Selected American Shares

    Morningstar
    Analyst Rating

    Overview

    Fund Statistics (Class S)

    Davis Advisors Management Date 5/1/93
    Expense Ratio 0.94%
    Turnover Rate 11%
    Morningstar Stewardship Grade A
    Manager Tenure >15 years
    Results from inception of management through 3/31/12:
    Fund 9.35%
    Average Fund in Category 7.88%

    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%

    Click here for month-end holdings
    Click here for quarter-end holdings

    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

    Goals of the Fund, types of companies found in the Portfolio, top holdings, portfolio characteristics and historical performance.

    Important Facts Download

    Key Fund attributes, including historical long-term outperformance, below-average expenses and turnover, experienced managers, and recognition for shareholder stewardship.
    Portfolio Composition Download

    Quarterly update of portfolio characteristics.
    Insights into the Fund
    A History of Long Term Outperformance Download 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 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

    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

    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 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

    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

    An interview with Selected American Shares Managers Christopher C. Davis and Kenneth Charles Feinberg.
    Portfolio Review -
    Spring 2012         		Download View

    A quarterly discussion of the market environment, Fund performance, major positions, and investment opportunities.
    Manager Commentary - Semi-Annual Review (June 2011) Download Archived Portfolio Manager interview (referred to in the Annual Review 2012).
    Manager Commentary - Annual Review 2010 (December 2010) Download Archived Portfolio Manager interview
    Manager Commentary - Semi-Annual Review (June 2010) Download

    Archived Portfolio Manager interview

    Manager Commentary - Annual Review (December 2009) Download

    Archived Portfolio Manager interview 
    Manager Commentary - Semi-Annual Review (June 2009) Download

    Archived Portfolio Manager interview

    Insights About Davis Advisors
    Selected Receives Morningstar's Highest Stewardship Grade Download

    Morningstar recognizes our unique commitment to shareholder interests.

    The Davis Investment Discipline Download

    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

    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

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