Selected American Shares Inc.
03/03/2026 | Press release | Distributed by Public on 03/03/2026 09:41
Annual Report by Investment Company (Form N-CSR)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number
811-00051
SELECTED AMERICAN SHARES, INC.
(Exact name of registrant as specified in charter)
2949 East Elvira Road, Suite 101
Tucson, AZ 85756
(Address of principal executive offices)
Lisa J. Cohen
Davis Selected Advisers, L.P.
2949 East Elvira Road, Suite 101
Tucson, AZ 85756
(Name and address of agent for service)
Registrant's telephone number, including area code:
520-806-7600
Date of fiscal year end:
December 31, 2025
Date of reporting period:
December 31, 2025
ITEM 1. REPORTS TO STOCKHOLDERS
Selected American Shares
Class D / SLADX
ANNUAL SHAREHOLDER REPORT | DECEMBER 31, 2025
This Annual shareholder report contains important information about the Selected American Shares (the "Fund") for the period of January 1, 2025 to December 31, 2025 (the "period"). You can find additional information about the Fund at selectedfund.com/resources/regulatory-documentsor by contacting Investor Services at 1-800-243-1575.
What were the Fund expenses for the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|
Selected American Shares (Class D) |
$74 | 0.65% |
Management's Discussion of Fund Performance
Summary of Results
The Fund outperformed the Standard & Poor's 500 Index ("S&P 500" or the "Index") for the period. The Fund's Class D shares delivered a total return of 27.16%, versus a 17.88% return for the S&P 500. The Fund invests principally in common stocks (including American Depositary Receipts) issued by large companies with market capitalizations of at least $10 billion. The Fund continues to invest a significant portion of its assets in financial services and foreign companies.
Market Overview
-
S&P 500
-
Strongest performing sectors - Communication Services (+34%), Information Technology (+24%), and
Industrials (+19%) -
Weakest performing sectors - Real Estate (+3%), Consumer Staples (+4%), and Consumer Discretionary (+6%)
-
Contributors to Performance
-
Financials - significantly outperformed the Index sector (+35% vs +15%)
-
Capital One Financial (+38%), Danske Bank (+88%), U.S. Bancorp (+16%), Wells Fargo (+36%), and
Berkshire Hathaway (+11%)
-
-
Information Technology - outperformed the Index sector (+58% vs +24%)
-
Applied Materials (+60%) - largest individual contributor
-
Samsung Electronics (+135%)
-
-
Health Care - outperformed the Index sector (+25% vs +15%)
-
CVS Health (+84%)
-
-
Consumer Discretionary - outperformed the Index sector (+15% vs +6%)
-
Overweight in Communication Services (average weighting 14% vs 10%), the strongest performing sector of the Index
-
Alphabet (+66%) and Meta Platforms (+13%)
-
Detractors from Performance
-
Significantly underweight in stronger performing Information Technology sector - (average weighting 12% vs 33%)
-
Texas Instruments (-4%)
-
-
Industrials - significantly underperformed the Index sector (-5% vs +19%) and underweight (average weighting 4% vs 8%)
-
Owens Corning (-33%) - largest individual detractor
-
-
Communication Services - underperformed the Index sector (+27% vs +34%)
-
Pinterest (-28%) and Angi (-12%) - new holdings added during the period
-
-
Energy - underperformed the Index sector (+3 vs +9%) and overweight (average weighting 4% vs 3%)
-
ConocoPhillips (-2%)
-
Fund Performance
The following graph compares the initial and subsequent account values of a $10,000 investment in the Fund, the S&P 500 Index, and the Russell 1000 Value Index over 10 fiscal years for an investment made on December 31, 2015.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN FOR PERIODS ENDED 12/31/25 | 1 Year | 5 Years | 10 Years |
| Selected American Shares (Class D) | 27.16% | 13.49% | 12.67% |
| S&P 500 Index | 17.88% | 14.42% | 14.81% |
| Russell 1000 Value Index | 15.91% | 11.32% | 10.52% |
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. For most recent month-end performance information, please call Investor Services at 1-800-243-1575 or visit the Fund's website at www.selectedfund.com .
Key Fund Statistics
| Fund net assets as of 12/31/25 (in billions) | $2.0 |
| Total number of portfolio holdings as of 12/31/25 | 44 |
| Portfolio turnover rate for the period | 15% |
| Total advisory fees paid for the period (in millions) | $9.9 |
Top Sectors as of 12/31/25 Net Assets
| Financials | 31.14% |
| Communication Services | 13.88% |
| Health Care | 13.38% |
| Consumer Discretionary | 12.18% |
| Information Technology | 11.48% |
Where can I find more information?
You can find additional information about the Fund such as the prospectus, financial information, fund holdings, federal tax information, and proxy voting information at selectedfund.com/resources/regulatory-documentsor by scanning the QR code. You can also request this information by contacting Investor Services at 1-800-243-1575.
SELECTED AMERICAN SHARES, INC.
Selected American Shares
Class S / SLASX
ANNUAL SHAREHOLDER REPORT | DECEMBER 31, 2025
This Annual shareholder report contains important information about the Selected American Shares (the "Fund") for the period of January 1, 2025 to December 31, 2025 (the "period"). You can find additional information about the Fund at selectedfund.com/resources/regulatory-documentsor by contacting Investor Services at 1-800-243-1575.
What were the Fund expenses for the last year?
(Based on a hypothetical $10,000 investment)
| Fund (Class) | Costs of $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|
Selected American Shares (Class S) |
$110 | 0.97% |
Management's Discussion of Fund Performance
Summary of Results
The Fund outperformed the Standard & Poor's 500 Index ("S&P 500" or the "Index") for the period. The Fund's Class S shares delivered a total return of 26.77%, versus a 17.88% return for the S&P 500. The Fund invests principally in common stocks (including American Depositary Receipts) issued by large companies with market capitalizations of at least $10 billion. The Fund continues to invest a significant portion of its assets in financial services and foreign companies.
Market Overview
-
S&P 500
-
Strongest performing sectors - Communication Services (+34%), Information Technology (+24%), and
Industrials (+19%) -
Weakest performing sectors - Real Estate (+3%), Consumer Staples (+4%), and Consumer Discretionary (+6%)
-
Contributors to Performance
-
Financials - significantly outperformed the Index sector (+35% vs +15%)
-
Capital One Financial (+38%), Danske Bank (+88%), U.S. Bancorp (+16%), Wells Fargo (+36%), and
Berkshire Hathaway (+11%)
-
-
Information Technology - outperformed the Index sector (+58% vs +24%)
-
Applied Materials (+60%) - largest individual contributor
-
Samsung Electronics (+135%)
-
-
Health Care - outperformed the Index sector (+25% vs +15%)
-
CVS Health (+84%)
-
-
Consumer Discretionary - outperformed the Index sector (+15% vs +6%)
-
Overweight in Communication Services (average weighting 14% vs 10%), the strongest performing sector of the Index
-
Alphabet (+66%) and Meta Platforms (+13%)
-
Detractors from Performance
-
Significantly underweight in stronger performing Information Technology sector - (average weighting 12% vs 33%)
-
Texas Instruments (-4%)
-
-
Industrials - significantly underperformed the Index sector (-5% vs +19%) and underweight (average weighting 4% vs 8%)
-
Owens Corning (-33%) - largest individual detractor
-
-
Communication Services - underperformed the Index sector (+27% vs +34%)
-
Pinterest (-28%) and Angi (-12%) - new holdings added during the period
-
-
Energy - underperformed the Index sector (+3 vs +9%) and overweight (average weighting 4% vs 3%)
-
ConocoPhillips (-2%)
-
Fund Performance
The following graph compares the initial and subsequent account values of a $10,000 investment in the Fund, the S&P 500 Index, and the Russell 1000 Value Index over 10 fiscal years for an investment made on December 31, 2015.
