Selected American Shares
Morningstar
Analyst Rating

Overview
Investment Strategy
The goal of Selected American Shares is to provide investors access to attractive investment opportunities among large cap, durable, well-managed businesses. We seek to purchase these businesses at value prices and hold them for the long term. This approach makes Selected American Shares an ideal foundation for an investor’s portfolio.
Using our signature Davis Investment Discipline, the Fund has outperformed the S&P 500® Index by an average of 1.0% per year since Davis Advisors began managing the Fund.1 Click here to learn more about our historical record of attractive long-term returns.
Why Invest in Selected American Shares
Experience
Our investment discipline has compounded wealth for investors over six decades and three generations.
Long-Term Investment Results
Selected American Shares outperformed the S&P 500® Index since we began management of the Fund.1
Aligned with Shareholders
With more than $2 billion invested side by side with fellow shareholders, we experience the same risks and reap the same rewards.2
Our Culture of Shareholder Stewardship
Of the 710 funds graded, Selected American Shares is one of only 5 funds to receive Morningstar’s highest overall Stewardship grade of "A" and "A" grades in each individual component of the score.3
Lower than Average Expense Ratio4
Selected American Shares, 0.94%; Lipper category average, 1.21%
Lower than Average Turnover Rate4
Selected American Shares, 11%; Lipper category average, 66%
Performance as of 3/31/12
Compounding Wealth - By consistently outperforming the S&P 500® Index over time, a hypothetical $10,000 investment in the Fund on May 1, 1993 compounded to $54,282 as of March 31, 2012 vs. only $46,203 for the S&P 500® Index and $41,962 for the Average Large Cap Fund.
| Average Annual Total Returns as of March 31, 2012 |
1 Year |
3 Years |
5 Years |
10 Years |
15 Years |
Inception (5/1/93) |
|---|---|---|---|---|---|---|
| Selected American Shares Class S | 1.72% | 21.78% | -0.08% | 4.50% | 7.15% | 9.35% |
| S&P 500® Index | 8.54% | 23.42% | 2.01% | 4.12% | 6.10% | 8.43% |
The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor’s shares may be worth more or less than their original cost. The total annual operating expense ratio for Class S shares as of the most recent prospectus was 0.94%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. Current performance may be higher or lower than the performance quoted. For most recent month-end performance, click here or call 800.243.1575.
Long-Term Consistency - To be one of the very best over the long term does not mean you have to be number one every year.
As the table below illustrates, from 5/1/93 to 3/31/12, Selected American Shares delivered an average annualized return of 9.4%—outperforming the S&P 500® Index by an average of 1.0% per year.
We have been able to create reliable long-term investment results, despite the inevitable and expected fact that other investments may have outperformed the Fund in any particular year.
| Year | Selected American Shares Class S (%) | S&P 500® Index (%) |
|---|---|---|
| 1993 | 8.3 | 8.2 |
| 1994 | -3.2 | 1.3 |
| 1995 | 38.1 | 37.5 |
| 1996 | 30.7 | 22.9 |
| 1997 | 37.3 | 33.4 |
| 1998 | 16.3 | 28.6 |
| 1999 | 20.3 | 21.0 |
| 2000 | 9.3 | -9.1 |
| 2001 | -11.2 | -11.9 |
| 2002 | -17.1 | -22.1 |
| 2003 | 30.9 | 28.7 |
| 2004 | 12.0 | 10.9 |
| 2005 | 9.9 | 4.9 |
| 2006 | 15.2 | 15.8 |
| 2007 | 4.8 | 5.5 |
| 2008 | -39.4 | -37.0 |
| 2009 | 31.6 | 26.5 |
| 2010 | 12.5 | 15.1 |
| 2011 | -4.4 | 2.1 |
| YTD | 11.2 | 12.6 |
| Cumulative Total Return | 443% | 362% |
| Average Annual Rate of Return | 9.4% | 8.4% |
| Value of a Hypothetical $10,000 Initial Investment | $54,282 | $46,203 |
Portfolio Characteristics as of 3/31/12
Portfolio Composition
| Selected American Shares | S&P 500® Index |
|
|---|---|---|
| Forecast P/E Ratio | 14.0 | 13.4 |
| P/B Ratio | 2.9 | 3.1 |
| Weighted Average Market Cap ($bn) | 62.2 | 111.7 |
| Beta (3 year) | 1.1 | 1.0 |
| Standard Deviation (5 year, S Shares) | 20.6 | 19.1 |
| Number of Holdings | 91 | 500 |
Turnover, Expenses
| Selected American Shares | Lipper Category Average | |
|---|---|---|
| Turnover Rate3 | 11% | 66% |
| Expense Ratio3 (S Shares) | 0.94% | 1.21% |
Morningstar
| Analyst Rating | 10 Year Rating | Stewardship Grade |
|---|---|---|
|
|
|
A |
Large Blend Funds for the 10 yr. period (843 funds in the category). Based on risk-adjusted returns. See endnotes.
