Over 40 Years of Reliable Investing

The Successful Investor

Mastering Investor Behavior That Builds Long-Term Wealth

Table of Contents
The Successful Investor

Uncertainty is the Rule, Not the Exception

Focus on What is Important and Knowable

Be Patient

Expect Periods of Disappointment

Engage in Healthy Investor Behavior

Invest Systematically

Historically, Periods of Low Returns for Stocks

Have Been Followed by Periods of Higher Returns

The Seven Timeless Strategies For the Successful Investor

The Successful Investor

The Davis family is one of the most successful investment stories
in American history, having accumulated a fortune of more than
$2 billion1 through buy and hold investing for over 60 years and
three generations of portfolio management.
Starting in 1947, Shelby Cullom Davis, a former insurance commissioner, invested $100,000 in durable, well-managed businesses
at value prices and compounded his fortune into over $800 million
by the early 1990s.2 With the aim of offering his fathers investment
discipline to a greater diversity of investors, son Shelby M.C. Davis
founded Davis Advisors in 1969 and created one of the most
distinguished track records of any manager on Wall Street. Today,
the Davis family investment fortune is managed by Portfolio
Managers Christopher C. Davis, Kenneth Charles Feinberg and
Andrew A. Davis.
Shelby Cullom Davis

While many would attribute the Davis familys extraordinary

success to investment selection, this tells only part of the story.
The other major contributor to the familys ability to build wealth
has been its adherence to a set of basic investment principles
and strategies that any individual can learn and practice. Specifically, the Davises have always advocated setting realistic return
expectations for equities, focusing on whats important and
knowable, engaging in healthy investor behavior, being patient,
and understanding that periods of disappointment are inevitable.
In the following pages, we introduce some of the time-tested
principles that have guided the Davis family through both good
and bad periods of market history. While not an exhaustive list,
these basic lessons constitute keys to the familys success learned
over 60 years, and we hope they will serve as a useful guide in
helping you achieve your ultimate financial goals.

Lessons from Over 60 Years of Success on Wall Street

As of December 31, 2010. 2Shelby Cullom Davis borrowed $100,000 in 1947 and turned it into an $800 million fortune by the year
1994. While Shelby Cullom Davis success forms the basis of the Davis Investment Discipline, this was an extraordinary achievement and
other investors may not enjoy the same success.

Uncertainty is the Rule, Not the Exception

Long-term investors in equities are always faced
with uncertainty. In the 1970s, investors had
to weather the 7374 bear market, geopolitical
turmoil culminating in the Iranian hostage crisis,
rampant inflation, and skyrocketing energy
prices. In the 1980s, investors were faced with
Black Monday, the Iran-Contra scandal, an
assassination attempt on Ronald Reagan, and
the S&L crisis. In the 1990s, investors experienced a euphoric bull market, the repercussions
from the collapse of Long-Term Capital, the
Asian currency crisis, and the Russian default.
Throughout the 2000s, investors dealt with
the bursting of the tech bubble, an economic
recession, geopolitical turmoil in the Middle
East, myriad natural disasters, corporate scandals, rising energy prices, and the sub-prime
mortgage crisis.

Clearly, the past 40 years have dealt long-term

equity investors their share of uncertainty.
But through it all, the long-term upward progress of the stock market has not been derailed,
as illustrated by the chart below. In fact, since
1970, the S&P 500 Index has increased over
4,860%, which would have compounded a
hypothetical $10,000 initial investment into
over $495,973, an almost fifty-fold increase. 3
As Christopher C. Davis, Davis Advisors Portfolio Manager, once remarked, Building longterm wealth is like driving an automobile. If you
narrowly focus on the stretch of road a few feet
in front of your car, you risk making unnecessary
adjustments and oversteering. Only when you
lift your eyes to focus further down the highway
will you successfully reach your destination.

