(PUB) Morningstar FundInvestor

January 2 014

Morningstar FundInvestor

23

Data through December 31, 2013 Selected American Shares D

Ticker

Status Yield Total Assets

Mstar Category

SLADX Open

0.8% $6,028 mil

Large Blend

Morningstar Analyst Rating 12-20-13

Investment Style Equity Stock %

Historical Profile Return Risk Rating Average Above Avg Neutral

97% 98% 99% 97% 97% 96% 96% 98% 95%

´

Manager Change Partial Manager Change

12.5 15.0 18.0

Morningstar Pillars Process Performance

Growth of $10,000

Positive Neutral Positive Positive Positive

∞

Investment Values of Fund Investment Values of S&P 500

¶

10.0

People Parent Price

∞ ∞ ∞

7.0

NAV Total Return % +/-S&P 500 +/-Russ 1000 Income Return % Capital Return % Capital Gains $ Expense Ratio % Income Ratio % Turnover Rate % Net Assets $mil Total Rtn % Rank Cat Income $ Performance Quartile (within Category) History

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 12-13

Morningstar Analyst Rating Morningstar evaluates mutual funds based on five key pillars, which its analysts believe lead to funds that are more likely to outperform over the long term on a risk-adjusted basis. Analyst Rating Spectrum Œ „ ´ˇ ¨

40.23 36.86 . . .

46.07

47.79

28.50

37.25 32.06 17.00 15.96

41.41 12.90

39.44 -4.02

50.26 33.62

15.59 10.19 . . . . 10.10 -5.60 . . . . 9.82 -5.27 . . . . 1.04 1.05 . . . . 14.55 9.14 . . . . 25 8 . . . . 1.38 57

-39.24 5.11 -65.70 42.11 -67.67 42.71

-20.02 10.79 -20.44 11.40

1.23 0.51 1.06

1.01

1.34

1.65

0.73 -4.75 0.30 0.00 0.61 1.62 76

-40.25 3.73

30.72

11.25

32.56

68

21

66

74

Pillar Spectrum Positive ∞

0.39 0.35 . . . 0.00 0.00 . . .

0.42 0.00 0.57 1.32

0.64 0.00 0.59 1.19

0.49 0.00 0.61 1.19

0.38 0.00 0.60 1.13

0.62 0.00 0.61 1.14

0.43 4.49

§ Negative

¶ Neutral

0.65 . . 1.10 . .

0.60 1.11

0.58 1.04

. . .

Performance 12-31-13 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

9 4 . . .

8

18

11

9

11

7

2009 2010 2011 2012 2013

-12.67 21.13 17.31 6.41 -39.24 4.35 -11.09 9.95 10.67 32.06 4.66 -1.89 -15.85 11.08 12.90 11.28 -3.96 4.32 1.53 -4.02 10.48 3.52 5.90 10.32 13.19

680 . .

1,673

4,406

5,018

2,880

3,644

3,942

3,519

3,375

3,959

Portfolio Analysis 09-30-13 Share change since 06-13 Total Stocks:65 Sector

Rating and Risk Time Load-Adj

PE Tot Ret% % Assets

Morningstar

Morningstar Risk vs Cat

Morningstar Risk-Adj Rating

Period Return % Rtn vs Cat

American Express Co Wells Fargo & Co CVS Caremark Corp Bank of New York Mellon Google, Inc. Class A Berkshire Hathaway Inc C Costco Wholesale Corpora Bed Bath & Beyond, Inc. Julius Baer Gruppe AG UnitedHealth Group Inc Canadian Natural Resourc Progressive Corporation Air Products & Chemicals EOG Resources

Finan Svs 21.3 59.34 6.02 Finan Svs 12.0 36.19 5.46 Cnsmr Def 19.8 49.89 5.05 Finan Svs 18.8 38.21 5.00 Technology 31.3 58.43 4.96 Finan Svs 15.1 32.70 4.30 Cnsmr Def 25.6 21.77 4.07 Cnsmr Cyc 16.7 43.62 3.30

1 Yr 3 Yr 5 Yr

33.62 13.23 16.70

Trailing

Total

+/-

+/- Russ %Rank Growth of

Return% S&P 500 10.32 -0.19 16.83 0.52 33.62 1.23 13.23 -2.95 16.70 -1.24

1000 0.09 -0.03 0.51 -3.07 -1.89

Cat

$10,000

-Avg Avg

Avg

3 Mo 6 Mo 1 Yr

40 11,032 38 11,683 30 13,362 73 14,517

+Avg

10 Yr Incept

. . . .

6.99

3 Yr Avg 5 Yr Avg 10 Yr Avg 15 Yr Avg

Other Measures

Standard Index

Best Fit Index

56 21,645 . . . . . . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

S&P 500

R3000

Energy

41.1 39.56 3.27

Alpha

-2.9 1.02

-2.4 0.98

Finan Svs

2.56

. .

