UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC  20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANANGEMENT INVESTMENT COMPANY  Investment Company Act file number 811-02679   DAVIS SERIES, INC. (Exact name of registrant as specified in charter)   2949 East Elvira Road, Suite 101 Tucson, AZ  85756 (Address of principal executive offices)  Thomas D. Tays 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, 2008 Date of reporting period: June 30, 2008  ____________________     ITEM 1.  REPORT TO STOCKHOLDERS


Table of Contents  Shareholder Letter
        2Management's Discussion and Analysis:Davis Opportunity Fund
        3Davis Government Bond Fund
        4Davis Financial Fund
        5Davis Appreciation & Income Fund
        6Davis Real Estate Fund
        7Fund Overview:Davis Opportunity Fund
        11Davis Government Bond Fund
        12Davis Government Money Market Fund
        13Davis Financial Fund
        14Davis Appreciation & Income Fund
        15Davis Real Estate Fund
        16Expense Example
        17Schedule of Investments:Davis Opportunity Fund
        20Davis Government Bond Fund
        26Davis Government Money Market Fund
        29Davis Financial Fund
        33Davis Appreciation & Income Fund
        36Davis Real Estate Fund
        43Statements of Assets and Liabilities
        47Statements of Operations
        49Statements of Changes in Net Assets
        50Notes to Financial Statements
        52Financial Highlights
        67Fund Information
        75Director Approval of Advisory Agreements
        76Directors and Officers
        81
   
  DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Dear Fellow Shareholder,  As stewards of our customers savings, the management team and Directors of the Davis Funds recognize the importance of candid, thorough, and regular communication with our shareholders.  In our Annual and Semi-Annual Reports we include all of the required quantitative information such as financial statements, detailed footnotes, performance reports, fund holdings, and performance attribution.  In addition, we produce a Research Report for certain funds, which is published semi-annually.  In this report, we give a more qualitative perspective on fund performance, discuss our thoughts on individual holdings, and share our investment outlook. You may obtain a copy of the current Research Report either on our website, www.davisfunds.com, or by calling 1-800-279-0279.  We thank you for your continued trust. We will do our best to earn it in the years ahead.  Sincerely,   Christopher C. Davis
President
  August 4, 2008         2
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Managements Discussion and Analysis Davis Opportunity Fund Davis Opportunity Funds Class A shares delivered a negative return on net asset value of 17.15% for the six-month period ended June 30, 20081.  Over the same time period, the Russell 3000® Index2 (Index) returned 11.05%. Energy and materials were the only sectors3 within the Index that earned positive returns, with all other sectors, and especially financials, turning in negative returns. Key Contributors to Performance Energy companies were the most important contributors4 to the Funds performance over the six-month period. The Funds energy companies out-performed the corresponding sector within the Index (up 23% versus up 13% for the Index). The Funds relative performance was reduced by a lower relative average weighting in this sector (4% versus 13% for the Index). Tenaris5and Transocean were among the top contributors to performance. The Fund managers have identified a number of investment opportunities in foreign companies. The Fund ended the period with approximately 20% of its assets invested in foreign companies. As a group, the foreign companies owned by the Fund declined in value, but still out-performed the Index over the period. Key Detractors from Performance The most important detractors from performance over the six-month period were the Funds holdings in the consumer discretionary and financial sectors. The Funds consumer discretionary companies under-performed the corresponding sector within the Index (down 17% versus down 16% for the Index) and the Funds performance was harmed by a higher average weighting in this poorly performing sector (32% versus 10% for the Index). While Netflix, H&R Block, Comcast, and Lowes were among the top contributors to performance, Garmin, CarMax, and WPP Group were among the top detractors from performance.  The Fund no longer owns Lowes. The financial sector was the worst performing sector of the Index. The Funds financial companies under-performed the corresponding sector within the Index (down 28% versus down 27% for the Index) and the Fund had a higher average weighting in this poorly performing sector (21% versus 17% for the Index). While Pargesa was among the top contributors to performance, Ambac Financial, Markel, Redwood Trust, and Power Corp. of Canada were among the top detractors from performance. Other individual companies detracting from performance included UnitedHealth Group and Google.   3
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Managements Discussion and Analysis  (Continued) Davis Government Bond Fund Davis Government Bond Funds Class A shares earned 1.62% on net asset value for the six-month period ended June 30, 20081, compared with its benchmark the Citigroup U.S. Treasury/Agency 1-3 Year Index2 (Index) which returned 2.13%. The Funds investment strategy, under normal circumstances, is to invest exclusively in U.S. Government securities and repurchase agreements, collateralized by U.S. Government securities, with a weighted average maturity of three years or less. Short-term interest rates declined over the course of the six-month period while long-term rates remained stable. As investors sought ultra safe securities in a turbulent market, treasury securities out-performed agency securities and mortgaged-backed securities. Over the six-month period, the Funds net assets increased from $53 to $81 million. Key Contributors to Performance The most important contributor to the Funds performance relative to the Index was that the Fund benefited as mortgaged-back securities which it had purchased at a discount were pre-paid faster than anticipated. The second most important contributor to the Funds performance was the yield advantage that the Fund enjoyed over the Index. Key Detractors from Performance The most important detractor from performance relative to the Index was that the Fund favored mortgaged-backed securities over treasury securities, and treasury securities turned in a stronger performance despite the pre-payment and yield advantages listed above.  Another detractor from the Funds performance relative to the Index was that the Fund maintained a shorter weighted average duration than the Index and thus appreciated less as interest rates declined during the six-month period.  4
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Managements Discussion and Analysis  (Continued) Davis Financial Fund Davis Financial Funds Class A shares delivered a negative return on net asset value of 20.34% for the six-month  period ended June 30, 20081. Over the same time period, the Standard & Poors 500® Index2(Index) declined by 11.91%. Financial companies as a whole turned in the weakest performance of the sectors3 within the Index. The banking, diversified financial, and insurance industry groups of the Index all turned in negative performance. Key Contributors to Performance While the Funds overall holdings of financial companies declined over the six-month period, individual financial companies making positive contributions4 to the Funds performance included two diversified financial companies, Visa5 and Goldman Sachs, and one insurance company, FPIC Insurance Group. Non-financial companies making positive contributions to performance included Canadian Natural Resources and H&R Block. Key Detractors from Performance The Funds banking companies under-performed the corresponding industry group within the Index (down 56% versus down 36% for the Index). State Bank of India was among the top detractors from performance. The Funds diversified financial companies out-performed the corresponding industry group within the Index (down 23% versus down 31% for the Index). JPMorgan Chase, American Express, First Marblehead, Merrill Lynch, and Bank of New York Mellon were among the top detractors from performance. The Funds insurance companies out-performed the corresponding industry group within the Index (down 24% versus down 28% for the Index). American International Group, Transatlantic Holdings, Markel, and China Life were among the top detractors from performance. The Fund managers have identified a number of investment opportunities in foreign companies. The Fund ended the period with approximately 18% of its assets invested in foreign companies. As a group, the foreign companies owned by the Fund under-performed the Index over the period.  5
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Managements Discussion and Analysis  (Continued) Davis Appreciation & Income Fund Davis Appreciation & Income Funds Class A shares delivered a negative return on net asset value of  9.14% for the six-month period ended June 30, 20081, compared with its benchmark, the Standard & Poors 500® Index2(Index), which declined by 11.91%. Energy and materials were the only sectors3 within the Index that earned positive returns, with all other sectors, and especially financials, turning in negative returns. Key Contributors to Performance The Funds holdings in convertible bonds were the most important contributors4 to the Funds performance, out-performing the Index (up 6% versus down 12% for the Index). Convertible bond holdings in Lehman Brothers5 (which was convertible into Devon Energy), Nabors Industries, Quanta Services, and Digital Realty Trust were among the most important contributors to performance. The fund no longer owns Lehman Brothers. Key Detractors from Performance The Funds common stock holdings under-performed the Index (down 21% versus down 12% for the Index) and were the primary detractors from performance. Common stock holdings in Universal Health Services, Nabors Industries, Waste Connections, and Quanta Services were among the most important contributors to performance. Common stock holdings in Ambac Financial, American International Group, Merrill Lynch, International Rectifier, and Whole Foods Market were among the most important detractors from performance.  6
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Managements Discussion and Analysis  (Continued) Davis Real Estate Fund Davis Real Estate Funds Class A shares delivered a negative return on net asset value of 8.01% for the six-month period ended June 30, 20081. Over the same time period, the Dow Jones Wilshire Real Estate Securities Index2 (Index) declined 3.41%.  Of the seven sub-industries3 within the Index, five delivered negative returns, with industrial REITs, real estate management & development, and specialized REITs turning in the weakest performance. Diversified REITs and residential REITs delivered positive returns. Key Contributors to Performance The Funds residential REITs out-performed the corresponding sub-industry within the Index (up 5% versus up 4% for the Index). Essex Property5 and American Campus Communities were among the top contributors4 to performance. Office REITs, representing the Funds largest holdings over the period (27% versus 16% for the Index), out-performed the corresponding sub-industry within the Index (down 2% versus down 3% for the Index).  Digital Realty and Corporate Office Properties were among the top contributors to performance while Derwent London was among the top detractors. Toll Brothers was the single most important contributor to the Funds performance. Other companies among the top contributors to the Funds performance included Cousins Properties and Cogdell Spencer.  The Fund no longer owns Toll Brothers. Key Detractors from Performance Real estate management & development companies were the most important detractors from the Funds performance. The Funds real estate management & development companies under-performed the corresponding sub-industry within the Index (down 25% versus down 6% for the Index). A higher relative average weighting in this sub-industry (11% versus 2% for the Index) detracted from both absolute and relative performance. Forest City Enterprises and Minerva were among the top detractors from performance. Ambac Financial was the single most important detractor from the Funds performance. Other companies among the top detractors from the Funds performance included Ventas, Gramercy Capital, Alexander & Baldwin, Regency Centers, and Kimco Realty.  The Fund no longer owns Ambac Financial. The Fund managers have identified a number of investment opportunities in foreign companies. The Fund ended the period with approximately 7% of its assets invested in foreign companies. As a group, the foreign companies owned by the Fund under-performed the Index over the period.  7
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Managements Discussion and Analysis  (Continued) This Semi-Annual Report is authorized for use by existing shareholders. Prospective shareholders must receive a current Davis Series prospectus, which contains more information about investment strategies, risks, charges, and expenses. Please read the prospectus carefully before investing or sending money. Davis Opportunity Funds investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. The primary risks of an investment in Davis Opportunity Fund are: (1) market risk, (2) company risk, (3) small and medium capitalization risk, (4) foreign country risk, (5) headline risk, and (6) selection risk.  See the prospectus for a full description of each risk. Davis Government Bond Funds investment objective is current income. There can be no assurance that the Fund will achieve its objective. The primary risk of an investment in Davis Government Bond Fund is interest rate risk, consisting of: (1) price volatility risk, (2) extension and prepayment risk, and (3) credit risk. See the prospectus for a full description of each risk. Davis Financial Funds investment objective is long-term growth of capital. There can be no assurance that the Fund will achieve its objective. The primary risks of an investment in Davis Financial Fund are: (1) market risk, (2) company risk, (3) concentrated financial services portfolio risk, (4) foreign country risk, (5) headline risk, and (6) selection risk. See the prospectus for a full description of each risk. Davis Financial Fund concentrates its investments in the financial sector, and it may be subject to greater risks than a fund that does not concentrate its investments in a particular sector. The Funds investment performance, both good and bad, is expected to reflect the economic performance of the financial sector more than a fund that does not concentrate its portfolio. Davis Appreciation & Income Funds investment objective is total return through a combination of growth and income. There can be no assurance that the Fund will achieve its objective. The primary risks of an investment in Davis Appreciation & Income Fund are: equity risks, including (1) market risk, (2) company risk, (3) small and medium capitalization risk, (4) foreign country risk, (5) headline risk, and (6) selection risk; and debt risks, including (1) interest rate sensitivity, (2) changes in debt rating, and (3) credit risk, including debt rated less than investment grade. See the prospectus for a full description of each risk. Davis Real Estate Funds investment objective is total return through a combination of growth and income. There can be no assurance that the Fund will achieve its objective. The primary risks of an investment in Davis Real Estate Fund are: (1) market risk, (2) company risk, (3) concentrated real estate portfolio risk, (4) focused portfolio risk, (5) small and medium capitalization risk, (6) foreign country risk, (7) headline risk, and (8) selection risk. See the prospectus for a full description of each risk. Davis Real Estate Fund concentrates its investments in the real estate sector, and it may be subject to greater risks than a fund that does not concentrate its investments in a particular sector. The Funds investment performance, both good and bad, is expected to reflect the economic performance of the real estate sector much more than a fund that does not concentrate its portfolio. Davis Real Estate Fund is allowed to focus its investments in fewer companies, and it may be subject to greater risks than a more diversified fund that is not allowed to focus its investments in a few companies. Should the portfolio manager determine that it is prudent to focus the Funds portfolio in a few companies, the Funds investment performance, both good and bad, is expected to reflect the economic performance of its more focused portfolio.  8
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Managements Discussion and Analysis  (Continued) 1Total return assumes reinvestment of dividends and capital gain distributions. Past performance is not a guarantee of future results. Investment return and principal value will vary so that, when redeemed, an investors shares may be worth more or less than when purchased. The following tables list the average annual total returns for the periods ended June 30, 2008 and the annualized operating expense ratios for the six months ended June 30, 2008. (without a 4.75% sales charge taken into consideration)
 EXPENSEFUND NAME
        1-YEAR
        5-YEAR
        10-YEAR
        INCEPTION
        RATIODavis Opportunity  A*
        (22.92)%
        7.20%
        6.36%
        11.30% - 12/01/94
        1.10%Davis Government Bond  A
        5.67%
        2.08%
        3.60%
        4.55% - 12/01/94
        0.95%Davis Financial  A
        (28.13)%
        5.41%
        3.76%
        13.18% - 05/01/91
        1.02%Davis Appreciation & Income  A
        (13.28)%
        7.33%
        4.93%
        9.33% - 05/01/92
        1.04%Davis Real Estate  A
        (17.67)%
        13.70%
        9.77%
        12.08% - 01/03/94
        1.19%
  (with a 4.75% sales charge taken into consideration)
 FUND NAME
        1-YEAR
        5-YEAR
        10-YEAR
        INCEPTIONDavis Opportunity  A*
        (26.57)%
        6.16%
        5.85%
        10.90% - 12/01/94Davis Government Bond  A
        0.72%
        1.10%
        3.10%
        4.18% - 12/01/94Davis Financial  A
        (31.53)%
        4.39%
        3.25%
        12.86% - 05/01/91Davis Appreciation & Income  A
        (17.39)%
        6.29%
        4.43%
        9.01% - 05/01/92Davis Real Estate  A
        (21.57)%
        12.60%
        9.24%
        11.71% - 01/03/94
  FUNDBENCHMARK INDEX
        1-YEAR
        5-YEAR
        10-YEAR
        INCEPTIONRussell 3000®Index
        (12.69)%
        8.37%
        3.51%
        10.03% - 12/01/94Citigroup U.S. Treasury/Agency1-3 Year Index
        7.18%
        3.33%
        4.76%
        5.39% - 12/01/94Standard & Poors 500®Index
        (13.12)%
        7.58%
        2.88%
        9.50% - 05/01/919.35% - 05/01/92Dow Jones Wilshire Real EstateSecurities Index
        (15.42)%
        14.87%
        11.00%
        11.88% - 01/03/94
 Fund performance changes over time and current performance may be higher or lower than stated.  Returns and expense ratios for other classes of shares will vary from the above returns and expense ratios. The annualized operating expense ratios may vary in future years. For more current information please call Davis Funds Investor Services at 1-800-279-0279. *   In 1999 and 2000 the Davis Opportunity Fund made favorable investments in initial public offerings (IPOs), which improved short-term performance. These markets were unusual and such performance may not continue in the future.  9
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Managements Discussion and Analysis  (Continued)  2
        The definitions of indices quoted in this report appear below. Investments cannot be made directly in the indices.
 I.   The Russell 3000® Index measures the performance of the 3,000 largest companies based on total market capitalization, which represents approximately 98% of the investable U.S. equity market. II.  The Citigroup U.S. Treasury/Agency 1-3 Year Index is a recognized unmanaged index of short-term U.S. Government Securities performance. III. The Standard & Poors 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. IV. The Dow Jones Wilshire Real Estate Securities Index is a broad measure of the performance of publicly traded real estate securities, such as Real Estate Investment Trusts (REITs) and Real Estate Operating Companies (REOCs). The Index is capitalization-weighted. The beginning date was January 1, 1978, and the Index is rebalanced monthly and returns are calculated on a buy and hold basis. 3The companies included in the Standard & Poors 500®Index and the Russell 3000®Index are divided into ten sectors.  One or more industry groups make up a sector.  The Companies included in the Dow Jones Wilshire Real Estate Securities Index are divided into seven sub-industries. 4A companys or sectors contribution to the Funds performance is a product both of its appreciation or depreciation and its weighting within the Fund. For example, a 5% holding that rises 20% has twice as much impact as a 1% holding that rises 50%. 5    This Management Discussion and Analysis discusses a number of individual companies. The information provided in this report does not provide information reasonably sufficient upon which to base an investment decision and should not be considered a recommendation to purchase or sell any particular security. The Schedule of Investments lists each Funds holdings of each company discussed. 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.  10
  
 DAVIS SERIES, INC. FUND OVERVIEW DAVIS OPPORTUNITY FUND At June 30, 2008(Unaudited)  Portfolio Composition
        
        Industry Weightings(% of Funds Net Assets)
        
        (% of Long Term Portfolio)Fund
        Russell 3000®Common Stock (U.S.)
        73.79%
        
        Information Technology
        19.85%
        16.59%Common Stock (Foreign)
        19.88%
        
        Media
        14.03%
        2.85%Convertible Bonds
        0.78%
        
        Health Care
        8.61%
        11.74%Short term Investments
        5.14%
        
        Energy
        8.36%
        15.23%Other Assets & Liabilities
        0.41%
        
        Consumer Durables & Apparel
        8.24%
        1.12%100.00%
        
        Insurance
        7.92%
        3.44%Diversified Financials
        7.24%
        6.02%Capital Goods
        5.70%
        8.99%Retailing
        4.86%
        2.70%Materials
        3.80%
        4.52%Other
        3.46%
        17.68%Consumer Services
        2.66%
        1.72%Telecommunication Services
        2.30%
        3.04%Real Estate
        1.59%
        2.10%Food & Staples Retailing
        1.38%
        2.26%100.00%
        100.00%
   Top 10 Holdings (% of Funds Net Assets) Google Inc., Class A
        Software & Services
        5.58%Garmin Ltd.
        Consumer Durables & Apparel
        4.24%Johnson & Johnson
        Pharmaceutical, Biotechnology & Life Sciences
        3.84%Transocean Inc.
        Energy
        3.82%Comcast Corp., Special Class A
        Media
        3.64%Grupo Televisa S.A., ADR
        Media
        3.45%Markel Corp.
        Property & Casualty Insurance
        3.35%Microsoft Corp.
        Software & Services
        2.87%Hunter Douglas NV
        Consumer Durables & Apparel
        2.65%Texas Instruments Inc.
        Semiconductors & Semiconductor Equipment
        2.53%
   11
  
 DAVIS SERIES, INC. FUND OVERVIEW DAVIS GOVERNMENT BOND FUND At June 30, 2008(Unaudited)   Portfolio Composition
        
        Industry Weightings(% of Funds Net Assets)
        
        (% of Fixed Income)Fixed Income
        86.20%
        
        Freddie Mac Mortgage Pools
        32.74%Short Term Investments
        14.05%
        
        Fannie Mae Mortgage Pools
        25.43%Other Assets & Liabilities
        (0.25)%
        
        Government Agency Notes
        21.49%100.00%
        
        Collateralized MortgageObligations
        19.40%Ginnie Mae Mortgage Pools
        0.94%100.00%
   Top 10 Fixed Income Holdings (% of Funds Net Assets) Freddie Mac, 4.50%, 05/01/10, Pool No. M80818
        Freddie Mac Mortgage Pools
        8.20%Fannie Mae, 4.00%, 09/25/31
        Collateralized Mortgage Obligations
        5.75%Fannie Mae, 6.00%, 09/01/17, Pool No. 665776
        Fannie Mae Mortgage Pools
        4.92%Freddie Mac, 4.00%, 03/01/10, Pool No. M80806
        Freddie Mac Mortgage Pools
        3.76%Fannie Mae, 6.652%, 10/01/32, Pool No. 648917
        Fannie Mae Mortgage Pools
        3.49%Final Maturity Amortizing Notes, 4.62%, 04/25/10
        Government Agency Notes
        3.48%Fannie Mae, 4.50%, 08/01/18, Pool No. 254833
        Fannie Mae Mortgage Pools
        3.38%Federal Home Loan Bank, 3.40%, 09/17/10
        Government Agency Notes
        3.22%Freddie Mac, 5.50%, 06/01/22, Pool No. G12688
        Freddie Mac Mortgage Pools
        2.61%Freddie Mac, 6.00%, 05/15/35
        Collateralized Mortgage Obligations
        2.47%
   12
  
 DAVIS SERIES, INC. FUND OVERVIEW DAVIS GOVERNMENT MONEY MARKET FUND At June 30, 2008(Unaudited)  Portfolio Composition
        
        Maturity Diversification(% of Funds Net Assets)
        
        (% of Portfolio Holdings)Federal Home Loan Bank
        40.53%
        
        0-30 Days
        53.40%Repurchase Agreements
        20.59%
        
        31-90 Days
        19.88%Fannie Mae
        15.35%
        
        91-180 Days
        14.73%Federal Farm Credit Bank
        6.98%
        
        181-391 Days
        11.99%Freddie Mac
        6.39%
        
        
        100.00%Freddie Mac Mortgage Pool
        1.86%Other Assets & Liabilities
        8.30%100.00%
   The maturity dates of floating rate securities used in the Maturity Diversification chart are considered to be the effective maturities, based on the reset dates of the securities variable rates.  See the Funds Schedule of Investments for a listing of the floating rate securities.     13
  
 DAVIS SERIES, INC. FUND OVERVIEW DAVIS FINANCIAL FUND At June 30, 2008(Unaudited)  Portfolio Composition
        
        Industry Weightings(% of Funds Net Assets)
        
        (% of Stock Holdings)Fund
        S&P 500®Common Stock (U.S.)
        81.92%
        
        Diversified Financials
        38.13%
        6.85%Common Stock (Foreign)
        17.50%
        
        Insurance
        37.19%
        3.52%Short Term Investments
        0.46%
        
        Commercial Services & Supplies
        8.28%
        0.49%Other Assets & Liabilities
        0.12%
        
        Energy
        8.25%
        16.21%100.00%
        
        Banks
        3.58%
        2.66%Materials
        2.32%
        3.90%Consumer Services
        2.25%
        1.36%Information Technology
        
        16.43%Health Care
        
        11.91%Capital Goods
        
        8.51%Food, Beverage & Tobacco
        
        5.57%Other
        
        22.59%100.00%
        100.00%
   Top 10 Holdings (% of Funds Net Assets) Transatlantic Holdings, Inc.
        Reinsurance
        10.41%American Express Co.
        Consumer Finance
        9.71%Loews Corp.
        Multi-Line Insurance
        9.12%D&B Corp.
        Commercial Services & Supplies
        8.24%Canadian Natural Resources Ltd.
        Energy
        8.20%Bank of New York Mellon Corp.
        Capital Markets
        5.10%JPMorgan Chase & Co.
        Diversified Financial Services
        4.63%Markel Corp.
        Property & Casualty Insurance
        4.28%Merrill Lynch & Co., Inc.
        Capital Markets
        4.16%Moody's Corp.
        Diversified Financial Services
        3.97%
   14
  
 DAVIS SERIES, INC. FUND OVERVIEW DAVIS APPRECIATION & INCOME FUND At June 30, 2008(Unaudited)  Portfolio Composition
        
        Industry Weightings(% of Funds Net Assets)
        
        (% of Long Term Portfolio)Fund
        S&P 500®Common Stock (U.S.)
        40.98%
        
        Real Estate
        22.50%
        1.21%Common Stock (Foreign)
        1.07%
        
        Capital Goods
        9.97%
        8.51%Convertible Bonds
        38.80%
        
        Retailing
        9.60%
        2.54%Convertible Preferred Stocks
        9.92%
        
        Commercial Services & Supplies
        7.85%
        0.49%Corporate Bonds
        6.74%
        
        Information Technology
        7.72%
        16.43%Short Term Investments
        2.36%
        
        Energy
        6.88%
        16.21%Other Assets & Liabilities
        0.13%
        
        Diversified Financials
        6.85%
        6.85%100.00%
        
        Food, Beverage & Tobacco
        5.65%
        5.57%Health Care
        3.90%
        11.91%Household & Personal Products
        3.74%
        2.45%Food & Staples Retailing
        3.69%
        2.76%Utilities
        3.60%
        3.98%Media
        2.72%
        2.85%Materials
        2.51%
        3.90%Insurance
        2.48%
        3.52%Other
        0.34%
        10.82%100.00%
        100.00%
   Top 10 Holdings (% of Funds Net Assets) Nabors Industries, Inc., Conv. Sr. Notes, 0.94%, 05/15/11
        Energy
        6.71%Intel Corp., Conv. Sub. Deb., 2.95%, 12/15/35
        Semiconductors & SemiconductorEquipment
        4.91%Kohls Corp.
        Retailing
        3.88%Vornado Realty L.P., Conv. Sr. Deb., 3.875%, 4/15/25
        Real Estate
        3.80%Whole Foods Market, Inc.
        Food & Staples Retailing
        3.59%Quanta Services, Inc., Conv. Sub. Deb., 4.50%, 10/01/23
        Capital Goods
        3.55%Universal Health Services, Inc., Class B
        Health Care Equipment & Services
        3.34%Avon Products, Inc.
        Household & Personal Products
        2.92%School Specialty, Inc., Conv. Sub. Notes, 3.75%/Zero coupon,08/01/23
        Commercial Services & Supplies
        2.90%Tyson Foods, Inc., Class A
        Food, Beverage & Tobacco
        2.70%
   15
  
 DAVIS SERIES, INC. FUND OVERVIEW DAVIS REAL ESTATE FUND At June 30, 2008(Unaudited)  Portfolio Composition
        