Despite Decades of Uncertainty, the Historical Trend of the Stock Market Has Been Positive
S&P 500 Index

12/31/10

1,600
1,400
1,200
1,000

The 1980s

800
600

Today

Junk Bonds, LBOs,

Black Monday

400
The 1970s

Sub-Prime Debacle,
Economic Uncertainty,
Financial Crisis

200

The 1990s

The 2000s

S&L Crisis, Russian Default,

Long Term Capital,
Asian Contagion

Internet Bubble, Tech Wreck,

Telecom Bust

Nifty-50, Inflation,
73-74 Bear Market

100

60
70

72

74

76

78

80

82

84

86

88

90

92

94

96

98

00

02

04

06

08

10

Source: Yahoo Finance. Graph represents the S&P 500 Index from January 1, 1970 through December 31, 2010. Past performance is
not a guarantee of future results. 3This hypothetical investment assumes an investment on January 1, 1970 through December 31,
2010. Past performance is not a guarantee of future results.
2

Focus on What is Important and Knowable

Shelby Davis, Founder of Davis Advisors, once
stated, If we accept that investing through
uncertain times is the rule, not the exception,
then the question to ask in my opinion is
not whether or when to invest, but how
to invest...

By relentlessly focusing on what is both important and knowable, the Davis New York
Venture Fund has delivered attractive results
in many different market, geopolitical and
economic environments throughout the 1970s,
1980s, 1990s, and 2000s.4

At Davis Advisors, in order to build long-term

wealth for clients, our investment process focuses
on what is important and knowable. Instead
of focusing our research efforts on issues such
as the direction of the stock market, interest rates,
oil prices, and earnings, which in our opinion
are all important but, unfortunately, unknowable
over the short term, our research attempts to
uncover such important and knowable issues
as the quality of a business management team,
the financial condition of a business, a business
competitive moats, and the quality of its earnings.

In fact, as illustrated by the chart below,

the Davis New York Venture Fund, through
periods of inflation, deflation, rising and
falling interest rates, and bull and bear
markets has outperformed the S&P 500
Index for every 10 year period since its
inception in 1969.5 Focusing on the important
and knowable can help investors build wealth
over many different market, economic and
political environments.
As Mark Twain said, It aint what you dont
know that gets you into trouble. Its what you
know for sure that just aint so.

Davis New York Venture Fund vs. S&P 500 Index Rolling 10 Year Return Comparison
Davis New York Venture Fund (Class A, without a sales charge)
22%
20%
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
-2%

S&P 500 Index

69-78 70-79 71-80 72-81 73-82 74-83 75-84 76-85 77-86 78-87 79-88 80-89 81-90 82-91 83-92 84-93 85-94 86-95 87-96 88-97 89-98 90-99 91-00 92-01 93-02 94-03 95-04 96-05 97-06 98-07 99-08 00-09 01-10

4.76
3.36

6.1 13.4 10.8 11.1 16.6 19.8 21.1 21.2 20.5 20.7 20.3 15.7 19.5 18.2 17.5 16.8 17.0 17.4 21.1 20.4 18.8 20.3 14.8 11.4 12.9 14.4 11.7 10.7 8.0 1.2 2.4
5.9 8.5 6.5 6.7 10.7 14.8 14.3 13.9 15.3 16.3 17.5 13.9 17.6 16.2 14.9 14.4 14.9 15.3 18.0 19.2 18.2 17.4 12.9 9.3 11.1 12.1 9.1 8.4 5.9 -1.4 -1.0

2.6
1.4

Average Annual Total Returns

as of December 31, 2010

1 Year

Davis New York Venture Fund, Class A

with a maximum 4.75% sales charge

6.80% 0.44% 2.13% 7.83% 10.82% 11.41% 12.42% 14.10% 12.67%

5 Years

10 Years

15 Years

20 Years

25 Years

30 Years

35 Years

40 Years

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 investors shares may be
worth more or less than their original cost. The total annual operating expense ratio for Class A shares as of the most recent prospectus was
0.89%. 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 data quoted. For most recent month-end performance, visit davisfunds.com or call
800-279-0279. Rolling 10 year returns would be lower in some periods if a sales charge were included. See the endnotes for a description of this
chart and a definition of the S&P 500 Index.
4
Past performance is not a guarantee of future results. 5Class A shares, not including a sales charge. Returns would be lower in
some periods if a sales charge were included. Inception was 2/17/69. Past performance is not a guarantee of future results.
6
Returns calculated from 2/17/69 through 12/31/78.
3

