Selected American Shares
- Manager Commentary
- Estimated Year-End 2014 Capital Gains
- First Quarter 2014 Update
- Fact Sheet
Fund Statistics (Class S)
|Davis Advisors Management Date||5/1/93|
|Results from inception of management through 9/30/14:|
|Average Fund in Category||8.86%|
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 0.5% 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
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
Lower than Average Expense Ratio4
Selected American Shares, 0.94%; Lipper category average, 1.13%
Lower than Average Turnover Rate4
Selected American Shares, 12%; Lipper category average, 67%
Performance as of 9/30/14
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 $75,341 as of September 30, 2014 vs. only $68,277 for the S&P 500® Index and $61,947 for the Average Large Cap Fund.5
|Average Annual Total Returns
as of September 30, 2014
|Selected American Shares Class S||13.21%||19.64%||12.05%||6.66%||5.84%||10.34%||9.89%|
|S&P 500® Index||19.73%||22.99%||15.70%||8.11%||4.87%||9.59%||9.39%|
The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor’s shares may be worth more or less than their original cost. The total annual operating expense ratio for Class S shares as of the most recent prospectus was 0.94%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. Current performance may be higher or lower than the performance quoted. For most recent month-end performance, click here or call 800.243.1575.
A History of Consistent Long Term Outperformance
Since no manager can outperform over all periods, our objective has been to increase the probability of outperformance the longer an investor stays with us. As shown below, the longer one has invested with us, the more likely they have earned above-average returns.6
Percentage of Time Selected American Shares
Outperformed the S&P 500® Index
7/1/93 - 9/30/14
An Uncommon Record
While the likelihood of Selected American Shares outperforming the S&P 500® Index increased as an investor’s holding period increased, the chart below shows that Large Cap Funds (the tan bars) have not had the same level of consistent outperformance as Selected American Shares.6
Percentage of Time Selected American Shares and
Average Large Cap Fund Outperformed the S&P 500® Index
7/1/93 - 9/30/14
Portfolio Characteristics as of 9/30/14
|Selected American Shares||S&P 500®
|Forecast P/E Ratio||16.6||16.6|
|Weighted Average Market Cap ($bn)||93.6||128.4|
|Beta (3 year)||1.1||1.0|
|Standard Deviation (5 year, S Shares)||13.4||13.2|
|Number of Holdings||68||502|
|Selected American Shares||Lipper Category Average|
|Expense Ratio3 (S Shares)||0.94%||1.13%|
Top 10 Holdings
|Wells Fargo & Co.||6.7%|
|American Express Co.||6.4%|
|Bank of New York Mellon Corp.||5.9%|
|Berkshire Hathaway Inc., Class A||4.1%|
|UnitedHealth Group Inc.||3.1%|
|Costco Wholesale Corp.||2.6%|
|Liberty Global PLC, Series C||2.5%|
|Texas Instruments, Inc.||2.3%|
Top 10 Industries
|Food & Staples Retailing||3.9%|
|Food, Beverage & Tobacco||3.2%|
|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||Discusses the Fund’s growing success in beating the S&P500® as investor holding period increased (ultimately reaching 100%).
|Selected American Shares – Investment Results||Download Share||Discusses the Fund’s consistency in beating the S&P500 and what gives us conviction that future returns will be stronger.
|Distinctive Attributes||Download Share||How our unique culture of rigorous research and stewardship have produced important shareholder benefits, including attractive long-term results, low expenses, low turnover and high alignment of interests.|
|Portfolio Manager Commentaries|
|Manager Commentary - Fall Review 2014||Download View Share||
An Interview with the Fund Managers.
|A Conversation with Chris Davis||Download Share||
PM Chris Davis on strategies that can help every investor to become more successful.
|First Quarter 2014 Update||Download View Share||
A quarterly discussion of the market environment, Fund performance, major positions, and investment opportunities.
|Insights About Davis Advisors|
|Davis Advisors: A Tradition of Success||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.
|2011 Financial Report of the U.S. Government||Download Share||
The 2011 update of the government report referred to in the Selected American Shares Manager Commentary.
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 5/1/93-9/30/14. Past performance is not a guarantee of future results.
2As of June 30, 2014.
4See Expense ratio/Turnover link below.
5The Average Large Cap Fund is represented by the equities in the Lipper Average Large Cap peer group. Past performance is not a guarantee of future results.
6See "outperforming the market" link below.
Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756