Track A Portfolio Update and examples of the Davis Investment Discipline in practice
	Track B Integrating the lessons learned by portfolio mistakes, utilizing broad portfolio themes and why Davis prefers a low-turnover, research-intensive, value-sensitive approach to investing
	Track C The characteristics that define successful investors, suggested reading and the impact of investor behavior

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This report is authorized for use by existing shareholders. A current Selected Funds prospectus must accompany or precede this piece if it is distributed to prospective shareholders. You should carefully consider the Fund's investment objectives, risks, charges, and expenses before investing. Read the prospectus carefully before you invest or send money.

Davis Advisors' investment professionals made candid statements and observations regarding investment strategies, individual securities, economic and market conditions; however, there is no guarantee that these statements, opinions or forecasts will prove to be correct. These comments also included expressions of opinions that are speculative in nature and should not be relied on as statements of fact. Comments included in this material are not recommendations to buy, sell, or hold any security mentioned.

Past performance is not a guarantee of future results. Investment return and principal value will vary so that an investor may lose money. Not all purchases by Davis Advisors will be profitable. A company that has contributed to performance in the past may not continue to do so in the future. Equity markets are volatile and an investor may lose money.

While Davis searches for out of the spotlight companies and companies that are subject to headline risk that can become global leaders, there can be no assurance that this will occur. A company's stock price that has decreased because of negative headlines may never recover.

Selected American Shares' investment objective is capital growth and income. In the current market environment, we expect that income will be low. There can be no assurance that the Fund will achieve its objective. Selected American Shares invests primarily in common stock of U.S. companies with market capitalizations of at least $10 billion. The most important risks of an investment in Selected American Shares are: market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; financial services risk: investing a significant portion of assets in the financial services sector may cause a fund to be more volatile. Securities within the financial services sector are more prone to regulatory action in the financial services industry, more sensitive to interest rate fluctuations and are the target of increased competition. foreign country risk: companies operating, incorporated, or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable and foreign financial reporting standards may not be as rigorous as they are in the United States. As of September 30, 2007, Selected American Shares had approximately 15.1% of assets invested in foreign companies. See the prospectus for a complete listing of the principal risks.

Selected Special Shares investment objective is capital growth. There can be no assurance that the Fund will achieve its objective. As of September 30, 2007, Selected Special Shares had 18.7% of assets invested in foreign companies. Companies operating, incorporated, or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable, and foreign financial reporting standards may not be as rigorous as they are in the United States. Small- and Medium-capitalization companies share price tend to fluctuate more often as they tend to have limited product lines, markets and financial resources, and their securities may trade less frequently and in more limited volume than those of larger companies. See the prospectus for a complete listing of the principal risks.

Davis Selected Advisers, L.P., was appointed adviser of the Funds on May 1, 1993. Prior to that date, the Funds were advised by a different investment adviser. Davis Advisors assumed active daily management of Selected American Shares on the day of appointment. Between May 1, 1993 and May 31, 2001, Selected Special Shares was managed by a sub-adviser. On June 1, 2001, Davis Advisor assumed active daily management of Selected Special Shares.

The Selected American Shares prospectus places a 20% restriction on the amount of assets invested in foreign companies. The Selected Special Shares prospectus does not place any restriction, or provide any mandate, on the amount of assets invested in foreign companies.

The views expressed by Davis Advisors' investment professionals in this material are subject to change, and some of the stocks discussed may no longer be owned. The information provided in this report should not be considered a recommendation to buy, sell, or hold any of the securities mentioned. As of September 30, 2007, Selected American Shares had invested the following percentages of its assets in the companies discussed in this material:

AIG 3.91%, Altria Group 3.22%, American Express 4.33%, Ameriprise Financial 1.21%, Bank of NY Mellon 1.15%, Berkshire Hathaway 3.38%, Cardinal Health 0.77%, Citigroup 1.69%, ConocoPhillips 4.96%, Costco Wholesale 3.92%, CVS Caremark 1.34%, Dell 1.11%, Devon Energy 2.38%, EOG Resources 1.77%, Express Scripts 0.53%, Hershey 0.47%, Hewlett-Packard 0.71%, HSBC 2.64%, JPMorgan Chase 3.53%, Microsoft 1.97%, Millea 0.95%, Occidental Petroleum 2.50%, Principal Financial Group 0.32%, Sprint Nextel 1.00%, Tyco Electronics 1.10%, Tyco International 1.38%, United Health Group 0.86%, Wachovia 1.90%, Wal-Mart Stores 1.41%.

Selected Funds has adopted a Portfolio Holdings Disclosure policy that governs the release of non-public portfolio holdings information. This policy is described in detail in the prospectus. For the most recent holding information click here for Selected American Shares or here for Selected Special Shares.

The high and low turnover during the last five years for the Selected American Shares was 19% and 3%, respectively. The high and low turnover during the last five years for the Selected Special Shares was 53% and 30%, respectively.

The Davis family, active employees, and directors have $2 billion of their own money invested in the mutual funds our firm manages.

The Fund's shares are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency and involve investment risks, including possible loss of the principal amount invested.

DAVIS DISTRIBUTORS, LLC, 1-800-243-1575, 2949 East Elvira Road, Suite 101, Tucson, Arizona 85706 www.selectedfunds.com