Be Patient
Christopher C. Davis, Portfolio Manager with
Davis Advisors, once remarked that Investors
repeatedly abandon a sensible wealth-building
strategy just because it is not generating shortterm results, and almost without fail, give up on
it at precisely the wrong time.
In other words, investors who impatiently switch
in and out of investments, hoping to catch the
next hot trend, stock, asset class, or geographic
area, may be doing themselves more harm than
good. In fact, history has shown that timing the
market is difficult at best, foolhardy at worst.
The benefit of a patient, long-term approach to
building wealth is illustrated in the chart below,
which groups 155 mutual funds into two categories based on their turnover ratio. Turnover
ratio is a measure of a funds trading activity.
A turnover ratio of 80100% or more may

indicate that a fund is selling (or turning over)

most of their holdings every year, while a turnover ratio of 2030% might indicate a more
patient, buy and hold investment approach.
Though past performance is not a guarantee of
future results, for these 155 mutual funds, as
turnover ratio decreased, 15 year performance
generally increased. While this particular study
uses mutual funds, we believe its findings apply
generally to all investments.
At Davis Advisors, it is our belief that investors
who utilize a patient, buy and hold investment
approach are well positioned to build long-term
wealth by taking advantage of the power of
compounding.
To quote Warren Buffett, For investors as a
whole, returns decrease as motion increases.

Portfolio Managers Utilizing a Patient, Low-Turnover

Investment Approach Have Rewarded Investors
(1/1/96 12/31/10)

Davis New York

Venture Fund
Class A Shares

Turnover
Ratio

15 Year Return
(without a sales charge)

Growth of
Hypothetical $10,000

>62%

6.04%

$24,102

0%62%

7.09%

$27,940

13%7

8.18%

$32,515

Source: Morningstar as of December 31, 2010. 155 Large Cap Funds Class A shares (excluding index funds) with at least a 15 year
track record were included in this study and grouped by reported portfolio turnover. Past performance is not a guarantee of future
results. There is no guarantee that in future periods low turnover funds will have higher returns than those funds with higher turnover.
Returns include the reinvestment of dividends and capital gains, but do not include a sales charge. Reported figures would be lower if
a sales charge were included. 7As of the most recent audited financial statement.
4

Expect Periods of Disappointment

When constructing a long-term financial strategy, it is important to recognize and acknowledge that even though stocks have historically
rewarded patient, long-term investors, even the
best investment managers will suffer periods
of disappointment.
It is important to recognize that while painful
and difficult, periods of disappointment are
not only possible, but most likely inevitable.
Investors who recognize this fact and are prepared for it may be less likely to abandon their
investment strategy during such periods.
Consider the cases of Charles Munger and
Walter Schloss, two of the industrys most
successful money managers.
Charles Munger, Warren Buffetts partner at
Berkshire Hathaway, delivered a 14 year cumulative gain of 1,156% versus only 103.3% for
the S&P 500 Index. However, he underperformed the S&P 500 Index in approximately
five years of his 14 year tenure. Walter Schloss
studied under Benjamin Graham and recorded

a 28 year cumulative investment gain of 23,104%

versus only 887% for the S&P 500 Index.
However, he underperformed the S&P 500
Index in approximately eight years of his 28
year tenure. Clearly, these two legendary investors experienced periods of disappointment on
the way to building stellar investment records.
The chart below illustrates the percent of top
performing large cap investment managers
from January 1, 2001 to December 31, 2010
who suffered through a three year period of
underperformance, falling into the bottom half,
quartile or decile of their group.
As illustrated below, 93% of top quartile performing large cap money managers spent
at least one three year period in the bottom
half of the group; 62% spent at least one
three year period in the bottom quartile
and 31% spent at least one three year period
in the bottom decile. Though each of the
managers in the study delivered excellent longterm returns, they almost all suffered through
a difficult period.