        Industry Weightings(% of Funds Net Assets)
        
        (% of Long Term Portfolio)Dow Jones WilshireCommon Stock (U.S.)
        85.53%
        
        
        
        Real EstateCommon Stock (Foreign)
        7.42%
        
        
        Fund
        Securities IndexConvertible Bonds
        3.75%
        
        Office REITs
        29.83%
        16.25%Preferred Stocks
        0.35%
        
        Retail REITs
        15.14%
        27.61%Short Term Investments
        2.87%
        
        Residential REITs
        11.68%
        15.39%Other Assets & Liabilities
        0.08%
        
        Real Estate Management & Development
        11.37%
        1.49%100.00%
        
        Specialized REITs
        11.31%
        21.29%Industrial REITs
        10.43%
        9.82%Diversified REITs
        7.00%
        8.15%Transportation
        3.24%
        100.00%
        100.00%
   Top 10 Holdings (% of Funds Net Assets) Alexandria Real Estate Equities, Inc.
        Office REITs
        8.43%Forest City Enterprises, Inc., Class A
        Real Estate Management & Development
        7.68%Ventas, Inc.
        Specialized REITs
        7.53%Digital Realty Trust, Inc.
        Office REITs
        7.26%General Growth Properties, Inc.
        Retail REITs
        5.31%Boston Properties, Inc.
        Office REITs
        5.18%Cousins Properties, Inc.
        Diversified REITs
        5.01%Corporate Office Properties Trust
        Office REITs
        4.69%American Campus Communities, Inc.
        Residential REITs
        4.42%Essex Property Trust, Inc.
        Residential REITs
        3.95%
   16
  
 DAVIS SERIES, INC. EXPENSE EXAMPLE(Unaudited)   Beginning
        Ending
        Expenses PaidAccount Value
        Account Value
        During Period*(01/01/08)
        (06/30/08)
        (01/01/08-06/30/08)Davis Opportunity FundClass A(annualized expense ratio 1.10%**)Actual
        $1,000.00
        $828.50
        $5.00Hypothetical
        $1,000.00
        $1,019.39
        $5.52Class B(annualized expense ratio 1.94%**)Actual
        $1,000.00
        $825.03
        $8.80Hypothetical
        $1,000.00
        $1,015.22
        $9.72Class C(annualized expense ratio 1.87%**)Actual
        $1,000.00
        $825.42
        $8.49Hypothetical
        $1,000.00
        $1,015.56
        $9.37Class Y(annualized expense ratio 0.82%**)Actual
        $1,000.00
        $829.62
        $3.73Hypothetical
        $1,000.00
        $1,020.79
        $4.12Davis Government Bond FundClass A(annualized expense ratio 0.95%**)Actual
        $1,000.00
        $1,016.20
        $4.76Hypothetical
        $1,000.00
        $1,020.14
        $4.77Class B(annualized expense ratio 1.73%**)Actual
        $1,000.00
        $1,012.45
        $8.66Hypothetical
        $1,000.00
        $1,016.26
        $8.67Class C(annualized expense ratio 1.68%**)Actual
        $1,000.00
        $1,012.68
        $8.41Hypothetical
        $1,000.00
        $1,016.51
        $8.42Class Y(annualized expense ratio 0.90%**)Actual
        $1,000.00
        $1,016.56
        $4.51Hypothetical
        $1,000.00
        $1,020.39
        $4.52Davis Government Money Market FundClass A, B, C, & Y(annualized expense ratio 0.54%**)Actual
        $1,000.00
        $1,013.96
        $2.70Hypothetical
        $1,000.00
        $1,022.18
        $2.72Davis Financial FundClass A(annualized expense ratio 1.02%**)Actual
        $1,000.00
        $796.61
        $4.56Hypothetical
        $1,000.00
        $1,019.79
        $5.12Class B(annualized expense ratio 1.99%**)Actual
        $1,000.00
        $793.79
        $8.88Hypothetical
        $1,000.00
        $1,014.97
        $9.97Class C(annualized expense ratio 1.89%**)Actual
        $1,000.00
        $793.04
        $8.43Hypothetical
        $1,000.00
        $1,015.47
        $9.47Class Y(annualized expense ratio 0.88%**)Actual
        $1,000.00
        $796.98
        $3.93Hypothetical
        $1,000.00
        $1,020.49
        $4.42
   17
  
 DAVIS SERIES, INC. EXPENSE EXAMPLE(Unaudited) (Continued)  Beginning
        Ending
        Expenses PaidAccount Value
        Account Value
        During Period*(01/01/08)
        (06/30/08)
        (01/01/08-06/30/08)Davis Appreciation & Income FundClass A(annualized expense ratio 1.04%**)Actual
        $1,000.00
        $908.57
        $4.94Hypothetical
        $1,000.00
        $1,019.69
        $5.22Class B(annualized expense ratio 1.89%**)Actual
        $1,000.00
        $904.95
        $8.95Hypothetical
        $1,000.00
        $1,015.47
        $9.47Class C(annualized expense ratio 1.83%**)Actual
        $1,000.00
        $905.13
        $8.67Hypothetical
        $1,000.00
        $1,015.76
        $9.17Class Y(annualized expense ratio 0.77%**)Actual
        $1,000.00
        $909.95
        $3.66Hypothetical
        $1,000.00
        $1,021.03
        $3.87Davis Real Estate FundClass A(annualized expense ratio 1.19%**)Actual
        $1,000.00
        $919.87
        $5.68Hypothetical
        $1,000.00
        $1,018.95
        $5.97Class B(annualized expense ratio 2.05%**)Actual
        $1,000.00
        $916.24
        $9.77Hypothetical
        $1,000.00
        $1,014.67
        $10.27Class C(annualized expense ratio 1.95%**)Actual
        $1,000.00
        $916.34
        $9.29Hypothetical
        $1,000.00
        $1,015.17
        $9.77Class Y(annualized expense ratio 0.83%**)Actual
        $1,000.00
        $921.37
        $3.97Hypothetical
        $1,000.00
        $1,020.74
        $4.17
  Hypothetical assumes 5% annual return before expenses. *Expenses are equal to each Classs annualized operating expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). See page 19 for a description of the Expense Example. **The expense ratios reflect the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.  18
  
 DAVIS SERIES, INC. EXPENSE EXAMPLE(Unaudited) (Continued)  The following disclosure provides important information regarding each Funds Expense Example.  Please refer to this information when reviewing the Expense Example for each Class. Example As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and contingent deferred sales charges on redemptions; and (2) ongoing costs, including advisory and administrative fees, distribution and/or service (12b-1) fees, and other Fund expenses.  The Expense Example is intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds.  The Expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period indicated, which for each class is from 01/01/08 to 06/30/08. Actual Expenses The information represented in the row entitled Actual provides information about actual account values and actual expenses.  You may use the information in this row, together with the amount you invested, to estimate the expenses that you paid over the period.  Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number under the heading Expenses Paid During Period to estimate the expenses you paid on your account during this period. An annual maintenance fee of $15, charged on retirement plan accounts per Social Security Number, is not included in the Expense Example.  This fee will be waived for accounts sharing the same Social Security Number if the accounts total at least $50,000 at Davis Funds.  If this fee was included, the estimate of expenses you paid during the period would be higher, and
your ending account value lower, by this amount. Hypothetical Example for Comparison Purposes The information represented in the row entitled Hypothetical provides information about hypothetical account values and hypothetical expenses based on each Funds actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Funds actual return.  The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period.  You may use this information to compare the ongoing costs of investing in the Fund and other funds.  To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. An annual maintenance fee of $15, charged on retirement plan accounts per Social Security Number, is not included in the Expense Example.  This fee will be waived for accounts sharing the same Social Security Number if the
accounts total at least $50,000 at Davis Funds.  If this fee was included, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.  Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as front end or contingent deferred sales charges (loads).  Therefore, the information in the row entitled Hypothetical is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.  In addition, if these transactional costs were included, your costs would have been higher.  19


DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS OPPORTUNITY FUND June 30, 2008(Unaudited)  Shares
        
        Security
        
        Value(Note 1)COMMON STOCK- (93.67%)CONSUMER DISCRETIONARY - (29.31%)Automobiles & Components  (1.18%)137,000
        Johnson Controls, Inc.
        
        $
        3,929,160111,346
        WABCO Holdings Inc.
        
        
        5,173,1359,102,295Consumer Durables & Apparel  (7.78%)122,990
        Compagnie Financiere Richemont S.A., Bearer Shares,
Unit A   (Switzerland)
        
        
        6,850,503766,410
        Garmin Ltd.
        
        
        32,829,172339,926
        Hunter Douglas NV   (Netherlands)
        
        
        20,519,44760,199,122Consumer Services  (2.51%)271,720
        H&R Block, Inc.
        
        
        5,814,808387,750
        Yum! Brands, Inc.
        
        
        13,606,14819,420,956Media  (13.25%)1,500,700
        Comcast Corp., Special Class A
        
        
        28,160,6361,130,320
        Grupo Televisa S.A., ADR   (Mexico)
        
        
        26,698,158139,416
        Lagardere S.C.A.   (France)
        
        
        7,939,448182,290
        Liberty Media Corp. - Entertainment, Series A  *
        
        
        4,416,887546,600
        News Corp., Class A
        
        
        8,220,864166,960
        Virgin Media Inc.
        
        
        2,274,830297,000
        Walt Disney Co.
        
        
        9,266,4001,607,150
        WPP Group PLC   (United Kingdom)
        
        
        15,501,814102,479,037Retailing  (4.59%)912,810
        CarMax, Inc.  *
        
        
        12,952,774288,700
        Liberty Media Corp. - Interactive, Series A  *
        
        
        4,259,768702,600
        Netflix Inc.  *
        
        
        18,320,29535,532,837TOTAL CONSUMER DISCRETIONARY
        
        
        226,734,247CONSUMER STAPLES - (2.14%)Food & Staples Retailing  (1.30%)90,970
        Costco Wholesale Corp.
        
        
        6,385,639155,070
        Whole Foods Market, Inc.
        
        
        3,668,18110,053,820
   20
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS OPPORTUNITY FUND  - (Continued) June 30, 2008(Unaudited) Shares
        
        Security
        
        Value(Note 1)COMMON STOCK - (CONTINUED)CONSUMER STAPLES - (CONTINUED)Food, Beverage & Tobacco  (0.84%)140,905
        Heineken Holding NV   (Netherlands)
        
        $
        6,464,652TOTAL CONSUMER STAPLES
        
        
        16,518,472ENERGY - (7.90%)69,800
        Devon Energy Corp.
        
        
        8,387,16871,800
        Occidental Petroleum Corp.
        
        
        6,451,948224,110
        Tenaris S.A., ADR   (Argentina)
        
        
        16,696,195194,159
        Transocean Inc.  *
        
        
        29,587,890TOTAL ENERGY
        
        
        61,123,201FINANCIALS - (15.82%)Diversified Financials  (6.84%)Capital Markets  (2.89%)983,535
        E*TRADE Financial Corp.  *
        
        
        3,078,46469,402
        Julius Baer Holding, Ltd. AG   (Switzerland)
        
        
        4,687,718117,730
        Legg Mason, Inc.
        
        
        5,129,496298,000
        Merrill Lynch & Co., Inc.
        
        
        9,449,58022,345,258Consumer Finance  (0.87%)513,120
        Discover Financial Services
        
        
        6,757,790Diversified Financial Services  (3.08%)10,600
        Nymex Holdings Inc.
        
        
        895,488224,500
        Oaktree Capital Group LLC, Class A  (a)
        
        
        6,286,000149,295
        Pargesa Holdings S.A., Bearer Shares   (Switzerland)
        
        
        16,645,98023,827,46852,930,516Insurance  (7.48%)Insurance Brokers  (0.56%)250,463
        Brown & Brown, Inc.
        
        
        4,355,552Life & Health Insurance  (1.58%)89,970
        Aflac, Inc.
        
        
        5,650,116215,100
        Power Corp. of Canada   (Canada)
        
        
        6,585,68412,235,800Property & Casualty Insurance  (3.58%)867,330
        Ambac Financial Group, Inc.
        
        
        1,162,22270,585
        Markel Corp.  *
        
        
        25,904,695135,580
        MBIA Inc.  *
        
        
        595,19627,662,113
   21
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS OPPORTUNITY FUND  - (Continued) June 30, 2008(Unaudited)  Shares
        
        Security
        
        Value(Note 1)COMMON STOCK - (CONTINUED)FINANCIALS - (CONTINUED)Insurance  (Continued)Reinsurance  (1.76%)45,230
        Everest Re Group, Ltd.
        
        $
        3,605,28345,980
        RenaissanceRe Holdings Ltd.
        
        
        2,053,927140,375
        Transatlantic Holdings, Inc.
        
        
        7,926,97613,586,18657,839,651Real Estate  (1.50%)508,430
        Redwood Trust, Inc.
        
        
        11,587,120TOTAL FINANCIALS
        
        
        122,357,287HEALTH CARE - (8.13%)Health Care Equipment & Services  (3.09%)90,475
        Cardinal Health, Inc.
        
        
        4,666,701201,190
        IDEXX Laboratories, Inc.  *
        
        
        9,822,096358,490
        UnitedHealth Group Inc.
        
        
        9,410,36223,899,159Pharmaceuticals, Biotechnology & Life Sciences  (5.04%)461,660
        Johnson & Johnson
        
        
        29,703,204471,100
        Schering-Plough Corp.
        
        
        9,275,95938,979,163TOTAL HEALTH CARE
        
        
        62,878,322INDUSTRIALS - (6.64%)Capital Goods  (5.38%)1,339,132
        Blount International, Inc.  *
        
        
        15,547,32375,280
        Franklin Electric Co., Inc.
        
        
        2,921,24036,351
        Ingersoll-Rand Co. Ltd., Class A
        
        
        1,360,618201,470
        Shaw Group Inc.  *
        
        
        12,448,83184,230
        Siemens AG, Registered   (Germany)
        
        
        9,352,08141,630,093Commercial Services & Supplies  (0.44%)38,580
        D&B Corp.
        
        
        3,381,151
   22
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS OPPORTUNITY FUND  - (Continued) June 30, 2008(Unaudited)  Shares
        
        Security
        
        Value(Note 1)COMMON STOCK - (CONTINUED)INDUSTRIALS - (CONTINUED)Transportation  (0.82%)972,000
        Clark Holdings, Inc.  *(b)
        
        $
        2,381,40041,600
        Kuehne & Nagel International AG, Registered   (Switzerland)
        
        
        3,952,1126,333,512TOTAL INDUSTRIALS
        
        
        51,344,756INFORMATION TECHNOLOGY - (18.75%)Semiconductors & Semiconductor Equipment  (2.53%)695,680
        Texas Instruments Inc.
        
        
        19,590,349Software & Services  (11.03%)1,193,972
        Convera Corp., Class A  *
        
        
        1,689,47081,940
        Google Inc., Class A  *
        
        
        43,181,151390,310
        Iron Mountain Inc.  *
        
        
        10,362,731806,560
        Microsoft Corp.
        
        
        22,212,662380,000
        Yahoo! Inc.  *
        
        
        7,854,60085,300,614Technology Hardware & Equipment  (5.19%)546,000
        Agilent Technologies, Inc.  *
        
        
        19,404,840252,020
        Cisco Systems, Inc.  *
        
        
        5,864,505680,520
        Dell Inc.  *
        
        
        14,899,98640,169,331TOTAL INFORMATION TECHNOLOGY
        
        
        145,060,294MATERIALS - (3.59%)92,340
        Sealed Air Corp.
        
        
        1,755,383262,560
        Sigma-Aldrich Corp.
        
        
        14,136,230679,600
        Sino-Forest Corp.  * (Canada)
        
        
        11,903,164TOTAL MATERIALS
        
        
        27,794,777TELECOMMUNICATION SERVICES - (1.39%)116,790
        American Tower Corp., Class A  *
        
        
        4,934,378612,820
        Sprint Nextel Corp.  *
        
        
        5,821,790TOTAL TELECOMMUNICATION SERVICES
        
        
        10,756,168TOTAL COMMON STOCK  (Identified cost $715,595,523)
        
        
        724,567,524
   23
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS OPPORTUNITY FUND  - (Continued) June 30, 2008(Unaudited)  Principal
        
        Security
        
        Value(Note 1)CONVERTIBLE BONDS- (0.78%)TELECOMMUNICATION SERVICES - (0.78%)$
        5,600,000
        Level 3 Communications, Inc., Conv. Sr. Notes, 10.00%, 05/01/11
        
        $
        6,083,000TOTAL CONVERTIBLE BONDS  (Identified cost $5,600,000)
        
        
        6,083,000SHORT TERM INVESTMENTS- (5.14%)13,564,000
        ABN AMRO Inc. Joint Repurchase Agreement,2.80%, 07/01/08, dated 06/30/08, repurchase value of $13,565,055(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 3.15%-6.00%, 06/12/09-05/01/38, total market value $13,835,280)
        
        
        13,564,00013,564,000
        Banc of America Securities LLC Joint Repurchase Agreement,2.45%, 07/01/08, dated 06/30/08, repurchase value of $13,564,923(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.50%, 05/01/35-06/01/38, total market value $13,835,280)
        
        
        13,564,0003,617,000
        Lehman Brothers Inc. Joint Repurchase Agreement,2.20%, 07/01/08, dated 06/30/08, repurchase value of $3,617,221(collateralized by: U.S. Government agency mortgages in a pooled cash account, 4.50%-7.00%, 06/01/22-06/01/38, total market value $3,689,340)
        
        
        3,617,0008,994,000
        UBS Securities LLC Joint Repurchase Agreement,2.60%, 07/01/08, dated 06/30/08, repurchase value of $8,994,650(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%, 02/01/36, total market value $9,173,880)
        
        
        8,994,000TOTAL SHORT TERM INVESTMENTS 
(Identified cost $39,739,000)
        
        
        39,739,000
   24
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS OPPORTUNITY FUND  - (Continued) June 30, 2008(Unaudited)  Total Investments  (99.59%)  (identified cost $760,934,523)  (c)
        
        $
        770,389,524Other Assets Less Liabilities  (0.41%)
        
        
        3,169,490Net Assets  (100.00%)
        
        $
        773,559,014ADR: American Depositary Receipt*
        
        Non-Income producing security.(a)
        
        Illiquid Security  See Note 9 of the Notes to Financial Statements.(b)
        
        Affiliated Company.  Represents ownership of at least 5% of the voting securities of the issuer and is an affiliate, as defined in the Investment Company Act of 1940, at or during the six months ended June 30, 2008.  The aggregate fair value of the securities of affiliated companies held by the Fund as of June 30, 2008, amounts to $2,381,400.  Transactions during the period in which the issuers were affiliates are as follows:Security
        
        Shares
December 31, 2007
        
        Gross
Additions
        
        Gross
Reductions
        
        Shares
June 30, 2008
        
        Dividend
IncomeClark Holdings, Inc.
        
        
        
        978,700
        
        6,700
        
        972,000
        $
        
  (c)
        
        Aggregate cost for Federal Income Tax purposes is $769,883,884.  At June 30, 2008 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:Unrealized appreciation
        
        $
        121,160,077Unrealized depreciation
        
        
        (120,654,437)Net unrealized appreciation
        
        $
        505,640
     See Notes to Financial Statements  25
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS GOVERNMENT BOND FUND June 30, 2008(Unaudited) Principal
        
        Security
        
        Value(Note 1)GOVERNMENT AGENCY NOTES- (18.52%)$
        500,000
        Fannie Mae, 4.00%, 11/09/09
        
        $
        505,697500,000
        Fannie Mae, 5.00%, 07/28/10
        
        
        516,468500,000
        Federal Farm Credit Bank, 4.125%, 07/17/09
        
        
        505,412340,000
        Federal Farm Credit Bank, 4.50%, 10/04/10
        
        
        347,989600,000
        Federal Home Loan Bank, 5.00%, 11/03/09
        
        
        614,5551,000,000
        Federal Home Loan Bank, 4.875%, 03/12/10
        
        
        1,026,7012,600,000
        Federal Home Loan Bank, 3.40%, 09/17/10
        
        
        2,593,628484,050
        Federal Home Loan Bank, 4.75%, 10/25/10
        
        
        489,8212,000,000
        Federal Home Loan Bank, 4.75%, 02/06/15
        
        
        1,971,6391,105,330
        Final Maturity Amortizing Notes, 4.10%, 01/25/10
        
        
        1,095,2702,766,495
        Final Maturity Amortizing Notes, 4.62%, 04/25/10
        
        
        2,807,135230,000
        Freddie Mac, 3.00%, 06/30/09
        
        
        229,8531,000,000
        Freddie Mac, 3.50%, 07/28/09
        
        
        1,000,775200,000
        Freddie Mac, 5.00%, 10/18/10
        
        
        206,9681,000,000
        Freddie Mac, 5.25%, 02/24/11
        
        
        1,012,606TOTAL GOVERNMENT AGENCY NOTES 
(Identified cost $14,929,067)
        
        
        14,924,517MORTGAGES- (67.68%)COLLATERALIZED MORTGAGE OBLIGATIONS - (16.72%)108,597
        Fannie Mae, 5.00%, 07/25/15
        
        
        109,6071,566,367
        Fannie Mae, 5.50%, 11/25/23
        
        
        1,571,6144,764,390
        Fannie Mae, 4.00%, 09/25/31
        
        
        4,636,937864,250
        Freddie Mac, 4.00%, 09/15/10
        
        
        863,868975,059
        Freddie Mac, 5.00%, 08/15/14
        
        
        979,8721,046,961
        Freddie Mac, 5.00%, 08/15/16
        
        
        1,060,727300,000
        Freddie Mac, 5.00%, 05/15/27
        
        
        304,5681,982,334
        Freddie Mac, 6.00%, 05/15/35
        
        
        1,989,021476,163
        Ginnie Mae, 6.00%, 03/20/14
        
        
        479,3211,459,347
        Ginnie Mae, 6.00%, 05/16/30
        
        
        1,479,715TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS
        
        
        13,475,250FANNIE MAE POOLS - (21.92%)389,976
        6.12%, 10/01/08, Pool No. 380999
        
        
        391,129
   26
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS GOVERNMENT BOND FUND  - (Continued) June 30, 2008(Unaudited) Principal
        
        Security
        
        Value(Note 1)Mortgages - (Continued)FANNIE MAE POOLS - (CONTINUED)$
        772,983
        4.00%, 09/01/10, Pool No. 254901
        
        $
        774,916642,825
        4.50%, 01/01/13, Pool No. 254646
        
        
        632,6673,843,328
        6.00%, 09/01/17, Pool No. 665776
        
        
        3,964,3932,797,114
        4.50%, 08/01/18, Pool No. 254833
        
        
        2,726,2531,940,668
        4.00%, 01/01/19, Pool No. 976841
        
        
        1,842,159198,319
        6.50%, 07/01/32, Pool No. 635069
        
        
        205,5492,789,910
        6.652%, 10/01/32, Pool No. 648917 (a)
        
        
        2,808,73269,683
        7.31%, 01/01/33, Pool No. 681153 (a)
        
        
        70,4851,029,789
        4.81%, 05/01/35, Pool No. 826242 (a)
        
        
        1,039,2271,445,736
        5.065%, 01/01/36, Pool No. 848973 (a)
        
        
        1,455,097276,250
        5.584%, 03/01/36, Pool No. 843396 (a)
        
        
        276,4241,459,840
        5.624%, 04/01/36, Pool No. 851605 (a)
        
        
        1,475,650TOTAL FANNIE MAE POOLS
        
        
        17,662,681FREDDIE MAC POOLS - (28.23%)34,057
        4.00%, 07/01/08, Pool No. M90826
        
        
        34,080723,789
        3.50%, 08/01/08, Pool No. M90830
        
        
        718,8551,384,785
        4.50%, 07/01/09, Pool No. M90934
        
        
        1,388,218496,044
        4.50%, 10/01/09, Pool No. M80778
        
        
        500,1761,273,118
        5.00%, 02/01/10, Pool No. M90972
        
        
        1,285,3263,012,584
        4.00%, 03/01/10, Pool No. M80806
        
        
        3,027,192897,572
        4.50%, 03/01/10, Pool No. M80807
        
        
        906,2646,532,090
        4.50%, 05/01/10, Pool No. M80818
        
        
        6,604,193704,601
        3.00%, 10/01/10, Pool No. M91001
        
        
        691,913885,814
        4.00%, 11/01/10, Pool No. M80864
        
        
        891,524869,230
        3.50%, 04/01/12, Pool No. M80974
        
        
        857,8491,338,897
        4.00%, 12/01/12, Pool No. M81008
        
        
        1,341,0312,083,837
        5.50%, 06/01/22, Pool No. G12688
        
        
        2,099,661756,695
        4.537%, 12/01/34, Pool No. 1H1238 (a)
        
        
        761,3701,646,565
        4.742%, 04/01/35, Pool No. 782528 (a)
        
        
        1,635,608TOTAL FREDDIE MAC POOLS
        
        
        22,743,260Ginnie Mae Pools - (0.81%)682,477
        4.00%, 08/20/20, Pool No. 003811
        
        
        652,100TOTAL GINNIE MAE POOLS
        
        
        652,100TOTAL MORTGAGES  (Identified cost $54,764,981)
        
        
        54,533,291
   27
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS GOVERNMENT BOND FUND  - (Continued) June 30, 2008(Unaudited)  Principal
        
        Security
        
        Value(Note 1)SHORT TERM INVESTMENTS- (14.05%)$
        3,864,000
        ABN AMRO Inc. Joint Repurchase Agreement,2.80%, 07/01/08, dated 06/30/08, repurchase value of $3,864,301(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 3.15%-6.00%, 06/12/09-05/01/38, total market value $3,941,280)
        
        $
        3,864,0003,864,000
        Banc of America Securities LLC Joint Repurchase Agreement,2.45%, 07/01/08, dated 06/30/08, repurchase value of $3,864,263(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.50%, 05/01/35-06/01/38, total market value $3,941,280)
        
        
        3,864,0001,030,000
        Lehman Brothers Inc. Joint Repurchase Agreement,2.20%, 07/01/08, dated 06/30/08, repurchase value of $1,030,063(collateralized by: U.S. Government agency mortgages in a pooled cash account, 4.50%-7.00%, 06/01/22-06/01/38, total market value $1,050,600)
        