GROWTH OF $10,000
| AVERAGE ANNUAL TOTAL RETURN FOR PERIODS ENDED 12/31/25 | 1 Year | 5 Years | 10 Years |
| Selected American Shares (Class S) | 26.77% | 13.13% | 12.31% |
| S&P 500 Index | 17.88% | 14.42% | 14.81% |
| Russell 1000 Value Index | 15.91% | 11.32% | 10.52% |
The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. For most recent month-end performance information, please call Investor Services at 1-800-243-1575 or visit the Fund's website at www.selectedfund.com .
Key Fund Statistics
| Fund net assets as of 12/31/25 (in billions) | $2.0 |
| Total number of portfolio holdings as of 12/31/25 | 44 |
| Portfolio turnover rate for the period | 15% |
| Total advisory fees paid for the period (in millions) | $9.9 |
Top Sectors as of 12/31/25 Net Assets
| Financials | 31.14% |
| Communication Services | 13.88% |
| Health Care | 13.38% |
| Consumer Discretionary | 12.18% |
| Information Technology | 11.48% |
Where can I find more information?
You can find additional information about the Fund such as the prospectus, financial information, fund holdings, federal tax information, and proxy voting information at selectedfund.com/resources/regulatory-documentsor by scanning the QR code. You can also request this information by contacting Investor Services at 1-800-243-1575.
SELECTED AMERICAN SHARES, INC.
ITEM 2. CODE OF ETHICS
The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
No substantive amendments were approved or waivers granted to this code of ethics during the period covered by this report.
A copy of the code of ethics is filed as an exhibit to this Form N-CSR. The Registrant undertakes to provide to any person without charge, upon request, a copy of the code of ethics. Such request can be made by calling 520-806-7600 or to the Secretary of the Registrant, 2949 East Elvira Road, Suite 101, Tucson, Arizona 85756.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Registrant's Board of Directors has determined that independent director Katherine MacWilliams qualifies as the "audit committee financial expert," as defined in Item 3 of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
(a) Audit FeesThe aggregate Audit Fees billed by KPMP LLP ("KPMG") for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for the fiscal years ended December 31, 2025 and December 31, 2024 were $78,318 and $75,354, respectively.
(b)Audit-Related FeesThe aggregate Audit-Related Fees billed by KPMG for services rendered for assurance and related services that are reasonably related to the performance of the audit or review of the funds financial statements, but not reported as Audit Fees for fiscal years ended December 31, 2025 and December 31, 2024 were $0 and $0, respectively.
(c) Tax FeesThe aggregate Tax Fees billed by KPMG for professional services rendered for tax compliance, tax advice, and tax planning for the fiscal years ended December 31, 2025 and December 31, 2024 were $12,011 and $11,643, respectively.
Fees included in the Tax Fee category comprise all services performed by professional staff in the independent accountant's tax division except those services related to the audit. These services include preparation of tax returns, tax advice related to mergers, and a review of the fund income and capital gain distributions.
(d) All Other FeesThe aggregate Other Fees billed by KPMG for all other non-audit services rendered to the Fund for the fiscal years ended December 31, 2025 and December 31, 2024 were $0 and $0, respectively.
(e)(1) Audit Committee Pre-Approval Policies and Procedures.
The Fund's Audit Committee must pre-approve all audit and non-audit services provided by the independent accountant relating to the operations or financial reporting of the Fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Fund's Audit Committee has adopted a policy whereby audit and non-audit services performed by the Fund's independent accountant require pre-approval in advance at regularly scheduled Audit Committee meetings. If such a service is required between regularly scheduled Audit Committee meetings, pre-approval may be authorized by the Audit Committee Chairperson with ratification at the next scheduled audit committee meeting.
(e)(2) No services included in (b) - (d) of this Item 4 were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not Applicable.
(g) The Fund's independent accountant did not provide any services to the investment advisor or any affiliate for the fiscal years ended December 31, 2025 and December 31, 2024. The Fund has not paid any fees for non-audit services not previously disclosed in Item 4 (b) - (d).
(h) The Registrant's audit committee of the Board of Directors has considered whether the provision of non-audit services that were rendered to the Registrant's investment adviser, and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the Registrant that are not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence. No such services were rendered.
(i) Not Applicable.
(j) Not Applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable to this Registrant, insofar as the Registrant is not a listed issuer as defined in Rule 10A-3 under the Securities Exchange Act of 1934.
ITEM 6. INVESTMENTS
(a) The complete Schedule of Investments is included in Item 7 of this Form N-CSR.
(b) Not Applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END INVESTMENT COMPANIES
Selected American Shares
(portfolio of Selected American Shares, Inc.)
December 31, 2025
ANNUAL FINANCIAL STATEMENTS AND OTHER INFORMATION (ITEMS 7-11 OF FORM N-CSR)
Selecting Quality Companies for the Long Term
SELECTED AMERICAN SHARES
Table of Contents
|
ITEM 7. Financial Statements and Financial Highlights for Open-End Investment Companies:
|
|
|
Schedule of Investments
|
2
|
|
Statement of Assets and Liabilities
|
4
|
|
Statement of Operations
|
5
|
|
Statements of Changes in Net Assets
|
6
|
|
Notes to Financial Statements
|
7
|
|
Financial Highlights
|
15
|
|
Report of Independent Registered Public Accounting Firm
|
17
|
|
Federal Income Tax Information
|
18
|
SELECTED AMERICAN SHARES
Schedule of Investments December 31, 2025
|
|
Shares
|
Value
(Note 1)
|
|
COMMON STOCK - (98.54%)
|
||
|
COMMUNICATION SERVICES - (13.88%)
|
||
|
Media & Entertainment - (13.88%)
|
||
|
Alphabet Inc., Class A
|
363,394
|
$113,742,322
|
|
Angi Inc., Class A *
|
143,761
|
1,858,830
|
|
ASAC II L.P. *(a)(b)(c)
|
1,174,606
|
1,237,447
|
|
IAC Inc. *
|
273,790
|
10,705,189
|
|
Meta Platforms, Inc., Class A
|
178,179
|
117,614,176
|
|
Pinterest, Inc., Class A *
|
1,121,900
|
29,045,991
|
|
Total Communication Services
|
274,203,955
|
|
|
CONSUMER DISCRETIONARY - (12.18%)
|
||
|
Consumer Discretionary Distribution & Retail - (5.97%)
|
||
|
Amazon.com, Inc. *
|
315,626
|
72,852,793
|
|
Naspers Ltd. - N (South Africa)
|
94,410
|
6,296,341
|
|
Prosus N.V., Class N (Netherlands)
|
625,752
|
38,745,909
|
|
|
117,895,043
|
|
|
Consumer Services - (6.21%)
|
||
|
MGM Resorts International *
|
2,184,920
|
79,727,731
|
|
Restaurant Brands International Inc.