Percentage of Top Quartile Large Cap Equity Managers Whose Performance Fell
Into the Bottom Half, Quartile or Decile for at Least One Three Year Period
100%

93%
80%

60%

62%

40%

31%

20%

0%

Bottom Half

Bottom Quartile

Bottom Decile

Source:Davis Advisors. 192 managers from eVestment Alliances large cap universe whose 10 year average annualized performance
ranked in the top quartile from January 1, 2001December 31, 2010. Past performance is not a guarantee of future results.
5

Engage in Healthy Investor Behavior

Maintaining a long-term investment strategy
is far easier said than done, especially in the
face of disappointing short-term results previously mentioned.
When faced with such situations, most investors
tend to engage in unhealthy investor behavior
and may abandon their long-term investment
strategies, chase the hot performing categories
or try to time the market in some fashion.
The impact of engaging in such unhealthy
investor behavior is illustrated quite strikingly
in the study results below. The study shows that
while the average stock fund delivered an
average annual return of 8.8% per year from
1990 to 2009, the average stock fund investor
received an average annualized return of
only 3.2% per year.
While this particular study uses mutual funds
and mutual fund investors as the basis for its
conclusions, we believe Dalbars findings in this

instance apply more generally to the behavior of

other investors as well, including institutions.
At Davis, we believe one way to encourage
healthy investor behavior is to seek out those
managers: 1) Who have demonstrated an
ability to deliver attractive results over the
long term during many different market,
economic and political environments,
2) Who have acted as stewards of clients
capital and 3) Who have communicated
with clients openly and honestly. Such
managers will instill the conviction necessary
to engage in healthy investor behavior.
Furthermore, financial professionals can help
investors through the process of searching
for the right managers and staying invested
during market turmoil. In our view, the cost
of financial advice seems relatively modest
when compared to the cost of self-inflicted
underperformance that results from unhealthy
investor behavior.

Average Stock Fund Return vs. Average Stock Fund Investor Return
(1990 2009)

Average Annual Return

10%
8%

Hypothetical Return of a $10,000 Investment

$60,000
$50,000

8.8%

$53,562

$40,000

6%

$30,000
4%

3.2%

2%
0%

$20,000

$18,676

$10,000

Average Stock Fund

Return

Average Stock Fund

Investor Return

$0

Average Stock Fund

Return

Average Stock Fund

Investor Return

Source: Quantitative Analysis of Investor Behavior by Dalbar, Inc. (March 2010) and Lipper. Dalbar computed the average stock fund
investor returns by using industry cash flow reports from the Investment Company Institute. The average stock fund return figures
represent the average return for all funds listed in Lippers U.S. Diversified Equity fund classification model. Dalbar also measured the
behavior of a systematic equity and asset allocation investor. The annualized return for these investor types was 3.4% and 2.3%
respectively over the time frame measured. All Dalbar returns were computed using the S&P 500 Index. Returns assume reinvestment
of dividends and capital gain distributions. Past performance is not a guarantee of future results.
6