        
        1,030,0002,561,000
        UBS Securities LLC Joint Repurchase Agreement,2.60%, 07/01/08, dated 06/30/08, repurchase value of $2,561,185(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%, 02/01/36, total market value $2,612,220)
        
        
        2,561,000TOTAL SHORT TERM INVESTMENTS 
(Identified cost $11,319,000)
        
        
        11,319,000Total Investments  (100.25%)  (identified cost $81,013,048)  (b)
        
        
        80,776,808Liabilities Less Other Assets  (0.25%)
        
        
        (202,653)Net Assets  (100.00%)
        
        $
        80,574,155(a)
        
        The interest rates on adjustable rate securities, shown as of June 30, 2008, may change daily or less frequently and are based on indices of market interest rates.(b)
        
        Aggregate cost for Federal Income Tax purposes is $81,013,048.  At June 30, 2008 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:Unrealized appreciation
        
        $
        237,159Unrealized depreciation
        
        
        (473,399)Net unrealized depreciation
        
        $
        (236,240)
   See Notes to Financial Statements  28
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS GOVERNMENT MONEY MARKET FUND June 30, 2008(Unaudited) Principal
        
        Security
        
        Value(Note 1)FANNIE MAE- (15.35%)$
        4,000,000
        3.10%, 07/02/08
        
        $
        4,000,0262,975,000
        5.00%, 07/03/08
        
        
        2,975,43314,000,000
        5.00%, 07/25/08
        
        
        14,006,9091,000,000
        4.05%, 08/04/08
        
        
        1,001,6583,000,000
        4.00%, 08/08/08
        
        
        2,999,182880,000
        3.25%, 08/15/08
        
        
        878,72410,000,000
        5.125%, 09/02/08
        
        
        10,042,0442,590,000
        3.75%, 09/15/08
        
        
        2,596,18222,675,000
        5.00%, 09/15/08
        
        
        22,775,129360,000
        4.50%, 10/15/08
        
        
        362,489500,000
        3.75%, 10/24/08
        
        
        501,7737,305,000
        3.375%, 12/15/08
        
        
        7,331,5981,354,000
        5.25%, 01/15/09
        
        
        1,371,2424,000,000
        5.00%, 01/23/09
        
        
        4,059,1422,400,000
        3.85%, 04/14/09
        
        
        2,428,304TOTAL FANNIE MAE  (Identified cost $77,329,835)
        
        
        77,329,835FEDERAL FARM CREDIT BANK- (6.98%)1,875,000
        4.07%, 10/06/08
        
        
        1,883,958500,000
        4.875%, 11/20/08
        
        
        504,2494,000,000
        3.70%, 12/17/08
        
        
        4,026,51820,000,000
        2.71%, 01/02/09  (a)
        
        
        20,000,0008,381,000
        2.49%, 02/05/09  (b)
        
        
        8,254,049500,000
        4.125%, 04/15/09
        
        
        504,930TOTAL FEDERAL FARM CREDIT BANK 
(Identified cost $35,173,704)
        
        
        35,173,704FEDERAL HOME LOAN BANK- (40.53%)20,000,000
        2.11%, 07/02/08  (b)
        
        
        19,998,82810,000,000
        2.85%, 07/07/08
        
        
        10,000,0002,000,000
        4.28%, 07/14/08
        
        
        2,001,3845,025,000
        2.625%, 07/15/08
        
        
        5,021,9228,515,000
        5.125%, 07/16/08
        
        
        8,517,9421,000,000
        4.125%, 07/25/08
        
        
        1,001,2961,500,000
        4.40%, 07/28/08
        
        
        1,502,4905,000,000
        5.125%, 07/30/08
        
        
        5,001,445
   29
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS GOVERNMENT MONEY MARKET FUND  - (Continued) June 30, 2008(Unaudited) Principal
        
        Security
        
        Value(Note 1)FEDERAL HOME LOAN BANK- (CONTINUED)$
        1,000,000
        5.125%, 08/08/08
        
        $
        1,002,45913,000,000
        5.25%, 08/14/08
        
        
        13,015,5423,690,000
        5.50%, 08/15/08
        
        
        3,702,81310,000,000
        2.45%, 09/11/08
        
        
        10,005,6731,060,000
        4.25%, 09/12/08
        
        
        1,064,154600,000
        5.00%, 09/12/08
        
        
        603,4451,400,000
        5.10%, 09/19/08
        
        
        1,407,3452,500,000
        4.50%, 09/26/08
        
        
        2,510,763860,000
        4.375%, 10/03/08
        
        
        864,989350,000
        4.50%, 10/14/08
        
        
        352,39612,000,000
        4.625%, 10/24/08
        
        
        12,075,1461,000,000
        4.75%, 10/27/08
        
        
        1,006,9865,000,000
        5.00%, 10/27/08
        
        
        5,044,18510,000,000
        2.565%, 11/07/08
        
        
        10,014,2651,000,000
        2.518%, 11/14/08  (a)
        
        
        1,000,0832,010,000
        3.625%, 11/14/08
        
        
        2,017,2414,600,000
        4.125%, 11/17/08
        
        
        4,596,524500,000
        5.00%, 11/17/08
        
        
        504,597850,000
        4.35%, 11/19/08
        
        
        855,7988,500,000
        2.452%, 12/01/08  (a)
        
        
        8,499,452500,000
        4.375%, 12/19/08
        
        
        504,665500,000
        5.49%, 12/22/08
        
        
        507,3161,000,000
        4.125%, 12/23/08
        
        
        1,008,3791,500,000
        3.00%, 12/26/08
        
        
        1,502,4981,000,000
        4.70%, 12/26/08
        
        
        1,004,66520,000,000
        2.75%, 01/23/09  (a)
        
        
        20,017,3566,000,000
        2.76%, 02/12/09
        
        
        6,000,00017,000,000
        2.68%, 03/20/09  (a)
        
        
        17,000,000750,000
        4.08%, 03/30/09
        
        
        756,3655,000,000
        2.32%, 04/01/09
        
        
        4,986,0695,000,000
        2.27%, 04/03/09  (a)
        
        
        5,000,0005,000,000
        2.76%, 04/08/09  (a)
        
        
        5,000,0003,500,000
        5.00%, 04/23/09
        
        
        3,565,1294,000,000
        4.25%, 05/15/09
        
        
        4,060,141TOTAL FEDERAL HOME LOAN BANK 
(Identified cost $204,101,746)
        
        
        204,101,746
   30
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS GOVERNMENT MONEY MARKET FUND  - (Continued) June 30, 2008(Unaudited)  Principal
        
        Security
        
        Value(Note 1)FREDDIE MAC- (6.39%)$
        700,000
        3.08%, 07/09/08
        
        $
        699,6681,529,000
        4.875%, 09/12/08
        
        
        1,535,894557,000
        3.625%, 09/15/08
        
        
        558,771560,000
        5.00%, 09/16/08
        
        
        563,3984,139,000
        4.48%, 09/19/08
        
        
        4,155,556395,000
        4.30%, 09/24/08
        
        
        397,0183,000,000
        5.125%, 10/15/08
        
        
        3,025,0361,000,000
        4.75%, 10/17/08
        
        
        1,007,340500,000
        4.90%, 11/03/08
        
        
        503,9783,525,000
        4.75%, 11/26/08
        
        
        3,563,7222,224,000
        4.625%, 12/19/08
        
        
        2,247,9787,500,000
        4.10%, 01/14/09
        
        
        7,524,4381,840,000
        5.75%, 03/15/09
        
        
        1,880,4804,500,000
        3.375%, 04/15/09
        
        
        4,519,755TOTAL FREDDIE MAC  (Identified cost $32,183,032)
        
        
        32,183,032FREDDIE MAC POOLS- (1.86%)1,171,543
        4.00%, 07/01/08, Pool No. M90826
        
        
        1,171,5431,483,977
        4.00%, 08/01/08, Pool No. M90831
        
        
        1,484,521378,443
        3.50%, 10/01/08, Pool No. M90850
        
        
        378,568836,826
        4.50%, 11/01/08, Pool No. M90878
        
        
        839,3521,590,101
        4.00%, 02/01/09, Pool No. M90895
        
        
        1,597,085567,212
        4.50%, 03/01/09, Pool No. M90904
        
        
        570,4953,303,593
        3.50%, 04/01/09, Pool No. M90913
        
        
        3,311,076TOTAL FREDDIE MAC POOLS  (Identified cost $9,352,640)
        
        
        9,352,640REPURCHASE AGREEMENTS- (20.59%)35,390,000
        ABN AMRO Inc. Joint Repurchase Agreement,2.80%, 07/01/08, dated 06/30/08, repurchase value of $35,392,753(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 3.15%-6.00%, 06/12/09-05/01/38, total market value $36,097,800)
        
        
        35,390,000
   31
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS GOVERNMENT MONEY MARKET FUND  - (Continued) June 30, 2008(Unaudited)  Principal
        
        Security
        
        Value(Note 1)Repurchase Agreements - (Continued)$
        35,390,000
        Banc of America Securities LLC Joint Repurchase Agreement,2.45%, 07/01/08, dated 06/30/08, repurchase value of $35,392,408(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.50%, 05/01/35-06/01/38, total market value $36,097,800)
        
        $
        35,390,0009,437,000
        Lehman Brothers Inc. Joint Repurchase Agreement,2.20%, 07/01/08, dated 06/30/08, repurchase value of $9,437,577(collateralized by: U.S. Government agency mortgages in a pooled cash account, 4.50%-7.00%, 06/01/22-06/01/38, total market value $9,625,740)
        
        
        9,437,00023,464,000
        UBS Securities LLC Joint Repurchase Agreement,2.60%, 07/01/08, dated 06/30/08, repurchase value of $23,465,695(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%, 02/01/36, total market value $23,933,280)
        
        
        23,464,000TOTAL REPURCHASE AGREEMENTS 
(Identified cost $103,681,000)
        
        
        103,681,000Total Investments  (91.70%)  (identified cost $461,821,957)  (c)
        
        
        461,821,957Other Assets Less Liabilities  (8.30%)
        
        
        41,802,122Net Assets  (100.00%)
        
        $
        503,624,079(a)
        
        The interest rates on floating rate securities, shown as of June 30, 2008, may change daily or less frequently and are based on indices of market interest rates.  For purposes of amortized cost valuation, the maturity dates of these securities are considered to be the effective maturities, based on the reset dates of the securities' variable rates.(b)
        
        Zero coupon bonds reflect the effective yield on the date of purchase.(c)
        
        Aggregate cost for Federal Income Tax purposes is $461,821,957.
    See Notes to Financial Statements  32
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS FINANCIAL FUND June 30, 2008(Unaudited) Shares
        
        Security
        
        Value(Note 1)COMMON STOCK- (99.42%)CONSUMER DISCRETIONARY - (2.24%)Consumer Services  (2.24%)791,000
        H&R Block, Inc.
        
        $
        16,927,400TOTAL CONSUMER DISCRETIONARY
        
        
        16,927,400ENERGY - (8.20%)618,700
        Canadian Natural Resources Ltd.   (Canada)
        
        
        62,024,675TOTAL ENERGY
        
        
        62,024,675FINANCIALS - (78.43%)Banks  (3.56%)Commercial Banks  (3.56%)75,700
        ICICI Bank Ltd., ADR   (India)
        
        
        2,177,132459,950
        State Bank of India Ltd., GDR   (India)
        
        
        24,745,31026,922,442Diversified Financials  (37.91%)Capital Markets  (15.28%)393,500
        Ameriprise Financial, Inc.
        
        
        16,003,6451,020,000
        Bank of New York Mellon Corp.
        
        
        38,586,600394,600
        Brookfield Asset Management Inc., Class A   (Canada)
        
        
        12,840,28450,000
        Goldman Sachs Group, Inc.
        
        
        8,745,000117,000
        Julius Baer Holding, Ltd. AG   (Switzerland)
        
        
        7,902,697992,700
        Merrill Lynch & Co., Inc.
        
        
        31,478,517115,556,743Consumer Finance  (10.17%)1,949,000
        American Express Co.
        
        
        73,418,8301,351,000
        First Marblehead Corp.  *
        
        
        3,472,07076,890,900Diversified Financial Services  (12.46%)1,019,560
        JPMorgan Chase & Co.
        
        
        34,981,103872,600
        Moody's Corp.
        
        
        30,052,344330,000
        Oaktree Capital Group LLC, Class A  (a)
        
        
        9,240,00013,900
        RHJ International  * (Belgium)
        
        
        175,079396,550
        RHJ International, 144A  *(b)(c) (Belgium)
        
        
        4,998,275182,000
        Visa Inc., Class A  *
        
        
        14,798,42094,245,221286,692,864
   33
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS FINANCIAL FUND  - (Continued) June 30, 2008(Unaudited) Shares/Principal
        
        Security
        
        Value(Note 1)COMMON STOCK - (CONTINUED)FINANCIALS - (CONTINUED)Insurance  (36.96%)Life & Health Insurance  (2.31%)334,733
        China Life Insurance Co., Ltd., ADR   (China)
        
        $
        17,466,368Multi-line Insurance  (12.15%)866,796
        American International Group, Inc.
        
        
        22,935,4221,470,600
        Loews Corp.
        
        
        68,971,14091,906,562Property & Casualty Insurance  (9.72%)169,800
        Ambac Financial Group, Inc.
        
        
        227,532337,300
        FPIC Insurance Group, Inc.  *
        
        
        15,313,42088,200
        Markel Corp.  *
        
        
        32,369,400534,000
        MBIA Inc.  *
        
        
        2,344,2601,244,000
        Progressive Corp. (Ohio)
        
        
        23,287,68073,542,292Reinsurance  (12.78%)225,000
        Everest Re Group, Ltd.
        
        
        17,934,7501,394,187
        Transatlantic Holdings, Inc.
        
        
        78,729,74096,664,490279,579,712TOTAL FINANCIALS
        
        
        593,195,018INDUSTRIALS - (8.24%)Commercial Services & Supplies  (8.24%)710,650
        D&B Corp.
        
        
        62,281,366TOTAL INDUSTRIALS
        
        
        62,281,366MATERIALS - (2.31%)918,000
        Sealed Air Corp.
        
        
        17,451,180TOTAL MATERIALS
        
        
        17,451,180TOTAL COMMON STOCK  (Identified cost $564,240,014)
        
        
        751,879,639SHORT TERM INVESTMENTS- (0.46%)$
        1,203,000
        ABN AMRO Inc. Joint Repurchase Agreement,2.80%, 07/01/08, dated 06/30/08, repurchase value of $1,203,094(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 3.15%-6.00%, 06/12/09-05/01/38, total market value $1,227,060)
        
        
        1,203,000
   34
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS FINANCIAL FUND  - (Continued) June 30, 2008(Unaudited)  Principal
        
        Security
        
        Value(Note 1)SHORT TERM INVESTMENTS- (CONTINUED)$
        1,203,000
        Banc of America Securities LLC Joint Repurchase Agreement,2.45%, 07/01/08, dated 06/30/08, repurchase value of $1,203,082(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.50%, 05/01/35-06/01/38, total market value $1,227,060)
        
        $
        1,203,000321,000
        Lehman Brothers Inc. Joint Repurchase Agreement,2.20%, 07/01/08, dated 06/30/08, repurchase value of $321,020(collateralized by: U.S. Government agency mortgages in a pooled cash account, 4.50%-7.00%, 06/01/22-06/01/38, total market value $327,420)
        
        
        321,000798,000
        UBS Securities LLC Joint Repurchase Agreement,2.60%, 07/01/08, dated 06/30/08, repurchase value of $798,058(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%, 02/01/36, total market value $813,960)
        
        
        798,000TOTAL SHORT TERM INVESTMENTS 
(Identified cost  $3,525,000)
        
        
        3,525,000Total Investments  (99.88%)  (identified cost $567,765,014)  (d)
        
        
        755,404,639Other Assets Less Liabilities  (0.12%)
        
        
        876,461Net Assets  (100.00%)
        
        $
        756,281,100*
        
        Non-Income producing security.ADR: American Depositary ReceiptGDR: Global Depositary Receipt(a)
        
        Illiquid Security  See Note 9 of the Notes to Financial Statements.(b)
        
        These securities are subject to Rule 144A.  The Board of Directors of the Fund has determined that there is sufficient liquidity in these securities to realize current valuations.  These securities amounted to 4,998,275, or 0.66% of the Fund's net assets, as of June 30, 2008.(c)
        
        Restricted Security - See Note 9 of the Notes to Financial Statements.(d)
        
        Aggregate cost for Federal Income Tax purposes is $567,765,014.  At June 30, 2008 unrealized     appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:Unrealized appreciation
        
        $
        274,984,590Unrealized depreciation
        
        
        (87,344,965)Net unrealized appreciation
        
        $
        187,639,625See Notes to Financial Statements
   35
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS APPRECIATION & INCOME FUND June 30, 2008(Unaudited)  Shares
        
        Security
        
        Value(Note 1)COMMON STOCK- (42.05%)CONSUMER DISCRETIONARY - (9.13%)Media  (1.35%)525,000
        News Corp., Class A
        
        $
        7,896,000115,000
        News Corp., Class B
        
        
        1,765,2509,661,250Retailing  (7.78%)121,213
        Amazon.com, Inc.  *
        
        
        8,884,30782,900
        AutoZone, Inc.  *
        
        
        10,031,729250,450
        J. C. Penney Co., Inc.
        
        
        9,088,830695,400
        Kohl's Corp.  *
        
        
        27,843,81655,848,682TOTAL CONSUMER DISCRETIONARY
        
        
        65,509,932CONSUMER STAPLES - (10.34%)Food & Staples Retailing  (3.59%)1,090,000
        Whole Foods Market, Inc.
        
        
        25,783,950Food, Beverage & Tobacco  (3.83%)155,000
        Coca-Cola Co.
        
        
        8,056,9001,297,300
        Tyson Foods, Inc., Class A
        
        
        19,381,66227,438,562Household & Personal Products  (2.92%)582,200
        Avon Products, Inc.
        
        
        20,970,844TOTAL CONSUMER STAPLES
        
        
        74,193,356FINANCIALS - (7.86%)Diversified Financials  (4.25%)Capital Markets  (2.65%)600,000
        Merrill Lynch & Co., Inc.
        
        
        19,026,000Consumer Finance  (1.60%)305,000
        American Express Co.
        
        
        11,489,35030,515,350Insurance  (0.14%)Property & Casualty Insurance  (0.14%)772,300
        Ambac Financial Group, Inc.
        
        
        1,034,882Real Estate  (3.47%)407,940
        Forest City Enterprises, Inc., Class A
        
        
        13,143,827
   36
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS APPRECIATION & INCOME FUND  - (Continued) June 30, 2008(Unaudited)  Shares
        
        Security
        
        Value(Note 1)COMMON STOCK - (CONTINUED)FINANCIALS - (CONTINUED)Real Estate  (Continued)335,000
        General Growth Properties, Inc.
        
        $
        11,735,05024,878,877TOTAL FINANCIALS
        
        
        56,429,109HEALTH CARE - (3.34%)Health Care Equipment & Services  (3.34%)378,600
        Universal Health Services, Inc., Class B
        
        
        23,935,092TOTAL HEALTH CARE
        
        
        23,935,092INDUSTRIALS - (5.83%)Capital Goods  (3.63%)432,000
        General Electric Co.
        
        
        11,530,080673,400
        Masco Corp.
        
        
        10,592,582200,000
        United Rentals, Inc.  *
        
        
        3,922,00026,044,662Commercial Services & Supplies  (2.20%)120,000
        School Specialty, Inc.  *
        
        
        3,568,800382,000
        Waste Connections, Inc.  *
        
        
        12,197,26015,766,060TOTAL INDUSTRIALS
        
        
        41,810,722INFORMATION TECHNOLOGY - (2.62%)Semiconductors & Semiconductor Equipment  (1.54%)457,900
        Fairchild Semiconductor International, Inc.  *
        
        
        5,371,167296,700
        International Rectifier Corp.  *
        
        
        5,696,64011,067,807Software & Services  (1.08%)148,000
        SAP AG, ADR   (Germany)
        
        
        7,712,280TOTAL INFORMATION TECHNOLOGY
        
        
        18,780,087MATERIALS  (1.38%)520,000
        Sealed Air Corp.
        
        
        9,885,200TOTAL MATERIALS
        
        
        9,885,200
   37
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS APPRECIATION & INCOME FUND  - (Continued) June 30, 2008(Unaudited)  Shares/Principal
        
        Security
        
        Value(Note 1)COMMON STOCK - (CONTINUED)UTILITIES - (1.55%)580,700
        AES Corp.  *
        
        $
        11,155,247TOTAL UTILITIES
        
        
        11,155,247TOTAL COMMON STOCK  (Identified cost $382,620,114)
        
        
        301,698,745CONVERTIBLE PREFERRED STOCK- (9.92%)FINANCIALS - (7.15%)Diversified Financials  (2.43%)Diversified Financial Services  (2.43%)400,000
        Citigroup Inc., 6.50%, 12/31/49, Conv. Pfd.
        
        
        17,400,000Insurance  (2.27%)Multi-line Insurance  (2.27%)275,000
        American International Group, Inc., 8.50%, 08/01/11,
Cum. Conv. Pfd.
        
        
        16,304,750Real Estate  (2.45%)650,000
        Digital Realty Trust L.P., 5.50%, 12/31/49, Cum. Conv. Pfd.
        
        
        17,610,970TOTAL FINANCIALS
        
        
        51,315,720INDUSTRIALS - (0.82%)Capital Goods  (0.48%)109,741
        United Rentals Trust I, 6.50%, 08/01/28, Conv. Pfd.
        
        
        3,477,418Transportation  (0.34%)161,300
        Continental Airlines Finance Trust II, 6.00%, 11/15/30,
Cum. Conv. Pfd.
        
        
        2,409,419TOTAL INDUSTRIALS
        
        
        5,886,837UTILITIES - (1.95%)288,810
        AES Trust III, 6.75%, 10/15/29, Conv. Pfd.
        
        
        14,007,285TOTAL UTILITIES
        
        
        14,007,285TOTAL CONVERTIBLE PREFERRED STOCK 
(Identified cost $75,783,026)
        
        
        71,209,842CONVERTIBLE BONDS- (38.80%)CONSUMER DISCRETIONARY - (1.31%)Media  (1.31%)$
        16,050,000
        News America Inc., Conv. Notes, Zero coupon, 3.38%,
02/28/21  (a)(b)(c)
        
        
        9,400,004TOTAL CONSUMER DISCRETIONARY
        
        
        9,400,004
   38
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS APPRECIATION & INCOME FUND  - (Continued) June 30, 2008(Unaudited)  Principal
        
        Security
        
        Value(Note 1)CONVERTIBLE BONDS - (CONTINUED)ENERGY - (6.71%)$
        39,000,000
        Nabors Industries, Inc., Conv. Sr. Notes, 0.94%, 05/15/11
        
        $
        48,165,000TOTAL ENERGY
        
        
        48,165,000FINANCIALS - (14.78%)Real Estate  (14.78%)7,750,000
        Digital Realty Trust L.P., 144A Conv. Sr. Notes, 4.125%,
08/15/26  (d)
        
        
        10,318,58223,000,000
        Forest City Enterprises, Inc., Class A, Conv. Sr. Notes, 3.625%,
10/15/11
        
        
        19,092,30021,000,000
        General Growth Properties, Inc., 144A Conv. Sr. Notes, 3.98%,
04/15/27  (d)
        
        
        16,563,75017,400,000
        ProLogis, 144A Conv. Sr. Notes, 2.25%, 04/01/37  (d)
        
        
        15,986,25018,000,000
        Reckson Operating Partnership, L.P., Conv. Sr. Notes
(Convertible into SL Green Realty Corp.), 4.00%, 06/15/25
        
        
        16,852,50024,000,000
        Vornado Realty L.P., Conv. Sr. Deb., 3.875%, 04/15/25
        
        
        27,240,000106,053,382TOTAL FINANCIALS
        
        
        106,053,382HEALTH CARE - (0.47%)Pharmaceuticals, Biotechnology & Life Sciences  (0.47%)3,900,000
        Valeant Pharmaceuticals International, Conv. Sub. Notes, 4.00%,
11/15/13
        
        
        3,363,750TOTAL HEALTH CARE
        
        
        3,363,750INDUSTRIALS - (9.55%)Capital Goods  (4.09%)8,500,000
        Quanta Services, Inc., Conv. Sub. Deb., 4.50%, 10/01/23
        
        
        25,500,0003,720,000
        United Rentals North America Inc., Conv. Sr. Sub., 1.875%,
10/15/23
        
        
        3,817,65029,317,650Commercial Services & Supplies  (5.46%)8,500,000
        School Specialty, Inc., Conv. Sub. Deb., 3.75%, 11/30/26
        
        
        7,341,87522,101,000
        School Specialty, Inc., Conv. Sub. Notes, 3.75%/Zero coupon,
08/01/23  (e)
        
        
        20,774,94010,000,000
        Waste Connections, Inc., Conv. Sr. Notes, 3.75%, 04/01/26
        
        
        11,062,50039,179,315TOTAL INDUSTRIALS
        
        
        68,496,965
   39
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS APPRECIATION & INCOME FUND  - (Continued) June 30, 2008(Unaudited)  Principal
        
        Security
        
        Value(Note 1)CONVERTIBLE BONDS - (CONTINUED)INFORMATION TECHNOLOGY - (4.91%)Semiconductors & Semiconductor Equipment  (4.91%)$
        36,000,000
        Intel Corp., Conv. Sub. Deb., 2.95%, 12/15/35
        
        $
        35,235,000TOTAL INFORMATION TECHNOLOGY
        
        
        35,235,000MATERIALS - (1.07%)8,000,000
        Sealed Air Corp., 144A, Conv. Sr. Notes, 3.00%, 06/30/33  (d)
        
        
        7,690,000TOTAL MATERIALS
        
        
        7,690,000TOTAL CONVERTIBLE BONDS  (Identified cost $266,389,457)
        
        
        278,404,101CORPORATE BONDS- (6.74%)CONSUMER DISCRETIONARY - (1.58%)Retailing  (1.58%)1,900,000
        AutoZone, Inc., Sr. Notes, 5.50%, 11/15/15
        
        
        1,806,08310,000,000
        Kohl's Corp., Sr. Notes, 6.25%, 12/15/17
        
        
        9,550,36011,356,443TOTAL CONSUMER DISCRETIONARY
        
        
        11,356,443CONSUMER STAPLES - (2.40%)Food, Beverage & Tobacco  (1.68%)2,000,000
        Coca-Cola Co., Sr. Notes, 5.35%, 11/15/17
        
