Washington Mutual Investors Fund – ‘N-30D’ for 4/30/01

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Annual or Semi-Annual Report Mailed to Shareholders   —   Rule 30d-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-30D       Annual or Semi-Annual Report Mailed to                39±   150K 
                          Shareholders                                           

Document Table of Contents

(full page graphic: Mt.Vernon)                                                  
(Graphic, logo: The American Funds Group(R))                                    
Washington Mutual Investors Fund                                                
2001 Annual Report for the year ended April 30                                  

Washington Mutual Investors Fund(SM) is one of the 29 American Funds, the       
nation's third-largest mutual fund family. For seven decades, Capital Research  
and Management Company, the American Funds adviser, has invested with a         
long-term focus based on thorough research and attention to risk.               

Washington Mutual Investors Fund seeks to provide income and growth of principal
through investments in quality common stocks.                                   

Fund results in this report were calculated for Class A shares at net asset     
value (without a sales charge) unless otherwise indicated. Here are the average 
annual compound returns on a $1,000 investment with all distributions reinvested
for periods ended March 31, 2001 (the most recent calendar quarter):            

Class A Shares                                   1 year    5 years  10 years    

Reflecting 5.75% maximum sales charge         +2.05%    +13.48%   +14.33% 

Results for other share classes can be found on page 31.                        

There are several ways to invest in Washington Mutual Investors Fund. Class A   
shares are subject to a 5.75% maximum up-front sales charge that declines for   
accounts of $25,000 or more. Other share classes, which are generally not       
available for certain employer-sponsored retirement plans, have no up-front     
sales charges but are subject to additional annual expenses and fees. Annual    
expenses for Class B shares were 0.77% higher than for Class A shares; Class B  
shares convert to Class A shares after eight years of ownership. If redeemed    
within six years, Class B shares may also be subject to a contingent deferred   
sales charge (CDSC) of up to 5% that declines over time. Class C shares are     
subject to annual expenses about 0.82% higher than those for Class A shares and 
a 1% CDSC if redeemed within the first year after purchase. Class C shares      
convert to Class F shares after 10 years. Class F shares, which are available   
only through certain fee-based programs offered by broker-dealer firms and      
registered investment advisers, have higher expenses (about 0.06% a year) than  
do Class A shares, and an annual asset-based fee charged by the sponsoring firm.
Because expenses are first deducted from income, dividends for each class will  
vary.                                                                           

Figures shown are past results and are not predictive of future results. Share  
price and return will vary, so you may lose money. Investing for short periods  
makes losses more likely. Investments are not FDIC-insured, nor are they        
deposits of or guaranteed by a bank or any other entity.                        

(graphic: thumbnail image of cover)                                             
About Our Cover:                                                                

The artwork on our cover is a view of Mount Vernon from the northeast,          
attributed to Edward Savage, oil on canvas, c. 1792. It is one of the earliest  
depictions of the mansion.                                                      

About Other Art in This Report:                                                 

Photos throughout this report are of items and rooms in a miniature model of    
Mount Vernon. For more details on the model, see the inside back cover.         

(photo)                                                                         

Fellow Shareholders:                                                            

We are pleased to report that for the 12 months ended April 30 _ Washington     
Mutual Investors Fund's 2001 fiscal year _ the value of the Fund's shares rose  
13.5%, assuming reinvestment of income dividends totaling 58 cents a share and a
capital gain distribution of $2.495 a share. These results contrasted with a    
decline of 12.9% for the unmanaged Standard & Poor's 500 Composite Index, with  
dividends reinvested. (The Index tracks 500 relatively large companies listed on
U.S. exchanges.)                                                                

As the Fund's fiscal year progressed, many investors moved away from            
high-technology shares to stocks of companies demonstrating sustained growth of 
earnings and dividends. During this period, technology stocks took an extremely 
hard tumble. On page 2, you will find a discussion of this and other            
developments from the perspective of our investment adviser, Capital Research   
and Management Company.                                                         

Following six increases in short-term interest rates between June 1999 and May  
2000, a decline in business activity became evident and public confidence in the
economy slipped. On January 3, 2001, the Federal Reserve reversed course and    
reduced the federal funds rate by 50 basis points, or half of one percentage    
point. This was followed by identical cuts on January 31, March 20, April 18,   
and May 15. Although it may take some time, we believe these actions, together  
with the recently enacted tax reduction bill, should stimulate business activity
and help strengthen the economy.                                                

Since our last report to you six months ago, 17 new names have appeared in your 
Fund's portfolio: ALLTEL, Dell Computer, Dow Jones & Co., Gap, General Electric,
Halliburton, Intel, Mead, MGIC Investment, Oracle, PNC Financial Services Group,
Rockwell International, Sun Microsystems, Target, TJX Companies, TXU, and       
Xilinx. Four companies were eliminated: Associates First Capital (acquired by   
Citigroup), First Data, International Flavors & Fragrances, and Thomas & Betts. 

While in recent years the percentage of S&P 500 companies paying dividends has  
decreased, the average yield of all stocks in the Fund's portfolio is currently 
2.2% _ well above the 1.3% average yield of the stocks in the S&P 500. It is    
anticipated that the trend of decreasing dividend payouts will require          
Washington Mutual to reduce the amount of its quarterly dividend. However, the  
Fund will strive to provide increasing annual dividend income to shareholders   
who reinvest their capital gains _ an accomplishment that has been achieved     
every year since the Fund's inception, including this past year.                

On March 16, the Fund's Board of Directors elected four new Advisory Board      
members: Louise M. Cromwell, C. Richard Pogue, Linda D. Rabbitt, and William J. 
Shaw. All are outstanding leaders in their respective fields of endeavor and    
your Fund will benefit from their advice.                                       

Questions and comments from shareholders are always welcome. Information about  
the Fund is available from your financial adviser and from the American Funds   
Web site, americanfunds.com. Washington Mutual's next shareholder report will   
cover the six months ending October 31 _ the first half of our 2002 fiscal year.

Cordially,                                                                      
(signatures)                                                                    

Stephen Hartwell        James H. Lemon, Jr            Harry J. Lister           
Chairman of the Board   Vice Chairman of the Board    President of the Fund 1   

Investment Adviser's Report                                                     

Washington Mutual's results for fiscal 2001 matched almost exactly the 13.6%    
average annual total return recorded by the Fund over its 49-year lifetime. At  
the same time, the results surpassed, by a wide margin, not only the S&P 500,   
which was down 12.9%, but other stock market measures as well. For the 12       
months, the New York Stock Exchange Composite Index, a market-value weighted    
index of all NYSE stocks, had a negative total return of 1.4%. The Dow Jones    
Industrial Average, a price-weighted average of 30 blue-chip stocks, was up just
1.7%.                                                                           

The most dramatic contrast was with the Nasdaq Composite Index, which is        
dominated by technology stocks. That index was down 45.2% for the fiscal year   
and nearly 70% between March 2000 and April 2001. Some Internet stocks were off 
even more _ as much as 80% to 90% from their highs during the speculative boom. 
As those figures suggest, the Fund's results were achieved in a drastically     
altered investment climate. Throughout much of the period, technology stocks    
that had soared to absurd levels retreated sharply before recovering some lost  
ground during the spring. Meanwhile, attractively priced stocks of              
well-established companies _ many of which operate in comparatively unglamorous 
industries _ came back into favor.                                              

This shift in sentiment began in March 2000 _ just before the start of the      
Fund's fiscal year _ and has worked to our advantage. When the dot-com bubble   
burst, the portfolio contained very few technology stocks and was concentrated  
in reasonably valued companies with a solid record of earnings and dividends    
that can provide income as well as growth.                                      

As often happens when a large group of securities decline severely, the good are
hammered along with the bad. We took advantage of this and, in recent months,   
added to the portfolio about a half-dozen sound, well-managed                   
technology-oriented firms that meet the Fund's high standards. These are listed 
along with other additions to the portfolio in the Shareholder Letter.          

The Economic Picture                                                            

The investment climate changed during fiscal 2001 in another important respect. 
Early in the period, the economic news was generally positive. Starting in the  
fall, however, evidence that business conditions were deteriorating caused      
uneasiness among many investors. There was a sharp drop in the market averages  
in November, followed by further weakness later in the winter. When the fiscal  
year ended, the overall pace of business activity was still slowing, although   
the signals were somewhat mixed. There were reports of substantial layoffs and  
cutbacks in capital spending. Orders for computer equipment were down and       
inventories were abnormally large. Consumer spending appeared to be holding its 
own, however, and fears that the economy might be about to collapse were        
subsiding. Since then, there has been growing confidence that the nation's      
monetary authorities will succeed in preventing the slowdown from turning into a
recession.                                                                      

The actions taken by the Federal Reserve in fiscal 2001 deserve a closer look.  
When our fiscal year began in May 2000, the Fed was concerned primarily with the
threat of higher inflation and was still in the process of raising interest     
rates. Eight months later, when it began pursuing an easier monetary policy, it 
did so in emphatic fashion. The five reductions in short-term rates that were   
announced between early January and mid-May of this year represented the        
strongest stimulative action taken by the central bank to combat signs of       
weakness in more than 15 years.                                                 

The Fund's Investments                                                          

The portfolio in this report shows how Washington Mutual's assets were          
diversified at fiscal year-end. The five largest industry positions as a        
percentage of net assets were Banks (11.5%), Oil & Gas (8.9%), Electric         
Utilities (6.9%), Pharmaceuticals (6.7%), and Diversified Telecommunication     
Services (6.5%).                                                                

Of the 149 stocks held throughout the fiscal year, more than two-thirds posted  
gains for the period. Some of the largest increases were recorded by oil and gas
companies that benefited from rising prices for their products. Six of the      
Fund's 20 most profitable investments were energy-related and recorded          
double-digit increases. They are Duke Energy (+62.6%), Dominion Resources       
(+52.2%), TECO Energy (+46.2%), Texaco (+46.0%), Constellation Energy Group     
(+44.4%), and Kerr-McGee (+38.5%).                                              

We plan to keep our research efforts focused on identifying sound long-term     
investment opportunities among companies that can meet Washington Mutual's      
eligibility standards. Those standards were established nearly a half-century   
ago to ensure a combination of quality, value and fundamental strength. They    
promote a disciplined approach that has helped us weather all kinds of market   
conditions in the past, and we believe they should continue to do so in the     
future.                                                                         

_ Capital Research and Management Company                                       

The Value of a Long-Term Perspective                                            

(Chart)                                                                         

This chart shows how a $10,000<F1> investment grew between July 31, 1952, when  
the Fund began operations, and April 30, 2001. As you can see, that $10,000     
investment in Washington Mutual, with all distributions reinvested, would have  
grown to $4,709,570<F1><F2>. Over the same period, that $10,000 would have grown
to $2,794,204 in the unmanaged Standard & Poor's 500 Composite Index of U.S.    
common stocks. According to the Consumer Price Index, it now requires           
$66,255<F5> to purchase what $10,000 would have bought on July 31, 1952. In the 
average savings institution, $10,000 with interest compounded would have grown  
to $116,120<F4>.                                                                

(EDGAR Note: The chart also shows that the $10,000 investment would grow to     
$719,686<F1><F3> with dividends taken in cash.)                                 