Invest Systematically
For over 60 years and three generations of investing in the equity markets, the Davis family has
witnessed first-hand how a disciplined, long-term
commitment to equities can build wealth. Unfortunately, many investors make decisions based
on emotion, which can undermine the discipline
required to successfully compound wealth. For
example, when the market has fallen and prices
are low, fearful investors often pull money out
of stocks or are reluctant to add new money.
Conversely, when the market is rising and prices
are high, euphoric investors will often plow more
money into the market. The result of this negative
behavior is that investors end up moving money
into and out of stocks at precisely the wrong times.
One investment strategy that can help encourage the more disciplined, healthy investor
behavior required to build long-term wealth is

dollar-cost averaging (DCA). DCA is simply

investing money in equal amounts at regular
intervals (e.g., monthly), regardless of the market
environment. For example, if one has a lump sum
of $60,000 to be invested in equities, instead of
investing the entire amount immediately, it is
invested graduallyfor example, $10,000 each
month over a period of six months. If the market
falls and prices drop, many investors may be
tempted to pull money from stocks or be
reluctant to add new money, but the DCA
investor will automatically purchase more
shares. Conversely, should the market rise, many
investors may be tempted to aggressively plow
more money into the market, but the DCA
investor will automatically purchase fewer
shares. The hypothetical example below
illustrates how the systematic, disciplined nature
of DCA encourages healthy investor behavior:

Regular Monthly
Investment

Share
Price

$10,000

$10

1,000

$10,000

$5

2,000

$10,000

$2

5,000

$10,000

$10

1,000

$10,000

$20

500

$10,000

$25

400

$60,000 Total Hypothetical Investment

Average Share Price Over Entire Six Months:
Average Purchase Price:

Number of Shares
Purchased

9,900

}
}

Share prices fall.

Fearful investor hesitates to add money
when prices are low.
DCA investor automatically purchases
more shares.
Share prices rise.
Euphoric investor eager to add new
money when share prices rise.
DCA investor automatically purchases
fewer shares.

$12.00
$6.06

This hypothetical example is for illustrative purposes only and does not represent the performance of any
particular investment. Actual results will vary.

The Main Benefits of a Dollar-Cost Averaging Plan, When Strictly Adhered to, Are:
n Encourages

the unemotional, disciplined, healthy investor behavior of purchasing more

stocks when prices are low and fewer when prices are high. Such positive behavior can
greatly improve an investors likelihood of reaching their financial goals.

n Cautious

investors, who require the capital appreciation potential that equities provide,
may find dollar-cost averaging an attractive way to dip their toe into the market.

n Following

a period of good returns, many investors become overly aggressive, pouring more
money into the market in an attempt to earn back what they may have lost. DCA ensures
these investors enter the market in a less emotional, more disciplined manner.

Dollar-cost averaging does not assure a profit and does not protect against loss in declining markets. Dollar-cost averaging
involves continuous investment regardless of fluctuating prices. You should consider your financial ability to continue purchases through periods of high or low price levels.

Historically, Periods of Low Returns for Stocks

Have Been Followed by Periods of Higher Returns
After suffering through a painful period for
stocks, investors often reduce their exposure
to equities or abandon them altogether.
While understandable, such activity often
occurs at precisely the wrong time. Though
extremely challenging to do, history has shown
that investors should feel confident about the
long-term potential of equities after a prolonged
period of disappointment. Why? Because
historically low prices have increased future
returns and crisis has created opportunity.8
Consider the chart below which illustrates the
10 year returns for the market from 19282010.
The red bars represent 10 year periods where the
market returned less than 5%. From 19282010,
there have been twelve 10 year periods where
the market returned less than 5%.

However, in every past case, the 10 year

period following each disappointing period
produced satisfactory returns. Past market
performance is not a guarantee of future results.
For example, the 0.2% average annual return
from 19281937 was followed by a 9.3% average
annual return from 19381947.
Furthermore, these periods of recovery averaged 13% per year and ranged from a low of
7% per year to a high of 18% per year.
While we cannot know for sure what the next
decade will hold, it may be far better than what
we have suffered through in the last ten years.8
Investors who bear in mind that low prices
increase future returns are more likely to
endure hard times and be there to benefit
from subsequent periods of recovery.