        
        2,019,67411,000,000
        Tyson Foods, Inc., Sr. Notes, 6.85%, 04/01/16
        
        
        10,051,17312,070,847Household & Personal Products  (0.72%)6,000,000
        Avon Products, Inc., Sr. Notes, 4.20%, 07/15/18
        
        
        5,172,042TOTAL CONSUMER STAPLES
        
        
        17,242,889FINANCIALS - (1.24%)Real Estate  (1.24%)14,000,000
        Thornburg Mortgage, Inc., Sr. Notes, 8.00%, 05/15/13
        
        
        8,890,000TOTAL FINANCIALS
        
        
        8,890,000INDUSTRIALS - (1.52%)Capital Goods  (1.52%)12,000,000
        Masco Corp., 6.125%, 10/03/16
        
        
        10,890,660TOTAL INDUSTRIALS
        
        
        10,890,660TOTAL CORPORATE BONDS  (Identified cost $54,375,874)
        
        
        48,379,992
   40
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS APPRECIATION & INCOME FUND  - (Continued) June 30, 2008(Unaudited)  Principal
        
        Security
        
        Value(Note 1)SHORT TERM INVESTMENTS- (2.36%)$
        5,775,000
        ABN AMRO Inc. Joint Repurchase Agreement,2.80%, 07/01/08, dated 06/30/08, repurchase value of $5,775,449(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 3.15%-6.00%, 06/12/09-05/01/38, total market value $5,890,500)
        
        $
        5,775,0005,775,000
        Banc of America Securities LLC Joint Repurchase Agreement,2.45%, 07/01/08, dated 06/30/08, repurchase value of $5,775,393(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.50%, 05/01/35-06/01/38, total market value $5,890,500)
        
        
        5,775,0001,540,000
        Lehman Brothers Inc. Joint Repurchase Agreement,2.20%, 07/01/08, dated 06/30/08, repurchase value of $1,540,094(collateralized by: U.S. Government agency mortgages in a pooled cash account, 4.50%-7.00%, 06/01/22-06/01/38, total market value $1,570,800)
        
        
        1,540,0003,829,000
        UBS Securities LLC Joint Repurchase Agreement,2.60%, 07/01/08, dated 06/30/08, repurchase value of $3,829,277(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%, 02/01/36, total market value $3,905,580)
        
        
        3,829,000TOTAL SHORT TERM INVESTMENTS 
(Identified cost $16,919,000)
        
        
        16,919,000Total Investments  (99.87%)  (identified cost $796,087,471)  (f)
        
        
        716,611,680Other Assets Less Liabilities  (0.13%)
        
        
        943,900Net Assets  (100.00%)
        
        $
        717,555,580*
        
        Non-Income producing security.ADR: American Depositary Receipt(a)
        
        Illiquid Security  See Note 9 of the Notes to Financial Statements.(b)
        
        As of June 30, 2008, zero coupon bonds represented $9,400,004, or 1.31% of the Fund's net assets.  Because zero coupon bonds pay no interest their value is generally more volatile than the value of other debt securities.(c)
        
        Zero coupon bonds reflect the effective yield on the date of purchase.
   41
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS APPRECIATION & INCOME FUND  - (Continued) June 30, 2008(Unaudited)  (d)
        
        These securities are subject to Rule 144A.  The Board of Directors of the Fund has determined that there is sufficient liquidity in these securities to realize current valuations.  These securities amounted to $50,558,582, or 7.05% of the Fund's net assets, as of June 30, 2008.(e)
        
        Represents a step-down bond: a bond that pays one coupon rate for an initial period followed by a lower coupon rate.(f)
        
        Aggregate cost for Federal Income Tax purposes is $796,233,532.  At June 30, 2008 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:Unrealized appreciation
        
        $
        50,908,518Unrealized depreciation
        
        
        (130,530,370)Net unrealized depreciation
        
        $
        (79,621,852)See Notes to Financial Statements
   42
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS REAL ESTATE FUND June 30, 2008(Unaudited) Shares
        
        Security
        
        Value(Note 1)COMMON STOCK- (92.95%)FINANCIALS - (89.81%)Real Estate  (89.81%)Real Estate Investment Trusts (REITs)  (78.77%)Diversified REITs  (6.80%)1,158,300
        Cousins Properties, Inc.
        
        $
        26,756,730821,800
        Gramercy Capital Corp.
        
        
        9,524,66236,281,392Industrial REITs  (6.56%)232,000
        AMB Property Corp.
        
        
        11,688,160967,500
        Brixton PLC   (United Kingdom)
        
        
        4,634,7101,291,200
        DCT Industrial Trust Inc.
        
        
        10,691,136524,500
        First Potomac Realty Trust
        
        
        7,993,38035,007,386Office REITs  (28.76%)462,513
        Alexandria Real Estate Equities, Inc.
        
        
        45,021,015306,242
        Boston Properties, Inc.
        
        
        27,629,153729,238
        Corporate Office Properties Trust
        
        
        25,034,741849,419
        Derwent London PLC   (United Kingdom)
        
        
        17,054,500947,800
        Digital Realty Trust, Inc.
        
        
        38,774,498153,513,907Residential REITs  (10.99%)847,600
        American Campus Communities, Inc.
        
        
        23,597,184156,400
        AvalonBay Communities Inc.
        
        
        13,944,624198,100
        Essex Property Trust, Inc.
        
        
        21,097,65058,639,458Retail REITs  (14.69%)130,700
        Federal Realty Investment Trust
        
        
        9,018,300808,757
        General Growth Properties, Inc.
        
        
        28,330,758320,118
        Kimco Realty Corp.
        
        
        11,050,474162,778
        Regency Centers Corp.
        
        
        9,623,435419,600
        Taubman Centers, Inc.
        
        
        20,413,54078,436,507Specialized REITs  (10.97%)1,146,847
        Cogdell Spencer, Inc., Private Placement  (a)(b)
        
        
        18,356,777944,600
        Ventas, Inc.
        
        
        40,211,62258,568,399420,447,049
   43
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS REAL ESTATE FUND  - (Continued) June 30, 2008(Unaudited)  Shares/Principal
        
        Security
        
        Value(Note 1)COMMON STOCK - (CONTINUED)FINANCIALS - (CONTINUED)Real Estate  (Continued)Real Estate Management & Development  (11.04%)1,272,384
        Forest City Enterprises, Inc., Class A
        
        $
        40,996,2123,326,500
        Minerva PLC  * (United Kingdom)
        
        
        5,814,216259,200
        Mitsubishi Estate Co., Ltd.   (Japan)
        
        
        5,931,685288,000
        Mitsui Fudosan Co., Ltd.   (Japan)
        
        
        6,156,80258,898,915TOTAL FINANCIALS
        
        
        479,345,964INDUSTRIALS - (3.14%)Transportation  (3.14%)214,400
        Alexander & Baldwin, Inc.
        
        
        9,773,42470,300
        Burlington Northern Santa Fe Corp.
        
        
        7,022,26716,795,691TOTAL INDUSTRIALS
        
        
        16,795,691TOTAL COMMON STOCK  (Identified cost $502,985,941)
        
        
        496,141,655PREFERRED STOCK- (0.35%)FINANCIALS - (0.35%)Real Estate  (0.35%)Real Estate Investment Trusts (REITs)  (0.35%)Residential REITs  (0.35%)43,700
        Equity Residential, 7.00%, Series E, Cum. Conv. Pfd.
        
        
        1,869,923TOTAL PREFERRED STOCK  (Identified cost $1,079,517)
        
        
        1,869,923CONVERTIBLE BONDS- (3.75%)FINANCIALS - (3.75%)Real Estate  (3.75%)Real Estate Investment Trusts (REITs)  (3.75%)Industrial REITs  (3.56%)$
        20,690,000
        ProLogis, 144A Conv. Sr. Notes, 2.25%, 04/01/37  (c)
        
        
        19,008,937Office REITs  (0.19%)1,230,000
        SL Green Realty Corp., 144A Conv. Sr. Notes, 3.00%, 03/30/27  (c)
        
        
        994,763TOTAL FINANCIALS
        
        
        20,003,700TOTAL CONVERTIBLE BONDS  (Identified cost $21,627,868)
        
        
        20,003,700
   44
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS REAL ESTATE FUND  - (Continued) June 30, 2008(Unaudited)  Principal
        
        Security
        
        Value(Note 1)SHORT TERM INVESTMENTS- (2.87%)$
        5,235,000
        ABN AMRO Inc. Joint Repurchase Agreement,2.80%, 07/01/08, dated 06/30/08, repurchase value of $5,235,407(collateralized by: U.S. Government agency mortgages and obligations in a pooled cash account, 3.15%-6.00%, 06/12/09-05/01/38, total market value $5,339,700)
        
        $
        5,235,0005,235,000
        Banc of America Securities LLC Joint Repurchase Agreement,2.45%, 07/01/08, dated 06/30/08, repurchase value of $5,235,356(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.50%, 05/01/35-06/01/38, total market value $5,339,700)
        
        
        5,235,0001,396,000
        Lehman Brothers Inc. Joint Repurchase Agreement,2.20%, 07/01/08, dated 06/30/08, repurchase value of $1,396,085(collateralized by: U.S. Government agency mortgages in a pooled cash account, 4.50%-7.00%, 06/01/22-06/01/38, total market value $1,423,920)
        
        
        1,396,0003,470,000
        UBS Securities LLC Joint Repurchase Agreement,2.60%, 07/01/08, dated 06/30/08, repurchase value of $3,470,251(collateralized by: U.S. Government agency mortgages in a pooled cash account, 5.00%, 02/01/36, total market value $3,539,400)
        
        
        3,470,000TOTAL SHORT TERM INVESTMENTS 
(Identified cost $15,336,000)
        
        
        15,336,000Total Investments  (99.92%)  (identified cost $541,029,326)  (d)
        
        
        533,351,278Other Assets Less Liabilities  (0.08%)
        
        
        400,314Net Assets  (100.00%)
        
        $
        533,751,592*
        
        Non-Income producing security.(a)
        
        Illiquid and Restricted Security  See Note 9 of the Notes to Financial Statements.
   45
  
 DAVIS SERIES, INC. SCHEDULE OF INVESTMENTS DAVIS REAL ESTATE FUND  - (Continued) June 30, 2008(Unaudited)  (b)
        
        Affiliated Company.  Represents ownership of at least 5% of the voting securities of the issuer and is an affiliate, as defined in the Investment Company Act of 1940, at or during the six months ended June 30, 2008.  The aggregate fair value of the securities of affiliated companies held by the Fund as of June 30, 2008, amounts to $18,356,777.  Transactions during the period in which the issuers were affiliates are as follows:
  Security
        
        Shares
December 31, 2007
        
        Gross
Additions
        
        Gross
Reductions
        
        Shares
June 30, 2008
        
        Dividend
IncomeCogdell Spencer, Inc.,
Private Placement
        
        
        
        1,146,847
        
        
        
        1,146,847
        $
        802,793
  (c)
        
        These securities are subject to Rule 144A.  The Board of Directors of the Fund has determined that there is sufficient liquidity in these securities to realize current valuations.  These securities amounted to $20,003,700, or 3.75% of the Fund's net assets, as of June 30, 2008.(d)
        
        Aggregate cost for Federal Income Tax purposes is $542,876,513.  At June 30, 2008 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:Unrealized appreciation
        
        $
        54,498,561Unrealized depreciation
        
        
        (64,023,796)Net unrealized depreciation
        
        $
        (9,525,235)See Notes to Financial Statements
   46


DAVIS SERIES, INC. STATEMENTS OF ASSETS AND LIABILITIES At June 30, 2008(Unaudited)  Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundASSETS:Investments in securities,at value* (see accompanyingSchedules of Investments):Unaffiliated companies
        $
        768,008,124
        
        $
        80,776,808
        
        $
        461,821,957
        
        $
        755,404,639
        
        $
        716,611,680
        
        $
        514,994,501Affiliated companies
        
        2,381,400
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        18,356,777Cash
        
        5,024
        
        
        
        
        
        14,021
        
        
        91,579
        
        
        4,446
        
        
        7,412Cash - foreign currencies**
        
        143,279
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        45,908Receivables:Dividends and interest
        
        1,155,396
        
        
        381,516
        
        
        3,513,317
        
        
        906,546
        
        
        2,374,146
        
        
        2,621,935Capital stock sold
        
        1,231,820
        
        
        719,163
        
        
        39,138,149
        
        
        1,149,091
        
        
        1,863,673
        
        
        956,878Investment securities sold
        
        11,981,753
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        Prepaid expenses
        
        56,818
        
        
        236
        
        
        25,754
        
        
        48,366
        
        
        46,044
        
        
        67,077Total assets
        
        784,963,614
        
        
        81,877,723
        
        
        504,513,198
        
        
        757,600,221
        
        
        720,899,989
        
        
        537,050,488LIABILITIES:Cash overdraft
        
        
        
        
        773,339
        
        
        
        
        
        
        
        
        
        
        
        Payables:Capital stock redeemed
        
        3,473,207
        
        
        305,538
        
        
        534,759
        
        
        237,385
        
        
        2,310,558
        
        
        1,364,541Investment securities purchased
        
        6,536,080
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        1,071,592Distributions payable
        
        
        
        
        61,176
        
        
        8,578
        
        
        
        
        
        
        
        
        Accrued management fees
        
        473,149
        
        
        19,977
        
        
        205,564
        
        
        461,927
        
        
        430,469
        
        
        343,127Accrued transfer agent fees
        
        283,672
        
        
        22,042
        
        
        10,857
        
        
        157,383
        
        
        130,096
        
        
        165,500Other accrued expenses
        
        93,297
        
        
        67,043
        
        
        129,361
        
        
        42,523
        
        
        69,235
        
        
        33,466Distribution and service planfees (Note 3)
        
        545,195
        
        
        54,453
        
        
        
        
        
        419,903
        
        
        404,051
        
        
        320,670Total liabilities
        
        11,404,600
        
        
        1,303,568
        
        
        889,119
        
        
        1,319,121
        
        
        3,344,409
        
        
        3,298,896NET ASSETS
        $
        773,559,014
        
        $
        80,574,155
        
        $
        503,624,079
        
        $
        756,281,100
        
        $
        717,555,580
        
        $
        533,751,592NET ASSETS CONSISTS OF:Par value of shares of capital stock
        $
        382,588
        
        $
        144,218
        
        $
        5,036,241
        
        $
        237,141
        
        $
        281,495
        
        $
        190,891Additional paid-in capital
        
        801,033,067
        
        
        85,444,222
        
        
        498,587,838
        
        
        516,156,061
        
        
        772,545,293
        
        
        528,138,167Undistributed net investmentincome (loss)
        
        (6,363,046)
        
        
        
        
        
        
        
        
        2,573,109
        
        
        2,444,758
        
        
        (2,961,614)Accumulated net realized gains(losses) from investments andforeign currency transactions
        
        (30,954,870)
        
        
        (4,778,045)
        
        
        
        
        
        49,675,288
        
        
        21,759,825
        
        
        16,061,240Net unrealized appreciation(depreciation) on investments andforeign currency transactions
        
        9,461,275
        
        
        (236,240)
        
        
        
        
        
        187,639,501
        
        
        (79,475,791)
        
        
        (7,677,092)Net Assets
        $
        773,559,014
        
        $
        80,574,155
        
        $
        503,624,079
        
        $
        756,281,100
        
        $
        717,555,580
        
        $
        533,751,592*Including:Cost of investments:Unaffiliated companies
        $
        753,112,112
        
        $
        81,013,048
        
        $
        461,821,957
        
        $
        567,765,014
        
        $
        796,087,471
        
        $
        522,737,116Affiliated companies
        
        7,822,411
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        18,292,210Market value of repurchaseagreements (if greater than10% of Funds net assets)
        
        
        
        
        11,319,000
        
        
        103,681,000
        
        
        
        
        
        
        
        
        
  **Cost of cash - foreign currencies
        
        143,420
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        45,916
   47
  
 DAVIS SERIES, INC. STATEMENTS OF ASSETS AND LIABILITIES  (CONTINUED) At June 30, 2008(Unaudited)  Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundCLASS A SHARES:Net assets
        $
        472,133,011
        
        $
        46,038,906
        
        $
        461,668,261
        
        $
        634,693,827
        
        $
        460,131,541
        
        $
        402,861,528Shares outstanding
        
        22,624,693
        
        
        8,238,855
        
        
        461,668,261
        
        
        19,571,569
        
        
        18,060,682
        
        
        14,422,767Net asset value and redemptionprice per share (netassets ÷ shares outstanding)
        $
        20.87
        
        $
        5.59
        
        $
        1.00
        
        $
        32.43
        
        $
        25.48
        
        $
        27.93Maximum offering price pershare (100 ÷ 95.25 of netasset value)
        $
        21.91
        
        $
        5.87
        
        
        N/A
        
        $
        34.05
        
        $
        26.75
        
        $
        29.32CLASS B SHARES:Net assets
        $
        39,720,418
        
        $
        12,715,743
        
        $
        25,722,917
        
        $
        29,224,513
        
        $
        31,969,188
        
        $
        16,833,851Shares outstanding
        
        2,198,863
        
        
        2,281,716
        
        
        25,722,917
        
        
        1,022,012
        
        
        1,271,141
        
        
        608,174Net asset value, offering, andredemption price per share (netassets ÷ shares outstanding)
        $
        18.06
        
        $
        5.57
        
        $
        1.00
        
        $
        28.60
        
        $
        25.15
        
        $
        27.68CLASS C SHARES:Net assets
        $
        202,805,329
        
        $
        21,039,543
        
        $
        16,146,005
        
        $
        81,005,325
        
        $
        142,110,920
        
        $
        62,273,409Shares outstanding
        
        10,698,378
        
        
        3,762,776
        
        
        16,146,005
        
        
        2,777,706
        
        
        5,562,798
        
        
        2,224,993Net asset value, offering, andredemption price per share (netassets ÷ shares outstanding)
        $
        18.96
        
        $
        5.59
        
        $
        1.00
        
        $
        29.16
        
        $
        25.55
        
        $
        27.99CLASS Y SHARES:Net assets
        $
        58,900,256
        
        $
        779,963
        
        $
        86,896
        
        $
        11,357,435
        
        $
        83,343,931
        
        $
        51,782,804Shares outstanding
        
        2,736,835
        
        
        138,485
        
        
        86,896
        
        
        342,817
        
        
        3,254,833
        
        
        1,833,138Net asset value, offering, andredemption price per share (netassets ÷ shares outstanding)
        $
        21.52
        
        $
        5.63
        
        $
        1.00
        
        $
        33.13
        
        $
        25.61
        
        $
        28.25
       See Notes to Financial Statements  48
  
 DAVIS SERIES, INC. STATEMENTS OF OPERATIONS For the six months ended June 30, 2008(Unaudited)  Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundINVESTMENT INCOME:Income:Dividends:Unaffiliated companies*
        $
        6,304,580
        
        $
        
        
        $
        
        
        $
        6,058,827
        
        $
        4,423,589
        
        $
        9,485,941Affiliated companies
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        802,793Interest
        
        475,029
        
        
        1,675,913
        
        
        8,645,073
        
        
        107,122
        
        
        7,190,540
        
        
        518,944Total income
        
        6,779,609
        
        
        1,675,913
        
        
        8,645,073
        
        
        6,165,949
        
        
        11,614,129
        
        
        10,807,678Expenses:Management fees (Note 2)
        
        2,850,245
        
        
        110,018
        
        
        1,196,623
        
        
        2,649,463
        
        
        2,546,017
        
        
        1,956,648Custodian fees
        
        69,570
        
        
        17,746
        
        
        32,055
        
        
        53,418
        
        
        73,153
        
        
        40,246Transfer agent fees:Class A
        
        431,260
        
        
        30,530
        
        
        31,232
        
        
        398,821
        
        
        249,274
        
        
        394,745Class B
        
        58,250
        
        
        11,985
        
        
        1,750
        
        
        56,163
        
        
        31,708
        
        
        29,019Class C
        
        193,731
        
        
        14,053
        
        
        1,049
        
        
        82,528
        
        
        86,891
        
        
        64,492Class Y
        
        40,210
        
        
        1,216
        
        
        8
        
        
        8,398
        
        
        21,813
        
        
        18,137Audit fees
        
        10,800
        
        
        9,000
        
        
        10,800
        
        
        16,800
        
        
        11,400
        
        
        15,000Legal fees
        
        9,513
        
        
        769
        
        
        3,267
        
        
        7,747
        
        
        7,330
        
        
        5,433Accounting fees (Note 2)
        
        4,002
        
        
        1,332
        
        
        13,834
        
        
        6,166
        
        
        4,166
        
        
        4,334Reports to shareholders
        
        112,456
        
        
        14,053
        
        
        34,513
        
        
        84,969
        
        
        97,500
        
        
        97,513Directors fees and expenses
        
        43,358
        
        
        3,836
        
        
        22,378
        
        
        40,347
        
        
        38,243
        
        
        28,830Registration and filing fees
        
        47,517
        
        
        37,672
        
        
        26,923
        
        
        29,995
        
        
        62,001
        
        
        27,616Interest expense
        
        
        
        
        
        
        
        
        
        
        3,376
        
        
        
        
        
        Miscellaneous
        
        15,186
        
        
        6,787
        
        
        5,439
        
        
        17,633
        
        
        12,868
        
        
        18,580Distribution plan payments (Note 3):Class A
        
        668,883
        
        
        46,592
        
        
        
        
        
        691,747
        
        
        560,184
        
        
        529,487Class B
        
        238,257
        
        
        66,526
        
        
        
        
        
        189,956
        
        
        186,380
        
        
        100,147Class C
        
        1,188,492
        
        
        104,761
        
        
        
        
        
        431,013
        
        
        775,185
        
        
        339,641Total expenses
        
        5,981,730
        
        
        476,876
        
        
        1,379,871
        
        
        4,768,540
        
        
        4,764,113
        
        
        3,669,868Expenses paidindirectly (Note 6)
        
        (704)
        
        
        (54)
        
        
        (25)
        
        
        (1,061)
        
        
        (975)
        
        
        (792)Net expenses
        
        5,981,026
        
        
        476,822
        
        
        1,379,846
        
        
        4,767,479
        
        
        4,763,138
        
        
        3,669,076Net investment income
        
        798,583
        
        
        1,199,091
        
        
        7,265,227
        
        
        1,398,470
        
        
        6,850,991
        
        
        7,138,602REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTSAND FOREIGN CURRENCY TRANSACTIONS:Net realized gain (loss) from:Investment transactions:Unaffiliated companies
        
        (13,674,304)
        
        
        342,857
        
        
        
        
        
        2,403,881
        
        
        24,109,148
        
        
        (63,861)Affiliated companies
        
        (37,003)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        Foreign currency transactions
        
        (18,301)
        
        
        
        
        
        
        
        
        (8,266)
        
        
        
        
        
        16Net change in unrealized appreciation(depreciation)
        
        (166,182,361)
        
        
        (702,131)
        
        
        
        
        
        (191,762,582)
        
        
        (108,315,543)
        
        
        (55,521,420)Net realized and unrealized loss
        
        (179,911,969)
        
        
        (359,274)
        
        
        
        
        
        (189,366,967)
        
        
        (84,206,395)
        
        
        (55,585,265)Net increase (decrease)in net assets resultingfrom operations
        $
        (179,113,386)
        
        $
        839,817
        
        $
        7,265,227
        
        $
        (187,968,497)
        
        $
        (77,355,404)
        
        $
        (48,446,663)*Net of foreign taxes withheldas follows
        $
        419,905
        
        $
        
        
        $
        
        
        $
        18,501
        
        $
        17,143
        
        $
        44,274
 See Notes to Financial Statements  49
  
 DAVIS SERIES, INC. STATEMENTS OF CHANGES IN NET ASSETS For the six months ended June 30, 2008(Unaudited)  Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundOPERATIONS:Net investment income
        $
        798,583
        
        $
        1,199,091
        
        $
        7,265,227
        
        $
        1,398,470
        
        $
        6,850,991
        
        $
        7,138,602Net realized gain (loss) frominvestments and foreigncurrency transactions
        
        (13,729,608)
        
        
        342,857
        
        
        
        
        
        2,395,615
        
        
        24,109,148
        
        
        (63,845)Net change in unrealizedappreciation (depreciation)on investments
        
        (166,182,361)
        
        
        (702,131)
        
        
        
        
        
        (191,762,582)
        
        
        (108,315,543)
        
        
        (55,521,420)Net increase (decrease) in netassets resulting fromoperations
        
        (179,113,386)
        
        
        839,817
        
        
        7,265,227
        
        
        (187,968,497)
        
        
        (77,355,404)
        
        
        (48,446,663)DIVIDENDS ANDDISTRIBUTIONS TOSHAREHOLDERS FROM:Net investment income:Class A
        
        
        
        
        (692,127)
        
        
        (6,684,146)
        
        
        
        
        
        (3,001,691)
        
        
        (2,038,654)Class B
        
        
        
        
        (189,962)
        
        
        (363,253)
        
        
        
        
        
        (142,271)
        
        
        (53,185)Class C
        
        
        
        
        (304,345)
        
        
        (216,057)
        
        
        
        
        
        (617,705)
        
        
        (190,452)Class Y
        
        
        
        
        (12,657)
        
        
        (1,771)
        
        
        
        
        
        (596,874)
        
        
        (298,313)CAPITAL SHARETRANSACTIONS:Net increase (decrease) in netassets resulting from capitalshare transactions (Note 5):Class A
        
        (95,758,049)
        
        
        19,013,443
        
        
        (97,214,936)
        
        
        51,482,196
        
        
        (55,401,318)
        
        
        (19,574,095)Class B
        
        (10,953,384)
        
        
        2,368,272
        
        
        1,306,567
        
        
        (12,450,682)
        
        
        (8,198,358)
        
        
        (6,176,714)Class C
        
        (36,809,972)
        
        
        6,387,399
        
        
        3,153,750
        
        
        13,623,440
        
        
        (11,139,875)
        
        
        (5,162,438)Class Y
        
        (6,778,270)
        
        
        375,222
        
        
        (67,309)
        
        
        4,957,679
        
        
        (12,602,107)
        
        
        (1,411,810)Total increase (decrease)in net assets
        
        (329,413,061)
        
        
        27,785,062
        
        
        (92,821,928)
        
