(PUB) Morningstar FundInvestor

October 2013

Morningstar FundInvestor

7

Data through September 30, 2013 Selected American Shares D

Ticker

Status Yield Total Assets

Mstar Category

SLADX Open

1.9% $5,681 mil

Large Blend

Morningstar Analyst Rating 09-20-13

Investment Style Equity Stock %

Historical Profile Return Risk Rating Below Avg Above Avg Below Avg

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

Œ

Manager Change Partial Manager Change

10.0 12.0 14.4 17.2

Morningstar Pillars Process Performance

Growth of $10,000

Positive Neutral Positive Positive Positive

Investment Values of Fund Investment Values of S&P 500

¶

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 09-13

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 ¨

36.86 . .

40.23

46.07

47.79

28.50

37.25 32.06

41.41 12.90 -2.16 -3.20

39.44 -4.02 -6.13 -5.52 0.73 -4.75

41.68 13.19 -2.81 -3.23

47.47 21.12

15.59 10.19 . . . -0.20 5.28 . . . 0.13 3.92 . . . 1.04 1.05 . . . 14.55 9.14 . . . 25 8 . . .

-39.24 5.11

-0.38 -0.66 1.38

-2.24 -1.64 1.01

5.60 3.63 1.34

1.33 0.36 0.64

1.65

1.89

-40.25 3.73

30.72

11.25

11.30

20.48

57

68

21

66

76

74

32

Pillar Spectrum Positive

0.35 . . 0.00 . . 0.65 . . 1.10 . . 3 . . 680 . .

0.39 0.00 0.60 1.11

0.42 0.00 0.58 1.04

0.64 0.00 0.57 1.32

0.49 0.00 0.59 1.19

0.38 0.00 0.61 1.19

0.62 0.00 0.60 1.13

0.30 0.00 0.61 1.14

0.75 2.25 0.61 1.62

0.27 2.60

§ Negative

¶ Neutral

. . .

Performance 09-30-13 1st Qtr 2nd Qtr

3rd Qtr

4th Qtr

Total

4

9

8

18

11

9

11

7

2009 2010 2011 2012 2013

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

1,673

4,406

5,018

2,880

3,644

3,942

3,519

3,375

3,713

Portfolio Analysis 06-30-13 Share change since 03-13 Total Stocks:73 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 Google, Inc. Class A Bank of New York Mellon Berkshire Hathaway Inc C Costco Wholesale Corpora Bed Bath & Beyond, Inc. UnitedHealth Group Inc Progressive Corporation Julius Baer Gruppe AG Loews Corporation Canadian Natural Resourc EOG Resources

Finan Svs 18.4 32.48 6.20 Finan Svs 11.2 23.38 5.68 Cnsmr Def 16.8 18.77 5.64 Technology 26.1 23.82 5.13 Finan Svs 18.4 19.14 4.78 Finan Svs 15.7 27.11 4.38 Cnsmr Def 24.9 17.56 4.02 Cnsmr Cyc 16.8 38.37 3.17 Hlth care 13.6 33.45 2.31 Finan Svs 14.2 30.40 2.23 Energy 45.9 40.60 2.62 Cnsmr Cyc 19.6 29.52 2.02 Basic Mat 22.2 29.37 1.87 Hlth care 27.7 14.44 1.81 Finan Svs 20.2 22.13 1.77 Technology 21.9 32.92 1.69 Cnsmr Def . . 1.77 Cyclical 52.95 1.84 BasicMat 5.93 1.94 7 5 CnsmrCyc 8.12 0.95 9 8 FinanSvs 36.64 2.34 37 27 Real Est 2.26 1.55 2 2 Sensitive 25.62 0.59 CommSrvs 1.28 0.32 1 0 Energy 7.70 0.72 17 8 Industrl 4.70 0.41 7 5 Technlgy 11.94 0.68 12 6 Defensive21.42 0.78 CnsmrDef15.28 1.26 18 15 Hlthcare 6.14 0.52 13 3 Utilities 0.00 0.00 . . h r t y u j i o p a k s d f Finan Svs . . 2.21 Finan Svs 28.0 15.31 2.18 Energy 25.3 10.17 2.16 Sector Weightings % of Stocks Rel S&P 500 High 3 Year Low

