This audio is authorized for use by existing shareholders. A current Selected Fund 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.

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 equity securities issued by large companies with market capitalizations of at least $10 billion.  Some important risks of an investment in the Fund are: market risk: the market value of shares of common stock can change rapidly and unpredictably and have the potential for loss; company risk: equity securities represent ownership positions in companies. Over time, the market value of a common stock should reflect 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 as 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; fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund; and foreign country risk: foreign companies may be subject to greater risk 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 December 31, 2010, the Fund had approximately 20.6% of assets invested in foreign companies. See the prospectus for a complete listing of the principal risks.

The information provided in this audio should not be considered a recommendation to buy, sell, or hold any particular security. As of December 31, 2010, Selected American Shares had invested the following percentages of its assets in the companies listed: American Express, 4.26%; Ameriprise Financial, 1.00%; Bank of NY Mellon, 2.82%; Baxter International, 0.61%; Becton, Dickinson, 1.08%; Berkshire Hathaway, 1.40%; Canadian Natural Resources, 2.94%; CarMax, 0.81%; Coca-Cola, 1.30%; Costco Wholesale, 4.99%; CVS Caremark, 3.76%; Devon Energy, 2.94%; Diageo, 1.24%; EOG Resources, 3.39%; Express Scripts, 1.77%; Goldman Sachs, 0.59%; Harley-Davidson, 1.59%; Heineken, 1.18%; Johnson & Johnson, 2.48%; JPMorgan Chase, 0.10%; Julius Baer, 2.17%; Mead Johnson, 0.46%; Merck, 2.94%; Moody's, 0.39%; Nestle, 0.18%; Occidental Petroleum, 3.30%; Pfizer, 1.85%; Phillip Morris, 1.13%; Procter & Gamble, 0.92%; Visa, 0.27%; Wells Fargo, 4.57%.

Selected Funds has adopted a Portfolio Holdings Disclosure policy that governs the release of non-public portfolio holding information. This policy is described in detail in the prospectus. Click here or call 800.243.1575 for the most current public portfolio holdings information.

Common stocks, cash, and bonds represent different asset classes subject to different risks and rewards. Future economic events may favor one asset class over another.

Chris Davis describes how decades of poor returns in the S&P 500^® Index have historically been followed by decades of satisfactory returns. The source of this information is Thomson Financial, Lipper and Bloomberg. There is no guarantee that in the future attractive results will follow a disappointing period. Past performance is not a guarantee of future results.

Systematic investing (or dollar cost averaging) does not assure a profit nor protect against losses in declining markets. Systematic investing involves continuous investment regardless of fluctuating prices. You should consider your financial ability to continue purchases through periods of high or low price levels.

Chris Davis cited a study that examined the percentage of top quartile large cap equity managers whose performance fell into the bottom half, quartile or decile for at least one rolling three-year period from January 1, 2000 - December 31, 2009. 176 managers from eVestment Alliance’s large cap universe whose 10 year average annualized performance ranked in the top quartile were examined.  96% fell into the bottom half; 79% fell into the bottom quartile; and 47% fell into the bottom decile.  The source is Davis Advisors. Past performance is not a guarantee of future results.

The Davis family, Davis Advisors, employees, and directors have more than $2 billion of their own money invested side by side with fellow shareholders (as of December 31, 2010).

As of December 31, 2010, the Selected Funds had lower expense ratios then their respective Lipper peer categories. There is no guarantee that the expense ratios will be lower in the future.

Broker-dealers and other financial intermediaries may charge Davis Advisors substantial fees for selling its products and providing continuing support to clients and shareholders. For example, broker-dealers and other financial intermediaries may charge: sales commissions; distribution and service fees; and record-keeping fees. In addition, payments or reimbursements may be requested for: marketing support concerning Davis Advisors’ products; placement on a list of offered products; access to sales meetings, sales representatives and management representatives; and participation in conferences or seminars, sales or training programs for invited registered representatives and other employees, client and investor events, and other dealer-sponsored events. Financial advisors should not consider Davis Advisors’ payment(s) to a financial intermediary as a basis for recommending Davis Advisors.

Over the last five years, the high and low turnover ratio for Selected American Shares was 18% and 4%, respectively.

The S&P 500^® Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange. The Index is adjusted for dividends, weighted towards stocks with large market capitalizations and represents approximately two-thirds of the total market value of all domestic common stocks. The Dow Jones Industrial Average is a price-weighted average of 30 actively traded blue chip stocks. The Dow Jones is calculated by adding the closing prices of the component stocks and using a divisor that is adjusted for splits and stock dividends equal to 10% or more of the market value of an issue as well as substitutions and mergers. The average is quoted in points, not in dollars. Investments cannot be made directly in an index.

Shares of the Selected Funds 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, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756, 800.243.1575, selectedfunds.com.