        
        (130,355,864)
        
        
        (169,055,603)
        
        
        (83,352,324)NET ASSETS:Beginning of period
        
        1,102,972,075
        
        
        52,789,093
        
        
        596,446,007
        
        
        886,636,964
        
        
        886,611,183
        
        
        617,103,916End of period*
        $
        773,559,014
        
        $
        80,574,155
        
        $
        503,624,079
        
        $
        756,281,100
        
        $
        717,555,580
        
        $
        533,751,592*Including undistributed netinvestment income (loss) of
        $
        (6,363,046)
        
        $
        
        
        $
        
        
        $
        2,573,109
        
        $
        2,444,758
        
        $
        (2,961,614)
   See Notes to Financial Statements  50
  
 DAVIS SERIES, INC. STATEMENTS OF CHANGES IN NET ASSETS For the year ended December 31, 2007  Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundOPERATIONS:Net investment income (loss)
        $
        (651,472)
        
        $
        1,682,091
        
        $
        25,326,942
        
        $
        2,849,358
        
        $
        15,540,665
        
        $
        13,569,315Net realized gain (loss) frominvestments, futures,and foreign currencytransactions
        
        50,631,688
        
        
        (133,281)
        
        
        
        
        
        130,724,507
        
        
        33,020,673
        
        
        105,243,004Net change in unrealizedappreciation (depreciation)on investments
        
        (68,162,642)
        
        
        779,791
        
        
        
        
        
        (184,069,497)
        
        
        (51,102,387)
        
        
        (235,838,076)Net increase (decrease) in netassets resulting fromoperations
        
        (18,182,426)
        
        
        2,328,601
        
        
        25,326,942
        
        
        (50,495,632)
        
        
        (2,541,049)
        
        
        (117,025,757)DIVIDENDS ANDDISTRIBUTIONS TOSHAREHOLDERS FROM:Net investment income:Class A
        
        (4,546,451)
        
        
        (957,413)
        
        
        (23,769,789)
        
        
        (1,641,225)
        
        
        (10,942,478)
        
        
        (7,476,145)Class B
        
        
        
        
        (381,001)
        
        
        (1,132,324)
        
        
        
        
        
        (564,907)
        
        
        (223,651)Class C
        
        
        
        
        (288,855)
        
        
        (420,630)
        
        
        
        
        
        (1,704,587)
        
        
        (586,158)Class Y
        
        (779,812)
        
        
        (16,590)
        
        
        (4,199)
        
        
        (33,445)
        
        
        (2,112,918)
        
        
        (1,215,348)Realized gains from investmenttransactions:Class A
        
        (45,044,252)
        
        
        
        
        
        
        
        
        (70,754,835)
        
        
        (25,875,219)
        
        
        (105,630,236)Class B
        
        (4,680,294)
        
        
        
        
        
        
        
        
        (5,752,982)
        
        
        (2,069,656)
        
        
        (6,069,168)Class C
        
        (21,053,016)
        
        
        
        
        
        
        
        
        (8,956,338)
        
        
        (7,434,793)
        
        
        (17,279,219)Class Y
        
        (5,126,757)
        
        
        
        
        
        
        
        
        (848,138)
        
        
        (4,794,076)
        
        
        (12,925,829)CAPITAL SHARETRANSACTIONS:Net increase (decrease) in netassets resulting from capitalshare transactions (Note 5):Class A
        
        55,965,384
        
        
        4,710,947
        
        
        31,712,702
        
        
        35,957,027
        
        
        210,820,392
        
        
        86,325,671Class B
        
        (15,831,035)
        
        
        (3,794,231)
        
        
        73,102
        
        
        (36,199,944)
        
        
        (4,887,770)
        
        
        (18,486,395)Class C
        
        54,765,250
        
        
        7,109,122
        
        
        6,478,508
        
        
        5,119,178
        
        
        90,360,705
        
        
        (11,890,524)Class Y
        
        16,671,213
        
        
        101,857
        
        
        74,205
        
        
        (399,777)
        
        
        62,623,396
        
        
        (32,084,272)Total increase (decrease)in net assets
        
        12,157,804
        
        
        8,812,437
        
        
        38,338,517
        
        
        (134,006,111)
        
        
        300,877,040
        
        
        (244,567,031)NET ASSETS:Beginning of year
        
        1,090,814,271
        
        
        43,976,656
        
        
        558,107,490
        
        
        1,020,643,075
        
        
        585,734,143
        
        
        861,670,947End of year*
        $
        1,102,972,075
        
        $
        52,789,093
        
        $
        596,446,007
        
        $
        886,636,964
        
        $
        886,611,183
        
        $
        617,103,916*Including undistributed(overdistributed) netinvestment income of
        $
        (7,161,629)
        
        $
        
        
        $
        
        
        $
        1,174,639
        
        $
        (47,692)
        
        $
        (7,519,612)
  See Notes to Financial Statements  51
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS June 30, 2008(Unaudited) NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  Davis Series, Inc. (a Maryland corporation) (Company), is registered under the Investment Company Act of 1940 (40 Act) as amended, as an open-end management investment company.  Davis Opportunity Fund, Davis Government Bond Fund, Davis Government Money Market Fund, Davis Financial Fund, and Davis Appreciation & Income Fund are diversified under the 40 Act.  Davis Real Estate Fund is non-diversified under the 40 Act.  The Company operates as a series issuing shares of common stock in the following six funds (collectively Funds):  Davis Opportunity Fundseeks to achieve long-term growth of capital.  It invests primarily in common stocks and other equity securities, and may invest in both domestic and foreign issuers.  Davis Government Bond Fundseeks to achieve current income.  It invests in debt securities which are obligations of, or which are guaranteed by, the U.S. Government, its agencies or instrumentalities.  Davis Government Money Market Fundseeks to achieve as high a level of current income as is consistent with the principle of preservation of capital and maintenance of liquidity.  It invests in debt securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities and repurchase agreements involving such securities.  There is no assurance that the Fund will be able to maintain a stable net asset value of $1.00 per share.  Davis Financial Fundseeks to achieve long-term growth of capital.  It invests primarily in common stocks and other equity securities, and will concentrate investments in companies principally engaged in the banking, insurance, and financial service industries.  Davis Appreciation & Income Fundseeks to achieve total return through a combination of growth and income.  Under normal circumstances, the Fund invests in a diversified portfolio of convertible securities, common and preferred stock, and fixed income securities.  It may invest in lower rated bonds commonly known as "junk bonds.  Davis Real Estate Fundseeks to achieve total return through a combination of growth and income.  It invests primarily in securities of companies principally engaged in or related to the real estate industry or which own significant real estate assets or which primarily invest in real estate financial instruments.  Because of the risk inherent in any investment program, the Company cannot ensure that the investment objective of any of its series will be achieved.  The Company accounts separately for the assets, liabilities and operations of each series.  Each series offers shares in four classes, Class A, Class B, Class C, and Class Y.  The Class A shares are sold with a front-end sales charge, except for shares of the Davis Government Money Market Fund, which are sold at net asset value.  Class B and C shares are sold at net asset value and may be subject to a contingent deferred sales charge upon redemption. Class Y shares are sold at net asset value and are not subject to any contingent deferred sales charge.  Class Y shares are only available to certain qualified investors.  Income, expenses (other than those attributable to a specific class), and gains and losses, are allocated daily to each class of shares based upon 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.  The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements.  52
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)  A. VALUATION OF SECURITIES The Funds calculate the net asset value of their 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) are valued at the last reported sales price on the day of valuation. Securities traded in the over-the-counter market (e.g. NASDAQ) and listed securities for which no sale was reported on that date are stated at the average of closing bid and asked prices. 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 Funds assets are valued. Securities (including restricted securities) for which market quotations are not readily available
are valued at their fair value. Securities whose values have been materially affected by what Davis Selected Advisers, L.P. (Davis Advisors or Adviser), the Funds investment adviser, identifies as a significant event occurring before the Funds assets are valued but after the close of their respective exchanges will be fair valued. Fair value is determined in good faith using consistently applied procedures under the supervision of the Board of Directors. Short-term securities purchased within 60 days to maturity are valued at amortized cost, which approximates market value. The value of short-term securities originally purchased with maturities greater than 60 days, are valued at market value. For Davis Government Money Market Fund, in compliance with Rule 2a-7 of the 40 Act, securities are valued at amortized cost, which approximates market value. These valuation procedures are reviewed and subject to approval by the Board of Directors.  Fair Value Measurements-The Funds adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Funds would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is 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 Funds own assumptions in determining the fair value of investments)
  The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.  Money market securities are valued using amortized cost, in accordance with rules under the 40 Act.  Generally, amortized cost approximates the current fair value of a security, but since the value is not obtained from a quoted price in an active market, such securities are reflected as Level 2.  53
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)  A. VALUATION OF SECURITIES  (CONTINUED) The following is a summary of the inputs used as of June 30, 2008 in valuing each Funds investments carried at value: Investment in Securities at ValueDavis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundValuation inputsLevel 1  Quoted prices
        $
        718,281,524
        
        $
        
        
        $
        
        
        $
        742,639,639
        
        $
        349,410,780
        
        $
        477,784,878Level 2  Other SignificantObservable Inputs
        
        52,108,000
        
        
        80,776,808
        
        
        461,821,957
        
        
        12,765,000
        
        
        367,200,900
        
        
        55,566,400Level 3  Significant UnobservableInputs
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        Total
        $
        770,389,524
        
        $
        80,776,808
        
        $
        461,821,957
        
        $
        755,404,639
        
        $
        716,611,680
        
        $
        533,351,278
  B.MASTER REPURCHASE AGREEMENTSThe Funds, along with other affiliated funds, may transfer uninvested cash balances into one or more master repurchase agreement accounts.  These balances are invested in one or more repurchase agreements, secured by U.S. Government securities. A custodian bank holds securities pledged as collateral for repurchase agreements until the agreements mature.  Each agreement requires that the market value of the collateral be sufficient to cover payments of interest and principal; however, in the event of default by the other party to the agreement, retention of the collateral may be subject to legal proceedings.  C.CURRENCY TRANSLATION The market values of all assets and liabilities denominated in foreign currencies are recorded in the financial statements after translation to the U.S. Dollar based upon the mean between the bid and offered quotations of the currencies against U.S. Dollars on the date of valuation.  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.  D.FOREIGN CURRENCY The Funds may enter into forward purchases or sales of foreign currencies to hedge certain foreign currency denominated assets and liabilities against declines in market value relative to the U.S. Dollar.  Forward currency contracts are marked-to-market daily and the change in market value is recorded by the Funds as an unrealized gain or loss.  When the forward currency contract is closed, the Funds record 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 Funds 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.  Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Funds books, and the U.S. Dollar equivalent of the amounts actually received or paid.  Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate. The Funds include foreign currency gains and losses realized on the sale of investments together with market gains and losses on such investments in the Statements of Operations.  54
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)  E. FEDERAL INCOME TAXES It is each Fund's policy 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 has analyzed the Funds tax positions taken on federal income tax returns for all open tax years and has concluded that as of June 30, 2008, no provision for income tax would be required in the Funds financial statements.  The Funds federal and state 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 departments of revenue. At June 30,
2008, Davis Opportunity Fund had approximately $17,228,000 of post October 2007 losses available to offset future capital gains, if any, which expire in 2016. At June 30, 2008, Davis Appreciation & Income Fund had approximately $2,248,000 of post October 2007 losses available to offset future capital gains, if any, which expire in 2016.  Additionally, Davis Appreciation & Income Fund had approximately $3,000 of post October 2007 foreign currency losses which were deferred. At June 30, 2008, Davis Government Bond Fund had approximately $1,973,000 of capital loss carryforward expire unutilized and currently has available for Federal Income Tax purposes unused capital loss carryforwards as follows:  DAVISGOVERNMENTBOND FUNDExpiring12/31/2008
        
        
        906,00012/31/2009
        
        
        12/31/2010
        
        
        12/31/2011
        
        
        2,128,00012/31/2012
        
        
        1,243,00012/31/2013
        
        
        403,00012/31/2014
        
        
        304,00012/31/2015
        
        
        137,000Total
        
        $
        5,121,000
  F.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.  G.INDEMNIFICATION Under the Funds organizational documents, its officers and directors are indemnified against certain liabilities arising out of the performance of their duties to the Funds.  In addition, some of the Funds contracts with its service providers contain general indemnification clauses.  The Funds maximum exposure under these arrangements is unknown since the amount of any future claims that may be made against the Funds cannot be determined and the Funds have no historical basis for predicting the likelihood of any such claims.  H. 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.  Dividend income from REIT securities may include return of capital. Upon notification from the issuer, the amount of the return of capital is reclassified to adjust dividend income, reduce the cost basis, and/or adjust realized gain/loss.  Interest income, which includes accretion of discount and amortization of premium, is accrued as earned.  55
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 1  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES  (CONTINUED)  I.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 may differ for financial statement and tax purposes primarily due to differing treatments of wash sales, paydowns on fixed income securities, foreign currency transactions, net operating losses, passive foreign investment company shares, and distributions from real estate investment trusts. 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 Funds.  The Funds adjust the classification of distributions to shareholders to reflect the differences between financial statement amounts and distributions determined in accordance with income tax regulations.  NOTE 2 - INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES  Advisory fees are paid monthly to the Adviser.  The annual rate for the Davis Government Money Market Fund is 0.50% of the first $250 million of average net assets, 0.45% of the next $250 million, and 0.40% of average net assets in excess of $500 million.The annual rate for each of the Davis Opportunity Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund is 0.75% for the first $250 million of average net assets, 0.65% on the next $250 million, and 0.55% of the average net assets in excess of $500 million.  Advisory fees paid during the six months ended June 30, 2008, approximated 0.63%, 0.47%,0.64%,0.64%,and 0.68% of average net assets for the Davis Opportunity Fund, Davis Government Money Market Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund, respectively.The annual rate for the Davis Government Bond Fund is 0.30%.  Boston Financial Data Services, Inc. (BFDS) is the Funds primary transfer agent.  The Adviser is also paid for certain transfer agent services. The fee for these services for the six months ended June 30, 2008 for the Davis Opportunity Fund, Davis Government Bond Fund, Davis Government Money Market Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund amounted to $34,178, $3,444, $5,265, $32,301, $24,214, and $20,833, respectively.  State Street Bank and Trust Company (State Street Bank) is the Funds primary accounting provider.  Fees for such services are included in the custodian fee as State Street Bank also serves as the Funds custodian.  The Adviser is also paid for certain accounting services.  The fee for these services for the six months ended June 30, 2008 for the Davis Opportunity Fund, Davis
Government Bond Fund, Davis Government Money Market Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund amounted to $4,002, $1,332, $13,834,$6,166, $4,166,and $4,334, respectively.  Certain directors and officers of the Funds are also directors and officers of the general partner of the Adviser.  Davis Selected Advisers-NY, Inc. (DSA-NY), a wholly-owned subsidiary of the Adviser, acts as sub-adviser to the Funds.  DSA-NY performs research and portfolio management services for the Funds under a Sub-Advisory Agreement with the Adviser.  The Funds pay no fees directly to DSA-NY.  56
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 3 - DISTRIBUTION AND UNDERWRITING FEES  CLASS A SHARES OF THE DAVIS OPPORTUNITY FUND, DAVIS GOVERNMENT BOND FUND, DAVIS FINANCIAL FUND, DAVIS APPRECIATION & INCOME FUND, AND DAVIS REAL ESTATE FUND  Class A shares of the Funds are sold at net asset value plus a sales charge and are redeemed at net asset value.
  During the six months ended June 30, 2008, Davis Distributors, LLC, the Funds Underwriter (the Underwriter or Distributor) received $165,505,$18,268, $753,356, $200,436,and $181,025 from commissions earned on sales of Class A shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund, respectively, of which $23,820, $2,578, $114,156,$31,606,and $27,639 was retained by the Underwriter and the remaining $141,685, $15,690, $639,200, $168,830,and $153,386 was re-allowed to investment dealers. The Underwriter paid the costs of prospectuses, in excess of those required to be filed as part of the Funds registration statement, sales literature, and other expenses assumed or incurred in connection with such sales.  The Underwriter is reimbursed for amounts paid to dealers as a service fee or commissions with respect to Class A shares sold by dealers, which remain outstanding during the period. The service fee is paid at the annual rate up to 1/4 of 1.00% of the average net assets maintained by the responsible dealers. The service fee for Class A shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund for the six months ended June 30, 2008 was $668,883, $46,592, $691,747, $560,184, and $529,487, respectively.  CLASS B SHARES OF THE DAVIS OPPORTUNITY FUND, DAVIS GOVERNMENT BOND FUND, DAVIS FINANCIAL FUND, DAVIS APPRECIATION & INCOME FUND, AND DAVIS REAL ESTATE FUND  Class B shares of the Funds are sold at net asset value and are redeemed at net asset value.  A contingent deferred sales charge may be assessed on shares redeemed within six years of purchase.  Each of the Class B shares of the Funds (other than Davis Government Money Market Fund) pays a distribution fee to reimburse the Distributor for commission advances on the sale of each Fund's Class B shares. Payments under the Class B Distribution Plan are limited to an annual rate of equal to the lesser of 1.25% of the average daily net asset value of the Class B shares or the maximum amount provided by applicable rule or regulation of the Financial Industry Regulatory Authority, Inc. ("FINRA"), which currently is 1.00%.  Therefore, the effective rate of the Class B Distribution Plan is currently 1.00%, of which 0.75% may be used to pay distribution expenses and 0.25% may be used to pay shareholder service fees.  The FINRA rule also limits the aggregate amount each Fund may pay for distribution to 6.25% of gross Fund sales since inception of the Distribution Plan, plus interest at 1.00%
over the prime rate on unpaid amounts.  The Distributor intends to seek full payment (plus interest at prime rate plus 1.00%) of distribution charges that exceed the 1.00% annual limit in some future period or periods when the plan limits have not been reached.   57
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 3 - DISTRIBUTION AND UNDERWRITING FEES - (CONTINUED)  CLASS B SHARES OF THE DAVIS OPPORTUNITY FUND, DAVIS GOVERNMENT BOND FUND, DAVIS FINANCIAL FUND, DAVIS APPRECIATION & INCOME FUND, AND DAVIS REAL ESTATE FUND  (CONTINUED)  During the six months ended June 30, 2008, Class B shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund made distribution plan payments which included distribution fees of $179,131, $49,874, $142,978,$139,964, and $75,434, respectively and service fees of $59,126, $16,652,$46,978, $46,416,and $24,713, respectively.  Commission advances by the Distributor during the six months ended June 30, 2008 on the sale of Class B shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund amounted to $28,906, $2,565, $144,072, $32,359, and $15,004, respectively, all of which was re-allowed to qualified selling dealers.  The Distributor intends to seek payment from Class B shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund in the amounts of $2,705,925, $5,699,146,$28,979,715, $8,829,495, and $16,728,777, respectively, representing 6.25% of gross Fund sales of Class B shares, plus interest, reduced by cumulative distribution fees paid by the Funds and cumulative contingent deferred sales charges paid by redeeming shareholders.  The Funds have no contractual obligation to pay any such distribution chargesand the amounts, if any, timing and condition of such payments are solely within the discretion of the Directors who are not interested persons of the Funds or the Distributor.  A contingent deferred sales charge is imposed upon redemption of certain Class B shares of the Funds within six years of the original purchase. The charge is a declining percentage starting at 4.00% of the lesser of net asset value of the shares redeemed or the total cost of such shares.  During the six months ended June 30, 2008, the Distributor received contingent deferred sales charges from Class B shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund of $54,031,$11,653,$26,343, $62,396, and $23,913, respectively.  58
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 3 - DISTRIBUTION AND UNDERWRITING FEES - (CONTINUED)  CLASS C SHARES OF THE DAVIS OPPORTUNITY FUND, DAVIS GOVERNMENT BOND FUND, DAVIS FINANCIAL FUND, DAVIS APPRECIATION & INCOME FUND, AND DAVIS REAL ESTATE FUND  Class C shares of the Funds are sold at net asset value and are redeemed at net asset value. A contingent deferred sales charge may be assessed on shares redeemed within the first year of purchase.  Each of the Class C shares of the Funds (other than Davis Government Money Market Fund) pays a distribution fee to reimburse the Distributor for commission advances on the sale of each Funds Class C shares. Payments under the Class C Distribution Plan are limited to an annual rate of equal to the lesser of 1.25% of the average daily net asset value of the Class C shares or the maximum amount provided by applicable rule or regulation of the FINRA, which currently is 1.00%.  Therefore, the effective rate of the Class C Distribution Plan is currently 1.00%, of which 0.75% may be used to pay distribution expenses and 0.25% may be used to pay shareholder service fees.  Class C shares are subject to the same 6.25% and 1.00% limitations applicable to the Class B Distribution Plan.  During the six months ended June 30, 2008, Class C shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund made distribution plan payments which included distribution fees of $891,369, $78,571, $323,260, $581,389, and $254,731, respectively, and service fees of $297,123, $26,190,$107,753, $193,796, and $84,910, respectively.  Commission advances by the Distributor during the six months ended June 30, 2008, on the sale of Class C shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund amounted to $96,615, $5,230, $205,897, $100,401, and $41,107, respectively, all of which was re-allowed to qualified selling dealers.  59
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 3 - DISTRIBUTION AND UNDERWRITING FEES - (CONTINUED)  CLASS C SHARES OF THE DAVIS OPPORTUNITY FUND, DAVIS GOVERNMENT BOND FUND, DAVIS FINANCIAL FUND, DAVIS APPRECIATION & INCOME FUND, AND DAVIS REAL ESTATE FUND (CONTINUED)  The Distributor intends to seek payment from Class C shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund in the amounts of $17,860,909, $226,436, $21,255,789, $12,908,307, and $11,166,052, respectively, representing 6.25% of gross Fund sales of Class C shares, plus interest, reduced by cumulative distribution fees paid by the Funds and cumulative contingent deferred sales charges paid by redeeming shareholders.  The Funds have no contractual obligation to pay any such distribution chargesand the amounts, if any, timing and condition of such payments are solely within the discretion of the Directors who are not interested persons of the Funds or the Distributor.  A contingent deferred sales charge of 1.00% is imposed upon redemption of certain Class C shares of the Funds within the first year of the original purchase. During the six months ended June 30, 2008, the Distributor received $24,655, $4,430, $11,256, $28,215, and $2,997 in contingent deferred sales charges from Class C shares of the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund, respectively.  DAVIS GOVERNMENT MONEY MARKET FUND
  All classes of shares of the Davis Government Money Market Fund are sold to investors at net asset value.  The shareholders of the Davis Government Money Market Fund have adopted a Distribution expense plan in accordance with Rule 12b-1, which does not provide for any amounts to be paid directly to the Distributor as either compensation or reimbursement for distributing shares of the Fund, but does authorize the use of the advisory fee to the extent such fee may be considered to be indirectly financing any activity or expense which is primarily intended to result in the sale of Fund shares.  NOTE 4 - PURCHASES AND SALES OF SECURITIES  Purchases and sales of investment securities (excluding short-term securities) during the six months ended June 30, 2008 for the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund were as follows:  DavisDavis
        
        Davis
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        FundCost of purchases
        $
        132,103,582
        
        $
        66,913,227
        
        $
        63,913,245
        
        $
        117,679,516
        
        $
        113,987,196Proceeds of sales
        $
        324,740,112
        
        $
        37,797,891
        
        $
        5,292,477
        
        $
        180,922,950
        
        $
        137,961,282
   60
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 5  CAPITAL STOCK  At June 30, 2008, there were 10 billion shares of capital stock ($0.01 par value per share) authorized, of which 550 million shares each are designated to the Davis Opportunity Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund, and 4.1 billion shares are designated to the Davis Government Money Market Fund. Transactions in capital stock were as follows:  CLASS A
        Six months ended June 30, 2008 (Unaudited)Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundShares sold
        
        1,743,581
        
        
        4,700,408
        
        
        372,738,790
        
        
        2,997,435
        
        
        2,181,738
        
        
        1,464,753Shares issued in reinvestmentof distributions
        
        
        
        
        108,845
        
        
        6,644,197
        
        
        
        
        
        92,414
        
        
        61,7401,743,581
        
        
        4,809,253
        
        
        379,382,987
        
        
        2,997,435
        
        
        2,274,152
        
        
        1,526,493Shares redeemed
        
        (5,990,990)
        
        
        (1,431,672)
        
        
        (476,597,923)
        
        
        (1,607,367
        
        
        (4,339,602)
        
        
        (2,204,689)Net increase (decrease)
        
        (4,247,409)
        
        
        3,377,581
        
        
        (97,214,936)
        
        
        1,390,068
        
        
        (2,065,450)
        
        
        (678,196)Proceeds from shares sold
        $
        39,309,725
        
        $
        26,455,396
        
        $
        372,738,790
        
        $
        110,957,721
        
        $
        58,652,547
        
        $
        43,340,991Proceeds from shares issued inreinvestment of distributions
        
        
        
        
        612,395
        
        
        6,644,197
        
        
        
        
        
        2,495,904
        
        
        1,910,25939,309,725
        
        
        27,067,791
        
        
        379,382,987
        
        
        110,957,721
        
        
        61,148,451
        
        
        45,251,250Cost of shares redeemed
        
        (135,067,774)
        
        
        (8,054,348)
        
        
        (476,597,923)
        
        
        (59,475,525)
        
        
        (116,549,769)
        
        
        (64,825,345)Netincrease (decrease)
        $
        (95,758,049)
        
        $
        19,013,443
        
        $
        (97,214,936)
        
        $
        51,482,196
        
        $
        (55,401,318)
        
        $
        (19,574,095)
  CLASS A
        Year ended December 31, 2007Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundShares sold
        
        7,079,827
        
        
        2,874,814
        
        
        781,109,806
        
        
        2,703,292
        
        
        10,300,765
        
        
        3,472,460Shares issued in reinvestmentof distributions
        
        1,880,169
        
        
        146,558
        
        
        23,638,063
        
        
        1,634,760
        
        
        1,067,947
        
        
        3,418,9598,959,996
        
        
        3,021,372
        
        
        804,747,869
        
        
        4,338,052
        
        
        11,368,712
        
        
        6,891,419Shares redeemed
        
        (6,805,796)
        
        
        (2,169,021)
        
        
        (773,035,167)
        
        
        (3,386,734)
        
        
        (4,499,437)
        
