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Important Retirement Plan Information
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.
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
The Fund out-performed the Index in 69% of all 20 year periods since Davis Advisors began management.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, 20%; Lipper category average, 43%
Selective, Attractive Growth, Undervalued (as of 12/31/22)**
| Fund | ||
|---|---|---|
| Selective | Holdings | 38 |
| Attractive Growth | EPS Growth (5 Year) | 15.1% |
| Undervalued | P/E (Forward) | 10.3x |
Performance as of 12/31/22
| Average Annual Total Returns as of December 31, 2022 |
YTD* | 1 Year |
3 Years |
5 Years |
10 Years |
15 Years |
20 Years |
25 Years |
|---|---|---|---|---|---|---|---|---|
| Selected American Shares Class S | -20.27% | -20.27% | 1.56% | 3.39% | 8.95% | 5.65% | 7.73% | 6.65% |
| S&P 500® Index | -18.11% | -18.11% | 7.65% | 9.42% | 12.56% | 8.80% | 9.79% | 7.63% |
*YTD is not annualized
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 0.98%. 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.1
Percentage of Time Selected American Shares
Outperformed the S&P 500® Index
7/1/93 - 12/31/22
Portfolio Characteristics as of 12/31/22
Portfolio Composition
| Selected American Shares | S&P 500® Index |
|
|---|---|---|
| Forecast P/E Ratio | 10.3 | 17.8 |
| P/B Ratio | 2.3 | 4.0 |
| Weighted Average Market Cap ($bn) | 199.5 | 393.6 |
| Beta (3 year) | 1.0 | 1.0 |
| Standard Deviation (5 year, S Shares) | 21.2 | 18.7 |
| Number of Holdings | 38 | 503 |
Turnover, Expenses
| Selected American Shares | Lipper Category Average | |
|---|---|---|
| Turnover Rate3 | 20% | 43% |
| Expense Ratio3 (S Shares) | 0.98% | 0.88% |
Top 10 Holdings
| Berkshire Hathaway | 9.0% |
| Wells Fargo | 8.3% |
| Capital One Financial | 6.1% |
| Applied Materials | 5.9% |
| Alphabet | 5.9% |
| Meta Platforms | 5.4% |
| JPMorgan Chase | 4.2% |
| Amazon.com | 4.2% |
| Bank of New York Mellon | 4.2% |
| Texas Instruments | 4.0% |
Top 10 Industries
| Banks | 22.4% |
| Diversified Financials | 20.1% |
| Information Technology | 13.8% |
| Media & Entertainment | 11.9% |
| Health Care | 9.0% |
| Retailing | 8.2% |
| Insurance | 7.2% |
| Materials | 2.6% |
| Capital Goods | 1.6% |
| Food, Beverage & Tobacco | 1.2% |
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. |
| Insights Into the Fund | ||
| Selected American Shares: Selective. Attractive Growth. Undervalued. | Download Share | Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the benchmark – A powerful combination.† |
| Barrons Interview: A Great Time to Own Financial Stocks | View Share | Financial stocks have staged a remarkable rebound. Barron’s interviewed Chris Davis about his strong conviction in the sector, and why we may be setting up for a decade of revaluation for the group. |
| Portfolio Manager Commentaries | ||
| Manager Commentary - Annual Review 2023 | Download View Share | An interview with the Fund Managers. |
| Insights About Davis Advisors | ||
| The Davis Research Methodology | Download Share | Davis Advisors unique approach to building long-term wealth through investing in equities, including: what we look for in a company, how we arrive at an appropriate purchase price and the factors that may prompt us to sell a position. |
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 12/31/99-12/31/22. Past performance is not a guarantee of future results. See "outperforming the market" link below.
2As of December 31, 2022
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.
** The Attractive Growth and Undervalued reference relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund performance will be positive as equity markets are volatile and an investor may lose money. Past performance is not a guarantee of future returns. Performance may vary. Five-Year EPS Growth Rate is the average annualized earning per share growth for a company over the past five years. The values for the portfolio and index are the weighted average of the five-year EPS Growth Rates of the stocks in the portfolio or index. Forward Price/Earnings (Forward P/E) Ratio is a stock’s current price divided by the company’s forecasted earnings for the following 12 months. The values for the portfolio and index are the weighted average of the P/E ratios of the stocks in the portfolio or index.
(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