(Canada)
|
296,100
|
20,202,903
|
|
Trip.com Group Ltd., ADR (China)
|
316,700
|
22,773,897
|
|
|
122,704,531
|
|
|
Total Consumer Discretionary
|
240,599,574
|
|
|
CONSUMER STAPLES - (4.43%)
|
||
|
Food, Beverage & Tobacco - (4.43%)
|
||
|
Darling Ingredients Inc. *
|
241,340
|
8,688,240
|
|
JBS N.V., Class A (Brazil) *
|
1,382,080
|
19,929,594
|
|
Tyson Foods, Inc., Class A
|
1,006,280
|
58,988,133
|
|
Total Consumer Staples
|
87,605,967
|
|
|
ENERGY - (5.94%)
|
||
|
ConocoPhillips
|
162,790
|
15,238,772
|
|
Coterra Energy Inc.
|
2,412,340
|
63,492,789
|
|
Tourmaline Oil Corp. (Canada)
|
863,540
|
38,736,773
|
|
Total Energy
|
117,468,334
|
|
|
FINANCIALS - (31.14%)
|
||
|
Banks - (11.34%)
|
||
|
Danske Bank A/S (Denmark)
|
1,430,010
|
71,409,383
|
|
U.S. Bancorp
|
1,757,190
|
93,763,659
|
|
Wells Fargo & Co.
|
631,207
|
58,828,492
|
|
|
224,001,534
|
|
|
Financial Services - (13.01%)
|
||
|
Consumer Finance - (8.47%)
|
||
|
Capital One Financial Corp.
|
690,525
|
167,355,639
|
|
Financial Services - (4.54%)
|
||
|
Berkshire Hathaway Inc., Class A *
|
119
|
89,821,200
|
|
|
257,176,839
|
|
|
Insurance - (6.79%)
|
||
|
Life & Health Insurance - (2.74%)
|
||
|
AIA Group Ltd. (Hong Kong)
|
2,422,380
|
24,933,784
|
|
Ping An Insurance (Group) Co. of China,
Ltd. - H (China)
|
3,464,600
|
29,101,605
|
|
|
54,035,389
|
|
|
|
Shares
|
Value
(Note 1)
|
|
COMMON STOCK - (CONTINUED)
|
||
|
FINANCIALS - (CONTINUED)
|
||
|
Insurance - (Continued)
|
||
|
Property & Casualty Insurance - (4.05%)
|
||
|
Chubb Ltd.
|
90,301
|
$28,184,748
|
|
Markel Group Inc. *
|
24,158
|
51,931,245
|
|
|
80,115,993
|
|
|
|
134,151,382
|
|
|
Total Financials
|
615,329,755
|
|
|
HEALTH CARE - (13.38%)
|
||
|
Health Care Equipment & Services - (9.32%)
|
||
|
Cigna Group
|
48,650
|
13,389,940
|
|
CVS Health Corp.
|
1,041,200
|
82,629,632
|
|
Quest Diagnostics Inc.
|
99,060
|
17,189,882
|
|
Solventum Corp. *
|
432,910
|
34,303,788
|
|
UnitedHealth Group Inc.
|
111,000
|
36,642,210
|
|
|
184,155,452
|
|
|
Pharmaceuticals, Biotechnology & Life Sciences - (4.06%)
|
||
|
Viatris Inc.
|
6,440,150
|
80,179,867
|
|
Total Health Care
|
264,335,319
|
|
|
INDUSTRIALS - (3.90%)
|
||
|
Capital Goods - (2.12%)
|
||
|
AGCO Corp.
|
176,140
|
18,374,925
|
|
Orascom Construction PLC (United Arab
Emirates)
|
346,251
|
3,157,486
|
|
Owens Corning
|
181,640
|
20,327,332
|
|
|
41,859,743
|
|
|
Transportation - (1.78%)
|
||
|
DiDi Global Inc., Class A, ADS (China) *
|
6,648,340
|
35,103,235
|
|
Total Industrials
|
76,962,978
|
|
|
INFORMATION TECHNOLOGY - (11.48%)
|
||
|
Semiconductors & Semiconductor Equipment - (7.29%)
|
||
|
Applied Materials, Inc.
|
370,021
|
95,091,697
|
|
Texas Instruments Inc.
|
282,959
|
49,090,557
|
|
|
144,182,254
|
|
|
Technology Hardware & Equipment - (4.19%)
|
||
|
Samsung Electronics Co., Ltd. (South
Korea)
|
987,120
|
82,735,354
|
|
Total Information Technology
|
226,917,608
|
|
|
MATERIALS - (2.21%)
|
||
|
Teck Resources Ltd., Class B (Canada)
|
911,070
|
43,631,142
|
|
Total Materials
|
43,631,142
|
|
|
TOTAL COMMON STOCK -
(Identified cost $1,068,161,827)
|
1,947,054,632
|
|
|
|
Principal
|
Value
(Note 1)
|
|
SHORT-TERM INVESTMENTS - (1.33%)
|
||
|
Brean Capital LLC Joint Repurchase
Agreement, 3.85%, 01/02/26 (d)
|
$3,098,000
|
$3,098,000
|
2
SELECTED AMERICAN SHARES
Schedule of Investments - (Continued) December 31, 2025
|
|
Principal
|
Value
(Note 1)
|
|
SHORT-TERM INVESTMENTS - (CONTINUED)
|
||
|
Nomura Securities International, Inc. Joint
Repurchase Agreement, 3.81%, 01/02/26
(e)
|
$6,197,000
|
$6,197,000
|
|
StoneX Financial Inc. Joint Repurchase
Agreement, 3.85%, 01/02/26 (f)
|
17,052,000
|
17,052,000
|
|
TOTAL SHORT-TERM INVESTMENTS -
(Identified cost $26,347,000)
|
26,347,000
|
|
|
Total Investments - (99.87%) -
(Identified cost $1,094,508,827)
|
1,973,401,632
|
|
|
Other Assets Less Liabilities - (0.13%)
|
2,579,430
|
|
|
Net Assets - (100.00%)
|
$1,975,981,062
|
|
|
ADR:
|
American Depositary Receipt
|
|
ADS:
|
American Depositary Share
|
|
*
|
Non-income producing security.
|
|
(a)
|
Restricted Security - See Note 6 of the Notes to Financial Statements.
|
|
(b)
|
The value of this security was determined using significant unobservable
inputs. See Note 1 of the Notes to Financial Statements.
|
|
(c)
|
Limited partnership units.
|
|
(d)
|
Dated 12/31/25, repurchase value of $3,098,663 (collateralized
by: U.S. Government agency mortgages in a pooled cash account, 4.33%-
7.50%, 01/01/29-12/20/54, total fair value $3,159,960).
|
|
(e)
|
Dated 12/31/25, repurchase value of $6,198,312 (collateralized
by: U.S. Government agency mortgages and obligation in a pooled cash
account, 1.875%-6.50%, 07/15/34-09/01/54, total fair value $6,320,940).
|
|
(f)
|
Dated 12/31/25, repurchase value of $17,055,647 (collateralized
by: U.S. Government agency mortgages and obligations in a pooled cash
account, 0.00%-8.50%, 01/13/26-12/20/55, total fair value $17,393,040).