Results of a $10,000 Investment in WMIF, the S&P500, and the CPI.               
July 31, 1952 through April 30, 2001                                            

                                                        [Enlarge/Download Table]


    Year                                                                                   
   ended  Dividends in             Dividends                TOTAL                          
April 30         Cash    (2) WMIF  Reinvested     (1) WMIF  RETURN      S&P500      CPI    
                                                                                           

07/31/52                 $9,425                   $9,425                   $10,000  $10,000
    1953          $169    9,161         $170       9,330         -6.7%      10,073    9,963
    1954           434   10,773          450      11,494          23.2      12,267   10,037
    1955           501   14,665          542      16,288          41.7      17,264   10,000
    1956           580   17,851          654      20,565          26.3      22,870   10,075
    1957           648   18,304          756      21,877           6.4      22,450   10,449
    1958           680   16,928          825      21,055          -3.8      22,214   10,824
    1959           700   24,125          885      31,071          47.6      30,484   10,861
    1960           728   21,871          947      29,041          -6.5      29,761   11,049
    1961           815   26,300        1,097      36,167          24.5      36,957   11,161
    1962           823   26,592        1,145      37,654           4.1      38,035   11,311
    1963           890   28,838        1,279      42,278          12.3      42,171   11,423
    1964           923   31,149        1,368      47,109          11.4      49,542   11,573
    1965           957   36,940        1,463      57,490          22.0      57,260   11,760
    1966         1,049   38,487        1,648      61,603           7.2      60,362   12,097
    1967         1,177   39,424        1,906      65,270           6.0      64,534   12,397
    1968         1,332   42,481        2,231      72,692          11.4      69,131   12,884
    1969         1,516   48,408        2,626      85,576          17.7      75,712   13,596
    1970         1,604   39,049        2,874      71,603         -16.3      61,578   14,419
    1971         1,710   48,769        3,193      93,387          30.4      81,401   15,019
    1972         1,779   47,991        3,456      95,521           2.3      86,888   15,543
    1973         1,818   43,290        3,671      89,522          -6.3      88,797   16,330
    1974         1,857   40,682        3,907      87,956          -1.7      77,563   17,978
    1975         2,185   42,855        4,829      98,315          11.8      78,768   19,813
    1976         2,349   53,771        5,498     129,949          32.2      95,421   21,011
    1977         2,509   55,449        6,171     140,348           8.0      96,205   22,472
    1978         2,658   54,228        6,849     144,339           2.8      99,497   23,933
    1979         2,870   58,180        7,785     163,075          13.0     110,175   26,442
    1980         3,203   56,032        9,167     165,847           1.7     121,539   30,337
    1981         4,785   72,410       14,603     230,423          38.9     159,497   33,371
    1982         4,098   69,851       13,326     235,768           2.3     147,832   35,543
    1983         4,496  101,855       15,516     362,292          53.7     220,196   36,929
    1984         4,839  100,116       17,526     373,508           3.1     223,854   38,614
    1985         5,464  115,473       20,783     452,497          21.1     263,309   40,037
    1986         6,109  152,209       24,381     623,767          37.8     358,598   40,674
    1987         6,780  180,960       28,229     771,947          23.8     453,750   42,210
    1988         7,116  167,083       30,815     742,854          -3.8     424,517   43,858
    1989         6,183  198,139       27,837     911,607          22.7     521,251   46,105
    1990         8,920  202,429       41,689     971,049           6.5     575,672   48,277
    1991         9,135  222,015       44,572   1,113,744          14.7     676,800   50,637
    1992         8,318  244,606       42,318   1,272,370          14.2     771,895   52,247
    1993         8,467  268,131       44,627   1,442,386          13.4     843,033   53,933
    1994         8,583  266,513       46,718   1,479,109           2.5     887,928   55,206
    1995         9,790  301,054       55,058   1,730,691          17.0   1,042,583   56,891
    1996        10,007  381,514       58,187   2,256,889          30.4   1,356,760   58,539
    1997        10,505  455,550       62,763   2,763,026          22.4   1,697,450   60,000
    1998        11,032  628,863       67,444   3,890,245          40.8   2,393,223   60,861
    1999        11,526  707,653       71,812   4,458,474          14.6   2,915,358   62,247
    2000        11,935  646,506       75,684   4,148,122          -7.0   3,209,578   64,157
    2001        13,153  719,686       85,029   4,709,570          13.5   2,794,204   66,255

The year-by-year progress of the $10,000 investment is summarized in the table  
below the chart. You can use those figures to estimate how the value of your own
holdings has grown. Let's say, for example, that you have been reinvesting all  
your distributions and want to know how your investment has done since April 30,
1991. At that time, according to the table, the value of the investment         
illustrated here was $1,113,744. Since then it has gone up more than fourfold to
$4,709,570. Thus, in the same 10-year period, the value of your 1991 investment 
_ regardless of its size _ has increased more than fourfold.                    

During the period illustrated, stock prices fluctuated and were higher at the   
end than at the beginning. These results should not be considered as a          
representation of the results that may be realized from an investment made in   
the Fund today. Past performance is not predictive of future performance. The   
indexes are unmanaged and do not reflect sales charges, commissions or expenses.

                                                        [Enlarge/Download Table]

SECTION I                                                                                                       
(EDGAR Note: This table spans three pages in the printed Annual Report. It has                                  
been divided into 6 sections so that it fits within the EDGAR format. The                                       
left-most column of descriptions has been repeated in each of the 6 sections for                                
clarity)                                                                                                        

                                                                                                                
Fiscal Year Ended April 30 1953/6/       1954       1955       1956       1957     1958    1959    1960    1961 
CAPITAL VALUE/3/                                                                                                
Dividends in Cash            $  169        434        501        580        648      680     700     728     815
Value at Year-End/1/         $9,161     10,773     14,665     17,851     18,304   16,928  24,125  21,871  26,300
TOTAL VALUE/2/                                                                                                  
Dividends Reinvested         $_ 170        450        542        654        756      825     885     947   1,097
Value at Year-End/1/         $9,330     11,494     16,288     20,565     21,877   21,055  31,071  29,041  36,167
WMIF Total Return            (6.7)%       23.2       41.7       26.3        6.4    (3.8)    47.6   (6.5)    24.5

                                                        [Enlarge/Download Table]

SECTION II                                                                                                          
(EDGAR Note: This table spans three pages in the printed Annual Report. It has                                      
been divided into 5 sections so that it fits within the EDGAR format. The                                           
left-most column of descriptions has been repeated in each of the 5 sections for                                    
clarity)                                                                                                            

                                                                                                                    
Fiscal Year Ended April 30     1962       1963       1964       1965       1966      1967     1968     1969     1970
CAPITAL VALUE/3/                                                                                                    
Dividends in Cash               823        890        923        957      1,049     1,177    1,332    1,516    1,604
Value at Year-End/1/        26,592     28,838     31,149     36,940     38,487    39,424   42,481   48,408   39,049 
TOTAL VALUE/2/                                                                                                      
Dividends Reinvested          1,145      1,279      1,368      1,463      1,648     1,906    2,231    2,626    2,874
Value at Year-End/1/         37,654     42,278     47,109     57,490     61,603    65,270   72,692   85,576   71,603
WMIF Total Return               4.1       12.3       11.4       22.0        7.2       6.0     11.4     17.7   (16.3)

                                                        [Enlarge/Download Table]

SECTION III                                                                                                         
(EDGAR Note: This table spans three pages in the printed Annual Report. It has                                      
been divided into 5 sections so that it fits within the EDGAR format. The                                           
left-most column of descriptions has been repeated in each of the 5 sections for                                    
clarity)                                                                                                            

                                                                                                                    
Fiscal Year Ended April 30     1971       1972       1973       1974       1975      1976     1977     1978     1979
CAPITAL VALUE/3/                                                                                                    
Dividends in Cash             1,710      1,779      1,818      1,857      2,185     2,349    2,509    2,658    2,870
Value at Year-End/1/         48,769     47,991     43,290     40,682     42,855    53,771   55,449   54,228   58,180
TOTAL VALUE/2/                                                                                                      
Dividends Reinvested          3,193      3,456      3,671      3,907      4,829     5,498    6,171    6,849    7,785
Value at Year-End/1/         93,387     95,521     89,522     87,956     98,315   129,949  140,348  144,339  163,075
WMIF Total Return              30.4        2.3      (6.3)      (1.7)       11.8      32.2      8.0      2.8     13.0

                                                        [Enlarge/Download Table]

SECTION IV                                                                                                          
(EDGAR Note: This table spans three pages in the printed Annual Report. It has                                      
been divided into 5 sections so that it fits within the EDGAR format. The                                           
left-most column of descriptions has been repeated in each of the 5 sections for                                    
clarity)                                                                                                            

                                                                                                                    
Fiscal Year Ended April 30     1980       1981       1982       1983       1984      1985     1986     1987     1988
CAPITAL VALUE/3/                                                                                                    
Dividends in Cash             3,203      4,785      4,098      4,496      4,839     5,464    6,109    6,780    7,116
Value at Year-End/1/         56,032     72,410     69,851    101,855       1116   115,473  152,209  180,960  167,083
TOTAL VALUE/1/                                                                                                      
Dividends Reinvested          9,167     14,603     13,326     15,516     17,526    20,783   24,381   28,229   30,815
Value at Year-End/1/        165,847    230,423    235,768    362,292    373,508   452,497  623,767  771,947  742,854
WMIF Total Return               1.7       38.9        2.3       53.7        3.1      21.1     37.8     23.8    (3.8)

                                                        [Enlarge/Download Table]

SECTION V                                                                                                                  
(EDGAR Note: This table spans three pages in the printed Annual Report. It has                                             
been divided into 5 sections so that it fits within the EDGAR format. The                                                  
left-most column of descriptions has been repeated in each of the 5 sections for                                           
clarity)                                                                                                                   

                                                                                                                           
Fiscal Year Ended April 30     1989       1990       1991       1992       1993       1994       1995       1996       1997
CAPITAL VALUE/3/                                                                                                           
Dividends in Cash             6,183      8,920      9,135      8,318      8,467      8,583      9,790     10,007     10,505
Value at Year-End/1/        198,139    202,429    222,015    244,606    268,131    266,513    301,054    381,514    455,550
TOTAL VALUE/1/                                                                                                             
Dividends Reinvested         27,837     41,689     44,572     42,318     44,627     46,718     55,058     58,187     62,763
Value at Year-End/1/        911,607    971,049  1,113,744  1,272,370  1,442,386  1,479,109  1,730,691  2,256,889  2,763,026
WMIF Total Return              22.7        6.5       14.7       14.2       13.4        2.5       17.0       30.4       22.4

                                                                [Download Table]

SECTION VI                                                                      
(EDGAR Note: This table spans three pages in the printed Annual Report. It has  
been divided into 5 sections so that it fits within the EDGAR format. The       
left-most column of descriptions has been repeated in each of the 5 sections for
clarity)                                                                        

                                                                                
Fiscal Year Ended April 30      1998       1999       2000       2001           
CAPITAL VALUE/3/                                                                
Dividends in Cash              11,032     11,526     11,935     13,153          
Value at Year-End/1/          628,863    707,653    646,506    719,686          
TOTAL VALUE/2/                                                                  
Dividends Reinvested           67,444     71,812     75,684     85,029          
Value at Year-End/1/        3,890,245  4,458,474  4,148,122  4,709,570          
WMIF Total Return                40.8       14.6      (7.0)       13.5          


Fund's lifetime average annual compound return: 13.5%/1/                        

/1/ These figures, unlike those shown earlier in this report, reflect payment   
of the maximum sales charge of 5.75% on the $10,000 investment. Thus, the net   
amount invested was $9,425. As outlined in the prospectus, the sales charge is  
reduced for larger investments of $25,000 or more. There is no sales charge on  
dividends or capital gain distributions that are reinvested in additional       
shares. The maximum initial sales charge was 8.5% prior to July 1, 1988. Results
shown do not take into account income or capital gain taxes.                    

