Dear Shareholders:

I am pleased to deliver to you the American Growth Fund
Series One Semi Annual Report for the six months ending January 31, 2012.

Investment Strategy
We use a fundamental top down approach to manage your portfolio. First we look at the general economic outlook, then we look at the industries that we feel have the biggest growth potential in the current economy. From that, our objective is to choose the best companies in those industries. Many of the stocks in your portfolio are household names that you will easily recognize.

Performance Overview
Your American Growth Fund Series One Class A Shares delivered you a 1.53% return over the past six months. Additionally, long term performance data can be found on page 26 of this report. Past performance is no guarantee of future results.

Manager's Discussion
The American economy continues to improve, evidenced by the gross domestic product increase to 3.0 percent from the third quarter to the fourth quarter of 2011. This is according to the second estimate released by the Bureau of Economic Analysis₁. Additionally we have seen a decrease in unemployment to 8.3%₂ and a new interest in bringing manufacturing back to the United States. As an example, the Caterpillar Corporation opened a new plant in Indiana and closed a plant in Canada₃. They stated the reason was because labor in the United States was more competitive then labor in Canada. There are still challenges ahead which may dampen our growth rate:

* the budget deficit
* increasing gas prices
* the European debt crisis
* the slowdown in China's growth.

Overall, Indexes are approaching new highs, another sign of recovery, as they anticipate continued economic growth.

As I look at these indicators of how our economy is doing, I am bullish that we have seen the worst and it is my hope that we will see continued growth in the gross domestic product in the upcoming months. While there are still problems that need to be addressed and dealt with, I am confident that the economic issues that present themselves will be correctly managed by our government as well as other country's governments.
The problems in the European market, especially Greece and Italy and the IMF ability to manage these events are also some of the areas we are monitoring. These events, and how they are managed by the governments involved, will help to shape the economy in both the short and long term. I believe that the United States economy is not only recovering but may outperform the overall world economy. There may be some short term corrections and adjustments in the overall economy yet to come and the markets may react. Accordingly, in the next 6 months, we may see
the markets move to compensate for the world economic environment.

The position of your portfolio should take advantage of the current economic outlook. Of course this may be adjusted as economic trends emerge. Industry leaders in the past six months ending January 31, 2012 are:

* biotechnology industry increased by 19.51%,
* telecom equipment increased by 19.07%,
* computer software and service industry increased by 17.81%.

My staff and I are always available to discuss your account or answer any question you might have. Please call our toll free number, 800 525-2406 or, within Colorado, 303 626-0600.

American Growth Fund wishes you A Good Future!

Sincerely,

Robert Brody
American Growth Fund, Inc.

1. http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm
2. http://www.bls.gov/news.release/empsit.nr0.htm
3. http://online.wsj.com/article/SB10001424052970204795304577223602514988234.html

Underwriter: World Capital Brokerage, Inc.

On 3/1/96, the Fund adopted a multi-class distribution arrangement to issue additional classes of shares, designated as Class A, Class B and Class C shares. Shares existing prior to 3/1/96 became Class D shares. Class A and Class D shares are subject to a maximum front-end sales charge of 5.75%, Class B shares are subject to a maximum contingent deferred sales charge of 5% and Class C shares are subject to a 1% contingent deferred sales charge within the first year of purchase. The Fund may incur 12b-1 expenses up to an annual maximum of .30 of 1% on its average daily net assets of its Class A shares, 1% of its average daily net assets of its Class B shares, and 1% of its average daily net assets of its Class C shares. Class D shares have no 12b-1 fees. Performance figures for Class D shares include the 5.75% initial sales charge and assume the reinvestment of income dividends and capital gain distributions. Performance quoted represents past performance. The investment return and principal value of an investment will fluctuate so that the investors shares, when redeemed, may be worth more or less than their original cost. This material must be preceded or accompanied by a current prospectus. If you have not received, or need a current prospectus, please feel free to call for one at 1-800-525-2406. Please read the prospectus carefully before investing. Period ending 01/31/2012. For current performance figures please call 1-800-525-2406.

Since Inception (February 23, 2011)
-10.40%
-15.55%
-10.90%