Series One Letter

Dear Shareholders:

I am pleased to deliver to you the American Growth Fund Series One Semi Annual Report for the year ending January 31, 2019.

December 2018 was a volatile month for financial markets. The S&P 500 fell 9.6% for the month of December, making it the worst closing month to the year since 1931, when it sank 14.5%1. December's volatility left many in the market with slack jaws. According to a December 2018 CNN Business article, In one ten-day span, the Dow Jones Industrial Average fell more than 350 points six times. There was also one day when the Dow rose by 1,000 points - the biggest point gain ever. The S&P 500 was up or down more than 1% nine times in December and 64 times this year. In all of 2017, that happened only eight times. In a show of global economics;
December 14th - China, one of the world's largest economies, decelerated to its weakest pace in 15 years and its industrial production was the slowest since 2002.
December 17th - The Dow falls 508 points as President Trump worries Wall Street that he will interfere with the Federal Reserve's independence.
December 19th - The Dow rises as much as 382 points after the Federal Reserve hikes rates but then proceeds to tumble 352 points to the lowest level of the year. The Fed lowers its economic growth forecast for 2019 while still signaling that it will continue to raise rates at a slower pace.
December 20th - The Dow falls 464 points, closing below 23,000 for the first time since October 2017. Volatility climbs to the highest level since February.
December 21st - The Dow closes 414 points, or 1.8%, lower ending its worst week since 2008. The Nasdaq plummets 3%, closing in its first bear market since the Great Recession. Facebook (FB) fell 6%. Stock markets in China, Italy, Germany, Japan and South Korea are in bear markets.
December 23rd - The Dow loses 653 points. The Dow and S&P 500 suffer their biggest Christmas Eve declines ever.
December 26th - The Dow has its biggest day ever, rising a stunning 1,086 points - a 5% rise. The S&P 500 also soars 5%. The Nasdaq rises 5.8%, pulling out of bear market territory. All but one of 505 stocks in the S&P 500 end the day higher.
December 27th - The Dow falls as much as 611 points before roaring back at the close. It ends 260 points higher to cap off another volatile day on Wall Street. The swing of nearly 900 points is one of the biggest trading ranges of the year.2

However, the beginning of the market's recovery was just around the corner. In January 2019, both developed and emerging market equities gained over 7% in total return terms, boosted by signals from the US Federal Reserve that it would be more patient with further rate rises then it had stated it would be in 2018, as well as by improving rhetoric towards China from the White House. Even so, political uncertainty remains a headwind, while recent data continues to send mixed signals about the outlook for the global economy.3 Stocks recorded solid gains in February making for the best start to a year in nearly three decades with the S&P 500 closing up 11.48% year to date (ended February 28, 2019). The S&P 500 Index recorded only two daily moves exceeding 1% during February-a notable contrast from the fourth quarter of 2018, when such swings occurred on four out of every five trading days.4 As always its important to remember that past performance does not guarantee future results.

In my last report I discussed my optimism that the U.S. economy would continue to lead the world market, that domestically there continues to be political infighting within, as well as between, the presidential and legislative branches of our government. Neither of those beliefs have changed. Although Series One is invested primarily in Large Cap domestic stocks, it is important to remember that other world economies affect the holdings in your portfolio. Notably, as you may have seen on the news, there are two additional items to keep an eye on. First is the slowing of China's economy that we touched on above. The slowing of its economy and tariffs imposed by President Trump warrant a watchful eye. Second, Brexit and the turmoil that it has placed not only on England but also on the European Union and the world market.

Real gross domestic product (GDP) increased at an annual rate of 2.6 percent in the fourth quarter of 2018. Real gross domestic income for the third quarter of 2018, the percent change in real GDI was revised from 4.3 percent to 4.6 percent based on newly available tabulations from the BLS Quarterly Census of Employment and Wages program. Real GDP increased 2.9 percent in 2018 (from the 2017 annual level to the 2018 annual level), compared with an increase of 2.2 percent in 2017.5 Additionally, the Unemployment Rate has lowered slightly since our last report from 3.9% in July 2018 to 3.8% in February 2019.6 It is the Investment Committee's outlook that the U.S. Economy will likely continue to be strong.