/2/ Total Value includes reinvested dividends of $966,309 and reinvested        
capital gain distributions of $1,853,951.                                       

/3/ Capital Value includes reinvested capital gain distributions of $341,167,   
but does not reflect income dividends of $209,705 taken in cash.                

/4/ With all interest compounded. Based on figures, supplied by the U.S. League 
of Savings Institutions and the Federal Reserve Board, that reflect all kinds of
savings deposits, including longer term certificates. Unlike investments in the 
Fund, such deposits are insured and, if held to maturity, offer a guaranteed    
return of principal and a fixed rate of interest, but no opportunity for capital
growth. Maximum allowable interest rates were imposed by law until 1983. 5      
Computed from data supplied by the U.S. Department of Labor, Bureau of Labor    
Statistics. 6 Since the Fund's inception on July 31, 1952.                      

/5/ Computed from data supplied by the U.S. Department of Labor, Bureau of      
Labor Statistics. 6 Since the Fund's inception on July 31, 1952.                

Average Annual Compound Returns/1/                                              
for periods ended April 30, 2001                                                

1 Year              5 Years            10 Years                   
+7.00%              +14.49%            +14.83%                    

/1/                                                                             
Based on the maximum sales charge of 5.75%. Sales charges are lower for         
investments of $25,000 or more.                                                 

(photo Steve Hartwel)                                                           

Steve Hartwell                                                                  

A Conversation...                                                               

With Washington Mutual's Chairman                                               

In December, Stephen (Steve) Hartwell will retire as Chairman of Washington     
Mutual Investors Fund's Board of Directors, a position he has held for 16 years 
_ a period of significant growth for the Fund. Upon his retirement, the Fund's  
Board of Directors plans to elect Mr. Hartwell Chairman Emeritus. Recently, he  
met with Chairman-elect James H. Lemon, Jr., President Harry J. Lister, and     
Executive Vice President Jeffrey L. Steele to discuss some of his thoughts and  
the events that have marked his successful leadership. We felt that the         
highlights from that meeting might be of interest to our shareholders.          

(group photo)                                                                   
From left to right: Jeffrey L. Steele, James H. Lemon, Jr., Harry J. Lister, and
Stephen Hartwell.                                                               

Washington Mutual Investors Fund                                                

Jim Lemon:  Over the past decade, Washington Mutual has become one of the       
country's five largest mutual funds. To what do you attribute this success?     

Steve Hartwell: First and foremost, I would have to point to the Fund's record  
of consistent and excellent long-term results. However, there are other         
important reasons. One is the high level of quality of our shareholder services 
and the fast, accurate response to inquiries from shareholders and dealers.     
Another has been the Fund's ability to provide those who reinvest capital gain  
distributions with an increasing amount of regular dividend income each year    
over the Fund's lifetime. And finally, I would include low operating expenses,  
which have also helped provide shareholders with higher dividend income.        

Harry Lister:  What, in your view, have been the major changes to the Fund over 
the past 10 years?                                                              

Steve Hartwell: Let me say first that I believe that the major strength of      
Washington Mutual has been consistency in its approach to investing. The Fund   
has adhered to its basic investment criteria. Over the years, to adapt to       
changing economic conditions, it has made only a few small adjustments to those 
criteria. For example, in recognition of the increasing foreign ownership of    
U.S. companies in industries such as oil and insurance, we can now purchase and 
own, within certain limits, foreign companies that acquire companies on the     
eligible list. The Fund also is allowed to make a limited investment in         
companies that may not presently pay dividends but which meet other             
exceptionally high standards; this action has permitted Washington Mutual to    
have access to growth areas where, in the past, it was unable to participate.   
Another change that I feel is important has been the Fund's ability to offer    
different classes of shares tailored to meet investors' specific requirements.  

(photo Harry Lister)                                                            
Harry Lister                                                                    

(photo Jeff Steele)                                                             

Jeff Steele                                                                     

Jeff Steele: Steve, what have you found to be the Fund's most important         
advantages from the standpoint of shareholders?                                 

Steve Hartwell: Two in particular. I would have to say adherence to our         
investment criteria and the fully invested policy. The criteria have enabled us 
to focus on quality and value, which has allowed the Fund to provide an         
attractive investment for 401(k) plans, IRAs and other forms of                 
company-sponsored retirement programs as well as to offer a high-quality,       
conservative investment to individual investors. The fully invested policy      
prohibits building a substantial buying reserve even when market values are     
high. This has led to a more conservative investment portfolio in the latter    
stages of extended bull markets; but it also ensures that the Fund is fully     
invested in equities the day the market bottoms. The benefits of that are fairly
obvious.                                                                        

Jeff Steele: What comments do you receive most often from shareholders?         

Steve Hartwell: Our share-holders have almost uniformly praised the Fund's      
long-term results and its record of increasing dividend income. An exception    
occurred in 1999 and early 2000, when some of our investors wrote questioning   
the cautious approach employed by our adviser, Capital Research and Management  
Company. After this past year's performance by the market _ and the collapse of 
many speculative, high-tech growth stocks _ those letters stopped coming.       

(photo Steve Hartwell and Jim Lemon)                                            

Steve Hartwell and Jim Lemon                                                    

Jim Lemon: Income has always been an important objective of the Fund. However,  
the number of dividend-paying stocks in the S&P 500 Index has continued to      
decrease over the past 10 to 15 years. How do you think this will affect the    
Fund?                                                                           

Steve Hartwell: We have a value-oriented growth and income fund. Our adviser's  
portfolio counselors have been able to maintain income by finding securities    
that can provide both growth of principal and income. Management of the Fund's  
cash also has been an important source of income. Through a combination of these
methods, I believe we ought to be able to maintain our above-average income     
return relative to the S&P 500. More importantly, even though it may be         
necessary to occasionally reduce the dividend rate, over the long term, the Fund
will keep striving to provide rising annual dividend income to shareholders who 
reinvest their capital gains distributions.                                     

Harry Lister: How has the Fund been able to maintain its investment objective   
over its nearly 50 years of operation?                                          

Steve Hartwell: Washington Mutual is truly a unique mutual fund. It was created 
with a carefully designed concept of combining a fully invested position and    
rigorous investment standards. Capital Research has skillfully applied this     
structure to carry out the objective of growth of principal and income. It has  
developed a large, enormously successful global research organization. The      
Fund's officers and Directors regularly evaluate changing conditions and work   
closely with Capital to make only those revisions in our standards that are     
needed to adapt to changing economic and global trends. The manner in which our 
standards have been utilized and the substantial resources and talent available 
to the Fund have combined to enable us to maintain our investment objective     
through the years.                                                              

(photo Jim Lemon)                                                               
Jim Lemon                                                                       

(photo Harry Lister)                                                            
Harry Lister                                                                    

Harry Lister: Steve, would you share with us some of your thoughts about        
investing in the future?                                                        

Steve Hartwell: One of my favorite thoughts about investing is found in The     
Washington Mutual Story brochure. The brochure shows the results of a fixed     
annual investment made in the Fund each year over the past 20 years, a period of
ever-changing market conditions. It points out that if an investor had been able
to select the lowest Fund share price each year, the result would have been an  
average rate of return of 16.8% a year. However, if that same person had been   
unfortunate and invested at the highest per share price each year, the annual   
average return would have been 15.4%. That's not a huge difference. It supports 
my conviction that trying to pick the perfect time to invest isn't worth the    
worry. I don't know if we will see double-digit growth annually in the years    
ahead, but I do know that regular investing in quality common stocks _ like     
those in the Fund's portfolio _ will continue to make sense.* I'm reminded of a 
question that was put many years ago to Bernie Nees, the Fund's founder. Bernie 
was asked how to make money in the stock market and he replied, "You must be    
invested at the bottom." When asked how one can be guaranteed that they're at   
the bottom, he replied, "Always be invested."                                   

(photo Steve Hartwell)                                                          
Steve Hartwell                                                                  

*Regular investing does not ensure a profit or protect against loss. Investors  
should consider their willingness to keep investing when share prices are       
declining.                                                                      

Jeff Steele: In an ever-changing and volatile investment climate, do you believe
our investment standards can continue to provide meaningful value to the Fund   
and its shareholders?                                                           

Steve Hartwell: I think our long-term record constitutes clear evidence that    
those standards have provided good value. During Washington Mutual's nearly 50  
years, very few modifications to our standards have been necessary. In times of 
market volatility and in bear markets, our emphasis on income and our adviser's 
value approach to investing have also helped us. Certainly the growth of the    
Fund and its utilization by retirement programs and other long-term investors   
bears testimony to the success of our approach. I firmly believe that the       
relevance and value of our standards will endure over time.                     

Jim Lemon: Based on your many years of experience, Steve, what have you found to
be the most important considerations that a serious investor should take into   
account when building an investment program?                                    

Steve Hartwell: As you all are well aware, there are a number of important      
considerations. In my mind, two stand out. First, one must establish a long-term
investment goal. Second, one must develop a sound and workable plan to achieve  
the goal. Many individuals wait too long before setting a goal and implementing 
it. There is a great advantage to beginning an investment program as early as   
possible. History has shown us that, in the long run, quality common stocks have
produced very good returns. For that very reason, a quality, value-oriented     
mutual fund like Washington Mutual has proven to be the right vehicle for many  
investors.                                                                      

(photo Jim Lemon and Jeff Steele)                                               
Jim Lemon and Jeff Steele                                                       

(photo Fireplace)                                                               

What Makes the American Funds Different?                                        

Washington Mutual Investors Fund is a member of the American Funds, the nation's
third-largest mutual fund family. You won't find us advertised, yet thousands of
financial advisers recommend American Funds for their clients' serious money _  
money set aside for education, a home, retirement, and other important dreams.  

What the 29 funds have in common is a commitment to your best interests and the 
proven approach of our investment adviser, Capital Research and Management      
Company. In business since 1931, Capital Research's calling cards include:      

A long-term, value-oriented approach: Rather than follow short-term fads, we    
rely on our own intensive research to find well-managed companies with          
reasonably priced securities and solid, long-term potential. Despite our size,  
we offer relatively few funds compared with many large fund families, allowing  
us to maintain a careful focus on our objectives and enabling you to benefit    
from economies of scale.                                                        

An unparalleled global research effort: We opened our first overseas office in  
1962, well before most mutual funds began investing internationally. Today, the 
American Funds draw on one of the industry's most globally integrated research  
networks. Capital Research spends substantial resources getting to know         
companies and industries around the world.                                      

A multiple portfolio counselor system: More than 40 years ago, we developed a   
unique strategy for managing investments that blends teamwork with individual   
accountability. Every American Fund is divided among a number of portfolio      
counselors, each of whom manages his or her portion independently, within each  
fund's objectives; in most cases, research analysts manage a portion as well.   
Over time, this method has contributed to consistency of results and continuity 
of management.                                                                  

Experienced investment professionals: More than 75% of the portfolio counselors 
who serve American Funds were in the investment business before the sharp stock 
market decline in October 1987. Long tenure and experience through a variety of 
market conditions mean we aren't "practicing" with your money.                  