Top 10 Holdings
| CVS Caremark Corp. | 5.8% |
| Wells Fargo & Co. | 5.8% |
| American Express Co. | 5.7% |
| Bank of New York Mellon Corp. | 5.0% |
| Costco Wholesale Corp. | 4.5% |
| EOG Resources, Inc. | 3.3% |
| Google - Class A | 3.1% |
| Bed Bath & Beyond | 2.8% |
| Loews Corp. | 2.6% |
| Progressive Corp. | 2.6% |
Top 10 Industries
| Diversified Financials | 16.2% |
| Energy | 11.4% |
| Food & Staples Retailing | 10.8% |
| Insurance | 10.7% |
| Pharmaceutical & Health Care | 7.6% |
| Technology | 7.4% |
| Banks | 5.8% |
| Materials | 5.7% |
| Retail | 5.6% |
| Food, Beverage & Tobacco | 5.1% |
Literature
| Fact Sheets | ||
|---|---|---|
| Fund Fact Sheet | Download Share |
Goals of the Fund, types of companies found in the Portfolio, top holdings, portfolio characteristics and historical performance. |
| Important Facts | Download Share |
Key Fund attributes,
including historical long-term outperformance, below-average expenses and
turnover, experienced managers, and recognition for shareholder stewardship. |
| Portfolio Composition | Download Share | Quarterly update of portfolio characteristics. |
| Insights into the Fund | ||
| A History of Long Term Outperformance | Download Share | Demonstrates Selected American Shares' long-term record of outperformance versus the S&P 500®, and the growing likelihood of benefiting from this outperformance as investor holding periods increase. |
| Selected American Shares – An Ideal Foundation | Download Share | Morningstar recognizes Selected American Shares among only three funds to merit its highest Analyst Rating of “Gold” and its highest Stewardship Grade of A (all three funds are managed by Davis Advisors). Also, why we believe the Fund’s specific attributes make it an ideal foundation for a long-term investor’s portfolio. |
| Consistency, Commitment, Results | Download Share |
How the slow and steady Davis Investment Discipline does not have to
outperform every benchmark in every year to end up outperforming the benchmarks
over the long term. |
|
Brochure: Price Is What You Pay, Value Is What You Get |
Download Share | How the discounted prices of the companies in Selected American Shares may benefit investors over the coming decade and why a focus on “Price vs. Value” has led to our long-term success for investors |
| Morningstar Analyst Report: Selected American Shares | Download Share | Complete Morningstar Analyst report detailing why Selected American Shares merits its highest rating of “Gold”, which Morningstar believes “leads to funds that are more likely to outperform over the long term on a risk-adjusted basis”. |
| Portfolio Manager Commentaries | ||
| Selected Investor Center | View Share | Video Series: Christopher C. Davis discusses why we are optimistic about equities in the decade ahead and how our Portfolio is positioned. |
| Manager Commentary - Annual Review 2012 | Download View Share | An interview with Selected American Shares Managers Christopher C. Davis and Kenneth Charles Feinberg. |
|
Portfolio Review - Spring 2012 |
Download View Share | A quarterly discussion of the market environment, Fund performance, major positions, and investment opportunities. |
| Manager Commentary - Semi-Annual Review (June 2011) | Download Share | Archived Portfolio Manager interview (referred to in the Annual Review 2012). |
| Manager Commentary - Annual Review 2010 (December 2010) | Download Share | Archived Portfolio Manager interview |
| Manager Commentary - Semi-Annual Review (June 2010) | Download Share | Archived
Portfolio Manager interview |
| Manager Commentary - Annual Review (December 2009) | Download Share | Archived Portfolio Manager interview |
| Manager Commentary - Semi-Annual Review (June 2009) | Download Share |
Archived
Portfolio Manager interview |
| Insights About Davis Advisors | ||
| Selected Receives Morningstar's Highest Stewardship Grade | Download Share | Morningstar recognizes our unique commitment to shareholder interests. |
| The Davis Investment Discipline | Download Share | The evolution of our investment discipline over three generations of successful investors, examines what we look for in a company and profiles the investment professionals. |
| 2008 Financial Report of the U.S. Government | Download Share | This government report was referred to in the Selected American Shares Manager Commentary, Annual Review 2009. |
This material is authorized for use by existing shareholders. A current Selected American Shares prospectus must accompany or precede this material if it is distributed to prospective shareholders. You should carefully consider the Fund’s investment objective, risks, fees, and expenses before investing. Read the prospectus carefully before you invest or send money.
1Class S shares. Returns discussed are from 5/1/93-3/31/12. Past performance is not a guarantee of future results.
2As of December 31, 2011.
3As of March 31, 2012.
4See Expense ratio/Turnover link below.
(3) Read here for objective/risk disclosures
(4) Read here for Morningstar disclosures
(5) Read here for Expense ratio/Turnover disclosures
(6) Read here for Index definition
(7) Read here for additional disclosures
Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756
