UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-02679

Davis Series, Inc.
(Exact name of registrant as specified in charter)

2949 East Elvira Road, Suite 101
Tucson, Arizona  85706
(Address of principal executive offices)

Thomas D. Tays
Davis Selected Advisers, LP
2949 East Elvira Road, Suite 101
Tucson, Arizona  85706
(Name and address of agent for service)

Registrant's telephone number, including area code:  (520) 806-7600

Date of fiscal year end:	December 31
Date of reporting period:	June 30, 2005

ITEM 1.  REPORTS TO STOCKHOLDERS

<PAGE>

SEMI-ANNUAL REPORT                            JUNE 30, 2005




                                              DAVIS OPPORTUNITY FUND

                                              DAVIS FINANCIAL FUND

                                              DAVIS REAL ESTATE FUND

                                              DAVIS APPRECIATION & INCOME FUND

                                              DAVIS GOVERNMENT BOND FUND

                                              DAVIS GOVERNMENT MONEY MARKET FUND

                                              (part of Davis Series Inc.)





[DAVIS FUNDS LOGO OMITTED]
OVER 35 YEARS OF RELIABLE INVESTING(TM)


<PAGE>

                                TABLE OF CONTENTS

Shareholder Letter...........................................................2

Management's Discussion and Analysis:
     Davis Opportunity Fund..................................................3
     Davis Government Bond Fund..............................................4
     Davis Financial Fund....................................................5
     Davis Appreciation & Income Fund........................................6
     Davis Real Estate Fund..................................................7

Fund Overview:
     Davis Opportunity Fund.................................................11
     Davis Government Bond Fund.............................................12
     Davis Government Money Market Fund.....................................13
     Davis Financial Fund...................................................14
     Davis Appreciation & Income Fund.......................................15
     Davis Real Estate Fund.................................................16

Expense Example.............................................................17

Schedule of Investments:
     Davis Opportunity Fund.................................................20
     Davis Government Bond Fund.............................................24
     Davis Government Money Market Fund.....................................26
     Davis Financial Fund...................................................28
     Davis Appreciation & Income Fund.......................................30
     Davis Real Estate Fund.................................................34

Statements of Assets and Liabilities........................................37

Statements of Operations....................................................39

Statements of Changes in Net Assets.........................................40

Notes to Financial Statements...............................................42

Financial Highlights:
     Davis Opportunity Fund.................................................55
     Davis Government Bond Fund.............................................59
     Davis Government Money Market Fund.....................................63
     Davis Financial Fund...................................................64
     Davis Appreciation & Income Fund.......................................68
     Davis Real Estate Fund.................................................72

Fund Information............................................................76

Director Approval of Advisory Agreements....................................77

Directors and Officers......................................................81

<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================

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
at our website, www.davisfunds.com, or by calling 1-800-279-0279.


Sincerely,




/s/ Christopher C. Davis


Christopher C. Davis
President


August 4, 2005

                                       2
<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS

MARKET ENVIRONMENT

During the six-month period ended June 30, 2005, the stock market, as measured
by the Standard & Poor's 500(R) Index(1), declined by 0.81%. Inflation-adjusted
gross domestic product, the most comprehensive measure of economic activity,
increased 3.4% in the second quarter after increasing 3.8% in the first quarter.
Interest rates, as measured by the 10-year Treasury bond, were stable for the
first two months of the year, rose sharply in March, and then slowly declined
over the second quarter of 2005.

DAVIS OPPORTUNITY FUND

PERFORMANCE OVERVIEW

Davis Opportunity Fund's Class A shares delivered a total return on net asset
value of 1.59% for the six-month period ended June 30, 2005(2), compared with a
return of 0.02% for the Dow Jones Wilshire 5000 Index(1).

Utility companies were the most important contributors(3) to the Fund's
performance over the six-month period. Both, Calpine(4) and Sempra Energy were
among the Fund's top contributors to performance for the six-month period.

Industrial companies were the most important detractors from the Fund's
performance over the six-month period. Tyco International, Hughes Supply, and
Robbins & Myers were among the Fund's top detractors from performance.

The Fund's largest industry group holdings were in consumer discretionary
companies. Due to its large weighting and strong performance, Sears Holdings was
the single company that contributed the most to the Fund's performance. The
Fund's other consumer discretionary companies turned in mixed performance over
the six-month period, with AutoNation and Advanced Auto Parts among the top
contributors to performance, and Garmin, 99 Cents Only Stores, and Hunter
Douglas among the Fund's top detractors from performance.

The Fund did not invest as large a proportion of its assets in energy companies
as did the Dow Jones Wilshire 5000 Index. As energy was the strongest sector of
the Index over the last six-months, this decreased relative performance.
Transocean was among the fund's top contributors to performance.

Individual companies making important contributions to the Fund's performance
over the period included Telewest Global, a telecommunication services company;
and E*TRADE Financial, a capital markets company. Individual companies
detracting from performance over the period included Covad Communications, a
telecommunication services company; and Marsh & McLennan, an insurance brokerage
company.

The Fund's portfolio managers have identified a number of investment
opportunities in foreign companies. The Fund ended the period with approximately
19% of its portfolio invested in foreign companies. As a group the Fund's
investment in foreign companies out-performed the Dow Jones Wilshire 5000 Index.
Groupe Bruxelles was among the Fund's top contributors to performance, while
Hunter Douglas (already mentioned above) was among the Fund's top detractors
from performance.

                                       3
<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)

DAVIS GOVERNMENT BOND FUND

PERFORMANCE OVERVIEW

Davis Government Bond Fund's Class A shares delivered a total return on net
asset value of 0.68% for the six-month period ended June 30, 2005(2), compared
with a return of 0.94% for the Citigroup U.S. Treasury/Agency 1-3 Year Index(1).
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.

The Fund benefited by maintaining a slightly shorter weighted average maturity
over the six-month period. The Fund increased its returns by not owning U.S.
Treasury securities and increasing its holdings in agency securities. The Fund
also benefited from investments in mortgaged-backed securities that provided a
higher total return than did other forms of government securities.

Effective February 1, 2005, Davis Government Bond Fund modified its investment
strategy to maintain a weighted average maturity of three years or less.
Previously, the Fund sought to maintain a weighted average maturity of between
three and ten years. While no fund can provide a guarantee against losses, we
believe this change will better meet the needs of existing shareholders. The
Fund will continue to seek current income by investing exclusively in U.S.
Government securities and repurchase agreements collateralized by U.S.
Government Securities. Also, effective February 1, 2005, Davis Advisors
voluntarily reduced the management fee it charges the Fund from 0.50% to 0.30%
of average annual net assets.







                                       4
<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)

DAVIS FINANCIAL FUND

PERFORMANCE OVERVIEW

Davis Financial Fund's Class A shares declined by 3.15% on net asset value for
the six-month period ended June 30, 2005(2), compared with a decline of 0.81%
for the Standard & Poor's 500(R) Index(1). Financial sector companies as a group
under-performed the S&P 500(R) Index over the six-month period. The Fund's
insurance and diversified financial companies reflected this difficult market
for financial companies.

The Fund's largest holdings were in insurance companies. Over the six-month
period, the Fund's insurance companies detracted(3) from the Fund's performance.
While Progressive(4), Loews, and Everest Re Group were among the top
contributors to the Fund's performance, Transatlantic Holdings, American
International Group, Markel, Cincinnati Financial, Berkshire Hathaway, and FPIC
Insurance Group were all among the largest detractors from Fund performance.

The Fund's diversified financial holdings also under-performed the S&P 500(R)
Index. Julius Baer, Moody's, and Providian were among the top contributors to
performance. American Express and JPMorgan Chase were among the top detractors
from performance. The Fund no longer owns Julius Baer or Providian.

