23
Morningstar FundInvestor
January 2
014
Morningstar Analyst Rating
12-20-13
´
Morningstar Pillars
Process
Performance
People
Parent
Price
¶
Positive
Neutral
Positive
Positive
Positive
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 ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
50.26
39.44
41.41
37.25
28.50
47.79
46.07
40.23
36.86
. . .
Total Return %
33.62
-4.02
12.90
32.06
-39.24
5.11
15.59
10.19
. . . .
+/-S&P 500
1.23
-20.02
10.79
17.00
-65.70
42.11
10.10
-5.60
. . . .
+/-Russ 1000
0.51
-20.44
11.40
15.96
-67.67
42.71
9.82
-5.27
. . . .
Income Return %
1.06
0.73
1.65
1.34
1.01
1.38
1.04
1.05
. . . .
Capital Return %
32.56
-4.75
11.25
30.72
-40.25
3.73
14.55
9.14
. . . .
Total Rtn % Rank Cat
74
76
66
21
68
57
25
8
. . . .
Income $
0.43
0.30
0.62
0.38
0.49
0.64
0.42
0.39
0.35
. . .
Capital Gains $
4.49
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
. . .
Expense Ratio %
.
0.61
0.61
0.60
0.61
0.59
0.57
0.58
0.60
0.65
. .
Income Ratio %
.
1.62
1.14
1.13
1.19
1.19
1.32
1.04
1.11
1.10
. .
Turnover Rate %
.
7
11
9
11
18
8
9
4
. . .
Net Assets $mil
3,959
3,375
3,519
3,942
3,644
2,880
5,018
4,406
1,673
680
. .
Performance
12-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
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
Trailing
Total
+/-
+/- Russ %Rank Growth of
Return% S&P 500
1000
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
10.32 -0.19
0.09
40 11,032
16.83 0.52
-0.03
38 11,683
33.62 1.23
0.51
30 13,362
13.23 -2.95
-3.07
73 14,517
16.70 -1.24
-1.89
56 21,645
. . . . .
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
11.82
73
1.24
79
15.74
57
0.82
75
. . . .
Potential Capital Gain Exposure: 52% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
33.62
3 Yr
13.23
-Avg
Avg
5 Yr
16.70
Avg
+Avg
10 Yr
. . . .
Incept
6.99
Other Measures
Standard Index
Best Fit Index
S&P 500
R3000
Alpha
-2.9
-2.4
Beta
1.02
0.98
R-Squared
96
97
Standard Deviation
12.65
Mean
13.23
Sharpe Ratio
1.04
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
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.
Address:
2949 E. Elvira Road
Tucson, AZ 85706
800-243-1575
Web Address:
Inception:
05-03-04
Advisor:
Davis Selected Advisers LP
Subadvisor:
Davis Selected Advisers (New York) Inc.
NTF Plans:
N/A
Minimum Purchase:
$10000
Add: $25 IRA: $10000
Min Auto Inv Plan:
$10000
Add: $25
Sales Fees:
No-load
Management Fee:
0.55% mx./0.49% mn.
Actual Fees:
Mgt:0.54% Dist:
.
Expense Projections:
3Yr:$195
5Yr:$340 10Yr:$762
Income Distribution:
Annually
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
97% 98% 99% 97% 97% 96% 96% 98% 95%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 12-13
Historical Profile
Return
Risk
Rating
Average
Above Avg
Neutral
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
S&P 500
Performance Quartile
(within Category)
History
10.0
7.0
12.5
15.0
18.0
Portfolio Analysis
09-30-13
Share change since 06-13 Total Stocks:65 Sector
PE Tot Ret% % Assets
American Express Co
Finan Svs 21.3 59.34 6.02
Wells Fargo & Co
Finan Svs 12.0 36.19 5.46
CVS Caremark Corp
Cnsmr Def 19.8 49.89 5.05
Bank of New York Mellon
Finan Svs 18.8 38.21 5.00
Google, Inc. Class A
Technology 31.3 58.43 4.96
Berkshire Hathaway Inc C
Finan Svs 15.1 32.70 4.30
Costco Wholesale Corpora
Cnsmr Def 25.6 21.77 4.07
Bed Bath & Beyond, Inc.
Cnsmr Cyc 16.7 43.62 3.30
EOG Resources
Energy
41.1 39.56 3.27
Julius Baer Gruppe AG
Finan Svs
. .
2.56
UnitedHealth Group Inc
Hlth care 14.2 40.77 2.45
Canadian Natural Resourc
Energy
17.9 19.13 2.34
Progressive Corporation
Finan Svs 14.8 30.59 2.20
Air Products & Chemicals
Basic Mat 23.6 36.42 2.12
Loews Corporation
Finan Svs 24.8 19.15 2.09
Diageo PLC
Cnsmr Def
. .
1.91
Texas Instruments, Inc.
Technology 25.6 45.61 1.90
Express Scripts
Hlth care 30.2 30.07 1.76
Laboratory Corporation o
Hlth care 15.0 5.48 1.73
Alleghany Corp
Finan Svs 18.5 19.24 1.68
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
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
17.45
1.84
1.34
7.32
1.35
1.21
0.90
1.06
1.03
0.62
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
11.42
9.90
11.16
8.39
8.90
1.10
1.86
3.84
1.23
0.50
Profitability
% Rel Category
Return on Equity
Return on Assets
Net Margin
14.47
5.88
12.71
0.75
0.76
1.00
Sector
Weightings
% of
Stocks
Rel
S&P 500 High
3 Year
Low
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
Composition - Net
(% of Stock)
Cash
3.7
Stocks 94.9
Bonds 0.0
Other
1.4
Foreign 17.2
©
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
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mfb.morningstar.com.
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