|
See Notes to Financial Statements
3
SELECTED AMERICAN SHARES
Statement of Assets and Liabilities At December 31, 2025
|
|
|
|
ASSETS:
|
|
|
Investments in securities, at value* (see accompanying Schedule of Investments)
|
$1,973,401,632
|
|
Cash
|
71,338
|
|
Cash - foreign currencies**
|
267,389
|
|
Receivables:
|
|
|
Capital stock sold
|
299,342
|
|
Dividends and interest
|
2,611,006
|
|
Investment securities sold
|
2,072,378
|
|
Prepaid expenses
|
60,971
|
|
Total assets
|
1,978,784,056
|
|
|
|
|
LIABILITIES:
|
|
|
Payables:
|
|
|
Capital stock redeemed
|
616,966
|
|
Investment securities purchased
|
727,734
|
|
Accrued custodian fees
|
143,900
|
|
Accrued distribution service fees
|
111,247
|
|
Accrued investment advisory fees
|
1,016,610
|
|
Accrued transfer agent fees
|
157,573
|
|
Other accrued expenses
|
28,964
|
|
Total liabilities
|
2,802,994
|
|
|
|
|
NET ASSETS
|
$1,975,981,062
|
|
|
|
|
NET ASSETS CONSIST OF:
|
|
|
Par value of shares of capital stock
|
$58,567,356
|
|
|
|
|
Additional paid-in capital
|
1,012,378,777
|
|
|
|
|
Distributable earnings
|
905,034,929
|
|
Net Assets
|
$1,975,981,062
|
|
|
|
|
*Including:
|
|
|
Cost of investments
|
$1,094,508,827
|
|
**Cost of cash - foreign currencies
|
267,791
|
|
|
|
|
CLASS S SHARES:
|
|
|
Net assets
|
$466,570,006
|
|
Shares outstanding
|
11,098,233
|
|
Net asset value, offering, and redemption price per share (Net assets ÷ Shares outstanding)
|
$42.04
|
|
|
|
|
CLASS D SHARES:
|
|
|
Net assets
|
$1,509,411,056
|
|
Shares outstanding
|
35,755,652
|
|
Net asset value, offering, and redemption price per share (Net assets ÷ Shares outstanding)
|
$42.21
|
See Notes to Financial Statements
4
SELECTED AMERICAN SHARES
Statement of Operations For the year ended December 31, 2025
|
INVESTMENT INCOME:
|
||
|
Income:
|
||
|
Dividends*
|
$30,379,187
|
|
|
Interest
|
1,020,853
|
|
|
Net securities lending income
|
4,510
|
|
|
Foreign withholding tax refunds
|
74,484
|
|
|
Total income
|
31,479,034
|
|
|
|
||
|
Expenses:
|
||
|
Investment advisory fees (Note 3)
|
$9,910,602
|
|
|
Custodian fees
|
404,588
|
|
|
Transfer agent fees:
|
||
|
Class S
|
481,711
|
|
|
Class D
|
624,735
|
|
|
Audit fees
|
78,318
|
|
|
Legal fees
|
32,052
|
|
|
Reports to shareholders
|
46,231
|
|
|
Tax service fees
|
39,084
|
|
|
Directors' fees and expenses
|
125,489
|
|
|
Registration and filing fees
|
58,239
|
|
|
ReFlow liquidity program fees (Note 7)
|
130,477
|
|
|
Miscellaneous
|
77,186
|
|
|
Distribution and service plan fees (Note 3):
|
||
|
Class S
|
1,083,218
|
|
|
Total expenses
|
13,091,930
|
|
|
Net investment income
|
18,387,104
|
|
|
|
||
|
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
|
||
|
Net realized gain (loss) from:
|
||
|
Investment transactions
|
159,851,166
|
|
|
In-kind redemptions (Note 2, 7)
|
75,743,638
|
|
|
Foreign currency transactions
|
(7,731
)
|
|
|
Net realized gain
|
235,587,073
|
|
|
Net increase in unrealized appreciation
|
183,585,915
|
|
|
Net realized and unrealized gain on investments and foreign
currency transactions
|
419,172,988
|
|
|
Net increase in net assets resulting from operations
|
$437,560,092
|
|
|
|
||
|
|
||
|
*Net of foreign taxes withheld of
|
$1,303,539
|
|
See Notes to Financial Statements
5
SELECTED AMERICAN SHARES
Statements of Changes in Net Assets
|
|
Year ended December 31,
|
|
|
|
2025
|
2024
|
|
|
||
|
OPERATIONS:
|
||
|
Net investment income
|
$18,387,104
|
$18,992,412
|
|
Net realized gain from investments, in-kind redemptions, and foreign
currency transactions
|
235,587,073
|
355,919,462
|
|
Net increase (decrease) in unrealized appreciation on investments and foreign
currency transactions
|
183,585,915
|
(80,166,232
)
|
|
Net increase in net assets resulting from operations
|
437,560,092
|
294,745,642
|
|
|
||
|
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
|
||
|
Class S
|
(51,713,167
)
|
(80,490,333
)
|
|
Class D
|
(166,874,327
)
|
(240,585,968
)
|
|
|
||
|
CAPITAL SHARE TRANSACTIONS:
|
||
|
Net increase (decrease) in net assets resulting from capital share transactions
(Note 4, 7):
|
||
|
Class S
|
(21,032,212
)
|
5,704,046
|
|
Class D
|
36,116,310
|
87,317,348
|
|
|
||
|
Total increase in net assets
|
234,056,696
|
66,690,735
|
|
|
||
|
NET ASSETS:
|
||
|
Beginning of year
|
1,741,924,366
|
1,675,233,631
|
|
End of year
|
$1,975,981,062
|
$1,741,924,366
|
See Notes to Financial Statements
6
SELECTED AMERICAN SHARES
Notes to Financial Statements December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Fund is a separate series of Selected American Shares, Inc. (a Maryland corporation). The Fund is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund follows the reporting guidance of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification Topic 946, Financial Services - Investment Companies.
The Fund's investment objective is to achieve both capital growth and income. The Fund principally invests in common stocks issued by large companies with market capitalizations of at least $10 billion.
An investment in the Fund, as with any mutual fund, includes risks that vary depending upon the Fund's investment objectives and policies. There is no assurance that the investment objective of any fund will be achieved. The Fund's return and net asset value will fluctuate.
Class S and Class D shares are sold at net asset value. Income, expenses (other than those attributable to a specific class), and gains and losses are allocated daily to each class of shares based on the relative proportion of net assets represented by each class. Operating expenses directly attributable to a specific class are charged against the operations of that class. All classes have identical rights with respect to voting (exclusive of each class' distribution arrangement), liquidation, and distributions.
Eligible Class S shares can be converted to Class D shares upon request. Class D shares offer lower expenses for shareholders who have chosen not to use an intermediary, but instead invest directly with the Fund. These conversions are non-taxable events.
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Security Valuation - The Fund's Board of Directors has designated Davis Selected Advisers, L.P. ("Adviser"), the Fund's investment adviser, as the valuation designee for the Fund. The Adviser has established a Pricing Committee to carry out the day-to-day valuation activities for the Fund. The Fund calculates the net asset value of its shares as of the close of the New York Stock Exchange ("Exchange"), normally 4:00 P.M. Eastern time, on each day the Exchange is open for business. Securities listed on the Exchange (and other national exchanges including NASDAQ) are valued at the last reported sales price on the day of valuation. Listed securities for which no sale was reported on that date are valued at the last quoted bid price. Securities traded on foreign exchanges are valued based upon the last sales price on the principal exchange on which the security is traded prior to the time when the Fund's assets are valued. Securities (including restricted securities) for which market quotations are not readily available or securities whose values have been materially affected by what the Adviser identifies as a significant event occurring before the Fund's assets are valued, but after the close of their respective exchanges, will be fair valued using a fair valuation methodology applicable to the security type or the significant event as previously approved by the Pricing Committee. The Pricing Committee considers all facts it deems relevant that are reasonably available, through either public information or information available to the Adviser's portfolio management team, when determining the fair value of a security. To assess the appropriateness of security valuations, the Pricing Committee may consider (i) comparing prior day prices and/or prices of comparable securities; (ii) comparing sale prices to the prior or current day prices and challenge those prices exceeding certain tolerance levels with the third-party pricing service or broker source; (iii) new rounds of financing; (iv) the performance of the market or the issuer's industry; (v) the liquidity of the security; (vi) the size of the holding in a fund; and/or (vii) any other appropriate information. The determination of a security's fair value price often involves the consideration of a number of subjective factors and is therefore subject to the unavoidable risk that the value assigned to a security may be higher or lower than the security's value would be if a reliable market quotation for the security was readily available.