The Fund's bank holdings out-performed the S&P 500(R) Index. Golden West
Financial was among the top contributors to performance. Commerce Bancorp was
among the top detractors from the Fund's performance over the six-month period.

Among the Fund's non-financial holdings, H&R Block and Altria Group were among
the top contributors to performance, while Tyco International was among the top
detractors from performance over the six-month period.





                                       5
<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)

DAVIS APPRECIATION & INCOME FUND

PERFORMANCE OVERVIEW

Davis Appreciation & Income Fund's Class A shares delivered a total return on
net asset value of 2.21% for the six-month period ended June 30, 2005(2),
compared with a decline of 0.81% for the Standard & Poor's 500(R) Index(1).

The Fund's investment strategy is to attempt to use stocks, bonds, and
convertible securities to structure a portfolio which will participate in at
least 80% of the increase in the S&P 500(R) Index during market increases and
not decline by more than 50% of the decrease in the Index during market
declines. There can be no assurance that the Fund will actually perform in line
with our strategy because there can be no assurance that the securities the Fund
purchases will increase in value when the Index increases in value, or that they
will provide downside protection when the Index declines in value.

The Fund continues to hold the majority of its assets in convertible bonds, and
these securities contributed(3) the most to the Fund's strong performance over
the six-month period. Convertible bonds contributing to performance included
Lehman Brothers Holdings, which is convertible into Devon Energy, an energy
company; and Universal Health, a health care equipment and services company.
Convertible bonds detracting from performance included American Express, a
consumer finance company, and Masco, a capital goods company.

The Fund held a smaller portion of common stock, however, the Fund's common
stock holdings performed well in the declining market. Stock holdings
contributing(3) to performance included J.C. Penney(4), a department store
company; and two real estate companies, General Growth Properties, and SL Green
Realty. Stock holdings detracting from performance included two real estate
companies, Vornado Realty Trust, and Centerpoint Properties.

As of September 1, 2005, Keith Sabol, CFA joined Andrew Davis as co-portfolio
manager for Davis Appreciation & Income Fund.



                                       6
<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)

DAVIS REAL ESTATE FUND

PERFORMANCE OVERVIEW

Davis Real Estate Fund's Class A shares delivered a total return on net asset
value of 3.76% for the six-month period ended June 30, 2005(2), compared with a
return of 6.79% for the Dow Jones Wilshire Real Estate Securities Index(1). Real
Estate companies as a whole did well, as reflected by the fact that the Dow
Jones Wilshire Real Estate Securities Index out-performed the Standard & Poor's
500(R) Index by a significant margin.

The sector contributing(3) the most to the Fund's six-month performance was
office property REITs. The Fund had more invested in office property REITs than
in any other sector. The specific office property REITs that the Portfolio owned
did not perform as well as the office property REITs included in the Dow Jones
Wilshire Real Estate Securities Index, which reduced performance relative to the
Index. Kilroy Realty(4), SL Green Realty, and CarrAmerica Realty, were each
among the top contributors to the Fund's performance. Parkway Properties was
among the top detractors from performance. The Fund no longer owns Parkway
Properties.

The sector detracting the most from the Fund's six-month performance was
warehouse and industrial REITs. Catellus Development was among the top
contributors to performance. Centerpoint Properties and Prologis were both among
the top detractors from performance.

Regional mall REITs turned in a strong six-month performance. While this sector
represents a large portion of the Index, the Fund invested a smaller portion of
its assets in this sector. Among the Fund's regional mall REITs, General Growth
Properties and Simon Property Group were among the top contributors to the
Fund's performance and Mills Corp. was among the top detractors from the Fund's
performance.

Diversified REITs represented a significant proportion of the Fund's assets.
These companies turned in mixed performance, Capital Automotive and Vornado
Realty Trust were both among the top contributors to performance, while Duke
Realty and iStar Financial were both among the top detractors from performance.

Individual companies making important contributions to the Fund's six-month
performance included Forest City, a real estate operations and development
company; and Gramercy Capital, a mortgage REIT. Individual companies detracting
from the Fund's six-month performance included Plum Creek Timber, a forestry
REIT; and Starwood Hotels & Resorts, a hotels & lodging company. The Fund no
longer owns Plum Creek Timber or Starwood Hotels & Resorts.

-----------------------------------------------------------------------

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.


                                       7
<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)

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 under its charter 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
<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)

(1) The definitions of indices quoted in this report appear below. Investments
cannot be made directly in the indices.

I. The Standard & Poor's 500(R) 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.

II. The Dow Jones Wilshire 5000 Index measures the performance of all U.S.
headquartered equity securities with readily available price data. Over 5,000
capitalization weighted security returns are used to adjust the Index. The
Wilshire 5000 is a broad measure of the entire U.S. stock market.

III. The Citigroup U.S. Treasury/Agency 1-3 Year Index is a recognized unmanaged
index of short-term U.S. Government Securities' performance.

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.




                                       9
<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================
MANAGEMENT'S DISCUSSION AND ANALYSIS - (CONTINUED)

(2) Total 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 table lists
the average annual total returns for Class A shares for the periods ended June
30, 2005. Returns for other classes of shares will vary from the following
returns.

<TABLE>
<CAPTION>
(without a 4.75% sales charge taken into consideration)
---------------------------------------------------------------------------------------------------
FUND NAME                                1 YEAR      5 YEARS       10 YEARS          INCEPTION
---------------------------------------------------------------------------------------------------
<S>                                      <C>           <C>           <C>         <C>
Davis Opportunity*                       10.50%        5.92%         12.06%      14.47% - 12/01/94
---------------------------------------------------------------------------------------------------
Davis Government Bond                     2.07%        4.54%          4.33%       4.80% - 12/01/94
---------------------------------------------------------------------------------------------------
Davis Financial                           4.42%        6.13%         14.16%      16.20% - 05/01/91
---------------------------------------------------------------------------------------------------
Davis Appreciation & Income              12.26%        4.26%         10.41%      10.75% - 05/01/92
---------------------------------------------------------------------------------------------------
Davis Real Estate                        29.72%       18.84%         15.07%      14.11% - 01/03/94
---------------------------------------------------------------------------------------------------

<CAPTION>

(with a 4.75% sales charge taken into consideration)
---------------------------------------------------------------------------------------------------
FUND NAME                               1 YEAR       5 YEARS        10 YEARS         INCEPTION
---------------------------------------------------------------------------------------------------
<S>                                     <C>          <C>            <C>          <C>
Davis Opportunity*                        5.27%        4.90%         11.52%      13.94% - 12/01/94
---------------------------------------------------------------------------------------------------
Davis Government Bond                   (2.79)%        3.52%          3.82%       4.32% - 12/01/94
---------------------------------------------------------------------------------------------------
Davis Financial                         (0.55)%        5.10%         13.61%      15.80% - 05/01/91
---------------------------------------------------------------------------------------------------
Davis Appreciation & Income               6.93%        3.25%          9.87%      10.35% - 05/01/92
---------------------------------------------------------------------------------------------------
Davis Real Estate                        23.57%       17.69%         14.51%      13.63% - 01/03/94
---------------------------------------------------------------------------------------------------
</TABLE>

Fund performance changes over time and current performance may be higher or
lower than stated. For more current information please call Davis Funds
Shareholder 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.

(3) A company or sector's contribution to the Fund's performance is a product
both of its appreciation or depreciation and it's weighting within the Fund. For
example, a 5% holding that rises 20% has twice as much impact as a 1% holding
that rises 50%.

