The Successful InvestorMastering Investor Behavior That Builds Long-Term Wealth

Over 40 Years of Reliable Investing

Table of Contents

The Successful Investor 1

Uncertainty is the Rule, Not the Exception 2

Focus on What is Important and Knowable 3

Be Patient 4

Expect Periods of Disappointment 5

Engage in Healthy Investor Behavior 6

Invest Systematically 7

Historically, Periods of Low Returns for Stocks Have Been Followed by Periods of Higher Returns 8

The Seven Timeless Strategies For the Successful Investor 9

1The Successful Investor

1As 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.

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 com-missioner, 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.

While many would attribute the Davis familys extraordinary success to investment selection, this tells only part of the story. The other major contri butor 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. Specifi-cally, 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

Shelby Cullom Davis

22

Long-term investors in equities are always faced with uncertainty. In the 1970s, investors had to weather the 7374 bear market, geo political 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 experi-enced 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, geo political turmoil in the Middle East, myriad natural disasters, corporate scan-dals, 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 prog-ress 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 Port-folio Manager, once remarked, Building long-term 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.

Uncertainty is the Rule, Not the Exception

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.

1,6001,4001,2001,000

800

600

400

200

100

6070 72 74 76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10

12/31/10S&P 500 Index

S&L Crisis, Russian Default, Long Term Capital, Asian Contagion

The 1990s

Sub-Prime Debacle, Economic Uncertainty,

Financial Crisis

Internet Bubble, Tech Wreck, Telecom Bust

The 2000s

Despite Decades of Uncertainty, the Historical Trend of the Stock Market Has Been Positive

TodayJunk Bonds, LBOs, Black Monday

The 1980s

The 1970s

Nifty-50, Inflation, 73-74 Bear Market

3Shelby 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...

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.

By relentlessly focusing on what is both impor-tant 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

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.

Focus on What is Important and Knowable

Average Annual Total Returns as of December 31, 2010 1 Year 5 Years 10 Years 15 Years 20 Years 25 Years 30 Years 35 Years 40 Years

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%

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.4Past 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. 6Returns calculated from 2/17/69 through 12/31/78.

Davis New York Venture Fund (Class A, without a sales charge) S&P 500 Index

4.76 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 2.6 3.36 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 1.4 4.76 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 2.6 3.36 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 1.4

71-8071-80 82-9182-9181-9081-9080-8980-8979-8879-8878-8778-8777-8677-8676-8576-8575-8475-8474-8374-8373-8273-8272-8172-8170-7970-7969-7869-78 94-0394-0393-0293-0291-0091-0090-9990-9989-9889-9888-9788-9787-9687-9686-9586-9585-9485-9484-9384-9383-9283-92 92-0192-01 96-0596-0595-0495-04 97-0697-06 98-0798-07 00-0900-09 01-1001-1099-0899-08-2%0%2%4%6%8%10%12%14%16%18%20%22%

Davis New York Venture Fund vs. S&P 500 Index Rolling 10 Year Return Comparison

44

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 short-term 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 cate-gories 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 turn-over 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 per formance 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.

Be Patient

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.

Portfolio Managers Utilizing a Patient, Low-Turnover Investment Approach Have Rewarded Investors

(1/1/96 12/31/10)

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

Davis New York Venture Fund Class A Shares

13%7 8.18% $32,515

5Percentage of Top Quartile Large Cap Equity Managers Whose Performance Fell Into the Bottom Half, Quartile or Decile for at Least One Three Year Period

When constructing a long-term financial strat-egy, it is important to recognize and acknowl-edge 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 pre-pared 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 cumu-lative gain of 1,156% versus only 103.3% for the S&P 500 Index. However, he underper-formed 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 inves-tors 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 per-forming 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 long- term returns, they almost all suffered through a difficult period.

Expect Periods of Disappointment

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.

0%

20%

40%

60%

80%

100%

Bottom DecileBottom QuartileBottom Half

93%

62%

31%

66

Maintaining a long-term investment strategy is far easier said than done, especially in the face of disappointing short-term results previ-ously 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.

Engage in Healthy Investor Behavior

0%

2%

4%

6%

8%

10%

Average Stock FundInvestor Return

Average Stock FundReturn

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Average Stock FundInvestor Return

Average Stock FundReturn

Average Annual Return Hypothetical Return of a $10,000 Investment

3.2%

$53,562

$18,676

8.8%

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

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.

7For over 60 years and three generations of invest-ing in the equity markets, the Davis family has witnessed first-hand how a disciplined, long-term commitment to equities can build wealth. Unfor-tunately, 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 encour-age 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:

Invest Systematically

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 pur-chases through periods of high or low price levels.

Regular Monthly Investment

SharePrice

Number of SharesPurchased

$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 9,900

Average Share Price Over Entire Six Months: $12.00

Average Purchase Price: $6.06

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.

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

}}

nEncourages 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.

nCautious 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.

nFollowing 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.

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

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8

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 aver-aged 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.

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.

10 Year Returns for the Market from 19282010

9The 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 excep-tion, 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 politi-cal 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.

Item #3874 12/10 Davis Distributors, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85756, 800-279-0279, davisfunds.com

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 expres-sion 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 con-tinuing support to clients and shareholders. For example, broker-dealers and other financial intermediaries may charge: sales commis-sions; 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 representa-tives 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.