Short-term investments purchased within 60 days to maturity and of sufficient credit quality are valued at amortized cost, which approximates fair value.
On a quarterly basis, the Board of Directors receives reports of valuation actions taken by the Pricing Committee. On at least an annual basis, the Board of Directors receives an assessment of the adequacy and effectiveness of the Adviser's process for determining the fair value of the Fund's investments.
7
SELECTED AMERICAN SHARES
Notes to Financial Statements - (Continued) December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)
Fair Value Measurements - Fair value is defined as the price that the Fund would receive upon selling an investment in an orderly transaction to an independent buyer in the principal market for the investment. Various inputs are used to determine the fair value of the Fund's investments. These inputs are summarized in the three broad levels listed below.
Level 1 −
quoted prices in active markets for identical securities
Level 2 −
other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 −
significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodologies used for valuing securities are not necessarily an indication of the risks associated with investing in those securities nor can it be assured that the Fund can obtain the fair value assigned to a security if it were to sell the security.
The following is a summary of the inputs used as of December 31, 2025 in valuing the Fund's investments carried at value:
|
|
Investments in Securities at Value
|
|||
|
|
Valuation Inputs
|
|||
|
|
Level 1:
Quoted Prices
|
Level 2:
Other Significant
Observable
Inputs*
|
Level 3:
Significant
Unobservable
Inputs
|
Total
|
|
Common Stock:
|
||||
|
Communication Services
|
$272,966,508
|
$-
|
$1,237,447
|
$274,203,955
|
|
Consumer Discretionary
|
195,557,324
|
45,042,250
|
-
|
240,599,574
|
|
Consumer Staples
|
87,605,967
|
-
|
-
|
87,605,967
|
|
Energy
|
117,468,334
|
-
|
-
|
117,468,334
|
|
Financials
|
489,884,983
|
125,444,772
|
-
|
615,329,755
|
|
Health Care
|
264,335,319
|
-
|
-
|
264,335,319
|
|
Industrials
|
73,805,492
|
3,157,486
|
-
|
76,962,978
|
|
Information Technology
|
144,182,254
|
82,735,354
|
-
|
226,917,608
|
|
Materials
|
43,631,142
|
-
|
-
|
43,631,142
|
|
Short-Term Investments
|
-
|
26,347,000
|
-
|
26,347,000
|
|
Total Investments
|
$1,689,437,323
|
$282,726,862
|
$1,237,447
|
$1,973,401,632
|
|
*
|
Includes certain securities trading primarily outside the U.S. whose value the Fund adjusted as a result of significant market movements following the close of
local trading.
|
The following table reconciles the valuation of assets in which significant unobservable inputs (Level 3) were used in determining fair value during the year ended December 31, 2025. The net change in unrealized appreciation (depreciation) during the period on Level 3 securities still held at December 31, 2025 was $116,521. The cost of purchases or proceeds from sales may include securities received or delivered through corporate actions or exchanges. Realized and unrealized gains (losses) are included in the related amounts on investments in the Statement of Operations.
|
|
Beginning
Balance at
January 1,
2025
|
Cost of
Purchases
|
Proceeds
from Sales
|
Net Change in
Unrealized
Appreciation
(Depreciation)
|
Net Realized
Gain (Loss)
|
Transfers
into
Level 3
|
Transfers
out of
Level 3
|
Ending
Balance at
December 31,
2025
|
|
Investments in
Securities:
|
||||||||
|
Common
Stock
|
$1,120,926
|
$-
|
$-
|
$116,521
|
$-
|
$-
|
$-
|
$1,237,447
|
|
Total Level 3
|
$1,120,926
|
$-
|
$-
|
$116,521
|
$-
|
$-
|
$-
|
$1,237,447
|
8
SELECTED AMERICAN SHARES
Notes to Financial Statements - (Continued) December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) Fair Value Measurements - (Continued)
The following table is a summary of those assets in which significant unobservable inputs (Level 3) were used by the Adviser in determining fair value. Note that these amounts exclude any valuations provided by a pricing service or broker.
|
|
Fair Value at
December 31, 2025
|
Valuation
Technique
|
Unobservable
Input
|
Amount
|
Impact to
Valuation from
an Increase in Input
|
|
Investments in Securities:
|
|
|
|
|
|
|
Common Stock
|
$1,237,447
|
Income Approach /
Discounted Cash Flow
|
Annualized Yield
|
4.571%
|
Decrease
|
|
Total Level 3
|
$1,237,447
|
|
|
|
|
The significant unobservable input listed in the above table is used in the fair value measurement of common stock, and if changed, would affect the fair value of the Fund's investments. The "Impact to Valuation from an Increase in Input" represents the change in fair value measurement resulting from an increase in the corresponding input. A decrease in the input would have the opposite effect.
Repurchase Agreements - Repurchase agreements are transactions under which a Fund purchases a security from a dealer counterparty and agrees to resell the security to that counterparty on a specified future date at the same price, plus a specified interest rate. The Fund's repurchase agreements are secured by U.S. government or agency securities. It is the Fund's policy that its regular custodian or third party custodian take possession of the underlying collateral securities, the fair value of which exceeds the principal amount of the repurchase transaction, including accrued interest, at all times. In the event of default by the counterparty, the Fund has the contractual right to liquidate the collateral securities and to apply the proceeds in satisfaction of the obligation.
Currency Translation - The fair values of all assets and liabilities denominated in foreign currencies are recorded in the financial statements after translation to United States Dollar ("USD") on the date of valuation using exchange rates determined as of the close of trading on the Exchange. The cost basis of such assets and liabilities is determined based upon historical exchange rates. Income and expenses are translated at average exchange rates in effect as accrued or incurred.
Foreign Currency - The Fund may enter into forward purchases or sales of foreign currencies to hedge certain foreign currency denominated assets and liabilities against declines in fair value relative to USD. Forward currency contracts are marked-to-marketdaily and the change in fair value is recorded by the Fund as an unrealized gain or loss. When the forward currency contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the forward currency contract at the time it was opened and value at the time it was closed. Investments in forward currency contracts may expose the Fund to risks resulting from unanticipated movements in foreign currency exchange rates or failure of the counter-party to the agreement to perform in accordance with the terms of the contract. During the year ended December 31, 2025, there were no forward currency contracts entered into by the Fund.
Reported net realized foreign exchange gains or losses arise from the sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on security transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the USD equivalent of the amounts actually received or paid. The Fund includes foreign currency gains and losses realized on the sales of investments together with market gains and losses on such investments in the Statement of Operations. Net unrealized foreign exchange gains or losses arise from changes in the value of assets and liabilities resulting from changes in the exchange rate and are included within net unrealized appreciation or depreciation in the Statement of Operations.