A commitment to low operating expenses: You can't control market returns, but   
you can control what you invest in and how much you pay to own it. The American 
Funds provide exceptional value for shareholders, with operating expenses that  
are among the lowest in the mutual fund industry. Our portfolio turnover rates  
are low as well, keeping transaction costs and tax consequences contained.      

A Portfolio for Every Investor                                                  

Most financial advisers suggest that investors balance their portfolios by      
investing across several types of funds. Which mix is right for you? That       
depends on a number of things _ including your risk tolerance, investment time  
horizon and financial goals. The 29 American Funds offer an array of investment 
objectives to help you and your financial adviser build a portfolio specifically
tailored to your needs.                                                         
Growth Funds                                                                    

Emphasis on long-term growth through stocks AMCAP Fund(R) EuroPacific Growth    
Fund(R) The Growth Fund of America(R) The New Economy Fund(R) New Perspective   
Fund(R) New World Fund(SM) SMALLCAP World Fund(R)                               

Growth-and-Income Funds                                                         

Emphasis on long-term growth and dividends through stocks American Mutual       
Fund(R) Capital World Growth and Income Fund(SM) Fundamental Investors(SM) The  
Investment Company of America(R) Washington Mutual Investors Fund(SM)           

Equity-Income Funds                                                             

Emphasis on above-average income and growth through stocks and/or bonds Capital 
Income Builder(R) The Income Fund of America(R)                                 

Balanced Fund                                                                   

Emphasis on long-term growth and current income through stocks and bonds        
American Balanced Fund(R)                                                       

Income Funds                                                                    

Emphasis on current income through bonds                                        
American High-Income Trust(SM)                                                  
The Bond Fund of America(SM)                                                    
Capital World Bond Fund(R)                                                      
Intermediate Bond Fund of America(R)                                            
U.S. Government Securities Fund(SM)                                             

Tax-Exempt Income Funds                                                         

Emphasis on tax-free current income through municipal bonds American High-Income
Municipal Bond Fund(R) Limited Term Tax-Exempt Bond Fund of America(SM) The     
Tax-Exempt Bond Fund of America(R)                                              

State-specific tax-exempt funds The Tax-Exempt Fund of California(R) The        
Tax-Exempt Fund of Maryland(R) The Tax-Exempt Fund of Virginia(R)               

Money Market Funds                                                              

Seek stable monthly income through money market instruments                     
The Cash Management Trust of America(R)                                         
The Tax-Exempt Money Fund of America(SM)                                        
The U.S. Treasury Money Fund of America(SM)                                     

We also offer a full line of retirement plans and variable annuities.           

For more complete information about any of the funds, including charges and     
expenses, please obtain a prospectus from your financial adviser, download one  
from our Web site at americanfunds.com, or phone the funds' transfer agent,     
American Funds Service Company, at 800/421-0180. Please read the prospectus     
carefully before you invest or send money. For more information, ask your       
financial adviser for a copy of our brochure A Portfolio for Every Investor.    

(photo of Chair and tea cup)                                                    

Investment Portfolio  April 30, 2001                                            

Five Largest Industries                          Ten Largest Individual Holdings
                                    Percent of                      Percent of
                                    Net Assets                      Net Assets

Banks                                    11.53%  Bank of America          3.64% 
Oil & Gas                                 8.87   Texaco                   2.97  
Electric Utilities                        6.88   AT&T                     2.28  
Pharmaceuticals                           6.65   BANK ONE                 2.02  
Diversified Telecommunication Services    6.54   Household International  2.00  
                                               Chevron                  1.95
                                               Wells Fargo              1.85
                                               Verizon Communications   1.80
                                               Allstate                 1.70
                                               Exxon Mobil              1.69

Energy Equipment                                                                
& Services .09%                                                                 

Oil & Gas 8.87%                                                                 
                                                          Market      Percent of
Equity Securities (common stocks)             Shares    Value (000)   Net Assets

Energy 8.96%                                                                    

Energy Equip0ment and Services .09%                                             
Halliburton Co.                               1,000,000  $   43,210        .09% 

Oil and Gas 8.87%                                                               
Ashland Inc.                                  3,680,000     158,461        .32  
BP Amoco PLC (American Depositary Receipts)   2,000,000     108,160        .22  
Chevron Corp.                                 9,912,000     957,103       1.95  
Conoco Inc., Class A                          2,000,000      60,580        .37  
Conoco Inc., Class B                          3,913,692     119,055             
Exxon Mobil Corp.                             9,321,514     825,886       1.69  
Kerr-McGee Corp.                              1,450,000     103,892        .21  
Phillips Petroleum Co.                        5,352,400     319,003        .65  
Texaco Inc.                                  20,150,000   1,456,442       2.97  
Unocal Corp.                                  6,296,500     240,274        .49  
                                                        4,348,856       8.87
                                                        4,392,066       8.96

Materials 5.49%                                                                 

Chemicals 1.35%                                                                 
Air Products and Chemicals, Inc.              2,690,000     115,643        .23  
Crompton Corp.                                5,800,001      58,754        .12  
Dow Chemical Co.                              8,050,000     269,272        .55  
PPG Industries, Inc.                          4,125,700     219,281        .45  
                                                          662,950       1.35

Metals & Mining 1.15%                                                           
Alcoa Inc.                                   10,100,000     418,140        .85  
Phelps Dodge Corp.                            3,220,000     144,063        .30  
                                                          562,203       1.15

Paper & Forest Products 2.99%                                                   
International Paper Co.                      17,672,000  $  692,389       1.41% 
Mead Corp.                                    2,568,900      72,443        .15  
Westvaco Corp.                                4,999,800     131,895        .27  
Weyerhaeuser Co.                              8,900,000     503,117       1.02  
Willamette Industries, Inc.                   1,400,000      68,110        .14  
                                                        1,467,954       2.99
                                                        2,693,107       5.49

Capital Goods 6.85%                                                             

Aerospace & Defense 3.64%                                                       
Boeing Co.                                    2,400,000     148,320        .30  
Honeywell International Inc.                  8,200,000     400,816        .82  
Lockheed Martin Corp.                        12,089,000     425,049        .87  
Raytheon Co., Class A                         3,041,100      89,561             
Raytheon Co., Class B                         3,235,600      95,547        .38  
United Technologies Corp.                     8,010,000     625,421       1.27  
                                                        1,784,714       3.64

Construction & Engineering .16%                                                 
Fluor Corp.    1,500,000                         79,065         .16             

Electrical Equipment .32%                                                       
Emerson Electric Co.                          1,750,000     116,637        .24  
Rockwell International Corp.                    821,000      36,970        .08  
                                                          153,607        .32

Industrial Conglomerates .27%                                                   

General Electric Co.                          2,000,000      97,060        .20  
Minnesota Mining and Manufacturing Co.          300,000      35,703        .07  
                                                          132,763        .27

Machinery 1.98%                                                                 
Caterpillar Inc.                              1,700,000      85,340        .17  
Deere & Co.                                   6,240,000     256,277        .52  
Dover Corp.                                   4,000,000     156,280        .32  
Eaton Corp.                                   1,712,900     126,086        .26  
Illinois Tool Works Inc.                      1,200,000      76,056        .15  
Ingersoll-Rand Co.                            2,790,500     131,153        .27  
Pall Corp.                                    5,958,700     139,851        .29  
                                                          971,043       1.98

Trading Companies & Distributors .48%                                           
Genuine Parts Co.                             8,765,800     236,677        .48  
                                                        3,357,869       6.85

Commercial Services                                                             
& Supplies 1.33%                                                                

Commercial Services & Supplies 1.33%                                            
Deluxe Corp.                                  2,200,000  $   57,178        .12% 
Equifax Inc.                                  1,927,700      63,749        .13  
Pitney Bowes Inc.                            12,500,000     475,875        .97  
ServiceMaster Co.                             4,926,100      53,842        .11  
                                                          650,644       1.33

Transportation 1.94%                                                            

Airlines .28%                                                                   
Southwest Airlines Co.                        7,500,000     136,575        .28  

Road & Rail 1.66%                                                               
Burlington Northern Santa Fe Corp.            4,925,300     144,804        .29  
CSX Corp.                                     8,300,000     291,081        .59  
Norfolk Southern Corp.                       12,100,000     238,854        .49  
Union Pacific Corp.                           2,500,000     142,225        .29  
                                                          816,964       1.66
                                                          953,539       1.94

Automobiles &  Components 1.52%                                                 

Auto Components 1.26%                                                           
Dana Corp.                                    6,326,600     124,191        .25  
Goodyear Tire & Rubber Co.                    3,000,000      74,190        .15  
Johnson Controls, Inc.                        2,550,700     184,671        .38  
TRW Inc.                                      6,050,000     232,683        .48  
                                                          615,735       1.26

Automobiles .26%                                                                
Ford Motor Co.                                4,370,438     128,840        .26  
                                                          744,575       1.52

Consumer Durables & Apparel 2.34%                                               

Household Durables .98%                                                         
Newell Rubbermaid Inc.                       12,100,000     326,216        .66  
Stanley Works                                 4,350,000     157,688        .32  
                                                          483,904        .98

Leisure Equipment & Products .38%                                               
Eastman Kodak Co.                             4,275,000     185,962        .38  

Textiles & Apparel .98%                                                         
NIKE, Inc., Class B                           8,071,925                         
                                                     $     337,487        .69%
VF Corp.                                      3,500,000     142,065        .29  
                                                          479,552        .98
                                                        1,149,418       2.34

Hotels, Restaurants & Leisure 1.11%                                             

Hotels, Restaurants  & Leisure 1.11%                                            
McDonald's Corp.                             19,864,000     546,260       1.11  

Media 1.62%                                                                     
Dow Jones & Co., Inc.                         1,900,000     103,113        .21  
Gannett Co., Inc.                             1,739,700     112,298        .23  
Interpublic Group of Companies, Inc.         10,275,000     348,836        .71  
Knight-Ridder, Inc.                           1,100,000      59,565        .12  
Walt Disney Co.                               5,600,000     169,400        .35  
                                                          793,212       1.62

Retailing 4.76%                                                                 

Multiline Retail 1.55%                                                          
Dillard's Inc., Class A                       3,000,000      50,820        .10  
Dollar General Corp.                          5,250,000      86,625        .18  
J.C. Penney Co., Inc.                        11,215,800     227,232        .46  
May Department Stores Co.                     9,300,000     346,425        .71  
Target Corp.                                  1,250,000      48,063        .10  
                                                          759,165       1.55

Specialty Retail 3.21%                                                          
Circuit City Stores,Inc.-Circuit City Group  10,000,000     150,500        .31  
Gap, Inc.                                     7,500,000     207,825        .42  
Limited Inc.                                 17,250,000     291,870        .59  
Lowe's Companies, Inc.                       11,600,000     730,800       1.49  
TJX Companies, Inc.                           6,250,000     195,813        .40  
                                                        1,576,808       3.21
                                                        2,335,973       4.76

Food & Drug Retailing 1.63%                                                     

Food & Drug Retailing 1.63%                                                     
Albertson's, Inc.                            17,398,940     581,125       1.18  
Walgreen Co.                                  5,125,000     219,247        .45  
                                                          800,372       1.63

