Overview

Image of the PDF : The Davis Research Methodology
Insights

Selected American Shares PM Commentary

  • The end of the "easy-money" decade and its market distortions
  • Why business fundamentals matter again
  • Why this makes us optimistic about the coming decade

Investment Strategy

The goal of Selected American Shares is to provide investors access to attractive investment opportunities among large cap, durable, well-managed businesses, primarily in the U.S.

Using our signature Davis Investment Discipline, 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.

"By being highly selective and rejecting the vast majority of companies in the index, we’ve uncovered businesses with solid earnings, yet selling at some of the lowest valuations we have ever seen. We believe this sets the stage for attractive returns in the years ahead.”

– Portfolio Manager Chris Davis

Selective Attractive Growth Undervalued

Selected American Shares invests in only a select group of well-researched companies

Selected American Shares's portfolio companies have solid earnings The Attractive Growth and Undervalued reference in this piece relates to underlying characteristics of the portfolio holdings. There is no guarantee that the Fund’s performance will be positive as equity markets are volatile and an investor may lose money.

Selected American Shares's portfolio companies are 47% less expensive than the index

Holdings The number of holdings in the Fund excluding cash positions. EPS Growth (5 Year) Five-year EPS Growth Rate (5-year EPS) is the average annualized earnings per share growth for a company over the past 5 years. The values shown are the weighted average of the 5-year EPS of the stocks in the Fund or Index. Approximately 3.33% of the assets of the Fund are not accounted for in the calculation of 5-year EPS as relevant information on certain companies is not available to the Fund’s data provider. P/E (Forward) Forward Price/Earnings (Forward P/E) Ratio is a stock’s price at the date indicated divided by the company’s forecasted earnings for the following 12 months based on estimates provided by the Fund’s data provider. These values for both the Fund and the Index are the weighted average of the stocks in the portfolio or index.
503
39
12.8%
11.6x
Fund
S&P 500 Index
The companies of Selected American Shares have solid earnings, yet are 47% less expensive.

Fund Details as of 12/31/23

Detail Value
Long-Term Capital Appreciation
Total Net Assets ($M) 1,678.6
Benchmark S&P 500 Index
Lipper Category Large Cap Value

S Shares

Detail Value
Ticker (S) SLASX
Inception Date (S) 5/1/93 This is the date Davis Selected Advisers, L.P. took over management of this fund.
CUSIP (S) 816221105
Fund Number (S) 205
Net Expense Ratio (S) 0.99%
Gross Expense Ratio (S) 0.99%

D Shares

Detail Value
Ticker (D) SLADX
Inception Date (D) 5/3/04 This is the date Davis Selected Advisers, L.P. took over management of this fund.
CUSIP (D) 816221204
Fund Number (D) 1023
Net Expense Ratio (D) 0.67%
Gross Expense Ratio (D) 0.67%

Fund Managers

Chris C. Davis
35 Years Industry Experience
34 Years at Davis Funds
View Bio
Danton G. Goei
28 Years Industry Experience
25 Years at Davis Funds
View Bio

Resources

Document
PM Commentary
Factsheet

Featured PM Videos

Performance as of 12/31/23

Growth of $10,000 (Class S Shares since Inception)

Selected American Shares
S&P 500 Index

Average Annual Returns

S Shares: Quarterly (as of 12/31/23)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
S Shares 32.33% 32.33% 7.49% 12.69% 8.88% 9.71%

The average annual total returns for Selected American Shares’s Class S shares for periods ending December 31, 2023 are: 1 year, 32.33%; 5 years, 12.69%; and 10 years, 8.88%. 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. For most recent month-end performance, visit selectedfunds.com or call 800-243-1575. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class S Shares as of the most recent prospectus was 0.99%. The total annual operating expense ratio may vary in future years. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

S Shares: Monthly (as of 1/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
S Shares 1.05% 19.99% 7.34% 10.62% 9.46% 9.72%

The average annual total returns for Selected American Shares’s Class S shares for periods ending December 31, 2023 are: 1 year, 32.33%; 5 years, 12.69%; and 10 years, 8.88%. 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. For most recent month-end performance, visit selectedfunds.com or call 800-243-1575. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class S Shares as of the most recent prospectus was 0.99%. The total annual operating expense ratio may vary in future years. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

D Shares: Quarterly (as of 12/31/23)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
D Shares 32.76% 32.76% 7.83% 13.04% 9.23% 8.12%