Investment Committee
The Investment Committee that manages your Fund is made up of two veterans of the securities industry, Mr. Timothy Taggart and Mr. Robert Fleck. Mr. Taggart joined the securities industry in 1985 and is registered as a General Securities Principal, Financial and Operations Principal, Registered Options Principal and Municipal Securities Principal. He is also an Arbitrator for the Financial Industry Regulatory Authority (FINRA). Mr. Robert Fleck also joined the securities industry in 1985. He has held a General Securities license and currently is an Investment Advisor Representative.

Investment Strategy
Your Investment Committee uses 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 and upcoming economies. From that, our objective is to choose the best companies in those industries. Many of these companies are established, large cap (defined as companies with a market capitalization of $5 billion or more) securities many of which are household names that you will easily recognize.

Performance Overview
Series One is invested primarily in large cap, growth-oriented domestic common stocks. When you examine the portfolio on the following pages you will note that the largest investment sector is Computer Software and Services Industry at 11.04% of your portfolio, and the largest security in your portfolio is Fair Isaac Corporation at $1,786,962 which provides decision-making solutions to clients in the financial services, telecommunications and retail industries.

Your American Growth Fund Series One Class A Shares delivered you a (3.03)% return since July 31, 2018 through close of business on January 31, 2019. The Dow Jones Industrial Average posted a loss of 0.49% while the S&P 500 posted a loss of 3.00% for the same time period as listed above. Of the stocks in your Series One portfolio, most of them contributed to the growth of the Fund. The top three active performing investments were Starbucks Corp whose market value rose 29.78% (which contributed to a gain of 17.63% of the total loss on investments), Vestas Wind Systems A/S whose market value rose 29.26% (which contributed to a gain of 6.27% of the total loss on investments) and Ulta Beauty, Inc. whose market value rose 19.45% (which contributed to a gain of 7.61% of the total loss on investments).

Unfortunately, not all investments fared as well. NVIDIA Corp whose market value fell 46.04% (which contributed to a loss of 8.84% of the total loss on investments), General Electric whose market value fell 39.89% (which contributed to a loss of 8.70% of the total loss on investments) and Balchem Corp whose market value fell 17.20% (which contributed to a loss of 11.45% to the total loss on investments).

The investment sectors that had the most positive influence on your Series One portfolio were Restaurants, Computer & Peripherals, and Computer Software and Services. The investment sectors that had the most adverse effect on your portfolio were Semiconductor Capital Equipment, Drugs, and Computer Hardware.

Additional data, including long-term performance data, can be located on page 28 of this report. Past performance is no guarantee of future results.

Like our last report, over the next six months we will likely see some more changes in the world. Our Investment Committee will continue to monitor the dollar's value against the world currencies, signs of a possible trade war, the European economy, as well as the global impact of economic sanctions against North Korea and any other major world developments that might affect the U.S. economy and the stocks we are invested in.

As we look at these indicators of how our economy is doing, we generally continue to be cautiously optimistic. It is our hope that we will see continued growth in the upcoming months.

My staff and I are always available to discuss your account or answer any questions 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,

Timothy Taggart
President and Investment Committee Member
American Growth Fund, Inc.

1. https://markets.businessinsider.com/news/stocks/stock-market-news-on-track-worst-december-since-great-depression-2018-12-1027837251
2. https://www.cnn.com/2018/12/28/investing/stock-market-december-volatility/index.html
3. https://am.jpmorgan.com/gb/en/asset-management/gim/adv/insights/market-insights-monthly-market-review-january-2019
4. https://www.troweprice.com/financial-intermediary/us/en/insights/articles/2019/q1/monthly-market-review.html
5. https://www.bea.gov/news/2019/initial-gross-domestic-product-4th-quarter-and-annual-2018
6. http://data.bls.gov/timeseries/LNS14000000




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 01/31/2019. For current performance figures please call 1-800-525-2406.

Series One

Class D without load
Class D with load*
Class A without load
Class A with load*
Class B without load
Class C without load

1 year
-6.52%
-11.95%
-6.74%
-12.03%
-7.46%
-7.28%
5 years
annualized
6.60%
5.35%
6.31%
5.06%
5.50%
5.58%
10 years
annualized
10.01%
9.35%
9.69%
9.06%
9.21%1
9.17%2
*Includes a 5.75% sales charge based on a $10,000 initial purchase.
1 Includes the B Share to A Share conversion after 7 years.
2 Includes the C Share to A Share conversion after 7 years.