Food & Beverage 4.20%                                                           

Beverages .81%                                                                  
PepsiCo, Inc.                                 9,100,000  $  398,671        .81% 

Food Products  3.39%                                                            
Campbell Soup Co.                             2,605,000      79,296        .16  
ConAgra Foods, Inc.                          14,700,000     305,907        .63  
General Mills, Inc.                           9,610,400     378,746        .77  
H.J. Heinz Co.                                4,600,000     180,090        .37  
Kellogg Co.                                   3,100,000      79,050        .16  
Sara Lee Corp.                               32,097,000     639,051       1.30  
                                                        1,662,140       3.39
                                                        2,060,811       4.20

Household & Personal Products 1.96%                                             

Household Products 1.31%                                                        
Kimberly-Clark Corp.                         10,856,600     644,882       1.31  

Personal Products .65%                                                          
Avon Products, Inc.                           7,482,500     316,659        .65  
                                                          961,541       1.96

Health Care Equipment & Services 1.61%                                          

Health Care Equipment & Supplies .37%                                           
Becton, Dickinson and Co.                     5,700,000     184,395        .37  

Aetna Inc.*                                   6,900,000     194,511        .40  
Cardinal Health, Inc.                        6,127,500      412,994        .84  
                                                          607,505       1.24
                                                          791,900       1.61

Pharmaceuticals & Biotechnology 6.65%                                           

Pharmaceuticals 6.65%                                                           
Abbott Laboratories                           3,500,000     162,330        .33  
American Home Products Corp.                  2,000,000     115,500        .24  
Bristol-Myers Squibb Co.                     13,488,600     755,362       1.54  
Eli Lilly and Co.                             4,000,000     340,000        .69  
Merck & Co., Inc.                             2,096,200     159,248        .33  
Pfizer Inc     16,575,450                       717,717        1.46             
Pharmacia Corp.                              14,534,000     759,547       1.55  
Schering-Plough Corp.                         6,500,000     250,510        .51  
                                                        3,260,214       6.65

Banks 11.53%                                                                    

Banks 11.53%                                                                    
Bank of America Corp.                        31,832,200  $1,782,603       3.64% 
Bank of New York Co., Inc.                    5,000,000     251,000        .51  
BANK ONE CORP.                               26,238,400     991,024       2.02  
First Union Corp.                            23,885,900     715,861       1.46  
FleetBoston Financial Corp.                   2,631,203     100,959        .21  
KeyCorp                                       2,600,000      60,268        .12  
National City Corp.                           3,400,000      92,514        .19  
PNC Financial Services Group, Inc.            2,000,000     130,140        .27  
SunTrust Banks, Inc.                          2,500,000     158,750        .32  
Wachovia Corp.                                2,850,000     173,280        .35  
Washington Mutual, Inc.                       5,775,000     288,346        .59  
Wells Fargo & Co.                            19,341,500     908,470       1.85  
                                                        5,653,215      11.53

Diversified Financials 5.72%                                                    

Diversified Financials 5.72%                                                    

Citigroup Inc.                                4,231,818     207,994        .42  
Fannie Mae                                    4,650,000     373,209        .76  
Freddie Mac                                   3,100,000     203,980        .42  
Household International, Inc.                15,300,000     979,506       2.00  
J.P. Morgan Chase & Co. (formed by the                                          
merger of Chase Manhattan Corp. and                                         
J.P. Morgan & Co. Inc.)                    12,050,000     578,159       1.18
Moody's Corp.  2,800,000                         87,920         .18             
Providian Financial Corp.                     4,400,000     234,520        .48  
USA Education Inc.                            1,970,000     140,067        .28  
                                                        2,805,355       5.72

Insurance 4.99%                                                                 

Insurance 4.99%                                                                 
Allstate Corp.                               20,037,500     836,566       1.70  
American General Corp.                       12,626,000     550,620       1.12  
Aon Corp.                                     8,681,000     288,556        .59  
Jefferson-Pilot Corp.                         5,550,000     258,963        .53  
Lincoln National Corp.                        5,554,800     256,409        .52  
Marsh & McLennan Companies, Inc.              1,200,000     115,728        .24  
GIC Investment Corp.                            500,000      32,495        .07  
St. Paul Companies, Inc.                      2,400,000     108,240        .22  
                                                        2,447,577       4.99

Software & Services .90%                                                        

Software .90%                                                                   
Computer Associates International, Inc.       1,000,000      32,190        .07  
Microsoft Corp.*                              5,050,000     342,138        .70  
Oracle Corp.*                                 4,000,000      64,640        .13  
                                                          438,968        .90

Technology Hardware & Equipment 4.51%                                           

Communications Equipment .73%                                                   
Harris Corp.                                  1,550,000$     44,562        .09% 
Motorola, Inc.                               20,250,000     314,888        .64  
                                                          359,450        .73

Computers & Peripherals 2.02%                                                   
Dell Computer Corp.*                          2,000,000      52,480        .11  
Hewlett-Packard Co.                          19,500,000     554,385       1.13  
International Business Machines Corp.         2,500,000     287,850        .59  
Sun Microsystems, Inc.*                       5,500,000      94,160        .19  
                                                          988,875       2.02

Office Electronics .44%                                                         
IKON Office Solutions, Inc.                   7,285,000      45,167        .09  
Xerox Corp.                                  18,900,000     170,856        .35  
                                                          216,023        .44

Semiconductor Equipment & Products 1.32%                                        
Intel Corp.                                   1,500,000      46,365        .09  
Texas Instruments Inc.                       14,300,000     553,410       1.13  
Xilinx, Inc.*                                 1,000,000      47,470        .10  
                                                          647,245       1.32
                                                        2,211,593       4.51

Telecommunication Services 6.54%                                                

Diversified Telecommunication Services 6.54%                                    
ALLTEL Corp.                                  4,130,000     225,539        .46  
AT&T Corp.                                   50,300,000   1,120,684       2.28  
Qwest Communications International Inc.       5,256,900     215,007        .44  
SBC Communications Inc.                      13,278,083     547,721       1.12  
Sprint FON Group                             10,000,000     213,800        .44  
Verizon Communications                       16,021,926     882,328       1.80  
                                                        3,205,079       6.54

Utilities 7.89%                                                                 

Electric Utilities 6.88%                                                        
Ameren Corp.                                  3,077,400     129,158        .26  
American Electric Power Co., Inc.            10,345,580     510,451       1.04  
Conectiv                                      2,500,000      55,750        .11  
Consolidated Edison, Inc.                     7,146,700     267,358        .55  
Constellation Energy Group, Inc.              6,400,000     305,536        .62  
Dominion Resources, Inc.                      4,237,020     290,194        .59  
DTE Energy Co.                                3,550,000     148,816        .30  
Duke Energy Corp.                             3,200,000     149,632        .31  
Edison International                          3,135,000                         
                                                    $      30,880        .06
FPL Group, Inc.                                 500,000      29,950        .06  
GPU, Inc.                                     4,875,000     162,386        .33  
PPL Corp.                                     2,000,000     110,000        .22  
Progress Energy, Inc.                                                           
(formerly CP&L Energy, Inc.)                8,375,418     370,528        .76
Public Service Enterprise Group Inc.          2,020,000      93,809        .19  
Puget Sound Energy, Inc.                      3,800,000      90,212        .18  
Southern Co.                                 13,535,000     316,584        .65  
TECO Energy, Inc.                             1,000,000      31,990        .07  
TXU Corp.                                     3,000,000     131,880        .27  
Xcel Energy Inc.                              4,795,700     149,626        .31  
                                                        3,374,740       6.88

Multi-Utilities 1.01%                                                           
Williams Companies, Inc.                     11,686,400     492,815       1.01  
                                                        3,867,555       7.89

Miscellaneous 1.38%                                                             

Miscellaneous 1.38%                                                             
Equity securities in initial                                                    
period of acquisition                                     676,661       1.38

TOTAL EQUITY SECURITIES                                                         
(cost: $36,387,953,000)                                46,797,504      95.43

                                             Principal     Market     Percent of
Short-Term Securities                      Amount (000) Value (000)   Net Assets

U.S. Treasuries and Other                                                       
Federal Agencies 4.42%                                                          

U.S. Treasuries and Other                                                       
Federal Agencies 4.42%                                                          

Federal Farm Credit Bank                                                        
4.13% - 4.66% due 6/6 - 7/30/01           $    82,500      81,885        .17
Federal Home Loan Bank                                                          
4.10% - 5.17% due 5/2 - 7/25/01             1,006,535   1,001,134       2.04
United States Treasury bills                                                    
3.62% - 4.97% due 5/3 - 7/26/01             1,091,711   1,085,838       2.21

TOTAL SHORT-TERM SECURITIES                                                     
(cost: $2,168,247,000)                                  2,168,857       4.42

TOTAL INVESTMENT SECURITIES                                                     
(cost: $38,556,200,000)                                48,966,361      99.85
Excess of cash and receivables over payables                 74,921        .15  

NET ASSETS                                              $49,041,282     100.00% 

*Non-income-producing security.                                                 

See Notes to Financial Statements                                               

(photo window)                                                                  

Financial Statements                                                            

Statement of Assets and Liabilities                                             

April 30, 2001                                            (dollars in thousands)

Assets:                                                                         
Investment securities at market                                                 
  (cost: $38,556,200)                                                $48,966,361
Cash                                                                         301
Receivables for _                                                               
Sales of investments                                   $190,276             
Sales of Fund's shares                                   63,783             
  Dividends                                                49,837        303,896
                                                                      49,270,558

Liabilities:                                                                    
Payables for _                                                                  
Purchases of investments                                144,379             
Repurchases of Fund's shares                             47,180             
Management services                                      11,254             
  Other expenses                                           26,463        229,276
Net Assets at April 30, 2001                                         $49,041,282

Total authorized capital stock _ 4,000,000,000 shares:                          

Class A shares, $1.00 par value                                             
    Net assets                                                       $48,700,632
    Shares outstanding                                             1,634,385,000
    Net asset value per share                                             $29.80

Class B shares, $1.00 par value                                             
    Net assets                                                          $288,713
    Shares outstanding                                                 9,718,076
    Net asset value per share                                             $29.71

Class C shares, $1.00 par value                                             
    Net assets                                                           $36,034
    Shares outstanding                                                 1,213,305
    Net asset value per share                                             $29.70

Class F shares, $1.00 par value                                             
    Net assets                                                           $15,903
    Shares outstanding                                                   533,817
    Net asset value per share                                             $29.79

See Notes to Financial Statements                                               

Statement of Operations                                                         
for the year ended April 30, 2001                         (dollars in thousands)

Investment Income:                                                              
Income:                                                                         
Dividends                                            $1,091,948             
  Interest                                                118,352     $1,210,300
Expenses:                                                                       
Investment adviser fee                                     92,578               
Business management fee                                  42,756             
Distribution expenses _ Class A                        111,799              
Distribution expenses _ Class B                          1,340              
Distribution expenses _ Class C                             22              
Distribution expenses _ Class F                              2              
Transfer agent fee _ Class A                            43,982              
Transfer agent fee _ Class B                               142              
Administrative services fees _ Class C                      13              
Administrative services fees _ Class F                       4              
Reports to shareholders                                     650             
Registration statement and                                                  
prospectus                                              1,443           
Postage, stationery and supplies                          6,410             
Directors' and Advisory Board fees                          505             
Auditing and legal fees                                     153             
Custodian fee                                               373             
  Other expenses                                              234        302,406
Net investment income                                                    907,894