(4) This Management Discussion & 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
<PAGE>

DAVIS SERIES, INC.
FUND OVERVIEW
DAVIS OPPORTUNITY FUND
At June 30, 2005 (Unaudited)
================================================================================


                              [PIE CHART OMITTED]


PORTFOLIO MAKEUP (% OF FUND NET ASSETS)
---------------------------------------

Common Stock                                           90.8%
Short-Term Investments, Convertible Bonds,
   Other Assets & Liabilities                           9.2%



SECTOR WEIGHTINGS (% OF LONG TERM PORTFOLIO)
--------------------------------------------

Consumer Durables & Appareal                            6.1%
Media                                                   6.1%
Telecomunications                                       4.1%
Consumer Services                                       2.6%
Retaling                                               16.2%
Automobiles & Components                                3.3%
Banks                                                   5.0%
Diversified Financials                                  8.3%
Insurance                                               6.0%
Health Care                                             8.8%
Capital Goods                                           7.5%
Technology                                              9.5%
Materials                                               3.9%
Utilities                                               5.7%
Other                                                   6.9%

<TABLE>
<CAPTION>
                                                                           % OF FUND
TOP 10 HOLDINGS                      SECTOR                               NET ASSETS
------------------------------------------------------------------------------------
<S>                                  <C>                                       <C>
Groupe Bruxelles Lambert S.A.        Diversified Financial Services            4.39%
AutoNation, Inc.                     Automotive Retail                         4.15%
Lagardere S.C.A.                     Media                                     4.02%
Sears Holdings Corp.                 Apparel Retail                            3.15%
Molex Inc., Class A                  Technology Hardware & Equipment           3.03%
AutoZone, Inc.                       Automotive Retail                         3.03%
Calpine Corp.                        Utilities                                 2.96%
Cardinal Health, Inc.                Health Care Equipment & Services          2.68%
Reynolds & Reynolds Co., Class A     Software & Services                       2.58%
Robbins & Myers, Inc.                Capital Goods                             2.48%
</TABLE>


                                       11
<PAGE>

DAVIS SERIES, INC.
FUND OVERVIEW
DAVIS GOVERNMENT BOND FUND
At June 30, 2005 (Unaudited)
================================================================================


                              [PIE CHART OMITTED]


PORTFOLIO MAKEUP (% OF FUND NET ASSETS)
---------------------------------------

Fixed Income                                           95.4%
Short-Term Investments, Other Assets & Liabilities      4.6%



SECTOR WEIGHTINGS (% OF LONG TERM PORTFOLIO)
--------------------------------------------

Fannie Mae Mortgage Pools                              16.3%
Govermment Agency Notes                                61.8%
Freddie Mac Mortgage Pools                             21.9%

<TABLE>
<CAPTION>
                                                                                     % OF FUND
TOP 10 HOLDINGS                                      SECTOR                         NET ASSETS
----------------------------------------------------------------------------------------------
<S>                                                  <C>                                <C>
Fannie Mae, 6.00%, 09/01/17 Pool No. 665776          Fannie Mae Pools                   12.60%
Fannie Mae, 7.125%, 03/15/07                         Government Agency Notes             9.30%
Freddie Mac, 5.50%, 07/15/06                         Government Agency Notes             8.98%
Federal Farm Credit Bank, 3.15%, 01/18/06            Government Agency Notes             8.82%
Freddie Mac, 3.40%, 10/15/07                         Government Agency Notes             7.56%
Fannie Mae, 3.41%, 08/30/07                          Government Agency Notes             6.97%
Fannie Mae, 3.80%, 09/29/09                          Government Agency Notes             4.35%
Freddie Mac, 4.50%, 03/01/08 Pool No. M90803         Freddie Mac Pools                   3.74%
Fannie Mae, 6.00%, 05/15/08                          Government Agency Notes             3.73%
Freddie Mac, 5.00%, 05/01/10 Pool No. M90980         Freddie Mac Pools                   3.56%
</TABLE>


                                       12
<PAGE>

DAVIS SERIES, INC.
FUND OVERVIEW
DAVIS GOVERNMENT MONEY MARKET FUND
At June 30, 2005 (Unaudited)
================================================================================


                              [PIE CHART OMITTED]

PORTFOLIO MAKEUP (% OF FUND NET ASSETS)
---------------------------------------

Repurchase Agreements, Other Assets & Liabilitiess              53.3%
Federal Farm Credit Bank                                         0.3%
Federal Home Loan Bank                                          21.6%
FREDDIE MAC                                                      7.6%
FANNIE MAE                                                      17.2%

MATURITY DIVERSIFICATION* (% OF PORTFOLIO'S HOLDINGS)
-----------------------------------------------------

0-30 Days                                                       72.6%
31-90 Days                                                      12.9%
91-180 Days                                                     10.7%
181-364 Days                                                     3.8%


*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
<PAGE>

DAVIS SERIES, INC.
FUND OVERVIEW
DAVIS FINANCIAL FUND
At June 30, 2005 (Unaudited)
================================================================================

                              [PIE CHART OMITTED]

PORTFOLIO MAKEUP (% OF FUND NET ASSETS)
---------------------------------------

Common Stocks                                           99.6%
Short-Term Investments, Other Assets & Liabilities       0.4%


SECTOR WEIGHTINGS (% OF STOCK HOLDINGS)
---------------------------------------

Commercial Services & Supplies                           6.3%
Consumer Services                                        2.7%
Diversified Financials                                  24.7%
Food, Beverage, and Tobacco                              3.0%
Insurance                                               40.8%
Capital Goods                                            8.2%
Materials                                                2.6%
Banks                                                   11.7%


<TABLE>
<CAPTION>
                                                                                       % OF FUND
TOP 10 HOLDINGS                                SECTOR                                 NET ASSETS
------------------------------------------------------------------------------------------------
<S>                                            <C>                                      <C>
American Express Co.                           Consumer Finance                         11.90%
Transatlantic Holdings, Inc.                   Reinsurance                               9.14%
Tyco International Ltd.                        Capital Goods                             8.21%
Golden West Financial Corp.                    Thrifts & Mortgage Finance                7.44%
D&B Corp.                                      Commercial Services & Supplies            6.25%
Berkshire Hathaway Inc., Class A               Property & Casualty Insurance             5.72%
American International Group, Inc.             Multi-Line Insurance                      5.51%
Citigroup Inc.                                 Diversified Financial Services            4.98%
Cincinnati Financial Corp.                     Property & Casualty Insurance             4.62%
Moody's Corp.                                  Diversified Financial Services            4.50%
</TABLE>


                                       14
<PAGE>

DAVIS SERIES, INC.
FUND OVERVIEW
DAVIS APPRECIATION & INCOME FUND
At June 30, 2005 (Unaudited)
================================================================================


                              [PIE CHART OMITTED]


PORTFOLIO MAKEUP (% OF FUND NET ASSETS)
---------------------------------------

Convertible Bonds                                       44.7%
Corporate Bonds                                          1.0%
Convertible Preferred Stocks                             7.3%
Short Term Investments, Other Assets & Liabilities      22.1%
Common Stock                                            24.9%


SECTOR WEIGHTINGS (% OF LONG TERM PORTFOLIO)
--------------------------------------------

Insurance                                                6.1%
Utilities                                                3.0%
Commercial Services & Supplies                          11.9%
Consumer Services                                        3.9%
Real Estate                                             20.7%
Media                                                    2.8%
Diversified Financials                                   8.9%
Energy                                                   7.0%
Retailing                                                5.1%
Health Care                                              4.8%
Materials                                                3.3%
Technology                                               5.6%
Capital Goods                                            9.6%
Other                                                    7.3%