        
        (4,142,913)Net increase
        
        2,154,200
        
        
        852,351
        
        
        31,712,702
        
        
        951,318
        
        
        6,869,275
        
        
        2,748,506Proceeds from shares sold
        $
        197,873,450
        
        $
        15,907,865
        
        $
        781,109,806
        
        $
        126,903,967
        
        $
        316,083,656
        
        $
        156,197,972Proceeds from shares issued inreinvestment of distributions
        
        47,568,272
        
        
        810,961
        
        
        23,638,063
        
        
        69,101,099
        
        
        31,153,345
        
        
        108,780,954245,441,722
        
        
        16,718,826
        
        
        804,747,869
        
        
        196,005,066
        
        
        347,237,001
        
        
        264,978,926Cost of shares redeemed
        
        (189,476,338)
        
        
        (12,007,879)
        
        
        (773,035,167)
        
        
        (160,048,039)
        
        
        (136,416,609)
        
        
        (178,653,255)Netincrease
        $
        55,965,384
        
        $
        4,710,947
        
        $
        31,712,702
        
        $
        35,957,027
        
        $
        210,820,392
        
        $
        86,325,671
   61
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 5  CAPITAL STOCK  (CONTINUED)  CLASS B
        Six months ended June 30, 2008 (Unaudited)Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundShares sold
        
        63,343
        
        
        1,330,793
        
        
        6,526,796
        
        
        137,093
        
        
        86,382
        
        
        30,788Shares issued in reinvestmentof distributions
        
        
        
        
        27,393
        
        
        327,902
        
        
        
        
        
        4,543
        
        
        1,61463,343
        
        
        1,358,186
        
        
        6,854,698
        
        
        137,093
        
        
        90,925
        
        
        32,402Shares redeemed
        
        (622,786)
        
        
        (938,918)
        
        
        (5,548,131)
        
        
        (512,181)
        
        
        (400,349)
        
        
        (245,479)Net increase (decrease)
        
        (559,443)
        
        
        419,268
        
        
        1,306,567
        
        
        (375,088)
        
        
        (309,424)
        
        
        (213,077)Proceeds from shares sold
        $
        1,239,649
        
        $
        7,483,990
        
        $
        6,526,796
        
        $
        4,465,394
        
        $
        2,288,949
        
        $
        919,092Proceeds from shares issued inreinvestment of distributions
        
        
        
        
        153,706
        
        
        327,902
        
        
        
        
        
        121,386
        
        
        49,5961,239,649
        
        
        7,637,696
        
        
        6,854,698
        
        
        4,465,394
        
        
        2,410,335
        
        
        968,688Cost of shares redeemed
        
        (12,193,033)
        
        
        (5,269,424)
        
        
        (5,548,131)
        
        
        (16,916,076)
        
        
        (10,608,693)
        
        
        (7,145,402)Net increase (decrease)
        $
        (10,953,384)
        
        $
        2,368,272
        
        $
        1,306,567
        
        $
        (12,450,682)
        
        $
        (8,198,358)
        
        $
        (6,176,714)
  CLASS B
        Year ended December 31, 2007Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundShares sold
        
        367,264
        
        
        1,396,472
        
        
        13,379,304
        
        
        95,335
        
        
        511,225
        
        
        86,950Shares issued in reinvestmentof distributions
        
        192,152
        
        
        52,403
        
        
        1,017,521
        
        
        143,728
        
        
        79,685
        
        
        183,131559,416
        
        
        1,448,875
        
        
        14,396,825
        
        
        239,063
        
        
        590,910
        
        
        270,081Shares redeemed
        
        (1,184,261)
        
        
        (2,139,532)
        
        
        (14,323,723)
        
        
        (1,073,080)
        
        
        (748,380)
        
        
        (647,917)Net increase (decrease)
        
        (624,845)
        
        
        (690,657)
        
        
        73,102
        
        
        (834,017)
        
        
        (157,470)
        
        
        (377,836)Proceeds from shares sold
        $
        8,994,773
        
        $
        7,702,716
        
        $
        13,379,304
        
        $
        3,973,564
        
        $
        15,558,534
        
        $
        4,062,234Proceeds from shares issued inreinvestment of distributions
        
        4,227,348
        
        
        289,144
        
        
        1,017,521
        
        
        5,382,613
        
        
        2,286,738
        
        
        5,738,90213,222,121
        
        
        7,991,860
        
        
        14,396,825
        
        
        9,356,177
        
        
        17,845,272
        
        
        9,801,136Cost of shares redeemed
        
        (29,053,156)
        
        
        (11,786,091)
        
        
        (14,323,723)
        
        
        (45,556,121)
        
        
        (22,733,042)
        
        
        (28,287,531)Net increase (decrease)
        $
        (15,831,035)
        
        $
        (3,794,231)
        
        $
        73,102
        
        $
        (36,199,944)
        
        $
        (4,887,770)
        
        $
        (18,486,395)
    62
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 5  CAPITAL STOCK  (CONTINUED)  CLASS C
        Six months ended June 30, 2008 (Unaudited)Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundShares sold
        
        547,256
        
        
        2,506,600
        
        
        11,527,430
        
        
        694,339
        
        
        509,784
        
        
        183,676Shares issued in reinvestmentof distributions
        
        
        
        
        47,753
        
        
        202,242
        
        
        
        
        
        19,916
        
        
        5,398547,256
        
        
        2,554,353
        
        
        11,729,672
        
        
        694,339
        
        
        529,700
        
        
        189,074Shares redeemed
        
        (2,344,278)
        
        
        (1,424,790)
        
        
        (8,575,922)
        
        
        (288,473)
        
        
        (945,979)
        
        
        (366,859)Net increase (decrease)
        
        (1,797,022)
        
        
        1,129,563
        
        
        3,153,750
        
        
        405,866
        
        
        (416,279)
        
        
        (177,785)Proceeds from shares sold
        $
        11,254,410
        
        $
        14,138,208
        
        $
        11,527,430
        
        $
        23,239,190
        
        $
        13,794,123
        
        $
        5,472,974Proceeds from shares issued inreinvestment of distributions
        
        
        
        
        268,781
        
        
        202,242
        
        
        
        
        
        540,509
        
        
        167,54911,254,410
        
        
        14,406,989
        
        
        11,729,672
        
        
        23,239,190
        
        
        14,334,632
        
        
        5,640,523Cost of shares redeemed
        
        (48,064,382)
        
        
        (8,019,590)
        
        
        (8,575,922)
        
        
        (9,615,750)
        
        
        (25,474,507)
        
        
        (10,802,961)Net increase (decrease)
        $
        (36,809,972)
        
        $
        6,387,399
        
        $
        3,153,750
        
        $
        13,623,440
        
        $
        (11,139,875)
        
        $
        (5,162,438)
  CLASS C
        Year ended December 31, 2007Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundShares sold
        
        3,370,947
        
        
        2,368,781
        
        
        17,961,249
        
        
        467,502
        
        
        3,308,820
        
        
        384,634Shares issued in reinvestmentof distributions
        
        868,460
        
        
        45,318
        
        
        392,886
        
        
        216,265
        
        
        284,186
        
        
        521,5234,239,407
        
        
        2,414,099
        
        
        18,354,135
        
        
        683,767
        
        
        3,593,006
        
        
        906,157Shares redeemed
        
        (2,041,815)
        
        
        (1,135,392)
        
        
        (11,875,627)
        
        
        (525,672)
        
        
        (652,847)
        
        
        (1,061,065)Net increase (decrease)
        
        2,197,592
        
        
        1,278,707
        
        
        6,478,508
        
        
        158,095
        
        
        2,940,159
        
        
        (154,908)Proceeds from shares sold
        $
        86,214,919
        
        $
        13,134,970
        
        $
        17,961,249
        
        $
        19,463,025
        
        $
        101,860,758
        
        $
        17,666,936Proceeds from shares issued inreinvestment of distributions
        
        20,044,045
        
        
        251,099
        
        
        392,886
        
        
        8,261,344
        
        
        8,266,370
        
        
        16,509,697106,258,964
        
        
        13,386,069
        
        
        18,354,135
        
        
        27,724,369
        
        
        110,127,128
        
        
        34,176,633Cost of shares redeemed
        
        (51,493,714)
        
        
        (6,276,947)
        
        
        (11,875,627)
        
        
        (22,605,191)
        
        
        (19,766,423)
        
        
        (46,067,157)Net increase (decrease)
        $
        54,765,250
        
        $
        7,109,122
        
        $
        6,478,508
        
        $
        5,119,178
        
        $
        90,360,705
        
        $
        (11,890,524
        )
   63
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 5  CAPITAL STOCK  (CONTINUED)  CLASS Y
        Six months ended June 30, 2008 (Unaudited)Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundShares sold
        
        525,544
        
        
        93,641
        
        
        
        
        
        177,090
        
        
        389,961
        
        
        132,315Shares issued in reinvestmentof distributions
        
        
        
        
        1,991
        
        
        1,611
        
        
        
        
        
        20,178
        
        
        9,387525,544
        
        
        95,632
        
        
        1,611
        
        
        177,090
        
        
        410,139
        
        
        141,702Shares redeemed
        
        (815,759
        )
        
        (29,734
        )
        
        (68,920
        )
        
        (47,043
        )
        
        (872,840
        )
        
        (190,215
        )Net increase (decrease)
        
        (290,215
        )
        
        65,898
        
        
        (67,309
        )
        
        130,047
        
        
        (462,701
        )
        
        (48,513
        )Proceeds from shares sold
        $
        12,233,712
        
        $
        532,550
        
        $
        
        
        $
        6,758,803
        
        $
        10,569,243
        
        $
        3,993,749Proceeds from shares
        
        
        
        
        
        
        
        issued in reinvestmentof distributions
        
        
        
        
        11,285
        
        
        1,611
        
        
        
        
        
        547,437
        
        
        293,43312,233,712
        
        
        543,835
        
        
        1,611
        
        
        6,758,803
        
        
        11,116,680
        
        
        4,287,182Cost of shares redeemed
        
        (19,011,982
        )
        
        (168,613
        )
        
        (68,920
        )
        
        (1,801,124
        )
        
        (23,718,787
        )
        
        (5,698,992
        )Net increase (decrease)
        $
        (6,778,270
        )
        $
        375,222
        
        $
        (67,309
        )
        $
        4,957,679
        
        $
        (12,602,107
        )
        $
        (1,411,810
        )
  CLASS Y
        Year ended December 31, 2007Davis
        
        
        
        DavisDavis
        
        Davis
        
        Government
        
        Davis
        
        Appreciation
        
        DavisOpportunity
        
        Government
        
        Money Market
        
        Financial
        
        & Income
        
        Real EstateFund
        
        Bond Fund
        
        Fund
        
        Fund
        
        Fund
        
        FundShares sold
        
        1,273,415
        
        
        130,727
        
        
        68,192
        
        
        54,383
        
        
        2,338,304
        
        
        347,674Shares issued in reinvestmentof distributions
        
        208,234
        
        
        2,483
        
        
        6,013
        
        
        17,972
        
        
        217,643
        
        
        426,9701,481,649
        
        
        133,210
        
        
        74,205
        
        
        72,355
        
        
        2,555,947
        
        
        774,644Shares redeemed
        
        (879,310
        )
        
        (114,869
        )
        
        
        
        
        (77,992
        )
        
        (515,892
        )
        
        (1,325,110
        )Net increase (decrease)
        
        602,339
        
        
        18,341
        
        
        74,205
        
        
        (5,637
        )
        
        2,040,055
        
        
        (550,466
        )Proceeds from shares sold
        $
        36,418,592
        
        $
        728,379
        
        $
        68,192
        
        $
        2,592,731
        
        $
        71,871,573
        
        $
        16,204,610Proceeds from sharesissued in reinvestmentof distributions
        
        5,424,510
        
        
        13,857
        
        
        6,013
        
        
        775,484
        
        
        6,378,925
        
        
        13,799,74241,843,102
        
        
        742,236
        
        
        74,205
        
        
        3,368,215
        
        
        78,250,498
        
        
        30,004,352Cost of shares redeemed
        
        (25,171,889
        )
        
        (640,379
        )
        
        
        
        
        (3,767,992
        )
        
        (15,627,102
        )
        
        (62,088,624
        )Net increase (decrease)
        $
        16,671,213
        
        $
        101,857
        
        $
        74,205
        
        $
        (399,777
        )
        $
        62,623,396
        
        $
        (32,084,272
        )
   64
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 6 - EXPENSES PAID INDIRECTLY  Under an agreement with State Street Bank, custodian fees are reduced for earnings on cash balances maintained at the custodian by the Funds. Such reductions amounted to $704, $54,$25,$1,061, $975, and $792 for Davis Opportunity Fund, Davis Government Bond Fund, Davis Government Money Market Fund, Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund, respectively, during the six months ended June 30, 2008.  NOTE 7 - BANK BORROWINGS  Each Fund may borrow up to 5% of its assets from a bank to purchase portfolio securities, or for temporary and emergency purposes. The purchase of securities with borrowed funds creates leverage in the Fund. Each Fund has entered into an agreement, which enables it to participate with certain other funds managed by the Adviser in an unsecured line of credit with a bank, which permits borrowings up to $50 million, collectively.  Interest is charged based on its borrowings, at a rate equal to the overnight Federal Funds Rate plus 0.75%.  At June 30, 2008, Davis Financial Fund had no borrowings outstanding. For the six months ended June 30, 2008, the average daily loan balance was $148,258 at an average interest rate of 4.79%.  Davis Financial Fund had zero gross borrowings and gross repayments of $18,521,000 during the six months ended June 30, 2008.  Davis Opportunity Fund, Davis
Government Bond Fund, Davis Government Money Market Fund, Davis Appreciation & Income Fund, and Davis Real Estate Fund had no borrowings outstanding for the six months ended June 30, 2008.  NOTE 8 - FINANCIAL FUTURES CONTRACT ACTIVITY  Each Fund may purchase or sell financial futures contracts to pursue its investment objective or for hedging purposes. A financial futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. Futures contracts are traded on a commodity exchange. A fund can use financial futures to establish a position in the securities market as a temporary substitute for purchasing particular securities. A fund might also use financial futures contracts to attempt to protect against the possibility that its portfolio securities would not be fully included in a rise in value of the market. For example, a fund may purchase a futures contract on the S&P 500® Index without owning the underlying securities as an efficient or cost effective means to gain broad exposure to the equity market.  Upon entering into a futures contract a fund is required to deposit cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses. A fund recognizes a realized gain or loss when the contract is closed or expires.  Securities held in margin accounts to cover initial margin requirements on open futures contacts would be noted in the Schedule of Investments. The Statements of Assets and Liabilities reflect a receivable or payable for the daily mark to market for variation margin. Realized gains and losses are reported in the Statements of Operations.  The risks of investing in futures contracts are described in the Statement of Additional Information.
  As of June 30, 2008 none of the Funds had any open futures contracts.
  65
  
 DAVIS SERIES, INC. NOTES TO FINANCIAL STATEMENTS - (CONTINUED) June 30, 2008(Unaudited) NOTE 9  ILLIQUID AND RESTRICTED SECURITIES  Securities may be considered illiquid if they lack a readily available market or if valuation has not changed for a certain period of time.Restricted securities are not registered under the Securities Act of 1933 and may have contractual restrictions on resale. They are valued under methods approved by the Board of Directors as reflecting fair value. The aggregate value of illiquid securities in Davis Opportunity Fund amounted to $6,286,000 or 0.81% of the Funds net assets as of June 30, 2008. The aggregate value of illiquid securities in Davis Financial Fund amounted to $9,240,000 or 1.22% of the Funds net assets as of June 30, 2008. The aggregate value of restricted securities in Davis Financial Fund amounted to $4,998,275 or 0.66% of the Funds net assets as of June 30, 2008. The aggregate value of
illiquid securities in Davis Appreciation & Income Fund amounted to $9,400,004or 1.31% of the Funds net assets as of June 30, 2008. The aggregate value of illiquid and restricted securities in Davis Real Estate Fund amounted to $18,356,777 or 3.44% of the Funds net assets as of June 30, 2008. Information regarding illiquid and restricted securities is as follows:  Fund
        
        Security
        Acquisition
Date
        Principal
        
        Units/
Shares
        
        Cost per
Unit/
Share
        
        Valuation per Unit/Share
as of
June 30, 2008DavisOpportunity
        
        Oaktree Capital GroupFund
        
        LLC, Class A
        5/21/07
        
        NA
        
        224,500
        
        $
        41.56
        
        $
        28.0000Davis Financial
        
        Oaktree Capital GroupFund
        
        LLC, Class A
        5/21/07
        
        NA
        
        330,000
        
        $
        31.85
        
        $
        28.0000Davis FinancialFund
        
        RHJ International, 144A
        6/4/07
        
        NA
        
        396,550
        
        $
        19.64
        
        $
        12.6044Davis
        
        News America Inc.,Appreciation &
        
        Conv. Notes, ZeroIncome Fund
        
        coupon, 3.38%,02/28/21
        10/07/03
        $
        16,050,000
        
        160,500
        
        $
        65.40
        
        $
        58.5670Davis Real
        
        Cogdell Spencer, Inc.,Estate Fund
        
        Private Placement
        1/24/08
        
        NA
        
        1,146,847
        
        $
        15.95
        
        $
        16.0063
   66
  
 DAVIS SERIES, INC. FINANCIAL HIGHLIGHTS The following financial information represents selected data for each share of capital stock outstanding throughout each period: Income (Loss) from Investment OperationsNet Asset Value, Beginning
of Period
        Net Investment Income (Loss)
        Net Realized and Unrealized Gains (Losses)
        Total from Investment OperationsDavis Opportunity Fund Class A:Six months ended 06/30/20087
        $
        25.19
        $
        0.04
        3
        $
        (4.36)
        
        $
        (4.32)Year ended 12/31/2007
        
        27.52
        
        0.05
        3
        
        (0.43)
        
        
        (0.38)Year ended 12/31/2006
        
        24.29
        
        
        3, 5
        
        4.25
        
        
        4.25Year ended 12/31/2005
        
        23.20
        
        0.05
        3
        
        1.88
        
        
        1.93Year ended 12/31/2004
        
        20.47
        
        0.08
        
        
        2.65
        
        
        2.73Year ended 12/31/2003
        
        14.53
        
        (0.07)
        
        
        6.01
        
        
        5.94Davis Opportunity Fund Class B:Six months ended 06/30/20087
        
        21.89
        
        (0.04)
        3
        
        (3.79)
        
        
        (3.83)Year ended 12/31/2007
        
        24.17
        
        (0.15)
        3
        
        (0.36)
        
        
        (0.51)Year ended 12/31/2006
        
        21.44
        
        (0.18)
        3
        
        3.72
        
        
        3.54Year ended 12/31/2005
        
        20.55
        
        (0.13)
        3
        
        1.66
        
        
        1.53Year ended 12/31/2004
        
        18.28
        
        (0.08)
        
        
        2.35
        
        
        2.27Year ended 12/31/2003
        
        13.07
        
        (0.19)
        
        
        5.40
        
        
        5.21Davis Opportunity Fund Class C:Six months ended 06/30/20087
        
        22.97
        
        (0.04)
        3
        
        (3.97)
        
        
        (4.01)Year ended 12/31/2007
        
        25.27
        
        (0.15)
        3
        
        (0.38)
        
        
        (0.53)Year ended 12/31/2006
        
        22.37
        
        (0.18)
        3
        
        3.90
        
        
        3.72Year ended 12/31/2005
        
        21.42
        
        (0.13)
        3
        
        1.73
        
        
        1.60Year ended 12/31/2004
        
        19.05
        
        (0.06)
        
        
        2.43
        
        
        2.37Year ended 12/31/2003
        
        13.62
        
        (0.17)
        
        
        5.60
        
        
        5.43Davis Opportunity Fund Class Y:Six months ended 06/30/20087
        
        25.94
        
        0.08
        3
        
        (4.50)
        
        
        (4.42)Year ended 12/31/2007
        
        28.29
        
        0.13
        3
        
        (0.44)
        
        
        (0.31)Year ended 12/31/2006
        
        24.95
        
        0.07
        3
        
        4.37
        
        
        4.44Year ended 12/31/2005
        
        23.81
        
        0.13
        3
        
        1.93
        
        
        2.06Year ended 12/31/2004
        
        20.93
        
        0.17
        
        
        2.71
        
        
        2.88Year ended 12/31/2003
        
        14.80
        
        (0.02)
        
        
        6.15
        
        
        6.13Davis Government Bond Fund Class A:Six months ended 06/30/20087
        
        5.60
        
        0.10
        
        
        (0.01)
        
        
        0.09Year ended 12/31/2007
        
        5.52
        
        0.21
        
        
        0.08
        
        
        0.29Year ended 12/31/2006
        
        5.50
        
        0.18
        
        
        0.02
        
        
        0.20Year ended 12/31/2005
        
        5.60
        
        0.15
        
        
        (0.10)
        
        
        0.05Year ended 12/31/2004
        
        5.73
        
        0.14
        
        
        (0.13)
        
        
        0.01Year ended 12/31/2003
        
        5.92
        
        0.09
        
        
        (0.08)
        
        
        0.01Davis Government Bond Fund Class B:Six months ended 06/30/20087
        
        5.58
        
        0.08
        
        
        (0.01)
        
        
        0.07Year ended 12/31/2007
        
        5.51
        
        0.17
        
        
        0.07
        
        
        0.24Year ended 12/31/2006
        
        5.49
        
        0.14
        
        
        0.02
        
        
        0.16Year ended 12/31/2005
        
        5.59
        
        0.12
        
        
        (0.10)
        
        
        0.02Year ended 12/31/2004
        
        5.71
        
        0.10
        
        
        (0.12)
        
        
        (0.02)Year ended 12/31/2003
        
        5.91
        
        0.03
        
        
        (0.08)
        
        
        (0.05)
   67
  
    Dividends and DistributionsDividends from Net Investment Income
        Distributions from Realized Gains
        Distributions in Excess of Net Investment Income
        Distributions in Excess of Net Realized Gains
        Return of Capital
        Total Distributions
        Net Asset Value, End of Period
        Total Return1
        Net Assets,
End of Period
(000 omitted)
        Ratio of Expenses
To Average
Net Assets
        Ratio of Net Investment
Income (Loss) to Average
Net AssetsGross
        Net4$
        
        
        $
        
        
        $
        
        
        $
        
        
        $
        
        
        $
        
        
        $
        20.87
        (17.15)
        %
        $
        472,133
        1.10
        %6
        1.10
        %6
        0.41
        %6(0.18)
        
        
        (1.77)
        
        
        
        
        
        
        
        
        
        
        
        (1.95)
        
        
        25.19
        (1.42)
        
        
        676,995
        1.06
        
        1.06
        
        0.16(0.23)
        
        
        (0.79)
        
        
        
        
        
        
        
        
        
        
        
        (1.02)
        
        
        27.52
        17.59
        
        
        680,181
        1.10
        
        1.10
        
        (0.02
        )(0.24)
        
        
        (0.60)
        
        
        
        
        
        
        
        
        
        
        
        (0.84)
        
        
        24.29
        8.33
        
        
        446,794
        1.15
        
        1.15
        
        0.18
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        23.20
        13.34
        
        
        314,526
        1.20
        
        1.20
        
        0.39
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        20.47
        40.88
        
        
        204,015
        1.30
        
        1.30
        
        (0.47)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        18.06
        (17.50)
        
        
        39,720
        1.94
        6
        1.94
        6
        (0.43)
        6
        
        
        (1.77)
        
        
        
        
        
        
        
        
        
        
        
        (1.77)
        
        
        21.89
        (2.15)
        
        
        60,386
        1.85
        
        1.85
        
        (0.63)(0.02)
        
        
        (0.79)
        
        
        
        
        
        
        
        
        
        
        
        (0.81)
        
        
        24.17
        16.60
        
        
        81,788
        1.88
        
        1.88
        
        (0.80)(0.04)
        
        
        (0.60)
        
        
        
        
        
        
        
        
        
        
        
        (0.64)
        
        
        21.44
        7.49
        
        
        96,501
        1.92
        
        1.90
        
        (0.57)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        20.55
        12.42
        
        
        105,077
        1.97
        
        1.97
        
        (0.38)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        18.28
        39.86
        
        
        96,854
        2.06
        
        2.06
        
        (1.23)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        18.96
        (17.46)
        
        
        202,805
        1.87
        6
        1.87
        6
        (0.36)
        6
        
        
        (1.77)
        
        
        
        
        
        
        
        
        
        
        
        (1.77)
        
        
        22.97
        (2.14)
        
        
        287,054
        1.81
        
        1.81
        
        (0.59)(0.03)
        
        
        (0.79)
        
        
        
        
        
        
        
        
        
        
        
        (0.82)
        
        
        25.27
        16.70
        
        
        260,254
        1.84
        
        1.84
        
        (0.76)(0.05)
        
        
        (0.60
        
        
        
        
        
        
        
        
        
        
        
        (0.65)
        
        
        22.37
        7.48
        
        
        150,844
        1.91
        
        1.90
        
        (0.57)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        21.42
        12.44
        
        
        93,149
        1.97
        
        1.97
        
        (0.38)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        19.05
        39.87
        
        
        59,174
        2.05
        
        2.05
        
        (1.22)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        21.52
        (17.04)
        
        
        58,900
        0.82
        6
        0.82
        6
        0.69
        6(0.27)
        
        
        (1.77)
        
        
        
        
        
        
        
        
        
        
        
        (2.04)
        
        
        25.94
        (1.13)
        
        
        78,537
        0.78
        
        0.78
        
        0.44(0.31)
        
        
        (0.79)
        
        
        
        
        
        
        
        
        
        
        
        (1.10)
        
        
        28.29
        17.91
        
        
        68,591
        0.81
        
        0.81
        
        0.27(0.32)
        
        
        (0.60)
        
        
        
        
        
        
        
        
        
        
        
        (0.92)
        
        
        24.95
        8.70
        
        
        50,142
        0.85
        
        0.85
        
        0.48
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        23.81
        13.76
        
        
        17,287
        0.86
        
        0.86
        
        0.73
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        20.93
        41.42
        
        
        6,577
        0.93
        
        0.93
        
        (0.10)(0.10)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.10)
        
        
        5.59
        1.62
        
        
        46,039
        0.95
        6
        0.95
        6
        3.62
        6(0.21)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.21)
        