Realized Gain and Unrealized                                                    
Appreciation on Investments:                                                
Net realized gain                                                      2,303,878
Net unrealized appreciation on investments                             2,714,981
Net realized gain and unrealized                                            
    appreciation on investments                                        5,018,859

Net Increase in Net Assets                                                      
  Resulting from Operations                                           $5,926,753

See Notes to Financial Statements                                               

(photo of chair)                                                                

Statement of Changes in Net Assets                                              
                                                            Year ended April 30,
(dollars in thousands)                                       2001           2000

Operations:                                                                     
Net investment income                                 $   907,894   $  1,014,613
Net realized gain on investments                        2,303,878      5,370,939
Net unrealized appreciation                                                     
  (depreciation) on investments                         2,714,981   (10,719,233)
Net Increase (Decrease) in Net                                              
    Assets Resulting from Operations                    5,926,753    (4,333,681)

Dividends and Distributions Paid                                                
to Shareholders:                                                            
Dividends from net investment income:                                           
  Class A                                               (909,313)      (952,846)
 Class B                                                 (1,882)             _
Distributions from net realized gains on investments:                           
    Class A                                           (3,750,270)    (5,085,575)
   Class B                                             (12,049)              _
  Total Dividends and Distributions                   (4,673,514)    (6,038,421)

Capital Share Transactions:                                                     
Proceeds from shares sold                               4,970,885      8,330,952
Proceeds from shares issued in                                                  
reinvestment of net investment                                              
income dividends and distributions                                          
  of net realized gain on investments                   4,406,084      5,726,003
Cost of shares repurchased                            (8,941,995)   (13,350,009)
Net Increase in Net Assets Resulting                                        
    from Capital Share Transactions                       434,974        706,946
Total Increase (Decrease) in Net Assets                 1,688,213    (9,665,156)

Net Assets:                                                                     
Beginning of year                                      47,353,069     57,018,225

End of year (including undistributed                                            
net investment income: $168,205                                             
  and $174,408, respectively)                         $49,041,282    $47,353,069

See Notes to Financial Statements                                               

(photo)                                                                         

(photo)                                                                         

Notes to Financial Statements                                                   

1.   Organization and Significant Accounting Policies                           
    Organization _ Washington Mutual Investors Fund (the "Fund") is registered
under the Investment Company Act of 1940 as an open-end, diversified management 
investment company. The Fund's investment objective is to produce income and to 
provide an opportunity for growth of principal consistent with sound common     
stock investing.                                                                

The Fund offers four classes of shares as described below:                      

Class A shares are sold with an initial sales                         
charge of up to 5.75%;                                                

    Class B shares are sold without an initial sales charge but are subject to
     a contingent deferred sales charge (CDSC) paid upon redemption. This charge
declines from 5% to zero over a period of six years. Class B shares   
automatically convert to Class A shares after eight years;            

    Class C shares are sold without an initial sales charge but are subject to
  a CDSC of 1% for redemptions within one year of purchase. Class C shares
automatically convert to Class F shares after ten years; and          

    Class F shares, which are sold exclusively through fee-based programs, are
sold without an initial sales charge or CDSC.                         

Holders of all classes of shares have equal pro rata rights to assets,          
dividends, liquidation and other rights. Each class has identical voting rights 
except for exclusive rights to vote on matters affecting only its class. Each   
class of shares may have different distribution, administrative services and    
transfer agent fees and expenses. Differences in class-specific expenses will   
result in the payment of different per share dividends by each class.           

Significant Accounting Policies _ The financial statements have been prepared in
conformity with accounting principles generally accepted in the United States of
America. These principles require management to make estimates and assumptions  
that affect the reported amounts and disclosures in the financial statements.   
Actual results could differ from those estimates. The following is a summary of 
the significant accounting policies consistently followed by the Fund in the    
preparation of its financial statements:                                        

    Security Valuation _ Equity securities, including depositary receipts, are
   valued at the last reported sale price on the exchange or market on which
such securities are traded, as of the close of business on the day the
  securities are being valued or, lacking any sales, at the last available
 bid price. In cases where equity securities are traded on more than one
     exchange, the securities are valued on the exchange or market determined by
   the investment adviser to be the broadest and most representative market,
   which may be either a securities exchange or the over-the-counter market.
     Short-term securities maturing within 60 days are valued at amortized cost,
which approximates market value. Securities and assets for which      
  representative market quotations are not readily available are valued at
     fair value as determined in good faith under policies approved by the Board
of Directors.                                                         

     Security Transactions and Related Investment Income _ Security transactions
are accounted for as of the trade date. Realized gains and losses from
   securities transactions are determined based on specific identified cost.
   Dividend income is recognized on the ex-dividend date and interest income
is recognized on an accrual basis.                                    

   Dividends and Distributions to Shareholders _ Dividends and distributions
paid to shareholders are recorded on the ex-dividend date.            

   Class Allocations _ Income, expenses (other than class-specific expenses)
    and realized and unrealized gains and losses are allocated daily among the
various share classes based on their relative net asset values.       
     Distribution expenses, administrative services fees, certain transfer agent
 fees and other applicable class-specific expenses are accrued daily and
charged to the respective share class.                                

2.   Federal Income Taxation                                                    
The Fund complies with the requirements of the Internal Revenue Code applicable 
to regulated investment companies and intends to distribute all of its net      
taxable income and net capital gains for the fiscal year. As a regulated        
investment company, the Fund is not subject to income taxes if such             
distributions are made. Required distributions are determined on a tax basis and
may differ from net investment income and net realized gains for financial      
reporting purposes. In addition, the fiscal year in which amounts are           
distributed may differ from the year in which the net investment income is      
earned and the net gains are realized by the Fund.                              

As of April 30, 2001, the cost of investment securities for book and federal    
income tax reporting purposes was $38,556,200,000. Net unrealized appreciation  
on investments aggregated $10,410,161,000; $12,418,811,000 related to           
appreciated securities and $2,008,650,000 related to depreciated securities. For
the year ended April 30, 2001, the Fund realized, on a tax basis, a net capital 
gain of $2,306,780,000 on securities transactions.                              

3.   Fees and Transactions with Related Parties                                 
Business Management and Investment Advisory Fees _ A fee of $42,756,000 was     
incurred during the fiscal year ended April 30, 2001 for business management    
services pursuant to the business management agreement with Washington          
Management Corporation (WMC). The agreement provides for monthly fees, accrued  
daily, based on a series of rates beginning with 0.175% per annum of the first  
$3 billion of net assets decreasing to 0.04% of such assets in excess of $55    
billion. For the year ended April 30, 2001, the management services fee was     
equivalent to an annualized rate of 0.09% of average net assets. Johnston, Lemon
& Co. Incorporated (JLC), earned $735,000 on its retail sales of all share      
classes and distribution plans of the Fund and received no brokerage commissions
resulting from purchases and sales of securities for the investment account of  
the Fund.                                                                       

A fee of $92,578,000 was incurred during the fiscal year ended April 30, 2001   
for investment advisory services pursuant to an agreement with Capital Research 
and Management Company (CRMC). The agreement provides for monthly fees, accrued 
daily, based on a series of rates beginning with 0.225% per annum of the first  
$3 billion of net assets decreasing to 0.185% of such assets in excess of $55   
billion. For the year ended April 30, 2001, the investment advisory services fee
was equivalent to an annualized rate of 0.20% of average net assets.            

Distribution Expenses _  American Funds Distributors, Inc. (AFD) is the         
principal underwriter of the Fund's shares.                                     

The Fund has adopted Plans of Distribution under which it may finance activities
primarily intended to sell Fund shares, provided the categories of expenses are 
approved in advance by the Fund's Board of Directors. The Plans provide for     
annual expenses, based on average daily net assets, of up to 0.25% for Class A  
shares, 1.00% for Class B and Class C shares and up to 0.50% for Class F shares.

All share classes may use up to 0.25% of these expenses to pay service fees, or 
to compensate AFD for paying service fees to firms that have entered into       
agreements with AFD for providing certain shareholder services. The balance may 
be used for approved distribution expenses as follows:                          
   Class A Shares _ Approved categories of expense include reimbursements to
   AFD for commissions paid to dealers and wholesalers in respect of certain
    shares sold without a sales charge. Those reimbursements are permitted for
amounts billed to the Fund within the prior 15 months but only to the 
  extent that the overall 0.25% annual expense limit for Class A shares is
 not exceeded. For the year ended April 30, 2001, aggregate distribution
expenses were $111,799,000, or 0.24% of average daily net assets      
attributable to Class A shares.                                       

    Class B Shares _ In addition to service fees of 0.25%, approved categories
of expense include fees of 0.75% per annum of average daily net assets
attributable to Class B shares payable to AFD. AFD sells the rights to
 receive such payments (as well as any contingent deferred sales charges
  payable in respect of shares sold during the period) in order to finance
the payment of dealer commissions. For the year ended April 30, 2001, 
    aggregate distribution expenses were $1,340,000, or 1.00% of average daily
net assets attributable to Class B shares.                            

Class C Shares _ In addition to service fees of 0.25%, the Board of   
    Directors has approved the payment of 0.75% per annum of average daily net
  assets attributable to Class C shares to AFD to compensate firms selling
  Class C shares of the Fund. For the year ended April 30, 2001, aggregate
  distribution expenses were $22,000, or 1.00% of average daily net assets
attributable to Class C shares.                                       

     Class F Shares _ The plan has an expense limit of 0.50%. However, the Board
  of Directors has presently approved expenses under the plan of 0.25% per
   annum of average daily net assets attributable to Class F shares. For the
    year ended April 30, 2001, aggregate distribution expenses were $2,000, or
0.25% of average daily net assets attributable to Class F shares.     

  As of April 30, 2001, aggregate distribution expenses payable to AFD for
all share classes were $17,929,000.                                             

AFD received $12,400,000 (after allowances to dealers) as its portion of the    
sales charges paid by purchasers of the Fund's Class A shares for the year ended
April 30, 2001. Such sales charges are not an expense of the Fund and, hence,   
are not reflected in the accompanying Statement of Operations.                  

Transfer Agent Fee _ A fee of $44,124,000 was incurred during the year ended    
April 30, 2001, pursuant to an agreement with American Funds Service Company    
(AFS), the transfer agent for the Fund. As of April 30, 2001, aggregate transfer
agent fees payable to AFS for Class A and Class B shares were $7,785,000.       