The average annual total returns for Selected American Shares’s Class S shares for periods ending December 31, 2023 are: 1 year, 32.33%; 5 years, 12.69%; and 10 years, 8.88%. 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. For most recent month-end performance, visit selectedfunds.com or call 800-243-1575. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class S Shares as of the most recent prospectus was 0.99%. The total annual operating expense ratio may vary in future years. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

D Shares: Monthly (as of 1/31/24)

Share Class YTD* 1 Yr 3 Yr 5 Yr 10 Yr Since Incep
D Shares 1.10% 20.40% 7.68% 10.98% 9.82% 8.14%

The average annual total returns for Selected American Shares’s Class S shares for periods ending December 31, 2023 are: 1 year, 32.33%; 5 years, 12.69%; and 10 years, 8.88%. 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. For most recent month-end performance, visit selectedfunds.com or call 800-243-1575. Current performance may be lower or higher than the performance quoted. The total annual operating expense ratio for Class S Shares as of the most recent prospectus was 0.99%. The total annual operating expense ratio may vary in future years. The total annual operating expense ratio may vary in future years. Returns and expenses for other classes of shares will vary.

Portfolio Characteristics as of 12/31/23

Portfolio Composition

Item Selected American Shares S&P 500 Index®
P/E (Forward) Forward Price/Earnings (Forward P/E) Ratio is a stock’s price at the date indicated divided by the company’s forecasted earnings for the following 12 months based on estimates provided by the Fund’s data provider. These values for both the Fund and the Index are the weighted average of the stocks in the portfolio or index. 11.6x 21.8x
5 Year Earnings Growth 12.8% 14.8%
P/B Ratio Price/Book (P/B) Ratio is the weighted average of the P/B ratios of the stocks in a portfolio. The P/B ratio of a stock is calculated by dividing the current price of the stock by the company’s per share book value. Stocks with negative book values are excluded for this calculation. 2.3 4.1
Active Share Active Share is a measure of the percentage of stock holdings in a manager's portfolio that differ from the benchmark index. 84% N/A
Standard Deviation (5 year, S Shares) Standard Deviation is a measure of the average deviations of a return series from its mean; often used as a risk measure. A large standard deviation implies that there have been large swings or volatility in the manager’s return series. 21.5 18.5
Number of Holdings 39 503
Weighted Average Market Cap ($bn) Weighted Average Market Capitalization is the portfolio-weighted mean capitalizations of all equity securities. 324.5 678.9
Median Market Cap ($bn) Median Market Capitalization is the midpoint of market capitalization of the stocks in a portfolio. 40.5 33.9
Selected American Shares Large Cap Value Category Average
Turnover Rate Turnover Rate is a measure of the trading activity in a mutual fund’s investment portfolio that reflects how often securities are bought and sold. These amounts are as of the most recent prospectus. Over the last five years, the high and low turnover rate was 24% and 8%, respectively. 8% 41%
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Portfolio Holdings The information provided should not be considered a recommendation to buy, sell or hold any particular security. Davis Funds has adopted a Portfolio Holdings Disclosure policy that governs the release of non-public portfolio holding information. This policy is described in the prospectus. Holding percentages are subject to change.

Top 10 Holdings: Quarterly (as of 12/31/23)

Holding Ticker Selected American Shares S&P 500 Index®
Meta Platforms META 8.6% 2.0%
Berkshire Hathaway BRK A 7.9% 1.6%
Wells Fargo WFC 7.6% 0.5%
Capital One Financial COF 6.6% 0.1%
Applied Materials AMAT 6.6% 0.3%
Amazon.com AMZN 5.4% 3.5%
JPMorgan Chase JPM 4.1% 1.2%
Viatris VTRS 3.9% < 0.1%
Bank of New York Mellon BK 3.6% 0.1%
Alphabet GOOGL 3.3% 3.8%
Top 10 Holdings Total % of Portfolio 57.4% 13.1%

Top 10 Holdings: Monthly (as of 1/31/24)

Holding Ticker Selected American Shares S&P 500 Index®
Meta Platforms META 9.4% 2.0%
Berkshire Hathaway BRK A 8.4% 1.6%
Wells Fargo WFC 7.7% 0.5%
Capital One Financial COF 6.8% 0.1%
Applied Materials AMAT 6.6% 0.3%
Amazon.com AMZN 5.5% 3.5%
Viatris VTRS 4.2% < 0.1%
JPMorgan Chase JPM 4.1% 1.2%
Bank of New York Mellon BK 3.9% 0.1%
Alphabet GOOGL 3.3% 3.8%
Top 10 Holdings Total % of Portfolio 59.8% 13.1%