10 Year Returns for theMarket from 19282010

10 Year Average Annual Return

20

15

10

-5

9.3%

2837
2938
3039
3140
3241
3342
3443
3544
3645
3746
3847
3948
4049
4150
4251
4352
4453
4554
4655
4756
4857
4958
5059
5160
5261
5362
5463
5564
5665
5766
5867
5968
6069
6170
6271
6372
6473
6574
6675
6776
6877
6978
7079
7180
7281
7382
7483
7584
7685
7786
7887
7988
8089
8190
8291
8392
8493
8594
8695
8796
8897
8998
9099
9100
9201
9302
9403
9504
9605
9706
9807
9908
00-09
01-10

0.2%

Source: Thomson Financial, Lipper and Bloomberg. Graph represents the S&P 500 Index from 1958 through 2010. The period 1928
through 1957 is represented by the Dow Jones Industrial Average. Past performance is not a guarantee of future results. 8There
is no guarantee that low-priced securities will appreciate. Past performance is not a guarantee of future results.
8

The Seven Timeless Strategies

For the Successful Investor
1. Accept That Uncertainty is the Rule,
Not the Exception
When building long-term wealth, periods of
uncertainty are the rule, not the exception.
But, despite such uncertainty, it is important
to bear in mind that the long-term progress
of the stock market has been upward.

2. Focus on What is Important

and Knowable
Since uncertainty is the rule, not the exception, it is crucial to focus on what is important
and knowable versus important and unknowable.
Such an investment approach can help
uncover investment opportunities during
many different market, economic and political environments.

3. Be Patient
At Davis, we believe a patient, buy and hold
investment approach is the best way to build
long-term wealth. Such an approach allows
investors to filter out the noise, maintain
their investment strategy and allow the
power of compounding to help build wealth.

4. Expect Periods of Disappointment

It is crucial to understand that even top
performing investment managers will go
through periods of disappointment. By
recognizing this fact, you may be less likely
to engage in unhealthy investor behavior
and make unnecessary modifications to
your long-term investment strategy.

5. Engage in Healthy Investor Behavior

Having conviction in the investment managers
you entrust your capital to and working with
a financial professional can help investors
engage in healthy investor behavior.

6. Invest Systematically
Investing is an emotional experience, so
develop a roadmap to maintain your
focus and discipline necessary to build
long-term wealth.

7. Historically, Periods of Low Returns

for Stocks Have Been Followed
by Periods of Higher Returns
Low prices can increase future returns.
Investors who bear this in mind are more
likely to endure hard times and be there
to benefit from the subsequent periods
of recovery.

Past performance is not a guarantee of future results. There is no guarantee that an investor following these strategies will in fact
build wealth.
9