        
        5.60
        5.45
        
        
        27,224
        1.03
        
        1.03
        
        3.95(0.18)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.18)
        
        
        5.52
        3.73
        
        
        22,134
        1.05
        
        1.05
        
        3.30(0.15)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.15)
        
        
        5.50
        0.98
        
        
        19,340
        1.10
        
        1.08
        
        2.52(0.14)
        
        
        
        
        
        
        
        
        
        
        
        
        5
        
        (0.14)
        
        
        5.60
        0.17
        
        
        19,025
        1.25
        
        1.25
        
        1.84(0.17)
        
        
        
        
        
        
        
        
        
        
        
        (0.03)
        
        
        (0.20)
        
        
        5.73
        0.10
        
        
        25,168
        1.13
        
        1.13
        
        1.96(0.08)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.08)
        
        
        5.57
        1.25
        
        
        12,716
        1.73
        6
        1.73
        6
        2.84
        6(0.17)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.17)
        
        
        5.58
        4.49
        
        
        10,402
        1.77
        
        1.77
        
        3.21(0.14)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.14)
        
        
        5.51
        3.02
        
        
        14,058
        1.76
        
        1.76
        
        2.59(0.12)
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.12)
        
        
        5.49
        0.33
        
        
        25,208
        1.79
        
        1.77
        
        1.83(0.10)
        
        
        
        
        
        
        
        
        
        
        
        
        5
        
        (0.10)
        
        
        5.59
        (0.33)
        
        
        34,921
        1.89
        
        1.89
        
        1.20(0.12)
        
        
        
        
        
        
        
        
        
        
        
        (0.03)
        
        
        (0.15)
        
        
        5.71
        (0.80)
        
        
        62,549
        1.82
        
        1.82
        
        1.27
   68
  
 DAVIS SERIES, INC. FINANCIAL HIGHLIGHTS  (CONTINUED)   Income (Loss) from Investment OperationsNet Asset Value, Beginning
of Period
        Net Investment Income (Loss)
        Net Realized and Unrealized Gains (Losses)
        Total from Investment OperationsDavis Government Bond Fund Class C:Six months ended 06/30/20087
        $
        5.60
        $
        0.08
        
        $
        (0.01
        )
        $
        0.07Year ended 12/31/2007
        
        5.52
        
        0.17
        
        
        0.08
        
        
        0.25Year ended 12/31/2006
        
        5.51
        
        0.14
        
        
        0.01
        
        
        0.15Year ended 12/31/2005
        
        5.61
        
        0.12
        
        
        (0.10
        )
        
        0.02Year ended 12/31/2004
        
        5.73
        
        0.10
        
        
        (0.12
        )
        
        (0.02
        )Year ended 12/31/2003
        
        5.93
        
        0.01
        
        
        (0.06
        )
        
        (0.05
        )Davis Government Bond Fund Class Y:Six months ended 06/30/20087
        
        5.64
        
        0.10
        
        
        (0.01
        )
        
        0.09Year ended 12/31/2007
        
        5.57
        
        0.22
        
        
        0.07
        
        
        0.29Year ended 12/31/2006
        
        5.55
        
        0.19
        
        
        0.02
        
        
        0.21Year ended 12/31/2005
        
        5.65
        
        0.17
        
        
        (0.10
        )
        
        0.07Year ended 12/31/2004
        
        5.77
        
        0.15
        
        
        (0.12
        )
        
        0.03Year ended 12/31/2003
        
        5.97
        
        0.11
        
        
        (0.10
        )
        
        0.01Davis Government Money Market Fund Class A, B, C & Y:Six months ended 06/30/20087
        
        1.000
        
        0.014
        
        
        
        
        
        0.014Year ended 12/31/2007
        
        1.000
        
        0.046
        
        
        
        
        
        0.046Year ended 12/31/2006
        
        1.000
        
        0.044
        
        
        
        
        
        0.044Year ended 12/31/2005
        
        1.000
        
        0.026
        
        
        
        
        
        0.026Year ended 12/31/2004
        
        1.000
        
        0.008
        
        
        
        
        
        0.008Year ended 12/31/2003
        
        1.000
        
        0.006
        
        
        
        
        
        0.006Davis Financial Fund Class A:Six months ended 06/30/20087
        
        40.71
        
        0.08
        
        
        (8.36
        )
        
        (8.28
        )Year ended 12/31/2007
        
        47.48
        
        0.20
        
        
        (2.56
        )
        
        (2.36
        )Year ended 12/31/2006
        
        42.40
        
        0.04
        
        
        7.81
        
        
        7.85Year ended 12/31/2005
        
        41.00
        
        0.04
        
        
        3.27
        
        
        3.31Year ended 12/31/2004
        
        36.57
        
        0.02
        
        
        4.41
        
        
        4.43Year ended 12/31/2003
        
        26.72
        
        0.08
        
        
        9.77
        
        
        9.85Davis Financial Fund Class B:Six months ended 06/30/20087
        
        36.03
        
        (0.07
        )3
        
        (7.36
        )
        
        (7.43
        )Year ended 12/31/2007
        
        42.82
        
        (0.20
        )3
        
        (2.28
        )
        
        (2.48
        )Year ended 12/31/2006
        
        38.83
        
        (0.33
        )3
        
        7.09
        
        
        6.76Year ended 12/31/2005
        
        38.03
        
        (0.29
        )3
        
        3.00
        
        
        2.71Year ended 12/31/2004
        
        34.22
        
        (0.33
        )
        
        4.14
        
        
        3.81Year ended 12/31/2003
        
        25.21
        
        (0.18
        )
        
        9.19
        
        
        9.01Davis Financial Fund Class C:Six months ended 06/30/20087
        
        36.77
        
        (0.07
        )3
        
        (7.54
        )
        
        (7.61
        )Year ended 12/31/2007
        
        43.58
        
        (0.18
        )3
        
        (2.32
        )
        
        (2.50
        )Year ended 12/31/2006
        
        39.46
        
        (0.32
        )3
        
        7.21
        
        
        6.89Year ended 12/31/2005
        
        38.62
        
        (0.30
        )3
        
        3.05
        
        
        2.75Year ended 12/31/2004
        
        34.75
        
        (0.32
        )
        
        4.19
        
        
        3.87Year ended 12/31/2003
        
        25.61
        
        (0.18
        )
        
        9.32
        
        
        9.14
   69
  
    Dividends and DistributionsDividends from Net Investment Income
        Distributions from Realized Gains
        Distributions in Excess of Net Investment Income
        Distributions in Excess of Net Realized Gains
        Return of Capital
        Total Distributions
        Net Asset Value, End of Period
        Total Return1
        Net Assets,
End of Period
(000 omitted)
        Ratio of Expenses
To Average
Net Assets
        Ratio of Net Investment
Income (Loss) to Average
Net AssetsGross
        Net4$
        (0.08
        )
        $
        
        
        $
        
        
        $
        
        
        $
        
        
        $
        (0.08
        )
        $
        5.59
        1.27
        %
        $
        21,040
        1.68
        %6
        1.68
        %6
        2.89
        %6(0.17
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.17
        )
        
        5.60
        4.66
        
        
        14,754
        1.75
        
        1.75
        
        3.23(0.14
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.14
        )
        
        5.52
        2.78
        
        
        7,483
        1.79
        
        1.79
        
        2.56(0.12
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.12
        )
        
        5.51
        0.29
        
        
        5,358
        1.84
        
        1.82
        
        1.78(0.10
        )
        
        
        
        
        
        
        
        
        
        
        
        5
        
        (0.10
        )
        
        5.61
        (0.34
        )
        
        6,688
        1.93
        
        1.93
        
        1.16(0.12
        )
        
        
        
        
        
        
        
        
        
        
        (0.03
        )
        
        (0.15
        )
        
        5.73
        (0.80
        )
        
        12,955
        1.85
        
        1.85
        
        1.24(0.10
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.10
        )
        
        5.63
        1.66
        
        
        780
        0.90
        6
        0.90
        6
        3.67
        6(0.22
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.22
        )
        
        5.64
        5.32
        
        
        410
        0.99
        
        0.99
        
        3.99(0.19
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.19
        )
        
        5.57
        3.86
        
        
        302
        0.93
        
        0.93
        
        3.42(0.17
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.17
        )
        
        5.55
        1.22
        
        
        115
        0.98
        
        0.97
        
        2.63(0.15
        )
        
        
        
        
        
        
        
        
        
        
        
        5
        
        (0.15
        )
        
        5.65
        0.61
        
        
        219
        1.02
        
        1.02
        
        2.07(0.18
        )
        
        
        
        
        
        
        
        
        
        
        (0.03
        )
        
        (0.21
        )
        
        5.77
        0.17
        
        
        263
        0.92
        
        0.92
        
        2.17(0.014
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.014
        )
        
        1.000
        1.40
        
        
        503,624
        0.54
        6
        0.54
        6
        2.86
        6(0.046
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.046
        )
        
        1.000
        4.69
        
        
        596,446
        0.55
        
        0.55
        
        4.59(0.044
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.044
        )
        
        1.000
        4.47
        
        
        558,107
        0.56
        
        0.56
        
        4.41(0.026
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.026
        )
        
        1.000
        2.68
        
        
        513,221
        0.57
        
        0.56
        
        2.65(0.008
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.008
        )
        
        1.000
        0.83
        
        
        572,381
        0.58
        
        0.58
        
        0.83(0.006
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.006
        )
        
        1.000
        0.62
        
        
        571,431
        0.60
        
        0.60
        
        0.62
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        32.43
        (20.34
        )
        
        634,694
        1.02
        6
        1.02
        6
        0.47
        6(0.10
        )
        
        (4.31
        )
        
        
        
        
        
        
        
        
        
        
        (4.41
        )
        
        40.71
        (5.31
        )
        
        740,235
        0.97
        
        0.97
        
        0.44
        
        
        (2.77
        )
        
        
        
        
        
        
        
        
        
        
        (2.77
        )
        
        47.48
        18.74
        
        
        818,054
        0.98
        
        0.98
        
        0.09
        
        
        (1.91
        )
        
        
        
        
        
        
        
        
        
        
        (1.91
        )
        
        42.40
        8.03
        
        
        613,683
        0.99
        
        0.98
        
        0.10
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        41.00
        12.11
        
        
        583,387
        1.01
        
        1.01
        
        0.05
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        36.57
        36.86
        
        
        535,300
        1.10
        
        1.10
        
        0.27
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        28.60
        (20.62
        )
        
        29,225
        1.99
        6
        1.99
        6
        (0.50
        )6
        
        
        (4.31
        )
        
        
        
        
        
        
        
        
        
        
        (4.31
        )
        
        36.03
        (6.17
        )
        
        50,341
        1.87
        
        1.87
        
        (0.46
        )
        
        
        (2.77
        )
        
        
        
        
        
        
        
        
        
        
        (2.77
        )
        
        42.82
        17.65
        
        
        95,545
        1.88
        
        1.88
        
        (0.81
        )
        
        
        (1.91
        )
        
        
        
        
        
        
        
        
        
        
        (1.91
        )
        
        38.83
        7.08
        
        
        192,049
        1.88
        
        1.85
        
        (0.77
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        38.03
        11.13
        
        
        276,945
        1.88
        
        1.88
        
        (0.82
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        34.22
        35.74
        
        
        304,513
        1.98
        
        1.98
        
        (0.61
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        29.16
        (20.70
        )
        
        81,005
        1.89
        6
        1.89
        6
        (0.40
        )6
        
        
        (4.31
        )
        
        
        
        
        
        
        
        
        
        
        (4.31
        )
        
        36.77
        (6.10
        )
        
        87,216
        1.83
        
        1.83
        
        (0.42
        )
        
        
        (2.77
        )
        
        
        
        
        
        
        
        
        
        
        (2.77
        )
        
        43.58
        17.70
        
        
        96,478
        1.85
        
        1.85
        
        (0.78
        )
        
        
        (1.91
        )
        
        
        
        
        
        
        
        
        
        
        (1.91
        )
        
        39.46
        7.07
        
        
        94,512
        1.87
        
        1.85
        
        (0.77
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        38.62
        11.14
        
        
        104,508
        1.89
        
        1.89
        
        (0.83
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        34.75
        35.69
        
        
        108,557
        1.99
        
        1.99
        
        (0.62
        )
   70
  
 DAVIS SERIES, INC. FINANCIAL HIGHLIGHTS  (CONTINUED)   Income (Loss) from Investment OperationsNet Asset Value, Beginning
of Period
        Net Investment Income (Loss)
        Net Realized and Unrealized Gains (Losses)
        Total from Investment OperationsDavis Financial Fund Class Y:Six months ended 06/30/20087
        $
        41.57
        $
        0.11
        
        $
        (8.55
        )
        $
        (8.44
        )Year ended 12/31/2007
        
        48.38
        
        0.28
        
        
        (2.61
        )
        
        (2.33
        )Year ended 12/31/2006
        
        43.10
        
        0.11
        
        
        7.94
        
        
        8.05Year ended 12/31/2005
        
        41.59
        
        0.09
        
        
        3.33
        
        
        3.42Year ended 12/31/2004
        
        37.03
        
        0.09
        
        
        4.47
        
        
        4.56Year ended 12/31/2003
        
        27.00
        
        0.17
        
        
        9.86
        
        
        10.03Davis Appreciation & Income Fund Class A:Six months ended 06/30/20087
        
        28.21
        
        0.26
        
        
        (2.83
        )
        
        (2.57
        )Year ended 12/31/2007
        
        29.71
        
        0.61
        
        
        (0.18
        )
        
        0.43Year ended 12/31/2006
        
        27.94
        
        0.68
        
        
        3.52
        
        
        4.20Year ended 12/31/2005
        
        27.50
        
        0.59
        
        
        1.11
        
        
        1.70Year ended 12/31/2004
        
        24.95
        
        0.65
        
        
        2.57
        
        
        3.22Year ended 12/31/2003
        
        20.30
        
        0.74
        
        
        4.65
        
        
        5.39Davis Appreciation & Income Fund Class B:Six months ended 06/30/20087
        
        27.90
        
        0.14
        3
        
        (2.79
        )
        
        (2.65
        )Year ended 12/31/2007
        
        29.40
        
        0.38
        3
        
        (0.21
        )
        
        0.17Year ended 12/31/2006
        
        27.67
        
        0.45
        3
        
        3.46
        
        
        3.91Year ended 12/31/2005
        
        27.25
        
        0.35
        
        
        1.08
        
        
        1.43Year ended 12/31/2004
        
        24.72
        
        0.41
        
        
        2.54
        
        
        2.95Year ended 12/31/2003
        
        20.13
        
        0.52
        
        
        4.59
        
        
        5.11Davis Appreciation & Income Fund Class C:Six months ended 06/30/20087
        
        28.34
        
        0.15
        3
        
        (2.83
        )
        
        (2.68
        )Year ended 12/31/2007
        
        29.84
        
        0.38
        3
        
        (0.20
        )
        
        0.18Year ended 12/31/2006
        
        28.06
        
        0.45
        3
        
        3.51
        
        
        3.96Year ended 12/31/2005
        
        27.62
        
        0.36
        
        
        1.10
        
        
        1.46Year ended 12/31/2004
        
        25.06
        
        0.42
        
        
        2.57
        
        
        2.99Year ended 12/31/2003
        
        20.40
        
        0.53
        
        
        4.66
        
        
        5.19Davis Appreciation & Income Fund Class Y:Six months ended 06/30/20087
        
        28.33
        
        0.29
        3
        
        (2.83
        )
        
        (2.54
        )Year ended 12/31/2007
        
        29.84
        
        0.72
        3
        
        (0.22
        )
        
        0.50Year ended 12/31/2006
        
        28.05
        
        0.76
        
        
        3.54
        
        
        4.30Year ended 12/31/2005
        
        27.61
        
        0.66
        
        
        1.11
        
        
        1.77Year ended 12/31/2004
        
        25.04
        
        0.71
        
        
        2.58
        
        
        3.29Year ended 12/31/2003
        
        20.38
        
        0.78
        
        
        4.66
        
        
        5.44Davis Real Estate Fund Class A:Six months ended 06/30/20087
        
        30.50
        
        0.38
        3
        
        (2.81
        )
        
        (2.43
        )Year ended 12/31/2007
        
        46.42
        
        0.81
        3
        
        (7.45
        )
        
        (6.64
        )Year ended 12/31/2006
        
        40.23
        
        0.61
        3
        
        13.28
        
        
        13.89Year ended 12/31/2005
        
        39.52
        
        0.59
        
        
        4.37
        
        
        4.96Year ended 12/31/2004
        
        30.32
        
        0.64
        
        
        9.32
        
        
        9.96Year ended 12/31/2003
        
        22.79
        
        0.90
        
        
        7.53
        
        
        8.43
   71
  
    Dividends and DistributionsDividends from Net Investment Income
        Distributions from Realized Gains
        Distributions in Excess of Net Investment Income
        Distributions in Excess of Net Realized Gains
        Return of Capital
        Total Distributions
        Net Asset Value, End of Period
        Total Return1
        Net Assets,
End of Period
(000 omitted)
        Ratio of Expenses
To Average
Net Assets
        Ratio of Net Investment
Income (Loss) to Average
Net AssetsGross
        Net4$
        
        
        $
        
        
        $
        
        
        $
        
        
        $
        
        
        $
        
        
        $
        33.13
        (20.30
        )%
        $
        11,357
        0.88
        %6
        0.88
        %6
        0.61
        %6(0.17
        )
        
        (4.31
        )
        
        
        
        
        
        
        
        
        
        
        (4.48
        )
        
        41.57
        (5.15
        )
        
        8,844
        0.84
        
        0.84
        
        0.57
        
        
        (2.77
        )
        
        
        
        
        
        
        
        
        
        
        (2.77
        )
        
        48.38
        18.90
        
        
        10,566
        0.84
        
        0.84
        
        0.23
        
        
        (1.91
        )
        
        
        
        
        
        
        
        
        
        
        (1.91
        )
        
        43.10
        8.18
        
        
        11,815
        0.85
        
        0.84
        
        0.24
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        41.59
        12.31
        
        
        9,980
        0.85
        
        0.85
        
        0.21
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        37.03
        37.15
        
        
        11,563
        0.91
        
        0.91
        
        0.46(0.16
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.16
        )
        
        25.48
        (9.14
        )
        
        460,132
        1.04
        6
        1.04
        6
        1.90
        6(0.60
        )
        
        (1.33
        )
        
        
        
        
        
        
        
        
        
        
        (1.93
        )
        
        28.21
        1.30
        
        
        567,728
        1.01
        
        1.01
        
        2.04(0.64
        )
        
        (1.79
        )
        
        
        
        
        
        
        
        
        
        
        (2.43
        )
        
        29.71
        15.19
        
        
        393,888
        1.06
        
        1.06
        
        2.35(0.62
        )
        
        (0.64
        )
        
        
        
        
        
        
        
        
        
        
        (1.26
        )
        
        27.94
        6.29
        
        
        224,600
        1.07
        
        1.07
        
        2.12(0.67
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.67
        )
        
        27.50
        13.08
        
        
        149,687
        1.08
        
        1.08
        
        2.52(0.74
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.74
        )
        
        24.95
        26.94
        
        
        114,003
        1.10
        
        1.10
        
        3.38(0.10
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.10
        )
        
        25.15
        (9.51
        )
        
        31,969
        1.89
        6
        1.89
        6
        1.05
        6(0.34
        )
        
        (1.33
        )
        
        
        
        
        
        
        
        
        
        
        (1.67
        )
        
        27.90
        0.46
        
        
        44,099
        1.84
        
        1.84
        
        1.21(0.39
        )
        
        (1.79
        )
        
        
        
        
        
        
        
        
        
        
        (2.18
        )
        
        29.40
        14.20
        
        
        51,102
        1.89
        
        1.89
        
        1.52(0.37
        )
        
        (0.64
        )
        
        
        
        
        
        
        
        
        
        
        (1.01
        )
        
        27.67
        5.30
        
        
        75,289
        1.94
        
        1.93
        
        1.26(0.42
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.42
        )
        
        27.25
        12.06
        
        
        80,729
        1.99
        
        1.99
        
        1.61(0.52
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.52
        )
        
        24.72
        25.71
        
        
        72,181
        2.03
        
        2.03
        
        2.45(0.11
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.11
        )
        
        25.55
        (9.49
        )
        
        142,111
        1.83
        6
        1.83
        6
        1.11
        6(0.35
        )
        
        (1.33
        )
        
        
        
        
        
        
        
        
        
        
        (1.68
        )
        
        28.34
        0.50
        
        
        169,456
        1.80
        
        1.80
        
        1.25(0.39
        )
        
        (1.79
        )
        
        
        
        
        
        
        
        
        
        
        (2.18
        )
        
        29.84
        14.22
        
        
        90,692
        1.88
        
        1.87
        
        1.54(0.38
        )
        
        (0.64
        )
        
        
        
        
        
        
        
        
        
        
        (1.02
        )
        
        28.06
        5.34
        
        
        55,395
        1.93
        
        1.93
        
        1.26(0.43
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.43
        )
        
        27.62
        12.05
        
        
        34,627
        1.98
        
        1.98
        
        1.62(0.53
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.53
        )
        
        25.06
        25.75
        
        
        24,531
        2.02
        
        2.02
        
        2.46(0.18
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.18
        )
        
        25.61
        (9.00
        )
        
        83,344
        0.77
        6
        0.77
        6
        2.17
        6(0.68
        )
        
        (1.33
        )
        
        
        
        
        
        
        
        
        
        
        (2.01
        )
        
        28.33
        1.55
        
        
        105,327
        0.75
        
        0.74
        
        2.31(0.72
        )
        
        (1.79
        )
        
        
        
        
        
        
        
        
        
        
        (2.51
        )
        
        29.84
        15.49
        
        
        50,052
        0.80
        
        0.80
        
        2.61(0.69
        )
        
        (0.64
        )
        
        
        
        
        
        
        
        
        
        
        (1.33
        )
        
        28.05
        6.52
        
        
        37,110
        0.83
        
        0.83
        
        2.36(0.72
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.72
        )
        
        27.61
        13.35
        
        
        30,260
        0.86
        
        0.86
        
        2.74(0.78
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.78
        )
        
        25.04
        27.13
        
        
        25,892
        0.88
        
        0.88
        
        3.60(0.14
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.14
        )
        
        27.93
        (8.01
        )
        
        402,862
        1.19
        6
        1.19
        6
        2.56
        6(0.58
        )
        
        (8.70
        )
        
        
        
        
        
        
        
        
        
        
        (9.28
        )
        
        30.50
        (14.87
        )
        
        460,644
        1.08
        
        1.08
        
        1.84(0.88
        )
        
        (6.82
        )
        
        
        
        
        
        
        
        
        
        
        (7.70
        )
        
        46.42
        34.58
        
        
        573,375
        1.09
        
        1.09
        
        1.37(0.83
        )
        
        (3.42
        )
        
        
        
        
        
        
        
        
        
        
        (4.25
        )
        
        40.23
        12.76
        
        
        372,571
        1.10
        
        1.09
        
        1.48(0.76
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.76
        )
        
        39.52
        33.22
        
        
        313,378
        1.26
        
        1.26
        
        1.93(0.90
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.90
        )
        
        30.32
        37.52
        
        
        190,505
        1.30
        
        1.30
        
        3.40
   72
  
 DAVIS SERIES, INC. FINANCIAL HIGHLIGHTS  (CONTINUED)   Income (Loss) from Investment OperationsNet Asset Value, Beginning
of Period
        Net Investment Income (Loss)
        Net Realized and Unrealized Gains (Losses)
        Total from Investment OperationsDavis Real Estate Fund Class B:Six months ended 06/30/20087
        $
        30.29
        $
        0.24
        3
        $
        (2.77
        )
        $
        (2.53
        )Year ended 12/31/2007
        
        46.16
        
        0.53
        3
        
        (7.46
        )
        
        (6.93
        )Year ended 12/31/2006
        
        40.05
        
        0.38
        3
        
        13.07
        
        
        13.45Year ended 12/31/2005
        
        39.36
        
        0.30
        
        
        4.34
        
        
        4.64Year ended 12/31/2004
        
        30.20
        
        0.43
        
        
        9.26
        
        
        9.69Year ended 12/31/2003
        
        22.71
        
        0.72
        
        
        7.49
        
        
        8.21Davis Real Estate Fund Class C:Six months ended 06/30/20087
        
        30.63
        
        0.26
        3
        
        (2.81
        )
        
        (2.55
        )Year ended 12/31/2007
        
        46.56
        
        0.52
        3
        
        (7.50
        )
        
        (6.98
        )Year ended 12/31/2006
        
        40.35
        
        0.44
        3
        
        13.12
        
        
        13.56Year ended 12/31/2005
        
        39.63
        
        0.31
        
        
        4.37
        
        
        4.68Year ended 12/31/2004
        
        30.41
        
        0.43
        
        
        9.33
        
        
        9.76Year ended 12/31/2003
        
        22.87
        
        0.72
        
        
        7.54
        
        
        8.26Davis Real Estate Fund Class Y:Six months ended 06/30/20087
        
        30.82
        
        0.43
        3
        
        (2.84
        )
        
        (2.41
        )Year ended 12/31/2007
        
        46.81
        
        0.92
        3
        
        (7.47
        )
        
        (6.55
        )Year ended 12/31/2006
        
        40.53
        
        0.77
        
        
        13.37
        
        
        14.14Year ended 12/31/2005
        
        39.78
        
        0.74
        
        
        4.42
        
        
        5.16Year ended 12/31/2004
        
        30.51
        
        0.82
        
        
        9.37
        
        
        10.19Year ended 12/31/2003
        
        22.93
        
        1.02
        
        
        7.58
        
        
        8.60
     Portfolio Turnover2
        
        Six months(for all classes of shares)
        
        ended June 30,
        
        Year ended December 31,20087
        
        2007
        
        2006
        
        2005
        
        2004
        
        2003Davis Opportunity Fund
        
        14.78
        %
        
        37.05
        %
        
        40.26
        %
        
        35.77
        %
        
        22.22
        %
        
        42.34
        %Davis Government Bond Fund
        
        56.57
        
        
        60.23
        
        
        64.94
        
        
        55.46
        
        
        165.17
        
        
        121.61Davis Financial Fund
        
        0.64
        
        
        15.11
        
        
        4.20
        
        
        5.17
        
        
        
        
        