All Holdings: Quarterly (as of 12/31/23)

Holding Ticker Selected American Shares S&P 500 Index®
Meta Platforms META 8.6% 2.0%
Berkshire Hathaway BRK A 7.9%
Wells Fargo WFC 7.6% 0.5%
Capital One Financial COF 6.6% 0.1%
Applied Materials AMAT 6.6% 0.3%
Amazon.com AMZN 5.4% 3.5%
JPMorgan Chase JPM 4.1% 1.2%
Viatris VTRS 3.9% < 0.1%
Bank of New York Mellon BK 3.6% 0.1%
Alphabet GOOGL 3.3% 2.1%
Texas Instruments TXN 3.1% 0.4%
U.S. Bancorp USB 3.0% 0.2%
Danske Bank DANSKE DC 2.7%
Cigna Group CI 2.6% 0.2%
DBS Group Holdings DBS SP 2.6%
MGM Resorts MGM 2.5% < 0.1%
Intel INTC 2.4% 0.5%
Teck Resources TECK 2.4%
Samsung Electronics 005930 KS 2.2%
Owens Corning OC 2.1%
Chubb CB 1.6% 0.2%
Quest Diagnostics DGX 1.5% < 0.1%
Markel Group MKL 1.4%
Microsoft MSFT 1.3% 7.0%
AIA Group 1299 HK 1.3%
DiDi Global DIDIY 1.1%
Prosus PRX NA 1.1%
Ping An Insurance Group 2318 HK 0.9%
AGCO AGCO 0.9%
IAC IAC 0.9%
Darling Ingredients DAR 0.8%
American Express AXP 0.8% 0.3%
Coupang CPNG 0.7%
JD.com JD 0.6%
Loews L 0.3% < 0.1%
Naspers NPN SJ 0.2%
ASAC II ASAC LP 0.1%
Orascom Construction OC DU 0.1%
Cash 1.5%

All Holdings: Monthly (as of 1/31/24)

Holding Ticker Selected American Shares S&P 500 Index®
Meta Platforms META 9.4% 2.0%
Berkshire Hathaway BRK A 8.4%
Wells Fargo WFC 7.7% 0.5%
Capital One Financial COF 6.8% 0.1%
Applied Materials AMAT 6.6% 0.3%
Amazon.com AMZN 5.5% 3.5%
Viatris VTRS 4.2% < 0.1%
JPMorgan Chase JPM 4.1% 1.2%
Bank of New York Mellon BK 3.9% 0.1%
Alphabet GOOGL 3.3% 2.1%
Texas Instruments TXN 2.9% 0.4%
U.S. Bancorp USB 2.8% 0.2%
Danske Bank DANSKE DC 2.7%
Cigna Group CI 2.6% 0.2%
MGM Resorts MGM 2.5% < 0.1%
DBS Group Holdings DBS SP 2.4%
Teck Resources TECK 2.3%
Owens Corning OC 2.1%
Intel INTC 2.1% 0.5%
Samsung Electronics 005930 KS 1.9%
Chubb CB 1.7% 0.2%
Markel Group MKL 1.5%
Quest Diagnostics DGX 1.4% < 0.1%
Microsoft MSFT 1.4% 7.0%
AIA Group 1299 HK 1.1%
Prosus PRX NA 1.1%
DiDi Global DIDIY 1.0%
AGCO AGCO 0.9%
Ping An Insurance Group 2318 HK 0.9%
IAC IAC 0.9%
American Express AXP 0.8% 0.3%
Darling Ingredients DAR 0.7%
Coupang CPNG 0.6%
JD.com JD 0.5%
Loews L 0.3% < 0.1%
Naspers NPN SJ 0.2%
ASAC II ASAC LP 0.1%
Orascom Construction OC DU 0.1%
Humana HUM < 0.1% 0.1%
Cash 0.9%

"We are highly selective. Few companies satisfy the characteristics of durability, competitive moats, growth and attractive prices we demand.

The result: Our portfolios look very different from the index."

Portfolio Manager Chris Davis

Sector Allocation The Global Industry Classification Standard (GICS®) is the exclusive intellectual property of MSCI Inc. (MSCI) and S&P Global (“S&P”). Neither MSCI, S&P, their affiliates, nor any of their third party providers (“GICS Parties”) makes any representations or warranties, express or implied, with respect to GICS or the results to be obtained by the use thereof, and expressly disclaim all warranties, including warranties of accuracy, completeness, merchantability and fitness for a particular purpose. The GICS Parties shall not have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of such damages.