<TABLE>
<CAPTION>
                                                                                                     % OF FUND
TOP 10 HOLDINGS                                                   SECTOR                            NET ASSETS
--------------------------------------------------------------------------------------------------------------
<S>                                                              <C>                                   <C>
Lehman Brothers Holdings Inc., Conv. Notes,
     (Convertible into Devon Energy Corp.) 0.25%, 08/23/11        Energy                               4.72%
SL Green Realty Corp.                                             Real Estate                          4.56%
American International Group, Inc., Conv. Sr. Notes, 0.50%,
     05/15/07                                                     Multi-Line Insurance                 3.50%
American Express Co., Ser. 144A Conv. Sr. Notes,
     1.85%/Zero Cpn., 12/01/33                                    Consumer Finance                     3.26%
GTECH Holdings Corp., Conv. Deb., 1.75%, 12/15/21                 Consumer Services                    3.00%
General Growth Properties, Inc.                                   Real Estate                          2.91%
Waste Connections, Inc. Conv. Sub. Notes, 3.71%, 05/01/22         Commercial Services & Supplies       2.87%
Vornado Realty L.P., Conv. Sr. Deb., 3.875%, 04/15/25             Real Estate                          2.68%
Universal Health Services, Inc., Conv. Deb., 0.426%, 06/23/20     Health Care Equipment & Services     2.64%
NCO Group Inc., Conv. Sub. Notes, 4.75%, 04/15/06                 Commercial Services & Supplies       2.63%
</TABLE>

                                       15
<PAGE>

DAVIS SERIES, INC.
FUND OVERVIEW
DAVIS REAL ESTATE FUND
At June 30, 2005 (Unaudited)
================================================================================

                              [PIE CHART OMITTED]


PORTFOLIO MAKEUP (% OF FUND NET ASSETS)
---------------------------------------

Common Stocks                                                           95.3%
Short Term Investments, Preferred Stock, Other Assets & Liabilities      4.7%


SECTOR WEIGHTINGS (% OF STOCK HOLDINGS)
---------------------------------------

Apartment REITS                                                 11.1%
Diversified REITS                                               14.9%
Residential/Commercial Building                                  1.0%
Office Property REITS                                           25.8%
Shopping Centers REITS                                          13.1%
Mortgage REITS                                                   1.6%
Warehouse & Industrial REITS                                    13.4%
Regional Mall REITS                                              8.7%
Real Estate Operations/Development                               8.4%
Health Care REITS                                                2.0%


<TABLE>
<CAPTION>
                                                                                                  % OF FUND
TOP 10 HOLDINGS                                      SECTOR                                      NET ASSETS
-----------------------------------------------------------------------------------------------------------
<S>                                                  <C>                                            <C>
Centerpoint Properties Trust                         Warehouse & Industrial REITS                   6.52%
SL Green Realty Corp.                                Office Property REITS                          4.26%
Forest City Enterprises, Inc., Class A               Real Estate Operations/Development             4.03%
Vornado Realty Trust                                 Diversified REITS                              3.72%
ProLogis                                             Warehouse & Industrial REITS                   3.71%
General Growth Properties, Inc.                      Regional Mall REITS                            3.66%
Capital Automotive REIT                              Diversified REITS                              3.64%
Developers Diversified Realty Corp.                  Shopping Center REITS                          3.56%
Alexandria Real Estate Equities, Inc.                Office Property REITS                          3.45%
Cousins Properties, Inc.                             Diversified REITS                              3.22%
</TABLE>

                                       16
<PAGE>

DAVIS SERIES, INC.
EXPENSE EXAMPLE (Unaudited)
================================================================================

<TABLE>
<CAPTION>

                                                 BEGINNING             ENDING               EXPENSES PAID
                                               ACCOUNT VALUE        ACCOUNT VALUE          DURING PERIOD*
                                                (01/01/05)           (06/30/05)          (01/01/05-06/30/05)
                                                ----------           ----------          -------------------
<S>                                              <C>                  <C>                       <C>
DAVIS OPPORTUNITY FUND
  CLASS A (annualized expense ratio 1.16%)
      Actual..................................   $1,000.00            $1,015.94                 $5.80
      Hypothetical............................   $1,000.00            $1,019.04                 $5.81
  CLASS B (annualized expense ratio 1.94%)
      Actual..................................   $1,000.00            $1,011.68                 $9.68
      Hypothetical............................   $1,000.00            $1,015.17                 $9.69
  CLASS C (annualized expense ratio 1.93%)
      Actual..................................   $1,000.00            $1,012.13                 $9.63
      Hypothetical............................   $1,000.00            $1,015.22                 $9.64
  CLASS Y (annualized expense ratio 0.83%)
      Actual..................................   $1,000.00            $1,017.64                 $4.15
      Hypothetical............................   $1,000.00            $1,020.68                 $4.16

DAVIS GOVERNMENT BOND FUND
  CLASS A (annualized expense ratio 1.14%)
      Actual..................................   $1,000.00            $1,006.85                 $5.67
      Hypothetical............................   $1,000.00            $1,019.14                 $5.71
  CLASS B (annualized expense ratio 1.77%)
      Actual..................................   $1,000.00            $1,001.85                 $8.79
      Hypothetical............................   $1,000.00            $1,016.02                 $8.85
  CLASS C (annualized expense ratio 1.82%)
      Actual..................................   $1,000.00            $1,001.61                 $9.03
      Hypothetical............................   $1,000.00            $1,015.77                 $9.10
  CLASS Y (annualized expense ratio 0.91%)
      Actual..................................   $1,000.00            $1,006.29                 $4.53
      Hypothetical............................   $1,000.00            $1,020.28                 $4.56

DAVIS GOVERNMENT MONEY MARKET FUND
  CLASS A, B, & C (annualized expense ratio 0.56%)
      Actual..................................   $1,000.00            $1,010.55                 $2.79
      Hypothetical............................   $1,000.00            $1,022.02                 $2.81

DAVIS FINANCIAL FUND
  CLASS A (annualized expense ratio 1.00%)
      Actual..................................   $1,000.00            $ 968.53                  $4.88
      Hypothetical............................   $1,000.00            $1,019.84                 $5.01
  CLASS B (annualized expense ratio 1.88%)
      Actual..................................   $1,000.00            $ 964.24                  $9.16
      Hypothetical............................   $1,000.00            $1,015.47                 $9.39
  CLASS C (annualized expense ratio 1.88%)
      Actual..................................   $1,000.00            $ 964.26                  $9.16
      Hypothetical............................   $1,000.00            $1,015.47                 $9.39
  CLASS Y (annualized expense ratio 0.85%)
      Actual..................................   $1,000.00            $ 969.21                  $4.15
      Hypothetical............................   $1,000.00            $1,020.58                 $4.26
</TABLE>


                                       17
<PAGE>

DAVIS SERIES, INC.
EXPENSE EXAMPLE (Unaudited) - (Continued)
================================================================================

<TABLE>
<CAPTION>
                                                 BEGINNING             ENDING               EXPENSES PAID
                                               ACCOUNT VALUE        ACCOUNT VALUE          DURING PERIOD*
                                                (01/01/05)           (06/30/05)          (01/01/05-06/30/05)
                                                ----------           ----------          -------------------
<S>                                              <C>                  <C>                       <C>
DAVIS APPRECIATION & INCOME FUND
  CLASS A (annualized expense ratio 1.07%)
      Actual..................................   $1,000.00            $1,022.12                 $5.36
      Hypothetical............................   $1,000.00            $1,019.49                 $5.36
  CLASS B (annualized expense ratio 1.95%)
      Actual..................................   $1,000.00            $1,017.23                 $9.75
      Hypothetical............................   $1,000.00            $1,015.12                 $9.74
  CLASS C (annualized expense ratio 1.95%)
      Actual..................................   $1,000.00            $1,017.49                 $9.75
      Hypothetical............................   $1,000.00            $1,015.12                 $9.74
  CLASS Y (annualized expense ratio 0.83%)
      Actual..................................   $1,000.00            $1,022.96                 $4.16
      Hypothetical............................   $1,000.00            $1,020.68                 $4.16

