1985 29.24 0.642 1.576 13.2 times 69,858
March 31, 1986 35.26 0.575 0.610 15.8 87,699
March 31, 1987 39.94 0.882 0.187 16.3 102,386
March 31, 1988 32.15 1.840 4.034 14.1 98,557
March 31, 1989 35.27 1.025 0.451 13.2 113,155
March 31, 1990 37.72 0.924 1.054 14.9 127,360
March 31, 1991 42.99 0.790 0.225 16.9 149,179
March 31, 1992 49.68 0.679 0.824 19.4 178,015
March 31, 1993 52.91 0.679 2.042 18.5 200,098
March 31, 1994 51.10 0.8175 1.047 16.7 200,182
June 30, 1994 49.36 0.257 (a) 1.867 (a) 15.9 201,759
September 30, 1994 51.05 - - 16.5 208,667
December 31, 1994 48.03 0.450 (b) 1.450 (b) 15.9 204,159
March 31, 1995 52.22 _ _ 17.2 221,970
</TABLE>
<TABLE>
<S> <C>
* Date of Initial Public Offering (a) Paid May 18, 1994 to shareholders of record May 13, 1994.
** Based on latest 12 months accomplished earnings
*** Assuming reinvestment of all distributions
(b) Paid December 31, 1994 to shareholders of record December 23, 1994.
Range in price/earnings ratios since
December 31, 1974
Highs Low
____________ ___________
2/12/92 20.3 7/7/82 8.1
8/21/87 19.4
</TABLE>
Report of Independent Public Accountants
To the Shareholders and Board of Directors
of Nicholas Fund, Inc.
We have audited the accompanying statement of assets and
liabilities of NICHOLAS FUND, INC. (a Maryland corporation),
including the schedule of investments, as of March 31, 1995,
and the related statement of operations for the year then
ended, the statements of changes in net assets for each of
the two years in the period then ended, and the financial
highlights for each of the periods presented. These
financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility
is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about
whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures
included confirmation of securities owned as of March 31,
1995, by correspondence with the custodian and brokers. As
to securities purchased but not yet received, we requested
confirmation from brokers and, when replies were not
received, we carried out other alternative auditing
procedures. An audit also includes assessing the accounting
principles used and significant estimates made by management,
as well as evaluating the overall financial statement
presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of Nicholas Fund, Inc. as of
March 31, 1995, and the results of its operations for the
year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial
highlights for the periods presented in conformity with
generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin,
April 24, 1995.
Automatic Investment Plan - An Update
The Nicholas Family of Funds' Automatic Investment Plan
provides a simple method to dollar cost average into the
fund(s) of your choice.
Dollar cost averaging involves making equal systematic
investments over an extended time period. A fixed dollar
investment will purchase more shares when the market is low
and fewer shares when the market is high. The automatic
investment plan is an excellent way for you to become a
disciplined investor.
The following table illustrates what dollar cost averaging
can achieve. Please note that past performance is no
guarantee of future results. Nicholas Company recommends
dollar cost averaging as a practical investment method. It
should be consistently applied for long periods (5-10 years
or more) so that investments are made through several market
cycles. The table will be updated and appear in future
financial reports issued by the Nicholas Family of Funds.
<TABLE>
<CAPTION>
Nicholas Fund
____________________
<C> <C>
$1,000 initial investment on 7-14-69 3-31-85
$100 invested on the last day of each month
following the date of the initial investment
(in years) 25.7 10
Total cash invested $ 31,900 $ 13,000
Total capital gains reinvested $ 75,653 $ 3,612
Total dividends reinvested $ 51,610 $ 2,108
Total full shares owned 3/31/95 6,297 472
Total market value on 3/31/95 $328,828 $ 24,622
</TABLE>
The results above assume purchase on the last day of the
month for the respective periods. The Nicholas Automatic
Investment Plan actually invests on the 20th of each month.
Total market value includes reinvestment of all
distributions.
CAN YOU AFFORD NOT TO INVEST IN AN IRA?
The maximum yearly IRA contribution is the lesser of $2,000
or 100% of your compensation. Every year that you contribute
this amount you may also deduct it from your Federal income
taxes, unless you (or your spouse) are an eligible
participant in an employer-sponsored retirement plan and your
adjusted gross income exceeds certain limits as defined by
the Internal Revenue Code. This deduction can lead to
substantial savings, especially when you look at the
relationship between higher tax brackets and the net cost of
investing. The table below illustrates a schedule of tax
brackets, resulting tax savings, and the net cost of
investing $2,000 in an IRA, assuming full deductibility of
your contributions.
<TABLE>
<CAPTION>
TABLE I
Federal Tax Federal Tax Net Cost of Investing
Brackets Savings $2,000 in an IRA
___________ ___________ _____________________
<C> <C> <C>
15% $300 $1,700
28% 560 1,440
31% 620 1,380
36% 720 1,280
39.6% 792 1,208
</TABLE>
Even if you are an eligible participant in an employer-
sponsored retirement plan, you may still make a non-
deductible IRA contribution (subject to the $2,000/100% of
compensation limit). Another tax advantage to investing in an
IRA is that any amounts received from dividends, interest,
etc., accumulate tax deferred, whether or not your
contribution is fully deductible. Taxes will have to be paid
when you receive distributions.
Finally, Table II shows the various amounts accumulated in an
IRA under different annual rates of return, based on a $2,000
annual year end contribution. These figures are purely
hypothetical since investment returns are rarely constant
year to year. Yet, one can get a good idea that investing in
an IRA plan provides a good nest egg for retirement.
<TABLE>
<CAPTION>
TABLE II
Amounts accumulated in an IRA
Annual Rate of Return
_____________________
After 8% 10% 12% 15%
_______ _______ _______ ________
<C> <C> <C> <C> <C>
10 Years $ 28,973 $31,874 $35,096 $ 40,606
20 Years 91,524 114,550 144,104 204,880
30 Years 226,566 328,980 482,660 869,480
40 Years 518,113 885,180 1,534,180 3,558,000
</TABLE>
Officers and Directors
ALBERT O. NICHOLAS
President and Director
ROBERT H. BOCK
Director
MELVIN L. SCHULTZ
Director
RICHARD SEAMAN
Director
DAVID L. JOHNSON
Executive Vice President
THOMAS J. SAEGER
Executive Vice President and Secretary
DAVID O. NICHOLAS
Senior Vice President
LYNN S. NICHOLAS
Senior Vice President
CANDACE L. LESAK
Vice President
JEFFREY T. MAY
Vice President
CHERYL L. KING
Treasurer
CHRISTINA M. MOURADIAN
Assistant Treasurer
Custodian and
Transfer Agent
FIRSTAR TRUST COMPANY
Milwaukee
(414) 276-0535
Counsel
DAVIS & KUELTHAU, S.C.
Milwaukee
Auditors
ARTHUR ANDERSEN LLP
Milwaukee
This report is submitted for the information of shareholders
of the Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an
effective prospectus.
ANNUAL REPORT
NICHOLAS FUND, INC.
700 North
Water Street
Milwaukee,
Wisconsin 53202
March 31, 1995