Administrative Services Fees _ The Fund has an administrative services agreement
with CRMC for Class C and Class F shares. Pursuant to this agreement, CRMC      
provides transfer agency and other related shareholder services. CRMC may       
contract with third parties to perform these services. Under the agreement, the 
Fund pays CRMC a fee equal to 0.15% per annum of average daily net assets of    
Class C and Class F shares, plus amounts payable for certain transfer agency    
services according to a specified schedule. For the year ended April 30, 2001,  
total fees incurred under the agreement were $17,000. As of April 30, 2001,     
aggregate administrative services fees payable to CRMC for Class C and Class F  
shares were $15,000.                                                            

Deferred Directors' and Advisory Board Fees _ Independent Directors and Advisory
Board Members may elect to defer the receipt of part or all of the fees earned. 
Deferred compensation amounts, which remain in the Fund, are treated as if      
invested in shares of the Fund or other American Funds. These amounts represent 
general, unsecured liabilities of the Fund and vary according to the total      
returns of the selected funds. As of April 30, 2001, the cumulative amount of   
these liabilities was $702,000. Directors' and Advisory Board fees during the   
year ended April 30, 2001, were $505,000, comprised of $457,000 in current fees 
(either paid in cash or deferred), and $48,000 representing the net increase in 
the value of deferred compensation.                                             

Affiliated Directors and Officers _ WMC and JLC are both wholly owned           
subsidiaries of The Johnston-Lemon Group, Incorporated (JLG). All the officers  
of the Fund and four of its directors are affiliated with JLG and receive no    
remuneration directly from the Fund in such capacities.                         

4.   Investment Transactions and Other Disclosures                              

The Fund made purchases and sales of investment securities, excluding short-term
securities, of $11,365,833,000 and $14,619,364,000, respectively, during the    
year ended April 30, 2001.                                                      

Pursuant to the custodian agreement, the Fund receives credits against its      
custodian fee for imputed interest on certain balances with the custodian bank. 
For the year ended April 30, 2001, the custodian fee of $373,000 includes       
$32,000 that was paid by these credits rather than in cash.                     

For the year ended April 30, 2001, the Fund reclassified $2,902,000 from        
undistributed net investment income to undistributed net realized gains; and    
reclassified $202,220,000 from undistributed net realized gains to additional   
paid-in capital to reflect permanent differences between book and tax reporting.

As of April 30, 2001, net assets consisted of the following:                    

Capital paid in on shares of capital stock                       $37,361,298,000
Undistributed net investment income                                  168,205,000
Accumulated net realized gain                                      1,101,618,000
Net unrealized appreciation                                       10,410,161,000
Net assets                                                       $49,041,282,000

                                                        [Enlarge/Download Table]

Capital share transactions in the Fund were as follows:                                                                  

                                                                     Year ended April 30, 2001  Year ended April 30, 2000
                                                                       Amount                     Amount                 
                                                                        (000)       Shares         (000)       Shares    
                                                                                                                         
Class A Shares:                                                                                                          
  Sold                                                               $ 4,676,526   159,865,422  $ 8,296,876   258,447,597
  Reinvestment of dividends and distributions                          4,392,650   155,285,340    5,726,003   195,503,827
  Repurchased                                                        (8,932,465) (304,634,215) (13,349,916) (444,808,302)
     Net increase in Class A                                             136,711    10,516,547      672,963     9,143,122

Class B Shares:<F1>                                                                                                      
  Sold                                                                   244,344     8,386,387       34,076    1,180,562 
  Reinvestment of dividends and distributions                             13,434       476,476          _            _   
  Repurchased                                                            (9,335)     (322,202)         (93)      (3,147) 
     Net increase in Class B                                             248,443     8,540,661       33,983    1,177,415 

Class C Shares:<F2>                                                                                                      
  Sold                                                                    34,630     1,215,379           _           _   
  Reinvestment of dividends and distributions                                 _            _             _           _   
  Repurchased                                                               (60)       (2,074)           _           _   
    Net increase in Class C                                               34,570     1,213,305           _           _   

Class F Shares:<F2>                                                                                                      
  Sold                                                                    15,385       538,541           _           _   
  Reinvestment of dividends and distributions                                 _            _             _           _   
  Repurchased                                                              (135)       (4,724)           _           _   
    Net increase in Class F                                               15,250       533,817           _           _   

Total net increase in Fund                                             $ 434,974    20,804,330    $ 706,946   10,320,537 

<FN>                                                                                                                     
<F1>Class B shares were offered beginning March 15, 2000. <F2>Class C and Class                                          
F shares were offered beginning March 15, 2001.                                                                          
</FN>                                                                                                                    

5.   Investments in Affiliates                                                  

The Fund owns 5.28%, 5.15%, 5.15%, 5.10%, 5.08%, and 5.03% of the outstanding   
voting securities of Ashland, Crompton, IKON Office Solutions, Genuine Parts,   
Stanley Works, and Pitney Bowes, respectively, and therefore, each is considered
an "affiliated company" of the Fund under the Investment Company Act of 1940.   

(photo )                                                                        

                                                        [Enlarge/Download Table]

Per-Share Data and Ratios                                                                       

                                                                  Class A                       
                                                           Year ended April 30,                 

                                               2001       2000       1999       1998      1997  
                                                                                                
Net Asset Value, Beginning of Year            $29.14     $35.31     $33.92     $25.93    $22.77 

  Income from Investment Operations:                                                            
    Net investment income                        .57<F1>    .61<F1>    .60        .62       .62 
    Net gains (losses) on securities                                                            
      (both realized and unrealized)            3.17<F1>  (3.09)<F1>  3.99       9.65      4.36 

      Total from investment operations          3.74      (2.48)      4.59      10.27      4.98 

  Less Distributions:                                                                           
    Dividends (from net investment income)      (.58)      (.58)      (.61)      (.62)     (.62)
    Distributions (from capital gains)         (2.50)     (3.11)     (2.59)     (1.66)    (1.20)

      Total distributions                      (3.08)     (3.69)     (3.20)     (2.28)    (1.82)

Net Asset Value, End of Year                  $29.80     $29.14     $35.31     $33.92    $25.93 

Total Return<F3>                               13.54%     (6.96)%    14.61%     40.80%    22.43%

Ratios/Supplemental Data:                                                                       
  Net assets, end of year (in millions)      $48,700    $47,319    $57,018    $45,764   $28,165 
  Ratio of expenses to average net assets        .65%       .63%       .61%       .62%      .64%
  Ratio of net income to average net assets     1.95%      1.91%      1.84%      2.08%     2.56%

                                                        [Enlarge/Download Table]

                                                    Class B          Class C    Class F 
                                             Year ended   Mar 15     Mar 15     Mar 15  
                                              April 30, to Apr 30, to Apr 30, to Apr 30,
                                                2001     2000/2/   2001/2/   2001/2/    

                                                                                        
Net Asset Value, Beginning of Period           $29.11     $26.93     $28.32     $28.37  

  Income from Investment Operations:                                                    
    Net investment income1                        .29        .02       (.02)       .01  
    Net gains on securities                                                             
      (both realized and unrealized)1            3.22       2.16       1.40       1.41  

      Total from investment operations           3.51       2.18       1.38       1.42  
  Less Distributions:                                                                   
    Dividends (from net investment income)       (.41)     _         _         _        
    Distributions (from capital gains)          (2.50)     _        _          _        
      Total distributions                       (2.91)     _         _         _        

Net Asset Value, End of Period                 $29.71     $29.11     $29.70     $29.79  

Total Return/3/                                12.68%      8.10%      4.87%      5.01%  

Ratios/Supplemental Data:                                                               
  Net assets, end of period (in millions)        $289       $34         $36        $16  
  Ratio of expenses to average net assets        1.42%       .17%       .23%       .12% 
  Ratio of net income to average net assets       .99%       .08%     _           .04%  

                                                        [Enlarge/Download Table]


                                                                  Supplemental Data - All Classes         
                                                                       Year ended April 30,               
                                                           2001       2000       1999       1998    1997  

                                                                                                          
Portfolio Turnover Rate                                    25.29%     26.24%     27.93%     17.61%  20.41%

/1/ Based on average shares outstanding.                                                                  
/2/ Based on operations for the period shown and, accordingly, not                                        
representative of a full year.                                                                            
/3/Total returns exclude all sales charges,                                                               
including contingent deferred sales charges.                                                              


(photo of fireplace)                                                            

Report of Independent Accountants                                               

To the Board of Directors and Shareholders of Washington Mutual Investors Fund, 
Inc.                                                                            

In our opinion, the accompanying statement of assets and liabilities, including 
the investment portfolio, and the related statements of operations and of       
changes in net assets and the per-share data and ratios present fairly, in all  
material respects, the financial position of Washington Mutual Investors Fund,  
Inc. (the "Fund") at April 30, 2001, the results of its operations, the changes 
in its net assets and the per-share data and ratios for the years indicated, in 
conformity with generally accepted accounting principles in the United States of
America. These financial statements and per-share data and ratios (hereafter    
referred to as "financial statements") are the responsibility of the Fund's     
management; our responsibility is to express an opinion on these financial      
statements based on our audits. We conducted our audits of these financial      
statements in accordance with auditing standards generally accepted in the      
United States of America which require that we plan and perform the audit to    
obtain reasonable assurance about whether the financial statements are free of  
material misstatement. An audit includes examining, on a test basis, evidence   
supporting the amounts and disclosures in the financial statements, assessing   
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our    
audits, which included confirmation of securities at April 30, 2001, by         
correspondence with the custodian, provide a reasonable basis for our opinion   
expressed above.                                                                

(signature Price Wtaerhouse)                                                    
Los Angeles, California                                                         
May 31, 2001                                                                    

Tax Information for the Year Ended April 30, 2001 (unaudited)                   

We are required to advise you within 60 days of the Fund's fiscal year-end      
regarding the federal tax status of certain distributions received by           
shareholders during such fiscal year. The distributions made during the fiscal  
year by the Fund were earned from the following sources:                        

                                                        [Enlarge/Download Table]

                                               Dividends and distributions    Dividends and distributions 
                                                    per Class A share              per Class B share      

                                                From net       From net       From net        From net    
                                               investment      realized      investment       realized    
To shareholders of record  Payment date          income     long-term gains    income      long-term gains

                                                                                                          
June 16, 2000              June 19, 2000          $.145           _           $.1062            _         
September 22, 2000         September 25, 2000     .145            _            .1060            _         
December 22, 2000          December 26, 2000      .145          $2.495          .0866          $2.495     
March 15, 2001             March 16, 2001         .145            _            .1110            _         


Corporate shareholders may exclude up to 70% of qualifying dividends received   
during the year. For purposes of computing this exclusion, all of the dividends 
paid by the Fund from net investment income represent qualifying dividends.     

Certain states may exempt from income taxation that portion of the dividends    
paid from net investment income that was derived from direct U.S. Treasury      
obligations. For purposes of computing this exclusion, 5% of the dividends paid 
by the Fund from net investment income were derived from interest on direct U.S.
Treasury obligations.                                                           

Dividends and distributions received by retirement plans such as IRAs,          
Keogh-type plans, and 403(b) plans need not be reported as taxable income.      
However, many retirement plan trusts may need this information for their annual 
information reporting.                                                          

The Fund also designates as a capital gain distribution a portion of earnings   
and profits paid to shareholders in redemption of their shares.                 

Since the amounts above are reported for the Fund's fiscal year and not the     
calendar year, shareholders should refer to their Form 1099-DIV or other tax    
information which will be mailed in January 2002 to determine the calendar year 
amounts to be included on their 2001 tax returns. Shareholders should consult   
their tax advisers.                                                             

Share Results: Class B, Class C, and Class F (unaudited)                        

Average annual compound returns for periods ended March 31, 2001 (the most      
recent calendar quarter):                                                       

Class B Shares                                           1 year   Life of class*

Reflecting applicable contingent deferred sales                             
charge (CDSC), maximum of 5%, payable                                   
 only if shares are sold.                             +2.58%       +11.75%
Not reflecting CDSC                                    +7.45%       +15.56% 

Class C and Class F Shares                                                      
  Results for these shares are not shown because of the brief time between their
introduction on March 15, 2001, and the end of the period.              