1 Yr 3 Yr 5 Yr

22.97 13.35

Trailing

Total

+/-

+/- Russ %Rank Growth of

Return% S&P 500 5.90 0.66 9.62 1.31 22.97 3.63 13.35 -2.92 8.24 -1.78

1000 -0.12 0.79 2.06 -3.29 -2.29

Cat

$10,000

-Avg -Avg

Avg

3 Mo 6 Mo 1 Yr

47 10,590 29 10,962 22 12,297 75 14,563

8.24

+Avg

10 Yr Incept

. . . .

6.07

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

Other Measures

Standard Index

Best Fit Index

74 14,857 . . . . . . . . . . Tax Analysis Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat

S&P 500

R3000

Alpha

-2.8 1.02

-2.6 0.98

Beta

R-Squared

96

97

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

12.25

75 73

0.97 0.67

87

Standard Deviation

12.94 13.35

7.52 76 . . . .

Mean

Walt Disney Co

Sharpe Ratio

1.03

Air Products & Chemicals

Potential Capital Gain Exposure: 49% of assets

Express Scripts Diageo PLC

Morningstar’s Take by Dan Culloton 09-20-13 Selected American can still work for the long term. The fund has struggled to extricate itself from a recent performance quagmire. It bounced back from the financial crisis in 2009 with top quartile results only to slip to below average the next three years as it took a pass on Apple AAPL and stuck with laggards like Hewlett-Packard HPQ, Bank of New York Mellon BK, and Canadian Natural Resources CNQ. Investors have voted with their feet; the fund has seen more than $6 billion in outflows in the five years ended August 2013, which is more net redemptions than most equity funds had in that period. Don’t capitulate. The mutual fund industry is replete with once-popular offerings that slid into chronic mediocrity, but there are differences here. This fund hasn’t changed its management or strategy as others have; it still charges a reasonable fee; and its shareholder-friendly culture remains intact. Chris Davis and Ken Feinberg, who have run this fund for more than 15 years, have enough money invested here to have keenly felt all of the fund’s mistakes and have

Alleghany Corp DEL Texas Instruments, Inc.

ample incentive to learn from them. Indeed, whereas they have seemed almost patient to a fault with some holdings in the past--AIG AIG in 2008 being the most extreme example--the crisis and five years of unrelenting outflows have forced the managers to be more assiduous about trimming lower conviction or richly valued stocks, such as Hewlett Packard or Netflix NFLX. As a result the fund is more concentrated, with fewer holdings and more assets in its top 10, than it has been in years. That could help the fund differentiate itself from its benchmark and peers, and it has improved recently. The fund’s year-to-date and trailing year results through Sept. 18, 2013, rank in the category’s top third, due not only to triple-digit gains from Netflix, but also strong contributions from long-term holdings, such as American Express AXP, Wells Fargo WFC, Berkshire Hathaway BRK.A, and Bed Bath & Beyond BBBY. Former detractors, such as Bank of New York Mellon, also have pitched in, which bodes well for the fund’s patient approach.

Current Investment Style

Market Cap % Giant 47.0 Large 42.7 Mid 10.1 Small 0.3 Micro 0.0 Avg $mil: 45,726

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

16.39 1.73 1.28 6.04 1.50

1.14 0.85 1.02 0.85 0.69 1.09 1.78 3.88 1.28 0.41

% Rel Category

11.28 9.45 11.28

Composition - Net

Cash 3.3 Stocks 96.6 Bonds 0.0 Other 0.0 Foreign 17.0

8.73 7.31

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

14.37 5.75 12.50

0.75 0.75 0.98

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 represented orwarranted 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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