Federal Income Taxes - It is the Fund's policy to continue to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies, and to distribute substantially all of its taxable income, including any net realized gains on investments not offset by loss carryovers, to shareholders. Therefore, no provision for federal income or excise tax is required. The Adviser analyzed the Fund's tax positions taken on federal and state income tax returns for all open tax years and concluded that as of December 31, 2025, no provision for income tax is required in the Fund's financial statements related to these tax positions. The Fund's federal and state (Arizona) income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state Department of Revenue. The earliest tax year that remains subject to examination by these jurisdictions is 2022.
9
SELECTED AMERICAN SHARES
Notes to Financial Statements - (Continued) December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) Federal Income Taxes - (Continued)
At December 31, 2025, the aggregate cost of investments and unrealized appreciation (depreciation) for federal income tax purposes were as follows:
|
|
|
|
Cost
|
$1,099,342,976
|
|
|
|
|
Unrealized appreciation
|
925,395,668
|
|
Unrealized depreciation
|
(51,337,012
)
|
|
Net unrealized appreciation
|
$874,058,656
|
In December 2023, the FASB issued Accounting Standards Update ("ASU") 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The ASU requires public entities, on an annual basis, to provide income tax disclosures, including income taxes paid disaggregated by jurisdiction. This ASU also includes certain other amendments to improve the effectiveness of income tax disclosures. The ASU is effective for annual periods beginning after December 15, 2024. Management has determined that there is no material impact of the ASU on the Fund's financial statements.
Federal Withholding Taxes - The Fund is subject to foreign withholding tax imposed by certain foreign countries in which the Fund may invest. Withholding taxes are incurred on certain foreign dividends and are accrued at the time the dividend is recognized based on applicable foreign tax laws. The Fund may file withholding tax refunds in certain jurisdictions to seek to recover a portion of amounts previously withheld. The Fund will record a receivable for such tax refunds based on several factors including an assessment of a jurisdiction's legal obligation to pay reclaims, administrative practices, and payment history. Any receivables recorded will be included under dividends and interest on the Statement of Assets and Liabilities. There is no guarantee that the Fund will receive refunds applied for in a timely manner or at all.
As a result of court rulings in certain countries across the European Union, tax refunds for previously withheld taxes on dividends earned in those countries have been received by investment companies. Any tax refund payments are reflected as foreign withholding tax refunds in the Statement of Operations. The Fund may incur fees paid to third party providers that assist in the recovery of the tax refunds. These fees are reflected on the Statement of Operations under tax service fees, if any.
Securities Transactions and Related Investment Income - Securities transactions are accounted for on the trade date (date the order to buy or sell is executed) with realized gain or loss on the sale of securities being determined based upon identified cost. Dividend income is recorded on the ex-dividend date. Interest income, which includes accretion of discount and amortization of premium, is accrued as earned.
Dividends and Distributions to Shareholders - Dividends and distributions to shareholders are recorded on the ex-dividend date. Net investment income (loss), net realized gains (losses), and net unrealized appreciation (depreciation) on investments, collectively "Distributable earnings (losses)", may differ for financial statement and tax purposes primarily due to permanent and temporary differences which may include wash sales, corporate actions, in-kind redemptions, equalization, Directors' deferred compensation payments, passive foreign investment company shares, foreign currency transactions, and partnership income. The character of dividends and distributions made during the fiscal year from net investment income and net realized securities gains may differ from their ultimate characterization for federal income tax purposes. Also, due to the timing of dividends and distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which income or realized gain was recorded by the Fund. The Fund adjusts certain components of capital to reflect permanent differences between financial statement amounts and net income and realized gains/losses determined in accordance with income tax rules. The Fund's net assets have not been affected by these reclassifications.
The tax character of distributions paid during the years ended December 31, 2025 and 2024 was as follows:
|
|
Ordinary Income
|
Long-Term
Capital Gain
|
Total
|
|
2025
|
$18,141,325
|
$200,446,169
|
$218,587,494
|
|
2024
|
21,908,293
|
299,168,008
|
321,076,301
|
10
SELECTED AMERICAN SHARES
Notes to Financial Statements - (Continued) December 31, 2025
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED) Dividends and Distributions to Shareholders - (Continued)
As of December 31, 2025, the components of distributable earnings on a tax basis were as follows:
|
|
|
|
|
|
|
Undistributed ordinary income
|
$5,294,611
|
|
|
|
|
Undistributed long-term capital gain
|
26,817,788
|
|
|
|
|
Net unrealized appreciation on investments and foreign currency transactions
|
874,169,270
|
|
|
|
|
Other temporary differences
|
(1,246,740
)
|
|
Total
|
$905,034,929
|
Indemnification - Under the Fund's organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Fund. In addition, some of the Fund's contracts with its service providers contain general indemnification clauses. The Fund's maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Fund cannot be determined and the Fund has no historical basis for predicting the likelihood of any such claims.
Use of Estimates in Financial Statements - In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Actual results may differ from these estimates.
DirectorsFees and Expenses - The Fund set up a Rabbi Trust to provide for the deferred compensation plan for Independent Directors (including a Director Emeritus) that enables them to elect to defer receipt of all or a portion of annual fees they are entitled to receive. The value of an eligible Director's account is based upon years of service and fees paid to each Director during the years of service. The amount paid to the Director by the Trust under the plan will be determined based upon the performance of the funds in which the amounts are invested.
Operating Segments - The Fund follows the FASB Accounting Standards Update 2023-07, Segment Reporting ("Topic 280") - Improvements to Reportable Segment Disclosures ("ASU 2023-07"). The standard impacts financial statement disclosures only and does not affect the Fund's financial position or the results of its operations. An operating segment is defined in Topic 280 as a component of a public entity that engages in business activities from which it may recognize revenues and incur expenses, has operating results that are regularly reviewed by the public entity's chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segment and assess its performance, and has discrete financial information available. The Principal Executive Officer of the Fund acts as the CODM. Since its commencement, the Fund operates as a single segment. The CODM monitors the operating results of the Fund, as a whole, and the Fund's long-term strategic asset allocation is pre-determinedin accordance with the terms of its prospectus, based on a defined investment strategy which is executed by the Fund's portfolio managers as a team. The financial information, in the form of the Fund's portfolio composition, total return, expense ratio, and changes in net assets (i.e., changes in net assets resulting from operations, subscriptions and redemptions) are used by the CODM to assess the segment's performance versus the Fund's comparative benchmark and to make resource allocation decisions for the Fund's single segment, which is consistent with that presented within the Fund's financial statements. Segment assets are reflected on the accompanying Statement of Assets and Liabilities as "total assets" and significant segment expenses are listed on the accompanying Statement of Operations.
NOTE 2 - PURCHASES AND SALES OF SECURITIES
The cost of purchases and proceeds from sales of investment securities (excluding in-kind redemptions and short-term investments) during the year ended December 31, 2025 were $263,483,026 and $361,157,658, respectively.
The proceeds from in-kind redemptions of investment securities during the year ended December 31, 2025 was $83,076,871.
Gains and losses on in-kind redemptions are not recognized at the Fund level for tax purposes.
11
SELECTED AMERICAN SHARES
Notes to Financial Statements - (Continued) December 31, 2025
NOTE 3 - FEES AND OTHER TRANSACTIONS WITH SERVICE PROVIDERS (INCLUDING AFFILIATES)
Davis Selected Advisers-NY, Inc. ("DSA-NY"), a wholly-owned subsidiary of the Adviser, acts as sub-adviser to the Fund. DSA-NY performs research and portfolio management services for the Fund under a Sub-Advisory Agreement with the Adviser. The Fund pays no fees directly to DSA-NY.