*From March 15, 2000, when B shares first became available.                     

Shareholder Services                                                            
(graphic: American Funds Logo)                                                  

American FundsLine(R)                                                           
(graphic phone)                                                                 

Use our 24-hour automated phone system for fund information and       
transactions.                                                         

FundsLine Online(R)                                                             
(graphic computer)                                                              

Visit our Web site when you want to access your account, download a   
prospectus, or find fund information.                                 

Reduced sales charge                                                            
(graphic coins)                                                                 

  Larger purchases may qualify for a reduced sales charge. To help reach a
breakpoint, you may _ - Add your present purchase to the value        
of all eligible household accounts and/or                       
-  Add your present purchase to purchases                             
        you intend to make over 13 months Assets in money market funds generally
do not apply when determining sales charges.                          

Retirement plans                                                                
(graphic signpost)                                                              

A wide range of fund choices for individual and company-sponsored     
retirement plans.                                                     

American FundsLink(SM)                                                          
(graphic building)                                                              

  Link your fund account to your bank account for direct transfers between
the two and to purchase shares using American FundsLine or FundsLine  
OnLine.                                                               

Automatic transactions                                                          
(graphic calendar)                                                              

   Use this service when you want to purchase, sell and exchange shares on a
regular basis.                                                        

Flexible dividend options                                                       
(graphic magician)                                                              

Use your dividend and capital gain distributions to meet your changing
needs. You may _ - Invest dividends and capital gain                  
distributions back into the fund                                
-  Diversify by investing dividends and                               
capital gain distributions into another                         
American Fund                                                   
-  Take dividends in cash                                             
-  Have dividends paid directly to                                    
someone else                                                    
    Because certain transactions have restrictions or tax consequences, please
consult your financial adviser before requesting changes.             

Would you like more information?                                                

Your financial adviser will be happy to explain these services in greater       
detail, or you maycontact American Funds Service Company.                       

To contact American Funds Service Company:                                      
Shareholder Services Representative _                                           
8 a.m. to 8 p.m. Eastern time, Monday - Friday _ 800/421-0180 American
FundsLine _ 24-hour automated telephone system _ 800/325-3590 FundsLine OnLine _
Web site _ americanfunds.com By mail _ Write to the service center nearest you. 
(If you live outside the United States, please write to the Western service     
center.)                                                                        

Western (graphic Westren U.S.)                                                  

American Funds                                                                  
Service Company                                                                 
P.O. Box 2205                                                                   
Brea, CA 92822-2205                                                             

West Central                                                                    
(graphic West Central U.S.)                                                     

American Funds                                                                  
Service Company                                                                 
P.O. Box 659522                                                                 
San Antonio, TX 78265-9522                                                      

East Central                                                                    
(graphic East Central U.S.)                                                     

American Funds                                                                  
Service Company                                                                 
P.O. Box 6007                                                                   
Indianapolis, IN 46206-6007                                                     

Eastern (graphic Eastern U.S.)                                                  

American Funds                                                                  
Service Company                                                                 
P.O. Box 2280                                                                   
Norfolk, VA 23501-2280                                                          

Please obtain the applicable prospectuses from your financial adviser or our Web
site and read them carefully before investing or sending money. American Funds  
reserves the right to terminate or modify these services.                       

Directors                                                                       

Stephen Hartwell                                                                
Chairman of the Board                                                           
Chairman, Washington Management Corporation                                     

James H. Lemon, Jr.                                                             
Vice Chairman of the Board                                                      
Chairman and Chief Executive Officer,                                           
The Johnston-Lemon Group, Incorporated                                          

Harry J. Lister                                                                 
President of the Fund                                                           
Director and President,  Washington Management Corporation                      

Cyrus A. Ansary                                                                 
President,                                                                      
Investment Services International Co. LLC                                       

Fred J. Brinkman                                                                
Retired Senior Partner,                                                         
Arthur Andersen, LLP                                                            

Daniel J. Callahan III                                                          
Vice Chairman and Treasurer,                                                    
The Morris and Gwendolyn Cafritz Foundation                                     

James C. Miller III                                                             
Counselor,                                                                      
Citizens for a Sound Economy                                                    

T. Eugene Smith                                                                 
President,                                                                      
T. Eugene Smith Inc.                                                            

Leonard P. Steuart, II                                                          
Vice President,                                                                 
Steuart Investment Company                                                      

Margita E. White                                                                
President,                                                                      
Association for Maximum Service Television Inc.                                 

Advisory Board                                                                  

Charles A. Bowsher                                                              
Retired Comptroller General of the United States                                

Mary K. Bush                                                                    
President,                                                                      
Bush International Inc.                                                         

Louise M. Cromwell                                                              
Senior Counsel, Shaw Pittman                                                    

Katherine D. Ortega                                                             
Former Treasurer of the United States                                           

C. Richard Pogue                                                                
Retired Executive Vice President,                                               
Investment Company Institute                                                    

Linda D. Rabbitt                                                                
President,                                                                      
Rand Construction Corporation                                                   

William J. Shaw                                                                 
President and Chief Operating Officer,                                          
Marriott International                                                          

J. Knox Singleton                                                               
President and Chief Executive Officer,                                          
INOVA Health System                                                             

William B. Snyder                                                               
General Partner,                                                                
Merastar Partners Limited Partnership                                           

Robert F. Tardio                                                                
Senior Managing Director,                                                       
PA Consulting Group                                                             

Directors Emeritus                                                              

Bernard J. Nees                                                                 
Chairman Emeritus of the Fund                                                   

Charles T. Akre                                                                 
Of Counsel, Miller & Chevalier, Chartered                                       

Dr. Nathan A. Baily                                                             
Management, Marketing and Education Consultant                                  

John A. Beck                                                                    
Of Counsel, Reed Smith Shaw & McClay                                            

Stephen G. Yeonas                                                               
Chairman and Chief Executive Officer,                                           
Stephen G. Yeonas Company                                                       

Other Officers                                                                  

Jeffrey L. Steele                                                               
Executive Vice President of the Fund                                            
Director and Executive Vice President,                                          
Washington Management Corporation                                               

Howard L. Kitzmiller                                                            
Senior Vice President, Secretary and                                            
Assistant Treasurer of the Fund                                                 
Director, Senior Vice President,                                                
Secretary and Assistant Treasurer,                                              
Washington Management Corporation                                               

Ralph S. Richard                                                                
Vice President and Treasurer of the Fund                                        
Director, Vice President and Treasurer,                                         
Washington Management Corporation                                               

Lois A. Erhard                                                                  
Vice President of the Fund                                                      
Vice President,                                                                 
Washington Management Corporation                                               

Michael W. Stockton                                                             
Assistant Vice President, Assistant Secretary                                   
and Assistant Treasurer of the Fund                                             
Vice President, Assistant Secretary                                             
and Assistant Treasurer,                                                        
Washington Management Corporation                                               

J. Lanier Frank                                                                 
Assistant Vice President of the Fund                                            
Assistant Vice President,                                                       
Washington Management Corporation                                               

Ashley L. Shaw                                                                  
Assistant Secretary of the Fund                                                 
Assistant Secretary,                                                            
Washington Management Corporation                                               

Offices of the Fund and of the Business Manager                                 

Washington Management Corporation                                               
1101 Vermont Avenue, NW                                                         
Washington, DC 20005-3585                                                       
202/842-5665                                                                    

Investment Adviser                                                              

Capital Research and                                                            
Management Company                                                              
333 South Hope Street                                                           
Los Angeles, CA 90071-1443                                                      

135 South State College Boulevard                                               
Brea, CA 92821-5823                                                             

Custodian of Assets                                                             

The Chase Manhattan Bank                                                        
One Chase Manhattan Plaza                                                       
New York, NY 10081-0001                                                         

Counsel                                                                         

Thompson, O'Donnell, Markham, Norton & Hannon                                   
805 Fifteenth Street, NW                                                        
Washington, DC 20005-2216                                                       

Transfer Agent                                                                  

American Funds Service Company                                                  
(Please write to the address nearest you)                                       

P.O. Box 2205                                                                   
Brea, CA 92822-2205                                                             

P.O. Box 659522                                                                 
San Antonio, TX 78265-9522                                                      

P.O. Box 6007                                                                   
Indianapolis, IN 46206-6007                                                     

PO. Box 2280                                                                    
Norfolk, VA 23501-2280                                                          

Independent Accountants                                                         

PricewaterhouseCoopers LLP                                                      
350 South Grand Avenue                                                          
Los Angeles, CA 90071-3405                                                      

Principal Underwriter                                                           
American Funds Distributors, Inc.                                               
333 South Hope Street                                                           
Los Angeles, CA 90071-1462                                                      

This report is for the information of shareholders of Washington Mutual         
Investors Fund, Inc., but it may also be used as sales literature when preceded 
or accompanied by the current prospectus, which gives details about charges,    
expenses, investment objectives and operating policies of the Fund. If used as  
sales material after June 30, 2001, this report must be accompanied by an       
American Funds Group Statistical Update for the most recently completed calendar
quarter.                                                                        

For information about your account or any of the Fund's services, or for a      
prospectus for any of the American Funds, please contact your financial adviser.
You may also call American Funds Service Company, toll-free, at 800/421-0180 or 
visit us at americanfunds.com on the World Wide Web. Please read the prospectus 
carefully before you invest or send money.                                      

(group photo and model of Mt. Vernon)                                           
From left to right: Harry J. Lister; James H. Lemon, SR.; Stephen Hartwell; and 
Jeffrey L. Steele.                                                              

Mount Vernon in Miniature                                                       

Photographs throughout this report illustrate the remarkable attention to detail
given the fully functional rendition of George Washington's home, Mount Vernon, 
pictured above. Five years in the making by miniaturists and artisans, the copy 
mirrors the Mansion in every way, simply in one-twelfth scale.                  

George Washington spent over 40 years at Mount Vernon, enlarging it with        
additions and enhancing it with decoration to make the estate in which he and   
his wife continually entertained arguably the most famous house in America at   
its time. The model truly captures the distinctive personality of the home and, 
by extension, George Washington himself.                                        

The replica is currently touring select presidential libraries throughout the   
United States; more information on both the exhibit and Mount Vernon itself can 
be found at mountvernon.org.                                                    

We would like to thank the Mount Vernon Ladies' Association for allowing us to  
use the painting and model of Mount Vernon throughout this report.              

(recycle symbol)                                                                

Printed on recycled paper                                                       

WMIF-011-060                                                                    

(back outside cover)                                                            

(full page photo of Mt.Vernon)                                                  

(American Funds Logo)                                                           

(logo Washington Mutual Investors funds)                                        

Washington Mutual Investors Fund, Inc.                                          
1101 Vermont Avenue, NW                                                         
Washington, DC 20005                                                            
202/842-5665                                                                    

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-30D’ Filing		Date		Other Filings
		6/30/01
Filed on:		6/29/01
		5/31/01
For Period End:		4/30/01		24F-2NT,  NSAR-B
		3/31/01
		3/16/01
		3/15/01		485BPOS
		1/3/01
		12/26/00
		12/22/00
		9/25/00
		9/22/00
		6/19/00
		6/16/00
		4/30/00		24F-2NT,  N-30D,  NSAR-B
		3/15/00		485BPOS
				List all Filings