        9.29Davis Appreciation & Income Fund
        
        15.10
        
        
        23.26
        
        
        25.33
        
        
        16.64
        
        
        21.26
        
        
        33.35Davis Real Estate Fund
        
        20.24
        
        
        46.37
        
        
        37.97
        
        
        24.86
        
        
        31.37
        
        
        25.93
    73
  
     Dividends and DistributionsDividends from Net Investment Income
        Distributions from Realized Gains
        Distributions in Excess of Net Investment Income
        Distributions in Excess of Net Realized Gains
        Return of Capital
        Total Distributions
        Net Asset Value, End of Period
        Total Return1
        Net Assets,
End of Period
(000 omitted)
        Ratio of Expenses
To Average
Net Assets
        Ratio of Net Investment
Income (Loss) to Average
Net AssetsGross
        Net4$
        (0.08
        )
        $
        
        
        $
        
        
        $
        
        
        $
        
        
        $
        (0.08
        )
        $
        27.68
        (8.38)
        %
        $
        16,834
        2.05
        %6
        2.05
        %6
        1.70
        %6(0.24
        )
        
        (8.70
        )
        
        
        
        
        
        
        
        
        
        
        (8.94
        )
        
        30.29
        (15.52)
        
        
        24,872
        1.87
        
        1.87
        
        1.05(0.52
        )
        
        (6.82
        )
        
        
        
        
        
        
        
        
        
        
        (7.34
        )
        
        46.16
        33.50
        
        
        55,347
        1.86
        
        1.86
        
        0.60(0.53
        )
        
        (3.42
        )
        
        
        
        
        
        
        
        
        
        
        (3.95
        )
        
        40.05
        11.91
        
        
        87,039
        1.89
        
        1.88
        
        0.69(0.53
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.53
        )
        
        39.36
        32.34
        
        
        125,550
        1.94
        
        1.94
        
        1.25(0.72
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.72
        )
        
        30.20
        36.52
        
        
        110,303
        1.99
        
        1.99
        
        2.71(0.09
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.09
        )
        
        27.99
        (8.37)
        
        
        62,273
        1.95
        6
        1.95
        6
        1.80
        6(0.25
        )
        
        (8.70
        )
        
        
        
        
        
        
        
        
        
        
        (8.95
        )
        
        30.63
        (15.48)
        
        
        73,594
        1.84
        
        1.84
        
        1.08(0.53
        )
        
        (6.82
        )
        
        
        
        
        
        
        
        
        
        
        (7.35
        )
        
        46.56
        33.54
        
        
        119,093
        1.84
        
        1.84
        
        0.62(0.54
        )
        
        (3.42
        )
        
        
        
        
        
        
        
        
        
        
        (3.96
        )
        
        40.35
        11.93
        
        
        95,229
        1.88
        
        1.87
        
        0.70(0.54
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.54
        )
        
        39.63
        32.37
        
        
        86,835
        1.93
        
        1.93
        
        1.26(0.72
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.72
        )
        
        30.41
        36.52
        
        
        57,657
        1.97
        
        1.97
        
        2.73(0.16
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.16
        )
        
        28.25
        (7.86)
        
        
        51,783
        0.83
        6
        0.83
        6
        2.92
        6(0.74
        )
        
        (8.70
        )
        
        
        
        
        
        
        
        
        
        
        (9.44
        )
        
        30.82
        (14.58)
        
        
        57,995
        0.75
        
        0.75
        
        2.17(1.04
        )
        
        (6.82
        )
        
        
        
        
        
        
        
        
        
        
        (7.86
        )
        
        46.81
        34.98
        
        
        113,856
        0.74
        
        0.74
        
        1.72(0.99
        )
        
        (3.42
        )
        
        
        
        
        
        
        
        
        
        
        (4.41
        )
        
        40.53
        13.20
        
        
        79,156
        0.77
        
        0.77
        
        1.80(0.92
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (0.92
        )
        
        39.78
        33.85
        
        
        69,241
        0.80
        
        0.80
        
        2.39(1.02
        )
        
        
        
        
        
        
        
        
        
        
        
        
        
        (1.02
        )
        
        30.51
        38.10
        
        
        53,740
        0.84
        
        0.84
        
        3.86
  1  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. Sales charges are not reflected in the total returns. Total returns for periods of less than one full year are not annualized. 2  The lesser of purchases or sales of portfolio securities for a period, divided by the monthly average of the market 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 are excluded from the calculation.  3
        Per share calculations were based on average shares outstanding for the period.
 4  The ratios in this column reflect the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements from the Adviser.  5
        Less than $0.005 per share.
  6
        Annualized.
  7
        Unaudited.
 See Notes to Financial Statements  74
  
 DAVIS SERIES, INC. FUND INFORMATION  Portfolio Proxy Voting Policies and Procedures  The Funds have adopted Portfolio Proxy Voting Policies and Procedures under which the Funds vote proxies relating to securities held by the Funds.  A description of the Funds Portfolio Proxy Voting Policies and Procedures is available (i) without charge, upon request, by calling the Funds toll-free at 1-800-279-0279, (ii) on the Funds website at www.davisfunds.com, and (iii) on the SECs website at www.sec.gov.  In addition, the Funds are required to file Form N-PX, with their complete proxy voting record for the 12 months ended June 30th, no later than August 31st of each year.  The Funds Form N-PX filing is available (i) without charge, upon request, by calling the Funds toll-free at 1-800-279-0279, (ii) on the Funds website at www.davisfunds.com, and (iii) on the SECs website at www.sec.gov.  Form N-Q  The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q.  The Funds Form N-Q is available without charge, upon request, by calling 1-800-279-0279 or on the Funds website at www.davisfunds.com or on the SECs website at www.sec.gov.  The Funds Form N-Q may be reviewed and copied at the SECs Public Reference Room in Washington, DC, and that information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.   75
  
 DAVIS SERIES, INC. DIRECTOR APPROVAL OF ADVISORY AGREEMENTS  Process of Annual Review The Board of Directors of the Davis Funds oversees the management of each Davis Fund and, as required by law, determines annually whether to approve the continuance of each Davis Fund's advisory agreement with Davis Selected Advisers, L.P. and sub-advisory agreement with Davis Selected Advisers-NY, Inc. (jointly Davis Advisors and Advisory Agreements). As a part of this process the Independent Directors, with the assistance of counsel for the Independent Directors, prepared questions submitted to Davis Advisors in anticipation of the annual contract review. The Independent Directors were provided with responsive background material (including the most recent investment performance data available), and their counsel provided guidance, prior to a separate contract review meeting held in March 2008 where the Independent Directors reviewed and evaluated all information which they deemed reasonably necessary in the circumstances. Upon completion of this review, the Independent Directors found that the terms of the Advisory Agreements are fair and reasonable and that continuation of the Advisory Agreements was in the best interests of each of the Funds and their shareholders. Reasons the Independent Directors Approved Continuation of the Advisory Agreements The Independent Directors determinations were based upon a comprehensive consideration of all information provided to the Independent Directors and were not the result of any single factor. The following facts and conclusions were important, but not exclusive, in the Independent Directors recommendation to renew the Advisory Agreements. The Independent Directors considered not only the investment performance of each Fund, but also the full range and quality of services provided by Davis Advisors to each Fund and their shareholders, including whether it: 1.
        Achieves satisfactory investment results over the long-term after all costs;
 2.
        Handles shareholder transactions, inquiries, requests, and records efficiently and effectively, and provides quality accounting, legal, and compliance services, and oversight of third party service providers; and
 3.
        Fosters healthy investor behavior.
 Davis Advisors is reimbursed a portion of its costs in providing some, but not all, of these services. A shareholders ultimate return is the product of a funds results as well as the shareholders behavior, specifically in selecting when to invest and which fund to invest in.  The Independent Directors concluded that, through its actions and communications, Davis Advisors has attempted to have a meaningful, positive impact on investor behavior. Davis Advisors and members of the Davis family are some of the largest shareholders in the Davis Funds. The Independent Directors concluded that this investment tends to align Davis Advisors and the Davis familys interests with other shareholders, as they face the same risks, pay the same fees, and are highly motivated to achieve satisfactory long-term returns. In addition, the Independent Directors concluded that significant investments by Davis Advisors and the Davis family has contributed to the economies of scale which have lowered fees and expenses for Davis Funds shareholders over time. The Independent Directors observed that Davis Advisors has consistently demonstrated an orientation in line with shareholders. Davis Advisors and the Davis Funds have continued to receive recognition in the press, and among industry observers and participants, for the quality of its investment process, its shareholder orientation, and integrity.  76
  
 DAVIS SERIES, INC. DIRECTOR APPROVAL OF ADVISORY AGREEMENTS  (CONTINUED)  Reasons the Independent Directors Approved Continuation of the Advisory Agreements  (Continued) The Independent Directors noted the importance of reviewing quantitative measures, but also recognized that qualitative factors could be equally, or more important, in assessing whether Davis Fund shareholders are likely to be well served by the renewal of the Advisory Agreements. They noted both the value and shortcomings of purely quantitative measures, including the data provided by independent service providers, and concluded that while such measures and data can inform, they should not supersede the judgment of the Independent Directors who take many factors, including those listed below, into consideration in representing the shareholders of the Davis Funds.  In connection with reviewing comparative performance information, the Independent Directors generally give weight to longer-term measurements. The Independent Directors expect Davis Advisors to employ a disciplined, company-specific, research driven, businesslike, long-term investment philosophy. The Independent Directors recognized Davis Advisors (a) efforts to minimize transaction costs by generally having a long-term time horizon and low portfolio turnover; (b) focus on tax efficiency; (c) record of generally producing satisfactory after tax results over longer-term periods; (d) efforts towards fostering healthy investor behavior by, among other things, providing informative and substantial educational material; and (e) efforts to promote shareholder interests by actively speaking out on corporate governance issues. The Independent Directors reviewed (a) comparative fee and expense information for other funds, as selected and analyzed by a nationally recognized independent service provider; (b) information regarding fees charged by Davis Advisors to other advisory clients, including funds which it sub-advises and private accounts, as well as the differences in the services provided to such other clients; and (c) the fee schedules of each of the Funds, including an assessment of competitive fee schedules, and review of breakpoints if applicable. The Independent Directors reviewed the management fee schedule for each of the Funds, profitability of the Funds to Davis Advisors, the extent to which economies of scale might be realized if a Funds net assets increase, and whether the fee level reflects those potential economies of scale. The Independent Directors considered the nature, quality and extent of the services being provided to the Funds and the costs incurred by Davis Advisors in providing such services. The Independent Directors considered various potential benefits that Davis Advisors may receive in connection with the services it provides under the Advisory Agreements with the Funds, including a review of portfolio brokerage practices. The Independent Directors noted that Davis Advisors does not use client commissions to pay for publications that are available to the general public or for third-party research services.  77
  
 DAVIS SERIES, INC. DIRECTOR APPROVAL OF ADVISORY AGREEMENTS  (CONTINUED)  Davis Opportunity Fund The Independent Directors noted that Davis Opportunity Fund out-performed its benchmark, the Russell 3000® Index, and exceeded the average performance of its peer group over the 5-year and 10-year periods. The Fund trailed its benchmark and the average performance of its peer group over the 1-year and 3-year periods. The Independent Directors considered the total expense ratio for Davis Opportunity Fund, noting that it is reasonable and lower than the expense ratios of its peer group. The Independent Directors considered the advisory fee schedule for Davis Opportunity Fund and noted that it is within the range and below the average of its peer group. The Independent Directors concluded that the advisory fee schedule represents an appropriate sharing between Davis Opportunity Fund shareholders and Davis Advisors of such economies of scale as may exist in the management of the Fund at current asset levels. Davis Financial Fund The Independent Directors noted that Davis Financial Fund out-performed its benchmark, the Standard & Poors 500® Index, over the 5-year and 10-year periods. The Fund trailed its benchmark over the 1-year and 3-year periods. The Fund exceeded the average performance of its peer group over the 1-year, 3-year, 5-year, and 10-year periods. The Independent Directors considered the total expense ratio for Davis Financial Fund, noting that it is reasonable and lower than the expense ratios of its peer group. The Independent Directors considered the advisory fee schedule for Davis Financial Fund and noted that it is within the range and below the average of its peer group. The Independent Directors concluded that the advisory fee schedule represents an appropriate sharing between Davis Financial Fund shareholders and Davis Advisors of such economies of scale as may exist in the management of the Fund at current asset levels. Davis Real Estate Fund The Independent Directors noted that Davis Real Estate Fund out-performed its benchmark, the Dow Jones Wilshire Real Estate Securities Index, over the 1-year period. The Fund trailed its benchmark over the 3-year, 5-year, and 10-year periods. The Fund exceeded the average performance of its peer group over the 3-year and 5-year periods. The Fund trailed the average performance of its peer group over the 1-year and 10-year periods. The Independent Directors considered the total expense ratio for Davis Real Estate Fund, noting that it is reasonable, within the range, and below the average ratios of its peer group. The Independent Directors considered the advisory fee schedule for Davis Real Estate Fund and noted that it is within the range and below the average of its peer group. The Independent Directors concluded that the advisory fee schedule represents an appropriate sharing between Davis Real Estate Fund shareholders and Davis Advisors of such economies of scale as may exist in the management of the Fund at current asset levels.  78
  
 DAVIS SERIES, INC. DIRECTOR APPROVAL OF ADVISORY AGREEMENTS  (CONTINUED)  Davis Appreciation & Income Fund The Independent Directors noted that Davis Appreciation & Income Fund out-performed its benchmark, the Standard & Poors 500® Index, over the 3-year and 10-year periods. The Fund trailed its benchmark over the 1-year and 5-year periods. The Fund exceeded the average performance of its peer group over the 5-year period. The Fund trailed the average performance of its peer group over the 1-year, 3-year, and 10-year periods. The Independent Directors considered the total expense ratio for Davis Appreciation & Income Fund, noting that it is reasonable, within the range, and below the average ratios of its peer group. The Independent Directors considered the advisory fee schedule for Davis Appreciation & Income Fund and noted that it is within the range and above the average of its peer group. The Independent Directors concluded that the advisory fee schedule represents an appropriate sharing between Davis Appreciation & Income Fund shareholders and Davis Advisors of such economies of scale as may exist in the management of the Fund at current asset levels. Davis Government Bond Fund The Independent Directors noted that Davis Government Bond Fund trailed the performance of its benchmark, the Citigroup U.S. Treasury/Agency 1-3 Year Index, over all investment periods reviewed. The Fund trailed the average performance of its peer group over the 3-year, 5-year, and 10-year periods.  The Fund out-performed its peer group over the 1-year period. The Independent Directors considered the total expense ratio for Davis Government Bond Fund, noting that it is reasonable, within the range, and above the average ratios of its peer group. The Independent Directors considered the advisory fee schedule for Davis Government Bond Fund and noted that it is within the range and below the average of its peer group. The Independent Directors concluded that the fixed advisory fee schedule represents an appropriate sharing between Davis Government Bond Fund shareholders and Davis Advisors of such economies of scale as may exist in the management of the Fund at current asset levels. Davis Government Money Market Fund The Independent Directors noted that Davis Government Money Market Fund exceeded the average performance of its peer group over all reviewed periods. The Independent Directors considered the total expense ratio for Davis Government Money Market Fund, noting that it is reasonable, within the range, and below the average ratios of its peer group. The Independent Directors considered the advisory fee schedule for Davis Government Money Market Fund and noted that it is within the range and above the average of its peer group. The Independent Directors concluded that the advisory fee schedule represents an appropriate sharing between Davis Government Money Market Fund shareholders and Davis Advisors of such economies of scale as may exist in the management of the Fund at current asset levels.  79
  
 DAVIS SERIES, INC. DIRECTOR APPROVAL OF ADVISORY AGREEMENTS  (CONTINUED)  Approval of Advisory Arrangements The Independent Directors concluded that Davis Advisors had provided Davis Opportunity Fund, Davis Financial Fund, Davis Real Estate Fund, Davis Appreciation & Income Fund, Davis Government Bond Fund, and Davis Government Money Market Fund and their shareholders a reasonable level of both investment and non-investment services. The Independent Directors further concluded that shareholders have received a significant benefit from Davis Advisors shareholder oriented approach, as well as the execution of its investment discipline. The Independent Directors determined that the advisory fees for Davis Opportunity Fund, Davis Financial Fund, Davis Real Estate Fund, Davis Appreciation & Income Fund, Davis Government Bond Fund, and Davis Government Money Market Fund were reasonable in light of the nature, quality and extent of the services being provided to the Funds, the costs incurred by Davis Advisors in providing such service, and in comparison to the range of the average advisory fees of its peer group as determined by an independent service provider. The Independent Directors found that the terms of the Advisory Agreements are fair and reasonable and that continuation of the Advisory Agreements is in the best interests of each Fund and its shareholders. The Independent Directors and the full board of directors therefore voted to continue the Advisory Agreements.  80
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756 DIRECTORS  For the purposes of their service as directors to the Davis Funds, the business address for each of the directors is 2949 E. Elvira Road, Suite 101, Tucson, AZ 85756. Each Director serves until their retirement, resignation, death or removal. Subject to exceptions and exemptions, which may be granted by the Independent Directors, Directors must retire at the close of business on the last day of the calendar year in which the Director attains age seventy-four (74).  Name
(birthdate)
        Position(s) Held With Fund
        Term of Office and Length of Time Served
        Principal Occupation(s) During Past Five Years
        Number of Portfolios in Fund Complex Overseen by  Director
        Other Directorships Held by Director
 Independent Directors Marc P. Blum
(9/9/42)
        Director
        Director since 1986
        Chief Executive Officer, World Total Return Fund, LLLP; of Counsel to Gordon, Feinblatt, Rothman, Hoffberger and Hollander, LLC (law firm).
        13
        Director, Legg Mason  Investment Counsel & Trust Company N.A. (asset management company) and Rodney Trust Company (Delaware).John S. Gates, Jr.
(8/2/53)
        Director
        Director since 2007
        Chairman and Chief Executive Officer of PortaeCo LLC, a private investment company (beginning in 2006); Co-founder of CenterPoint Properties Trust (REIT); former Co-chairman and Chief Executive Officer for the last 22 years (until 2006).
        13
        Director, DCT Industrial Trust (a REIT).Thomas S. Gayner
(12/16/61)
        Director
        Director since 2004
        Executive Vice President and Chief Investment Officer, Markel Corporation (insurance company).
        13
        Director, First Market Bank; Director, Washington Post, Co. (newspaper publisher).Jerry D. Geist
(5/23/34)
        Director
        Director since 1986
        Chairman, Santa Fe Center Enterprises, Inc. (energy project development).
        13
        Director, CH2M-Hill, Inc. (engineering); Member, Investment Committee for Microgeneration Technology Fund; UTECH Funds.G. Bernard Hamilton
(3/18/37)
        Director
        Director since 1978
        Managing General Partner, Avanti Partners, L.P. (investment partnership), retired 2005.
        13
        none
   81
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756 DIRECTORS - (Continued)  Name
(birthdate)
        Position(s) Held With Fund
        Term of Office and Length of Time Served
        Principal Occupation(s) During Past Five Years
        Number of Portfolios in Fund Complex Overseen by  Director
        Other Directorships Held by Director
 Independent Directors  (Continued) Samuel H. Iapalucci
(7/19/52)
        Director
        Director since 2006
        Former Executive Vice President and Chief Financial Officer, CH2M-Hill, Inc., (engineering).
        13
        noneRobert P. Morgenthau
(3/22/57)
        Director
        Director since 2002
        Chairman, NorthRoad Capital Management, LLC (an investment management firm) since June 2002.
        13
        noneChristian R. Sonne
(5/6/36)
        Director
        Director since 1990
        General Partner, Tuxedo Park Associates (land holding and development firm).
        13
        noneMarsha Williams
(3/28/51)
        Director
        Director since 1999
        Senior Vice President and Chief Financial Officer, Orbitz Worldwide, Inc. (travel-services provider); former Executive Vice President and Chief Financial Officer, Equity Office Properties Trust (a REIT).
        16
        Director, the Selected Funds (consisting of three portfolios) since 1996; Director, Modine Manufacturing, Inc. (heat transfer technology); Director, Chicago Bridge & Iron Company, N.V. (industrial construction and engineering).
   82
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756 DIRECTORS - (Continued)  Name
(birthdate)
        Position(s) Held With Fund
        Term of Office and Length of Time Served
        Principal Occupation(s) During Past Five Years
        Number of Portfolios in Fund Complex Overseen by  Director
        Other Directorships Held by Director
 Inside Directors* Jeremy H. Biggs
(8/16/35)
        Director/
Chairman
        Director since 1994
        Vice Chairman, Member of the Audit Committee and Member of the International Investment Committee, former Chief Investment Officer (1980 through 2005), all for Fiduciary Trust Company International (money management firm); Consultant to Davis Selected Advisers, L.P.
        13
        noneAndrew A. Davis
(6/25/63)
        Director
        Director since 1997
        President or Vice President of each Davis Fund and Selected Fund; President, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser.
        16
        Director, the Selected Funds (consisting of three portfolios) since 1998.Christopher C. Davis
(7/13/65)
        Director
        Director since 1997
        President or Vice President of each Davis Fund, Selected Fund, and Clipper Fund; Chairman, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser, including sole member of the Advisers general partner, Davis Investments, LLC; Employee of Shelby Cullom Davis & Co. (registered broker/dealer).
        16
        Director, the Selected Funds (consisting of three portfolios) since 1998; Director, Washington Post Co. (newspaper publisher).
  *    Jeremy H. Biggs, Andrew A. Davis, and Christopher C. Davis own partnership units (directly, indirectly or both) of the Adviser and are considered to be interested persons of the Funds as defined in the Investment Company Act of 1940. Andrew A. Davis and Christopher C. Davis are brothers.  83
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756 Officers  Christopher C. Davis (born 7/13/65, Davis Funds officer since 1997).See description in the section on Inside Directors.  Andrew A. Davis (born 6/25/63, Davis Funds officer since 1997).See description in the section on Inside Directors.  Kenneth C. Eich (born 8/14/53, Davis Funds officer since 1997).Executive Vice President and Principal Executive Officer of each of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of three portfolios), and Clipper Fund, Inc. (consisting of one portfolio); Chief Operating Officer, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser.  Douglas A. Haines (born 3/4/71, Davis Funds officer since 2004).Vice President, Treasurer, Chief Financial Officer, Principal Financial Officer, and Principal Accounting Officer of each of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of three portfolios), and Clipper Fund, Inc. (consisting of one portfolio); Vice President and Director of Fund Accounting, Davis Selected Advisers, L.P.  Sharra L. Haynes (born 9/25/66, Davis Funds officer since 1997).Vice President, Chief Compliance Officer of each of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of three portfolios), and Clipper Fund, Inc. (consisting of one portfolio); Vice President and Chief Compliance Officer, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser.  Thomas D. Tays (born 3/7/57, Davis Funds officer since 1997).Vice President and Secretary of each of the Davis Funds (consisting of 13 portfolios), Selected Funds (consisting of three portfolios), and Clipper Fund, Inc. (consisting of one portfolio); Vice President, Chief Legal Officer and Secretary, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser.  Arthur Don (born 9/24/53, Davis Funds officer since 1991).Assistant Secretary (for clerical purposes only) of each of the Davis Funds and Selected Funds; Partner, Seyfarth Shaw LLP (a law firm); counsel to the Independent Directors and the Davis Funds.   84
  
 DAVIS SERIES, INC. 2949 East Elvira Road, Suite 101 Tucson, Arizona 85756  Investment AdviserDavis Selected Advisers, L.P. (Doing business as Davis Advisors)2949 East Elvira Road, Suite 101Tucson, Arizona 85756(800) 279-0279DistributorDavis Distributors, LLC2949 East Elvira Road, Suite 101Tucson, Arizona 85756Transfer AgentBoston Financial Data Services, Incc/o The Davis FundsP.O. Box 8406Boston, Massachusetts 02266-8406Overnight Address:30 Dan RoadCanton, Massachusetts 02021-2809CustodianState Street Bank and Trust Co.One Lincoln StreetBoston, Massachusetts 02111CounselSeyfarth Shaw LLP131 South Dearborn Street, Suite 2400Chicago, Illinois 60603-5577Independent Registered Public Accounting FirmKPMG LLP707 Seventeenth Street, Suite 2700Denver, Colorado 80202
   For more information about Davis Series, Inc. including management fee, charges and expenses, see the current prospectus, which must precede or accompany this report.  The Funds Statement of Additional Information contains additional information about the Funds Directors and is available without charge upon request by calling 1-800-279-0279 or on the Funds website  at www.davisfunds.com.  Quarterly Fact sheets are available on the Funds website  at www.davisfunds.com.   85


ITEM 2.  CODE OF ETHICS  Not Applicable  ITEM 3.  AUDIT COMMITTEE FINANCIAL EXPERT  The registrants board of directors has determined that independent trustee Marsha Williams qualifies as the audit committee financial expert, as defined in Item 3 of form N-CSR.  ITEM 4.  PRINCIPAL ACCOUNTANT FEES AND SERVICES  Not Applicable  ITEM 5.  AUDIT COMMITTEE OF LISTED REGISTRANTS  Not Applicable  ITEM 6.  SCHEDULE OF INVESTMENTS  Not Applicable.  The complete Schedule of Investments is included in Item 1 of this for N-CSR  ITEM 7.  DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES  Not Applicable  ITEM 8.  PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES  Not Applicable  ITEM 9.  PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANIES AND AFFILIATED PURCHASERS  Not Applicable  ITEM 10.  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 Trustees.  ITEM 11.  CONTROLS AND PROCUDURES  (a)
        The registrants principal executive officer and principal financial officer have concluded that the registrants disclosure controls and procedures (as defined in Rule 30a-3 (c) under the Investment Company Act of 1940, as amended) are effective as of a date within 90 days of the filing date of this report.  (b)
        There have been no significant changes in the registrants internal controls or in other factors that could significantly affect these controls.        ITEM 12.  EXHIBITS  (a)(1)  Not Applicable  (a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached.  (a)(3)  Not Applicable  (b) Certifications pursuant to Section 906 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.  DAVIS SERIES, INC.  By
        /s/ Kenneth C. EichKenneth C. EichPrincipal Executive Officer  Date:  September 5, 2008  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. EichKenneth C. EichPrincipal Executive Officer  Date:  September 5, 2008  By
        /s/ Douglas A. HainesDouglas A. HainesPrincipal Financial Officer  Date:  September 5, 2008