Selected American Shares Class D Investment Strategy and Portfolio

The Selected American Shares Class D investment strategy focuses on providing long-term growth by investing in a diversified portfolio of high-quality, large-cap US stocks.

This strategy is designed for investors who are looking for a low-cost, actively managed option that can help them achieve their long-term financial goals.

The portfolio is comprised of 30-40 holdings, with a focus on companies that have a strong track record of financial performance and a competitive advantage in their industry.

By investing in a diversified portfolio of high-quality US stocks, investors can potentially benefit from the growth and stability of the US market over the long-term.

Let's take a closer look at the performance and fees of Selected American Shares Class D, also known as SLASX.

The expense ratio of SLASX is 0.99%, which is 4% higher than its category average, earning it a D grade.

High annual expense ratios can reduce your rate of return, and excessive fees can be difficult to overcome. It's essential to compare fund expense ratios against category averages for a meaningful assessment.

SLASX has a portfolio turnover rate of 9%, indicating that it holds its assets for around 0.1 years. By comparison, the average portfolio turnover is 51% for the Large Value category.

Here's a brief comparison of SLASX's performance over different time periods:

* Annualized

Note that high portfolio turnover can lead to higher expenses and lower after-tax returns. In December 2024, SLASX returned -5.5%, which earned it a B grade, as the Large Value category had an average return of -5.9%.

Selected American Shares Class D is a solid investment option for those looking to diversify their portfolio. The fund's investment strategy is built around providing access to attractive investment opportunities among large cap, durable, well-managed businesses primarily in the U.S.

The portfolio manager, Chris Davis, uses the Davis Investment Discipline to select a small group of well-researched companies. This approach has led to a portfolio with highly attractive earnings growth and undervalued companies.

The fund's holdings are 42% less expensive than the index, making it a great option for those looking for value. The number of holdings in the fund is 50, which is relatively low compared to the S&P 500 Index.

Here's a comparison of the fund's key statistics with the S&P 500 Index:

The fund's 5-year EPS growth rate is significantly higher than the S&P 500 Index, indicating that its portfolio companies are experiencing strong earnings growth. The forward P/E ratio is also lower than the index, making it a more attractive option for value investors.

The Selected American Shares Class D portfolio is a unique blend of stocks that differ significantly from the S&P 500 Index. The portfolio's forward P/E ratio is 14.5x, much lower than the S&P 500 Index's 24.9x.

The fund's 5-year earnings growth rate is a respectable 20.4%, outpacing the S&P 500 Index's 17.7%. This suggests that the portfolio's holdings are growing at a faster rate than the broader market.

The portfolio's active share is a high 83%, indicating that it holds very few stocks in common with the S&P 500 Index. This is in line with the fund's statement that it is "highly selective" in its investments.

Here's a breakdown of the portfolio's sector allocations, compared to the S&P 500 Index:

The portfolio is heavily weighted towards large-cap stocks, with 96.3% of its holdings falling into this category. This is in stark contrast to the S&P 500 Index, which is also heavily weighted towards large-cap stocks, but to a slightly lesser extent.

As of December 31, 2024, the Selected American Shares Class D portfolio holds a diverse range of companies across various sectors.

Meta Platforms, Capital One Financial, and Berkshire Hathaway are among the top holdings, making up 25.7% of the portfolio's total value. These companies have significant weight in the portfolio, with Meta Platforms accounting for 9.1% of the total.

The portfolio also includes a mix of well-established companies like Amazon.com, Alphabet, and Microsoft, which are leaders in their respective industries. These companies have a strong presence in the S&P 500 Index, with Amazon.com and Alphabet being among the top holdings in the index.

Here's a breakdown of the top holdings in the Selected American Shares Class D portfolio as of December 31, 2024:

The portfolio's sector allocation is also noteworthy, with a significant presence in the Financials sector, making up 33.8% of the portfolio's value. This is in contrast to the S&P 500 Index, where Financials account for 13.6% of the index's value.

The fees associated with Selected American Shares Class D are relatively high, with an expense ratio of 0.99%, which is 4% higher than its category average.

This high expense ratio can reduce your rate of return over time, making it essential to consider the fees when evaluating the fund's performance. The Selected American Shares S expense ratio grade is a D, indicating that it's one of the higher expense ratios in the Large Value category.

The fund's portfolio turnover rate is 9%, which is significantly lower than the average portfolio turnover of 51% for the Large Value category. This lower turnover rate can result in lower expenses and potentially higher aftertax returns.