Beta

Hlth care 14.2 40.77 2.45

R-Squared

96

97

Energy

17.9 19.13 2.34

3 Yr (estimated) 5 Yr (estimated) 10 Yr (estimated)

11.82 15.74

73 57

1.24 0.82

79

Standard Deviation

12.65 13.23

Finan Svs 14.8 30.59 2.20 Basic Mat 23.6 36.42 2.12 Finan Svs 24.8 19.15 2.09 Technology 25.6 45.61 1.90 Hlth care 30.2 30.07 1.76 Hlth care 15.0 5.48 1.73 Finan Svs 18.5 19.24 1.68 Cyclical 52.74 1.83 BasicMat 5.49 1.79 7 5 CnsmrCyc 8.30 0.97 9 8 FinanSvs 36.68 2.34 37 27 Real Est 2.27 1.55 2 2 Sensitive 25.53 0.59 CommSrvs 1.63 0.41 2 0 Energy 7.97 0.75 17 8 Industrl 4.99 0.44 7 5 Technlgy 10.94 0.62 12 6 Defensive21.73 0.79 CnsmrDef14.97 1.23 18 15 Hlthcare 6.76 0.57 13 3 Utilities 0.00 0.00 . . h r t y u j i o p a k s d f Cnsmr Def . . 1.91 Sector Weightings % of Stocks Rel S&P 500 High 3 Year Low

75 . . . .

Mean

Loews Corporation

Sharpe Ratio

1.04

Diageo PLC

Potential Capital Gain Exposure: 52% of assets

Texas Instruments, Inc.

Morningstar’s Take by Dan Culloton 12-20-13 It’s a new day for Selected American shares. For 15 years this fund has been synonymous with the management duo of Chris Davis and Ken Feinberg. No longer. Comanager Feinberg was set to leave Dec. 31, 2013, bringing an end to a partnership with Davis that produced strong results over its entirety, despite some recent rough years. From the May 1998 start of their cotenure through Dec. 17, 2013, the fund gained a cumulative 139% while the S&P 500 rose 114% and the average large-blend fund 88%. Davis, who contributed to the fund’s also strong 586% 19-year gain, remains and he’s named a qualified successor to Feinberg. Still, Feinberg’s withdrawal changes one of the theses for this fund’s former Gold Analyst Rating: that the alliance of two seasoned, bottom-up, long-term-oriented investors who had once put up strong returns could do so again. As a result, it has an Analyst Rating of Bronze now. Feinberg’s replacement, Danton Goei, is not unknown. He’s been at the firm more than 15 years, managed a large portion of Davis Opportunity RPEAX

Express Scripts

Laboratory Corporation o

for 12 years, and contributed winning picks as varied as Roche and Netflix NFLX to that fund and this one. He’s steeped in the Davis philosophy and is unlikely to make radical changes. Davis contends Goei’s aggregate stock picks for Opportunity, Selected American, and other Davis funds have done much better than the S&P 500 Index, yet Goei still has to build a track record here. Running slices of funds with hundreds of millions in assets is different than managing tens of billions. Even if Goei doesn’t drastically overhaul his portion of the fund, the portfolio is sure to evolve over time. He’s shown affinity for and alacrity with sectors outside financials--a traditional stomping ground for this fund. Though he may not have been solely responsible for Opportunity’s leanings, that fund historically has been more growth-oriented than this fund. Feinberg’s departure is a shock. Davis’ experience, Goei’s promise, a consistent process, and OK fees still earn the fund an endorsement, though, just not as ringing as before.

Alleghany Corp

Current Investment Style

Market Cap % Giant 43.5 Large 49.0 Mid 7.1 Small 0.4 Micro 0.0 Avg $mil: 46,382

Value Blnd Growth

Large Mid Small

Value Measures Price/Earnings Price/Book Price/Sales Price/Cash Flow Dividend Yield % Long-Term Erngs Book Value Sales Cash Flow Historical Erngs Growth Measures

Rel Category

17.45 1.84 1.34 7.32 1.35

1.21 0.90 1.06 1.03 0.62 1.10 1.86 3.84 1.23 0.50

% Rel Category

11.42 9.90 11.16

Composition - Net

Cash 3.7 Stocks 94.9 Bonds 0.0 Other 1.4 Foreign 17.2

8.39 8.90

Address:

2949 E. Elvira Road Tucson, AZ 85706 800-243-1575

Minimum Purchase: Min Auto Inv Plan:

$10000 $10000 No-load

Add: $25 IRA: $10000

Add: $25

Profitability

% Rel Category

Sales Fees:

Return on Equity Return on Assets Net Margin

14.47 5.88 12.71

0.75 0.76 1.00

Web Address: Inception: Advisor: Subadvisor: NTF Plans:

www.selectedfunds.com

Management Fee:

0.55% mx./0.49% mn. Mgt:0.54% Dist: .

(% of Stock)

05-03-04

Actual Fees:

Davis Selected Advisers LP

Expense Projections: Income Distribution:

3Yr:$195 Annually

5Yr:$340 10Yr:$762

Davis Selected Advisers (New York) Inc.

N/A

Mutual Funds ß ®

© 2013Morningstar, Inc.All rights reserved. The information herein isnot representedorwarranted to be accurate, correct, complete or timely. Pastperformance isnoguarantee of future results.Access updated reports at To order reprints, call 312-696-6100. mfb.morningstar.com.

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