Sector Selected American Shares S&P 500 Index®
Financials 44.9% 13.0%
Information Technology 15.8% 28.8%
Communication Services 13.1% 8.6%
Consumer Discretionary 10.7% 10.9%
Health Care 8.1% 12.6%
Industrials 4.3% 8.8%
Materials 2.4% 2.4%
Consumer Staples 0.8% 6.2%
Energy 3.9%
Real Estate 2.5%
Utilities 2.3%

Market Cap Breakout The Adviser considers companies with market capitalizations over $10 billion to be large-capitalization companies, between $3 billion and $10 billion to be mid-capitalization companies, and under $3 billion to be small-capitalization companies.

Selected American Shares
Market Percentage
Large 97.3%
Mid 2.6%
Small 0.1%
S&P 500 Index® Index
Market Percentage
Large 99.5%
Mid 0.6%
Small 0.0%

PM Commentary

Portfolio Manager Commentaries

Document Description
Manager Commentary - Annual Review 2024 An interview with the Fund Managers.

Factsheet

Fact Sheets

Document Description Date
Fund Fact Sheet Goals of the Fund, types of companies in the Portfolio, top holdings, Portfolio characteristics, and historical performance. December 2023

Video

Video Insights

Video

How Selected American Shares is Benefiting in this Transitioning Market

The end of the easy-money era, why fundamentals matter again and drivers of recent performance

Video

The Return to Rationality

The bursting of the easy money bubble marks a huge transition for the markets

Video

Investor Implications of Rising Rates

How the end of the free money era is ending the distortions of the past decade and returning rationality to the markets

Video

What to Own and Avoid in Today’s Market

In our view, what types of companies should be avoided, and which stand to benefit from the end of the easy money era

Video

Investment Themes We’re Focusing on Today

Tech, Semis, Financials and other themes we expect to drive returns

Insights

Fund Insights

Document Description
Selected American Shares: Selective. Attractive Growth. Undervalued. Our companies are rigorously researched, offer attractive growth and yet are significantly undervalued versus the benchmark - A powerful combination.

Purchase Details

Account Minimums

Investment Class S Class D
Minimum Initial Investment $1,000 $10,000
Minimum Additional Investment $25 $25

Distributions

2023 Distributions as of 01/08/24

This information on 2023 distributions is intended for existing shareholders

As large shareholders ourselves, we are conscious of tax costs and make every effort to be tax efficient.

Capital gains result from appreciation in the portfolio. The funds' long-term investment approach means that this appreciation may have occurred over an extended period of time. The majority of the gains are long-term and generally subject to lower tax rates than short-term gains or dividend income.

Share Class Record Date Ex-Date Payable Date Qualified Dividend Percentage Ordinary Income Return of Capital Short-term Capital Gain Long-term Capital Gain Reinvestment Price
Class S 6/26/23 6/27/23 6/28/23 63.62% 0.1458 - - 1.00 35.52
12/7/23 12/8/23 12/11/23 63.62% 0.1836 - 0.46 1.16 35.95
Class D 6/26/23 6/27/23 6/28/23 63.62% 0.201 - - 1.00 35.62
12/7/23 12/8/23 12/11/23 63.62% 0.2425 - 0.46 1.16 36.05

Shareholders should not use this information for tax reporting purposes. Form 1099 will be sent at a later date for all tax reporting.

The table above includes the percentage of 2023 dividend and net short-term capital gain distributions, by fund, that are eligible for reduced tax rates as "qualified dividend income" (QDI). QDI-eligible amounts, including any net short-term capital gains, are reported to shareholders in Box 1b of Form 1099-DIV. For those shareholders who do not receive a Form 1099-DIV, QDI-eligible amounts can be determined by applying the relevant percentages from the table to the dividend and net short-term capital gain distributions shown on the shareholder's 2023 year-end account statement. Individual questions should be referred to your tax advisor.

Carefully consider the fund's investment objectives, strategies, risks, charges and expenses before investing or sending money. The prospectus contains this and other information and can be obtained by clicking here.


Before investing in the Selected Funds, you should carefully consider the investment objectives, risks, charges, and expenses of the Funds. The prospectus and summary prospectus contains this and other information about the Funds. You can obtain performance information and a current prospectus and summary prospectus by visiting selectedfunds.com or calling 800.243.1575. Please read the prospectus or summary prospectus carefully before investing or sending money. Investing involves risks including possible loss of principal.