All officers of the Fund (including Interested Directors) hold positions as executive officers with the Adviser or its affiliates.
Investment Advisory Fees - Advisory fees are paid monthly to the Adviser and amounts due from Adviser, if applicable, will be generally paid in the month after finalization of the financial statements. The annual rate is 0.55% of the average net assets for the first $3 billion, 0.54% on the next $1 billion, 0.53% on the next $1 billion, 0.52% on the next $1 billion, 0.51% on the next $1 billion, 0.50% on the next $3 billion, and 0.485% of the average net assets in excess of $10 billion. Advisory fees paid during the year ended December 31, 2025 approximated 0.55% of the average net assets.
Transfer Agent and Accounting Fees - SS&C Global Investor & Distribution Solutions, Inc. is the Fund's primary transfer agent. The Adviser is also paid for certain transfer agent services. The fee paid to the Adviser for these services during the year ended December 31, 2025 amounted to $166,993. State Street Bank and Trust Company ("State Street Bank") is the Fund's primary accounting provider. Fees for accounting services are included in the custodian fees as State Street Bank also serves as the Fund's custodian.
Distribution Service Fees - For services under the distribution agreement, the Fund's Class S shares pay an annual fee of 0.25% of average daily net assets. During the year ended December 31, 2025, the Fund incurred distribution service fees totaling $1,083,218.
There are no distribution service fees for the Fund's Class D shares.
NOTE 4 - CAPITAL STOCK
At December 31, 2025, there were 600 million shares of capital stock ($1.25 par value per share) authorized. Transactions in capital stock were as follows:
|
|
|
Year ended December 31, 2025
|
|||
|
|
|
Sold
|
Reinvestment of
Distributions
|
Redeemed
|
Net Increase
(Decrease)
|
|
Shares:
|
Class S
|
107,482
|
1,339,991
|
(1,957,981
)
|
(510,508
)
|
|
|
Class D*
|
3,244,043
|
4,076,559
|
(6,324,631
)
|
995,971
|
|
Value:
|
Class S
|
$4,224,773
|
$51,297,888
|
$(76,554,873
)
|
$(21,032,212
)
|
|
|
Class D*
|
127,582,211
|
156,846,644
|
(248,312,545
)
|
36,116,310
|
|
*
|
Sold and redeemed amounts include activity in connection with the ReFlow liquidity program (See Note 7 of the Notes to Financial Statements).
|
|
|
|
Year ended December 31, 2024
|
|||
|
|
|
Sold
|
Reinvestment of
Distributions
|
Redeemed
|
Net Increase
|
|
Shares:
|
Class S
|
146,342
|
2,025,830
|
(1,944,584
)
|
227,588
|
|
|
Class D
|
619,502
|
5,661,067
|
(3,884,466
)
|
2,396,103
|
|
Value:
|
Class S
|
$6,042,991
|
$79,762,902
|
$(80,101,847
)
|
$5,704,046
|
|
|
Class D
|
25,510,095
|
223,535,416
|
(161,728,163
)
|
87,317,348
|
NOTE 5 - SECURITIES LOANED
The Fund has entered into a securities lending arrangement with State Street Bank. Under the terms of the agreement, the Fund receives fee income from lending transactions; in exchange for such fees, State Street Bank is authorized to loan securities on behalf of the Fund, against receipt of collateral at least equal to the value of the securities loaned. As of December 31, 2025, the Fund did not have any securities on loan. The Fund bears the risk of any deficiency in the amount of the collateral available for return to a borrower due to a loss in an approved investment.
12
SELECTED AMERICAN SHARES
Notes to Financial Statements - (Continued) December 31, 2025
NOTE 6 - RESTRICTED SECURITIES
Restricted securities are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. They are fair valued under methods approved by the Pricing Committee. The aggregate value of restricted securities amounted to $1,237,447 or 0.06% of the Fund's net assets as of December 31, 2025. Information regarding restricted securities is as follows:
|
Security
|
Initial
Acquisition
Date
|
Units
|
Cost per
Unit
|
Valuation per Unit
as of December 31, 2025
|
|
|
||||
|
ASAC II L.P.
|
10/10/13
|
1,174,606
|
$1.0000
|
$1.0535
|
NOTE 7 - REFLOW LIQUIDITY PROGRAM
The Fund may participate in the ReFlow Fund, LLC ("ReFlow") liquidity program, which is designed to provide an alternative liquidity source for mutual funds experiencing net redemptions of their shares. Pursuant to the program, ReFlow provides participating mutual funds with a source of cash to meet net shareholder redemptions by standing ready each business day to purchase Fund shares up to the value of the net shares redeemed by other shareholders that are expected to settle that business day. Following purchases of Fund shares, ReFlow then generally redeems those shares when the Fund experiences net sales, at the end of a maximum holding period determined by ReFlow (currently 8 days), or at other times at ReFlow's or the Adviser's discretion. While ReFlow holds Fund shares, it will have the same rights and privileges with respect to those shares as any other shareholder. In the event the Fund uses the ReFlow service, the Fund will pay a fee to ReFlow each time ReFlow purchases Fund shares, calculated by applying to the purchase amount a fee rate determined through an automated daily auction among participating mutual funds. The current minimum fee rate is 0.14%, although the Fund may submit a bid at a higher rate if it determines that doing so is in the best interest of Fund shareholders. ReFlow's purchases of Fund shares through the liquidity program are made on an investment-blind basis without regard to the Fund's objective, policies, or anticipated performance. In accordance with federal securities laws, ReFlow is prohibited from acquiring more than 3% of the outstanding voting securities of the Fund. ReFlow will periodically redeem its entire share position in the Fund and may request that such redemption be met in-kind in accordance with the Fund's policy on purchases and redemptions in-kind. The Board of Directors has approved the Fund's participation in the ReFlow program.
The Adviser believes that participation in the ReFlow liquidity program may assist in stabilizing the Fund's net assets, to the benefit of the Fund and its shareholders, although there is no guarantee that the program will do so. To the extent the Fund's net assets do not decline, the Adviser typically will also benefit.
ReFlow activity during the year ended December 31, 2025 was as follows:
|
Shares
Purchased
|
Value of Shares
Purchased
|
Shares
Redeemed
|
Value of Cash
and Securities
Sold
|
In-kind Gain of
Securities Sold
|
|
2,180,618
|
$85,683,373
|
2,174,190
|
$86,091,357
|
$75,743,638
|
13
[THIS PAGE INTENTIONALLY LEFT BLANK]
SELECTED AMERICAN SHARES
The following financial information represents selected data for each share of capital stock outstanding throughout each period:
|
|
|
Income (Loss) from Investment Operations
|
||
|
|
Net Asset Value,
Beginning of
Period
|
Net Investment
Incomea
|
Net Realized and
Unrealized Gains
(Losses)
|
Total from
Investment
Operations
|
|
Selected American Shares Class S:
|
|
|
|
|
|
Year ended December 31, 2025
|
$37.47
|
$0.30
|
$9.13
|
$9.43
|
|
Year ended December 31, 2024
|
$38.22
|
$0.34
|
$6.49
|
$6.83
|
|
Year ended December 31, 2023
|
$31.31
|
$0.31
|
$9.55
|
$9.86
|
|
Year ended December 31, 2022
|
$42.34
|
$0.25
|
$(8.82)
|
$(8.57)
|
|
Year ended December 31, 2021
|
$40.41
|
$0.08
|
$7.16
|
$7.24
|
|
Selected American Shares Class D:
|
|
|
|
|
|
Year ended December 31, 2025
|
$37.60
|
$0.43
|
$9.17
|
$9.60
|
|
Year ended December 31, 2024
|
$38.32
|
$0.47
|
$6.52
|
$6.99
|
|
Year ended December 31, 2023
|
$31.38
|
$0.42
|
$9.58
|
$10.00
|
|
Year ended December 31, 2022
|
$42.45
|
$0.37
|
$(8.87)
|
$(8.50)
|
|
Year ended December 31, 2021
|
$40.50
|
$0.23
|
$7.18
|
$7.41
|
|
a
|
Per share calculations were based on average shares outstanding for the period.