This report is authorized for use by existing shareholders. A current Davis New York Venture Fund prospectus must accompany or precede this
piece if it is distributed to prospective shareholders. You should carefully consider the Funds investment objective, risks, charges and expenses
before investing. Read the prospectus carefully before you invest or send money.
This report includes candid statements and observations regarding investment strategies and economic and market conditions; however,
there is no guarantee that these statements, opinions or forecasts will prove to be correct. These comments may also include the expression of opinions that are speculative in nature and should not be relied on as statements of fact.
Davis New York Venture Funds investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve
its objective. The Fund invests primarily in equity securities issued by large companies with market capitalizations of at least $10 billion.
Some important risks of an investment in the Fund are: stock market risk: stock markets tend to move in cycles, with periods of rising
prices and periods of falling prices, including the possibility of sharp declines; manager risk: poor security selection or focus on securities
in a particular sector, category, or group of companies may cause the Fund to underperform relevant benchmarks or other funds with
a similar investment objective; common stock risk: common stock represents an ownership position in a company. An adverse event
may have a negative impact on a company and could result in a decline in the price of its common stock. Common stocks are generally
subordinate to an issuers other securities including convertible and preferred securities; financial services risk: investing a significant
portion of assets in the financial services sector may cause a fund to be more volatile as securities within the financial services sector
are more prone to regulatory action in the financial services industry, more sensitive to interest rate fluctuations and are the target of
increased competition; fees and expenses risk: fees and expenses reduce the return which a shareholder may earn by investing in a fund;
and foreign country risk: foreign companies may be subject to greater risk as foreign economies may not be as strong or diversified,
foreign political systems may not be as stable and foreign financial reporting standards may not be as rigorous as they are in the United
States. As of December 31, 2010, the Fund had approximately 19.2% of assets invested in foreign companies. See the prospectus for a
complete listing of the principal risks.
Davis Advisors is committed to communicating with our investment partners as candidly as possible because we believe our
investors benefit from understanding our investment philosophy and approach. Our views and opinions include forward-looking
statements which may or may not be accurate over the long term. Forward-looking statements can be identified by words like
believe, expect, anticipate, or similar expressions. You should not place undue reliance on forward-looking statements, which
are current as of the date of this report. We disclaim any obligation to update or alter any forward-looking statements, whether as
a result of new information, future events or otherwise. While we believe we have a reasonable basis for our appraisals and we have
confidence in our opinions, actual results may differ materially from those we anticipate.
Rolling 10 Year Performance Chart. Davis New York Venture Funds average annual total returns for Class A shares were compared
against the returns earned by the S&P 500 Index as of December 31 of each year for all 10 year time periods from 1969 through 2010.
The Funds returns assume an investment in Class A shares on January 1 of each year with all dividends and capital gain distributions
reinvested for a 10 year period. The figures are not adjusted for any sales charge that may be imposed. If a sales charge were imposed,
the reported figures would be lower. The figures shown reflect past results; past performance is not a guarantee of future results. There
can be no guarantee that the Fund will continue to deliver consistent investment performance. The performance presented includes
periods of bear markets when performance was negative. Equity markets are volatile and an investor may lose money. Returns for other
share classes will vary.
Dalbar, a Boston based financial research firm that is independent from Davis Advisors, researched the result of actively trading mutual
funds in a report entitled Quantitative Analysis of Investor Behavior (QAIB). The Dalbar report covered the time periods from 19902009.
The Lipper Equity LANA Universe includes all U.S. registered equity and mixed-equity mutual funds with data available through Lipper.
Returns assume reinvestment of dividends and capital gain distributions. The fact that buy and hold has been a successful strategy in the
past does not guarantee that it will continue to be successful in the future.
Broker-dealers and other financial intermediaries may charge Davis Advisors substantial fees for selling its products and providing continuing support to clients and shareholders. For example, broker-dealers and other financial intermediaries may charge: sales commissions; distribution and service fees and record-keeping fees. In addition, payments or reimbursements may be requested for: marketing
support concerning Davis Advisors products; placement on a list of offered products; access to sales meetings, sales representatives and
management representatives; and participation in conferences or seminars, sales or training programs for invited registered representatives and other employees, client and investor events, and other dealer-sponsored events. Financial advisors should not consider Davis
Advisors payment(s) to a financial intermediary as a basis for recommending Davis Advisors.
Over the last five years, the high and low turnover ratio for Davis New York Venture Fund was 16% and 5%, respectively.
The S&P 500 Index is an unmanaged index of 500 selected common stocks, most of which are listed on the New York Stock Exchange.
The Index is adjusted for dividends, weighted towards stocks with large market capitalizations and represents approximately two-thirds
of the total market value of all domestic common stocks. The Dow Jones Industrial Average is a price-weighted average of 30 actively
traded blue chip stocks. The Dow Jones is calculated by adding the closing prices of the component stocks and using a divisor that is
adjusted for splits and stock dividends equal to 10% or more of the market value of an issue as well as substitutions and mergers. The
average is quoted in points, not in dollars. Investments cannot be made directly in an index.
After April 30, 2011, this material must be accompanied by a supplement containing performance data for the most recent quarter end.
Shares of the Davis Funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the
FDIC or any other agency, and involve investment risks, including possible loss of the principal amount invested.

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Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756, 800-279-0279, davisfunds.com