Here's a breakdown of the operational fees for Selected American Shares Class D:

The fund distributes capital gains semi-annually, and the net income ratio is 0.49%. The dividend yield is 1.3%, and the dividend distribution frequency is semi-annual.

Operational Fees are a crucial aspect of any investment, as they can significantly impact your returns. The expense ratio is a key component of operational fees, and it measures how much of a fund's assets are used for administrative expenses and operating expenses.

The Selected American Shares S fund has an expense ratio of 0.99%, which is 4% higher than its category average. This translates to a higher grade of D compared to the category average.

High portfolio turnover can also contribute to higher operational fees. The Selected American Shares S fund has a portfolio turnover rate of 9%, which is significantly lower than the average portfolio turnover of 51% for the Large Value category.

Let's break down the operational fees for the SLADX fund, which has a more favorable expense ratio compared to the Selected American Shares S fund. Here are the details:

The expense ratio for the SLADX fund is 0.67%, which is significantly lower than the Selected American Shares S fund. This is a more favorable rate for investors, as it will likely result in higher returns over time.

Distributions play a crucial role in your investment portfolio, and understanding how they work can make a big difference in your returns. The frequency and type of distributions can vary greatly depending on the investment.

The distribution frequency for this investment is semi-annually, which means you can expect to receive payments twice a year.

Distributions can come in the form of dividends, capital gains, or a combination of both. Dividends are payments made by the company to its shareholders, while capital gains are profits made from the sale of assets.

The dividend yield for this investment is 1.3%, which is a relatively low yield compared to other investments. However, the dividend distribution frequency is also semi-annually, which means you can expect to receive regular payments.

Here's a breakdown of the distribution types and frequencies for this investment:

The net income ratio for this investment is 0.49%, which means that a relatively small portion of the investment's income is distributed to shareholders. This could be due to the company's business model or financial situation.

The distribution history for this investment is a good indicator of its past performance and can help you make informed decisions about your investment.

The Fund invests at least 80% of its net assets in securities issued by American companies, with a focus on large companies with market capitalizations of at least $10 billion.

The Fund's investment adviser, Davis Advisors, uses the Davis Investment Discipline to select stocks, which involves rigorous research to identify companies with characteristics that foster long-term value, such as proven management and sustainable competitive advantages.

Davis Advisors aims to invest in these companies when they are trading at discounts to their intrinsic worth, and the Fund has historically invested a significant portion of its assets in financial services companies and foreign companies.

The Fund's investment strategy is designed to be long-term, with a goal of holding companies for five years or longer, although this goal may not always be met.

The fund's performance over time is a crucial aspect to consider when evaluating its potential. The fund's return history reveals some interesting trends.

The fund's YTD return of 6.5% is a respectable start to the year, but it's worth noting that the category return low is -0.3%.

Here's a breakdown of the fund's returns over different periods:

The fund's 1-year return of 21.2% is a significant jump, and it's even more impressive when compared to the category return high of 46.7%.

The fund's 3-year return is 10.5%, but it's worth noting that this is an annualized return, meaning it's been adjusted to account for the time period.

The fund's 5-year return is 11.4%, which is a strong performance, especially considering the category return low of -1.7%.

The fund's 10-year return is 11.0%, and it's interesting to see that it's ranked 71.29% in its category over this period.

Overall, the fund's return history suggests that it's been a consistent performer, with some notable highs and lows over the years.

The fund, Selected American Shares, is managed by Davis Advisors, a company that uses the Davis Investment Discipline to make investment decisions. This discipline involves rigorous research to identify businesses that possess characteristics that foster long-term value.

Davis Advisors focuses on investing in American companies with market capitalizations of at least $10 billion. They also invest in financial services companies and foreign companies.

Their investment approach emphasizes individual stock selection and the ability to evaluate management. Davis Advisors believes that proven management, a durable franchise, and business model, and sustainable competitive advantages are key to creating long-term value.

Davis Advisors visits managers at their places of business to gain insight into the relative value of different businesses. They also conduct extensive research to determine which companies to invest in.

Here are some key characteristics of the fund's investment strategy:

Davis Advisors aims to invest in businesses for the long term, ideally five years or longer. They consider selling a company's equity securities if the market price exceeds their estimates of intrinsic value or if the risks and rewards of continuing to own the securities are no longer attractive.