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 0.1% 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 Turnover Rate4
Selected American Shares, 13%; Lipper category average, 52%
Performance as of 1/31/19
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 $104,788 as of January 31, 2019 vs. only $102,328 for the S&P 500® Index and $99,322 for the Average Large Cap Fund.5
| Average Annual Total Returns as of January 31, 2019 |
1 Year |
3 Years |
5 Years |
10 Years |
15 Years |
20 Years |
Inception (5/1/93) |
|---|---|---|---|---|---|---|---|
| Selected American Shares Class S | -10.46% | 12.45% | 8.31% | 12.97% | 6.77% | 6.32% | 9.54% |
| S&P 500® Index | -2.31% | 14.01% | 10.95% | 14.99% | 8.18% | 5.81% | 9.45% |
The average annual total returns for Selected American Shares Class S for periods ending December 31, 2018 are: 1 year, -14.00%; 5 years, 5.20%; and 10 years, 10.61%. The performance presented represents past performance and is not a guarantee of future results. Total return assumes reinvestment of dividends and capital gain distributions. Investment return and principal value will vary so that, when redeemed, an investor’s shares may be worth more or less than their original cost. The total annual operating expense ratio for Class S shares as of the most recent prospectus was 0.97%. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary. Current performance may be higher or lower than the performance quoted. For most recent month-end performance, click here or call 800.243.1575.
A History of Consistent Long Term Outperformance
Since no manager can outperform over all periods, our objective has been to increase the probability of outperformance the longer an investor stays with us. As shown below, the longer one has invested with us, the more likely they have earned above-average returns.6
Percentage of Time Selected American Shares
Outperformed the S&P 500® Index
7/1/93 - 12/31/18
Portfolio Characteristics as of 12/31/18
Portfolio Composition
| Selected American Shares | S&P 500® Index |
|
|---|---|---|
| Forecast P/E Ratio | 15.8 | 15.6 |
| P/B Ratio | 2.5 | 3.8 |
| Weighted Average Market Cap ($bn) | 205.1 | 194.4 |
| Beta (3 year) | 1.2 | 1.0 |
| Standard Deviation (5 year, S Shares) | 13.0 | 10.9 |
| Number of Holdings | 46 | 505 |
Turnover, Expenses
| Selected American Shares | Lipper Category Average | |
|---|---|---|
| Turnover Rate3 | 13% | 52% |
| Expense Ratio3 (S Shares) | 0.97% | 0.92% |
Top 10 Holdings
| Alphabet Inc. | 9.0% |
| Berkshire Hathaway Inc., Class A | 6.9% |
| Wells Fargo & Co. | 6.0% |
| Amazon.com, Inc. | 5.5% |
| Bank of New York Mellon Corp. | 4.9% |
| Capital One Financial Corp. | 4.8% |
| United Technologies Corp. | 4.6% |
| JPMorgan Chase & Co. | 4.4% |
| Facebook Inc, Class A | 3.9% |
| Didi Chuxing Joint Co. | 3.8% |
Top 10 Industries
| Diversified Financials | 20.4% |
| Media & Entertainment | 15.8% |
| Banks | 15.1% |
| Retailing | 12.9% |
| Capital Goods | 11.5% |
| Information Technology | 7.8% |
| Energy | 5.7% |
| Insurance | 2.8% |
| Materials | 2.6% |
| Consumer Services | 2.3% |
Literature
| Fact Sheets | ||
|---|---|---|
| Fund Fact Sheet | Download Share | Goals of the Fund, types of companies found in the Portfolio, top holdings, portfolio characteristics and historical performance. |
| Portfolio Composition | Download Share | Quarterly update of portfolio characteristics. |
| Portfolio Manager Commentaries | ||
|
Manager Commentary - Fall Review 2018 |
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. |
| Insights About Davis Advisors | ||
| 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. |
| 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. |
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 5/1/93-9/30/18. Past performance is not a guarantee of future results.
2As of December 31, 2018.
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.
(3) Read here for objective/risk disclosures
(5) Read here for Expense ratio/Turnover disclosures
(5a) Read here for "outperforming the market" disclosures
(6) Read here for Index definition
(7) Read here for additional disclosures
Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756