DAVIS REAL ESTATE FUND
  CLASS A (annualized expense ratio 1.11%)
      Actual..................................   $1,000.00            $1,037.61                 $5.61
      Hypothetical............................   $1,000.00            $1,019.29                 $5.56
  CLASS B (annualized expense ratio 1.90%)
      Actual..................................   $1,000.00            $1,033.81                 $9.58
      Hypothetical............................   $1,000.00            $1,015.37                 $9.49
  CLASS C (annualized expense ratio 1.89%)
      Actual..................................   $1,000.00            $1,034.14                 $9.53
      Hypothetical............................   $1,000.00            $1,015.42                 $9.44
  CLASS Y (annualized expense ratio 0.77%)
      Actual..................................   $1,000.00            $1,039.82                 $3.89
      Hypothetical............................   $1,000.00            $1,020.98                 $3.86
</TABLE>


Hypothetical assumes 5% annual return before expenses.

*Expenses are equal to the Class's annualized expense ratio, multiplied by the
average account value over the period, multiplied by 181/365 (to reflect the
one-half year period). See page 19 for a description of the "Expense Example".

                                       18
<PAGE>

DAVIS SERIES, INC.
EXPENSE EXAMPLE (Unaudited) - (Continued)
================================================================================

THE FOLLOWING DISCLOSURE PROVIDES IMPORTANT INFORMATION REGARDING THE FUNDS'
EXPENSE EXAMPLE. PLEASE REFER TO THIS INFORMATION WHEN REVIEWING THE EXPENSE
EXAMPLE FOR EACH CLASS.

EXAMPLE

As a shareholder of the Funds, you incur two types of costs: (1) transaction
costs, including sales charges (loads) on purchases; 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 01/01/05 to 06/30/05. Please note that the Expense Example is
general and does not reflect certain transaction or account specific costs,
which may increase your total costs of investing in the Funds. If these
transaction or account specific costs were included in the Expense Example, the
expenses would have been higher.

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 for on your account during this period.

HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES

The information represented in the row entitled "Hypothetical" provides
information about hypothetical account values and hypothetical expenses based on
the Funds' actual expense ratio and an assumed rate of return of 5% per year
before expenses, which is not the Funds' 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 Funds 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.

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 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
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS OPPORTUNITY FUND

<TABLE>
<CAPTION>
                                                                                                        VALUE
SHARES                                           SECURITY                                             (NOTE 1)
==============================================================================================================
<S>             <C>                                                                            <C>
COMMON STOCK - (90.80%)

   APPAREL RETAIL - (3.15%)
       128,300  Sears Holdings Corp.*..........................................................  $  19,194,321
                                                                                                 -------------
   AUTOMOBILES & COMPONENTS - (3.03%)
       246,300  Autoliv, Inc. .................................................................     10,787,940
       211,000  Lear Corp. ....................................................................      7,676,180
                                                                                                 -------------
                                                                                                    18,464,120
                                                                                                 -------------
   AUTOMOTIVE RETAIL - (8.47%)
       122,000  Advance Auto Parts, Inc.*......................................................      7,875,100
     1,230,000  AutoNation, Inc.*..............................................................     25,239,600
       199,300  AutoZone, Inc.*................................................................     18,427,278
                                                                                                 -------------
                                                                                                    51,541,978
                                                                                                 -------------
   CAPITAL GOODS - (6.83%)
       462,000  Hughes Supply, Inc. ...........................................................     12,982,200
       702,500  Robbins & Myers, Inc. .........................................................     15,110,775
        16,910  Tae Young Corp. ...............................................................        564,756
       442,500  Tyco International Ltd. .......................................................     12,921,000
                                                                                                 -------------
                                                                                                    41,578,731
                                                                                                 -------------
   CAPITAL MARKETS - (2.37%)
       947,500  E*TRADE Financial Corp.* ......................................................     13,255,525
        19,250  Julius Baer Holding, Ltd. AG...................................................      1,177,682
                                                                                                 -------------
                                                                                                    14,433,207
                                                                                                 -------------
   COMMERCIAL BANKS - (2.08%)
       418,000  Commerce Bancorp, Inc. ........................................................     12,669,580
                                                                                                 -------------
   COMMERCIAL SERVICES & SUPPLIES - (1.53%)
        47,500  D&B Corp.*.....................................................................      2,928,375
     2,230,000  Rentokil Initial PLC...........................................................      6,382,799
                                                                                                 -------------
                                                                                                     9,311,174
                                                                                                 -------------
   CONSUMER DURABLES & APPAREL - (5.57%)
       293,100  Garmin Ltd. ...................................................................     12,535,887
       283,030  Hunter Douglas NV..............................................................     14,155,884
        87,100  Mohawk Industries, Inc.*.......................................................      7,185,750
                                                                                                 -------------
                                                                                                    33,877,521
                                                                                                 -------------
   CONSUMER FINANCE - (0.29%)
       100,000  Providian Financial Corp.*.....................................................      1,763,000
                                                                                                 -------------
   CONSUMER SERVICES - (2.35%)
     1,069,000  ServiceMaster Co. .............................................................     14,324,600
                                                                                                 -------------
   DIVERSIFIED FINANCIAL SERVICES - (4.92%)
       308,600  Groupe Bruxelles Lambert S.A. .................................................     26,739,179
        35,070  Nong Shim Holdings Co., Ltd. ..................................................      3,183,251
                                                                                                 -------------
                                                                                                    29,922,430
                                                                                                 -------------
    ENERGY - (1.70%)
       191,500  Transocean Inc.*...............................................................     10,335,255
                                                                                                 -------------
</TABLE>


                                       20
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS OPPORTUNITY FUND - (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                        VALUE
SHARES                                           SECURITY                                             (NOTE 1)
==============================================================================================================
<S>             <C>                                                                             <C>
COMMON STOCK - (CONTINUED)