|
|
b
|
Assumes hypothetical initial investment on the business day before the first day of the fiscal period, with all dividends and distributions reinvested in
additional shares on the reinvestment date, and redemption at the net asset value calculated on the last business day of the fiscal period.
|
15
Financial Highlights
|
Dividends and Distributions
|
|
|
|
Ratios to Average Net Assets
|
|
|||||
|
Dividends
from Net
Investment
Income
|
Distributions
from
Realized
Gains
|
Return of
Capital
|
Total
Distributions
|
Net Asset
Value, End
of Period
|
Total Returnb
|
Net Assets,
End of Period
(in millions)
|
Gross
Expense
Ratio
|
Net Expense
Ratioc
|
Net
Investment
Income
Ratio
|
Portfolio
Turnoverd
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$(0.31)
|
$(4.55)
|
$-
|
$(4.86)
|
$42.04
|
26.77%
|
$467
|
0.97%
|
0.97%
|
0.78%
|
15%
|
|
$(0.35)
|
$(7.23)
|
$-
|
$(7.58)
|
$37.47
|
17.73%
|
$435
|
0.98%
|
0.98%
|
0.82%
|
19%
|
|
$(0.33)
|
$(2.62)
|
$-
|
$(2.95)
|
$38.22
|
32.33%
|
$435
|
0.99%
|
0.99%
|
0.87%
|
9%
|
|
$(0.29)
|
$(2.17)
|
$-
|
$(2.46)
|
$31.31
|
(20.27)%
|
$382
|
0.99%
|
0.99%
|
0.72%
|
8%
|
|
$(0.07)
|
$(5.24)
|
$-
|
$(5.31)
|
$42.34
|
17.72%
|
$560
|
0.98%
|
0.98%
|
0.18%
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$(0.44)
|
$(4.55)
|
$-
|
$(4.99)
|
$42.21
|
27.16%
|
$1,509
|
0.65%
|
0.65%
|
1.10%
|
15%
|
|
$(0.48)
|
$(7.23)
|
$-
|
$(7.71)
|
$37.60
|
18.13%
|
$1,307
|
0.66%
|
0.66%
|
1.14%
|
19%
|
|
$(0.44)
|
$(2.62)
|
$-
|
$(3.06)
|
$38.32
|
32.76%
|
$1,240
|
0.67%
|
0.67%
|
1.19%
|
9%
|
|
$(0.40)
|
$(2.17)
|
$-
|
$(2.57)
|
$31.38
|
(20.04)%
|
$1,022
|
0.67%
|
0.67%
|
1.04%
|
8%
|
|
$(0.22)
|
$(5.24)
|
$-
|
$(5.46)
|
$42.45
|
18.10%
|
$1,422
|
0.67%
|
0.67%
|
0.49%
|
20%
|
|
c
|
The ratios in this column reflect the impact, if any, of certain reimbursements and/or waivers from the Adviser.
|
|
d
|
The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the fair value of portfolio securities owned during
the period. Securities with a maturity or expiration date at the time of acquisition of one year or less or securities delivered from in-
kind redemptions are excluded from the calculation.
|
See Notes to Financial Statements
16
SELECTED FUND
Report of Independent Registered Public Accounting Firm
The Shareholders and Board of Directors
Selected American Shares, Inc.:
Selected American Shares, Inc.:
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities of Selected American Shares (a series of Selected American Shares, Inc.) (the "Fund"), including the schedule of investments, as of December 31, 2025, the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the "financial statements") and the financial highlights for each of the years in the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2025, the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of December 31, 2025, by correspondence with custodians and brokers, or by other appropriate auditing procedures when replies were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
/s/ KPMG LLP
We have served as the auditor of one or more Selected Fund investment companies since 1998.
Columbus, Ohio
February 18, 2026
February 18, 2026
17
SELECTED AMERICAN SHARES
Federal Income Tax Information (Unaudited)
In early 2026, shareholders received information regarding all dividends and distributions paid to them by the Fund during the calendar year 2025. Regulations of the U.S. Treasury Department require the Fund to report this information to the Internal Revenue Service.
The information and distributions reported herein may differ from the information reported as distributions taxable to certain shareholders for the calendar year 2025 with their 2025 Form 1099-DIV.
The information is presented to assist shareholders in reporting distributions received from the Fund to the Internal Revenue Service. Because of the complexity of the federal regulations that may affect your individual tax return and the many variations in state and local regulations, we recommend that you consult your tax adviser for specific guidance.
During the calendar year 2025, the Fund paid long-term capital gain distributions in the amount of $200,446,169. The Fund utilized equalization accounting for tax purposes, whereby a portion of redemption payments were treated as distributions of long-term capital gain. As a result, the Fund designated long-term capital gain distributions in the amount of $208,587,571.
During the calendar year 2025, $18,141,325 of dividends paid by the Fund constituted income dividends for federal income tax purposes. The Fund designates $16,747,115 or 92% as income qualifying for the corporate dividends-received deduction.
For the calendar year 2025, certain dividends paid by the Fund constitute qualified dividend income for federal income tax purposes. The Fund designates $18,141,325 or 100% as qualified dividend income.
18
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-ENDMANAGEMENT INVESTMENT COMPANIES
Remuneration paid is included in the Statement of Operations on Item 7 of this Form N-CSR.
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORYCONTRACT
Not Applicable.
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS
Not Applicable.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There have been no changes to the procedure by which shareholders may recommend nominees to the Registrant's Board of Directors.
ITEM 16. CONTROLS AND PROCEDURES
(a) The Registrant's principal executive officer and principal financial officer have concluded, based on their evaluation of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c))), that such controls and procedures are effective as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Registrant's annual period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not Applicable.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION
Not Applicable.
ITEM 19. EXHIBITS
(a)(1) The Registrant's pursuant to Item 2 of Form N-CSR is filed as an exhibit to this Form N-CSR.
(a)(2) Certifications pursuant to of the Sarbanes-Oxley Act of 2002 are attached.
(b) Certifications pursuant to of the Sarbanes-Oxley Act of 2002 are attached.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SELECTED AMERICAN SHARES, INC. | |
|
|
|
| By |
/s/ Kenneth C. Eich Kenneth C. Eich Principal Executive Officer |
|
|
|
| Date: | February 18, 2026 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
| By |
/s/ Kenneth C. Eich Kenneth C. Eich Principal Executive Officer |
|
|
|
| Date: | February 18, 2026 |
| By |
/s/ Douglas A. Haines Douglas A. Haines Principal Financial Officer and Principal Accounting Officer |
|
|
|
| Date: | February 18, 2026 |
Selected American Shares Inc. published this content on March 03, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on March 03, 2026 at 15:41 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]