Selected American Shares

    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 0.8% 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

    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, 70%

    Performance as of 6/30/14

    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 $77,130 as of June 30, 2014 vs. only $67,521 for the S&P 500® Index and $61,596 for the Average Large Cap Fund.5


    Average Annual Total Returns
    as of June 30, 2014
    1
    Year
    3
    Years
    5
    Years
    10
    Years
    15
    Years
    20
    Years
    Inception
    (5/1/93)
    Selected American Shares Class S 22.66% 13.81% 16.21% 6.80% 5.40% 10.54% 10.13%
    S&P 500® Index 24.61% 16.58% 18.83% 7.78% 4.35% 9.79% 9.45%

    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 - 6/30/14

    Source: Thomson Financial, Lipper and Bloomberg. The "market" is represented by the S&P 500® Index. Past performance is not a guarantee of future results.

    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 - 6/30/14

    Source: Thomson Financial, Lipper and Bloomberg. The "market" is represented by the S&P 500® Index. Past performance is not a guarantee of future results.

    Portfolio Characteristics as of 6/30/14

    Portfolio Composition

    Selected American Shares S&P 500®
    Index
    Forecast P/E Ratio 17.6 16.6
    P/B Ratio 3.2 3.4
    Weighted Average Market Cap ($bn) 97.7 125.3
    Beta (3 year) 1.1 1.0
    Standard Deviation (5 year, S Shares) 13.7 13.4
    Number of Holdings 75 501

    Turnover, Expenses

    Selected American Shares Lipper Category Average
    Turnover Rate3 12% 70%
    Expense Ratio3 (S Shares) 0.94% 1.13%

    Top 10 Holdings

    American Express Co. 6.9%
    Wells Fargo & Co. 6.6%
    Google Inc. Class A 6.1%
    Bank of New York Mellon Corp. 5.3%
    EOG Resources, Inc. 4.0%
    Costco Wholesale Corp. 3.7%
    Berkshire Hathaway Inc., Class A 3.4%
    UnitedHealth Group Inc. 2.7%
    Canadian Natural Resources Ltd. 2.2%
    Liberty Global PLC - Series C 2.2%

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

    Top 10 Industries

    Diversified Financials 20.7%
    Information Technology 14.1%
    Health Care 8.6%
    Banks 8.3%
    Energy 7.2%
    Materials 6.7%
    Food & Staples Retailing 6.5%
    Retailing 6.2%
    Insurance 3.8%
    Food, Beverage &Tobacco 3.6%

    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 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 Discusses the Fund’s consistency in beating the S&P500 and what gives us conviction that future returns will be stronger.
    Distinctive Attributes Download 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
    A Conversation with Chris Davis Download

    PM Chris Davis on strategies that can help every investor to become more successful.

    Manager Commentary - Annual Review 2014 Download View

    An interview with the Fund Manager.

    First Quarter 2014 Update Download View

    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

    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

    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 5/1/93-6/30/14. Past performance is not a guarantee of future results.

    2As of December 31, 2013.

    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