   FOOD & STAPLES RETAILING - (0.63%)
        85,000  Costco Wholesale Corp. ........................................................  $   3,802,475
                                                                                                 -------------
   FOOD, BEVERAGE, & TOBACCO - (1.80%)
       127,125  Heineken Holding NV............................................................      3,553,711
         4,400  Lotte Chilsung Beverage Co., Ltd. .............................................      3,810,923
         5,160  Lotte Confectionery Co., Ltd. .................................................      3,591,300
                                                                                                 -------------
                                                                                                    10,955,934
                                                                                                 -------------
    GENERAL MERCHANDISE STORES - (1.38%)
       660,500  99 Cents Only Stores*..........................................................      8,394,955
                                                                                                 -------------
   HEALTH CARE EQUIPMENT & SERVICES - (8.05%)
        90,500  AmerisourceBergen Corp. .......................................................      6,258,075
       283,000  Cardinal Health, Inc. .........................................................     16,295,140
       109,400  Fisher Scientific International, Inc.*.........................................      7,100,060
       183,600  IDEXX Laboratories, Inc.* .....................................................     11,459,394
       193,000  Lincare Holdings Inc.*.........................................................      7,875,365
                                                                                                 -------------
                                                                                                    48,988,034
                                                                                                 -------------
   HOUSEHOLD & PERSONAL PRODUCTS - (0.65%)
        14,900  Amorepacific Corp. ............................................................      3,946,448
                                                                                                 -------------
   INSURANCE BROKERS - (2.07%)
        33,000  Brown & Brown, Inc. ...........................................................      1,483,020
       401,500  Marsh & McLennan Cos, Inc. ....................................................     11,121,550
                                                                                                 -------------
                                                                                                    12,604,570
                                                                                                 -------------
   LIFE & HEALTH INSURANCE - (0.59%)
        83,000  AFLAC Inc. ....................................................................      3,592,240
                                                                                                 -------------
   MATERIALS - (3.61%)
       324,600  Huntsman Corp.*................................................................      6,579,642
       100,000  Sealed Air Corp.*..............................................................      4,979,000
       186,000  Sigma-Aldrich Corp. ...........................................................     10,418,790
                                                                                                 -------------
                                                                                                    21,977,432
                                                                                                 -------------
   MEDIA - (5.64%)
       330,000  Lagardere S.C.A. ..............................................................     24,460,152
       955,000  WPP Group PLC..................................................................      9,830,120
                                                                                                 -------------
                                                                                                    34,290,272
                                                                                                 -------------
   PROPERTY & CASUALTY INSURANCE - (0.98%)
        66,150  Cincinnati Financial Corp. ....................................................      2,617,886
        50,000  FPIC Insurance Group, Inc.*....................................................      1,461,500
         5,600  Markel Corp.*..................................................................      1,898,400
                                                                                                 -------------
                                                                                                     5,977,786
                                                                                                 -------------
</TABLE>


                                       21
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS OPPORTUNITY FUND - (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                        VALUE
SHARES/PRINCIPAL                                 SECURITY                                             (NOTE 1)
==============================================================================================================
<S>             <C>                                                                             <C>
COMMON STOCK - (CONTINUED)

   REINSURANCE - (1.89%)
        42,000  Everest Re Group, Ltd. ........................................................  $   3,906,000
       135,625  Transatlantic Holdings, Inc. ..................................................      7,570,588
                                                                                                 -------------
                                                                                                    11,476,588
                                                                                                 -------------
   SOFTWARE & SERVICES - (3.73%)
       224,700  Iron Mountain Inc.*............................................................      6,970,194
       581,000  Reynolds & Reynolds Co., Class A...............................................     15,704,430
                                                                                                 -------------
                                                                                                    22,674,624
                                                                                                 -------------
   SPECIALTY STORES - (1.86%)
       495,000  Office Depot, Inc.*............................................................     11,305,800
                                                                                                 -------------
   TECHNOLOGY HARDWARE & EQUIPMENT- (4.94%)
       401,900  Agilent Technologies, Inc.*....................................................      9,251,738
        37,000  Lexmark International, Inc., Class A*..........................................      2,398,710
       786,300  Molex Inc., Class A............................................................     18,434,804
                                                                                                 -------------
                                                                                                    30,085,252
                                                                                                 -------------
   TELECOMMUNICATION SERVICES - (2.94%)
     3,144,600  Covad Communications Group, Inc.*..............................................      4,386,717
       343,300  SK Telecom Co., Ltd., ADR......................................................      7,003,320
       285,000  Telewest Global, Inc.*.........................................................      6,488,025
                                                                                                 -------------
                                                                                                    17,878,062
                                                                                                 -------------
   THRIFTS & MORTGAGE FINANCE - (2.48%)
       234,000  Golden West Financial Corp. ...................................................     15,064,920
                                                                                                 -------------
   UTILITIES - (5.27%)
     5,305,000  Calpine Corp.*.................................................................     18,037,000
       340,000  Sempra Energy..................................................................     14,045,400
                                                                                                 -------------
                                                                                                    32,082,400
                                                                                                 -------------

                           Total Common Stock - (identified cost $445,681,133).................    552,513,709
                                                                                                 -------------

CONVERTIBLE BONDS - (0.82%)

   TELECOMMUNICATION SERVICES - (0.82%)
$    5,600,000  Level 3 Communications, Inc., Conv. Sr. Notes, 10.00%, 05/01/11 (c)
                     (identified cost $5,600,000)..............................................      4,990,160
                                                                                                 -------------
</TABLE>

                                       22
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS OPPORTUNITY FUND  - (CONTINUED)

<TABLE>
<CAPTION>

                                                                                                        VALUE
PRINCIPAL                                        SECURITY                                             (NOTE 1)
==============================================================================================================
<S>             <C>                                                                             <C>
SHORT TERM INVESTMENTS - (8.16%)

   FANNIE MAE - (0.39%)
$    2,360,000  2.96%, 07/06/05 - (identified cost $2,359,030) - (b)........................... $    2,359,030
                                                                                                --------------

   REPURCHASE AGREEMENTS - (7.77%)
    15,582,000  Goldman, Sachs & Co. Joint Repurchase Agreement, 3.43%,
                  07/01/05, dated 06/30/05, repurchase value of $15,583,485
                  (collateralized by: U.S. Government agency obligations in a pooled
                  cash account, total market value $15,893,640)................................     15,582,000
    16,688,000  Nomura Securities International, Inc. Joint Repurchase Agreement, 3.44%,
                  07/01/05, dated 06/30/05, repurchase value of $16,689,595
                  (collateralized by: U.S. Government agency obligations in a pooled
                  cash account, total market value $17,021,760)................................     16,688,000
    15,019,000  UBS Financial Services Inc. Joint Repurchase Agreement, 3.43%,
                  07/01/05, dated 06/30/05, repurchase value of $15,020,431
                  (collateralized by: U.S. Government agency obligations in a pooled
                  cash account, total market value $15,319,380)................................     15,019,000
                                                                                                --------------

                           Total Repurchase Agreements - (identified cost $47,289,000).........     47,289,000
                                                                                                --------------

                                Total Short Term Investments - (identified cost $49,648,030)...     49,648,030
                                                                                                --------------

                Total Investments - (99.78%) - (identified cost $500,929,163) - (a)............    607,151,899
                Other Assets Less Liabilities - (0.22%)........................................      1,318,554
                                                                                                --------------
                           Net Assets - (100.00%).............................................. $  608,470,453
                                                                                                ==============

*Non-Income Producing Security.

(a) Aggregate cost for Federal Income Tax purposes is $502,784,300. At June 30,
2005 unrealized appreciation (depreciation) of securities for Federal Income Tax
purposes is as follows:
                Unrealized appreciation........................................................ $  120,223,608
                Unrealized depreciation.......................................................     (15,856,009)
                                                                                                --------------
                           Net unrealized appreciation......................................... $  104,367,599
                                                                                                ==============
</TABLE>

(b) A sufficient amount of liquid assets has been designated to cover
outstanding written put options, as follows (see Note 8 of the Notes to
Financial Statements):

<TABLE>
<CAPTION>
Contracts                                                                                         Premium
Subject to Put   Puts                    Expiration Date       Exercise Price    Value            Received
--------------------------------------------------------------------------------------------------------------
<S>             <C>                      <C>                   <C>               <C>              <C>
(235)            Sears Holdings Corp.    01/20/07              $100.00           $ (173,900)      $  (476,158)
</TABLE>

(c) Illiquid security - See Note 9 of the Notes to Financial Statements.

SEE NOTES TO FINANCIAL STATEMENTS


                                       23
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS GOVERNMENT BOND FUND

<TABLE>
<CAPTION>

                                                                                                        VALUE
PRINCIPAL                                        SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                            <C>
MORTGAGES - (36.42%)

   FANNIE MAE POOLS - (15.55%)
$    1,654,563    5.00%, 08/01/11 Pool No. 357609..............................................  $   1,674,120
     6,903,982    6.00%, 09/01/17 Pool No. 665776..............................................      7,141,203
                                                                                                 -------------

                           Total FANNIE MAE - (identified cost $8,927,215).....................      8,815,323
                                                                                                 -------------

   FREDDIE MAC POOLS - (20.87%)
       263,214    5.50%, 10/01/06 Pool No. M90680..............................................        265,725
     2,099,642    4.50%, 03/01/08 Pool No. M90803..............................................      2,119,001
     1,893,217    3.50%, 08/01/08 Pool No. M90830..............................................      1,875,364
     1,992,570    3.00%, 04/01/10 Pool No. M90982..............................................      1,927,712
     1,997,172    5.00%, 05/01/10 Pool No. M90980..............................................      2,020,159
       996,996    3.50%, 04/01/12 Pool No. M80974..............................................        970,775
     1,247,550    6.50%, 01/01/15 Pool No. G11063..............................................      1,297,827
     1,304,021    6.00%, 10/01/16 Pool No. E01054..............................................      1,348,579
                                                                                                 -------------

                           Total FREDDIE MAC - (identified cost $11,856,419)...................     11,825,142
                                                                                                 -------------

                           Total Mortgages - (identified cost $20,783,634).....................     20,640,465
                                                                                                 -------------

GOVERNMENT AGENCY NOTES - (59.00%)
       500,000    Fannie Mae, 3.297%, 10/07/05 (b).............................................        500,000
     5,000,000    Fannie Mae, 7.125%, 03/15/07.................................................      5,270,150
     4,000,000    Fannie Mae, 3.41%, 08/30/07..................................................      3,952,640
     2,000,000    Fannie Mae, 6.00%, 05/15/08..................................................      2,113,640
     2,500,000    Fannie Mae, 3.80%, 09/29/09..................................................      2,467,300
     5,000,000    Federal Farm Credit Bank, 3.15%, 01/18/06 (b)................................      5,001,100
     1,000,000    Federal Home Loan Bank, 2.60%, 09/26/06......................................        985,140
     1,000,000    Federal Home Loan Bank, 4.00%, 06/13/08......................................      1,002,730
       300,000    Federal Home Loan Bank, 5.37%, 07/12/11......................................        300,000
     5,000,000    Freddie Mac, 5.50%, 07/15/06.................................................      5,086,850
     1,500,000    Freddie Mac, 3.00%, 09/29/06.................................................      1,484,775
     1,000,000    Freddie Mac, 3.00%, 11/17/06.................................................        989,630
     4,340,000    Freddie Mac, 3.40%, 10/15/07.................................................      4,283,884
                                                                                                 -------------

                           Total Government Agency Notes - (identified cost $33,706,597).......     33,437,839
                                                                                                 -------------
</TABLE>


                                       24
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS GOVERNMENT BOND FUND - (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                        VALUE
PRINCIPAL                                        SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                           <C>
SHORT TERM INVESTMENTS - (4.09%)

   $   764,000    Goldman, Sachs & Co.,  Joint Repurchase Agreement, 3.43%,
                    07/01/05, dated 06/30/05, repurchase value of $764,073
                    (collateralized by: U.S. Government agency obligations in a pooled
                    cash account, total market value $779,280)................................. $      764,000
       818,000    Nomura Securities International, Inc. Joint Repurchase Agreement, 3.44%,
                    07/01/05, dated 06/30/05, repurchase value of $818,078
                    (collateralized by: U.S. Government agency obligations in a pooled
                    cash account, total market value $834,360).................................        818,000
       736,000    UBS Financial Services Inc. Joint Repurchase Agreement, 3.43%,
                    07/01/05, dated 06/30/05, repurchase value of $736,070
                    (collateralized by: U.S. Government agency obligations in a pooled
                    cash account, total market value $750,720).................................        736,000
                                                                                                --------------

                           Total Short Term Investments - (identified cost $2,318,000).........      2,318,000
                                                                                                --------------


                  Total Investments - (99.51%) - (identified cost $56,808,231) - (a)...........     56,396,304
                  Other Assets Less Liabilities - (0.49%)......................................        279,855
                                                                                                --------------
                           Net Assets - (100.00%).............................................. $   56,676,159
                                                                                                ==============


(a) Aggregate cost for Federal Income Tax purposes is $56,808,231. At June 30,
2005 unrealized appreciation (depreciation) of securities for Federal Income Tax
purposes is as follows:

                  Unrealized appreciation...................................................... $       24,049
                  Unrealized depreciation......................................................       (435,976)
                                                                                                --------------
                           Net unrealized depreciation......................................... $     (411,927)
                                                                                                ==============
</TABLE>

(b) The interest rates on floating rate securities, shown as of June 30, 2005,
may change daily or less frequently and are based on indices of market interests
rates.

SEE NOTES TO FINANCIAL STATEMENTS

                                       25
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS GOVERNMENT MONEY MARKET FUND

<TABLE>
<CAPTION>

                                                                                                        VALUE
PRINCIPAL                                        SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                            <C>
FANNIE MAE - (17.23%)
$   12,000,000    3.005%, 07/06/05 (b).........................................................  $  11,999,912
     3,500,000    1.60%, 07/08/05..............................................................      3,499,188
     2,398,000    7.00%, 07/15/05..............................................................      2,401,645
    22,000,000    3.21%, 07/26/05 (b)..........................................................     21,999,696
     3,000,000    6.55%, 09/12/05..............................................................      3,019,931
     7,000,000    1.875%, 09/15/05.............................................................      6,982,221
     5,000,000    2.99%, 10/03/05 (b)..........................................................      4,998,956
     6,000,000    3.297%, 10/07/05 (b).........................................................      6,000,321
     2,500,000    2.25%, 10/28/05..............................................................      2,499,146
     4,000,000    2.17%, 11/25/05..............................................................      3,980,884
     2,000,000    2.25%, 12/09/05..............................................................      1,990,892
    11,000,000    6.00%, 12/15/05..............................................................     11,122,253
     6,000,000    2.35%, 04/29/06..............................................................      5,940,549
    10,000,000    3.22%, 05/09/06 (b)..........................................................      9,998,304
                                                                                                 -------------

                      Total FANNIE MAE - (identified cost $96,433,898).........................     96,433,898
                                                                                                 -------------


FEDERAL FARM CREDIT BANK - (0.26%)
       500,000    2.25%, 01/30/06..............................................................        496,063
     1,000,000    2.88%, 06/29/06..............................................................        991,427
                                                                                                 -------------

                      Total FEDERAL FARM CREDIT BANK - (identified cost $1,487,490)............      1,487,490
                                                                                                 -------------


FEDERAL HOME LOAN BANK - (21.57%)
    20,000,000    3.224%, 07/26/05 (b).........................................................     19,999,724
    20,000,000    3.045%, 08/02/05 (b).........................................................     19,999,687
     2,925,000    1.64%, 08/12/05..............................................................      2,919,302
    13,000,000    3.25%, 08/15/05..............................................................     13,000,644
     8,500,000    1.50%, 08/19/05..............................................................      8,482,190
     5,000,000    3.17375%, 08/26/05 (b).......................................................      4,999,300
    22,000,000    3.13625%, 09/16/05 (b).......................................................     21,998,231
     8,000,000    2.125%, 11/15/05.............................................................      7,963,428
     4,500,000    4.375%, 11/15/05.............................................................      4,516,103
     1,600,000    6.49%, 11/18/05 (b)..........................................................      1,617,609
       500,000    1.875%, 12/09/05.............................................................        496,279
     3,000,000    1.75%, 01/12/06..............................................................      2,972,613
     1,000,000    1.75%, 01/12/06..............................................................        990,847
     8,000,000    3.25%, 04/25/06 (c)..........................................................      8,000,000
     1,500,000    2.02%, 04/28/06..............................................................      1,479,075
     1,270,000    3.25%, 06/22/06 (c)..........................................................      1,270,000
                                                                                                 -------------

                      Total Federal Home Loan Bank - (identified cost $120,705,032)............    120,705,032
                                                                                                 -------------
</TABLE>

                                       26
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS GOVERNMENT MONEY MARKET FUND - (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                        VALUE
PRINCIPAL                                        SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                            <C>
FREDDIE MAC - (7.64%)
$   23,000,000    7.00%, 07/15/05..............................................................  $  23,034,998
     2,765,000    2.01%, 10/06/05..............................................................      2,756,147
     5,500,000    2.125%, 11/15/05.............................................................      5,476,154
     3,021,000    2.30%, 11/17/05..............................................................      3,008,626
     1,000,000    2.25%, 11/28/05..............................................................        995,357
     3,165,000    5.95%, 01/19/06..............................................................      3,204,601
     4,200,000    6.28%, 03/06/06..............................................................      4,280,070
                                                                                                 -------------

                      Total FREDDIE MAC - (identified cost $42,755,953)........................     42,755,953
                                                                                                 -------------


REPURCHASE AGREEMENTS - (49.23%)
    90,781,000    Goldman, Sachs & Co. Inc. Joint Repurchase Agreement, 3.43%,
                    07/01/05, dated 06/30/05, repurchase value of $90,789,649
                    (collateralized by: U.S. Government agency obligations in a pooled
                   cash account, total market value $92,596,620)...............................     90,781,000
    97,221,000    Nomura Securities International, Inc. Joint Repurchase Agreement, 3.44%,
                    07/01/05, dated 06/30/05, repurchase value of $97,230,290
                    (collateralized by: U.S. Government agency obligations in a pooled
                    cash account, total market value $99,165,420)..............................     97,221,000
    87,499,000    UBS Financial Services Inc. Joint Repurchase Agreement, 3.43%,
                    07/01/05, dated 06/30/05, repurchase value of $87,507,337
                    (collateralized by: U.S. Government agency obligations in a pooled
                   cash account, total market value $89,248,980)...............................     87,499,000
                                                                                                --------------

                      Total Repurchase Agreements - (identified cost $275,501,000).............    275,501,000
                                                                                                --------------

                  Total Investments - (95.93%) - (identified cost $536,883,373) - (a)..........    536,883,373
                  Other Assets Less Liabilities - (4.07%)......................................     22,774,245
                                                                                                --------------
                      Net Assets - (100.00%)................................................... $ 559,657,618
                                                                                                ==============
</TABLE>

(a)  Aggregate cost for Federal Income Tax Purposes is $536,883,373.

(b)  The interest rates on floating rate securities, shown as of June 30, 2005,
     may change daily or less frequently and are based on indices of market
     interests 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.

(c)  Represents a step-up bond: a bond that pays one coupon rate for an initial
     period followed by a higher coupon rate.

SEE NOTES TO FINANCIAL STATEMENTS

                                       27
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS FINANCIAL FUND

<TABLE>
<CAPTION>

                                                                                                        VALUE
SHARES                                           SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                           <C>
COMMON STOCK - (99.57%)

   CAPITAL GOODS - (8.21%)
     2,450,000    Tyco International Ltd. ..................................................... $   71,540,000
                                                                                                --------------
   COMMERCIAL BANKS - (4.20%)
     1,208,000    Commerce Bancorp, Inc. ......................................................     36,614,480
                                                                                                --------------
   COMMERCIAL SERVICES & SUPPLIES - (6.25%)
       883,750    D&B Corp.*...................................................................     54,483,187
                                                                                                --------------
   CONSUMER FINANCE - (11.90%)
     1,949,000    American Express Co. ........................................................    103,745,270
                                                                                                --------------
   CONSUMER SERVICES - (2.65%)
       395,500    H&R Block, Inc. .............................................................     23,077,425
                                                                                                --------------
   DIVERSIFIED FINANCIAL SERVICES - (12.73%)
       938,333    Citigroup Inc. ..............................................................     43,379,135
       802,560    JPMorgan Chase & Co. ........................................................     28,346,419
       872,600    Moody's Corp. ..............................................................      39,232,096
                                                                                                --------------
                                                                                                   110,957,650
   FOOD, BEVERAGE, & TOBACCO - (3.00%)
       405,000    Altria Group, Inc. ..........................................................     26,187,300
                                                                                                --------------
   LIFE & HEALTH INSURANCE - (0.65%)
       208,700    China Life Insurance Co., Ltd., ADR*.........................................      5,697,510
                                                                                                --------------
   MATERIALS - (2.62%)
       459,000    Sealed Air Corp.*............................................................     22,853,610
                                                                                                --------------
   MULTI-LINE INSURANCE - (9.96%)
       826,796    American International Group, Inc. ..........................................     48,036,848
       501,200    Loews Corp. .................................................................     38,843,000
                                                                                                --------------
                                                                                                    86,879,848
   PROPERTY & CASUALTY INSURANCE - (18.42%)
           597    Berkshire Hathaway Inc., Class A*............................................     49,849,500
     1,017,056    Cincinnati Financial Corp. ..................................................     40,249,991
       337,300    FPIC Insurance Group, Inc.*..................................................      9,859,279
        88,200    Markel Corp.*................................................................     29,899,800
       311,000    Progressive Corp. (Ohio).....................................................     30,729,910
                                                                                                --------------
                                                                                                   160,588,480
   REINSURANCE - (11.54%)
       225,000    Everest Re Group, Ltd. .....................................................      20,925,000
     1,428,187    Transatlantic Holdings, Inc. ................................................     79,721,398
                                                                                                --------------
                                                                                                   100,646,398
   THRIFTS & MORTGAGE FINANCE - (7.44%)
     1,007,400    Golden West Financial Corp. .................................................     64,856,412
                                                                                                --------------

                           Total Common Stock - (identified cost $464,152,659).................    868,127,570
                                                                                                --------------
</TABLE>

                                       28
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS FINANCIAL  FUND - (CONTINUED)

<TABLE>
<CAPTION>

                                                                                                        VALUE
PRINCIPAL                                        SECURITY                                             (NOTE 1)
==============================================================================================================
<S>             <C>                                                                             <C>
SHORT TERM INVESTMENTS - (0.52%)

$    1,489,000  Goldman, Sachs & Co. Joint Repurchase Agreement, 3.43%,
                  07/01/05, dated 06/30/05, repurchase value of $1,489,142
                  (collateralized by: U.S. Government agency obligations in a pooled
                  cash account, total market value $1,518,780)................................. $    1,489,000
     1,595,000  Nomura Securities International, Inc. Joint Repurchase Agreement, 3.44%,
                  07/01/05, dated 06/30/05, repurchase value of $1,595,152
                  (collateralized by: U.S. Government agency obligations in a pooled
                  cash account, total market value $1,626,900).................................      1,595,000
     1,436,000  UBS Financial Services Inc. Joint Repurchase Agreement, 3.43%,
                  07/01/05, dated 06/30/05, repurchase value of $1,436,137
                  (collateralized by: U.S. Government agency obligations in a pooled
                  cash account, total market value $1,464,720).................................      1,436,000
                                                                                                --------------

                           Total Repurchase Agreements - (identified cost $4,520,000)..........      4,520,000
                                                                                                --------------


                  Total Investments - (100.09%) - (identified cost $468,672,659) - (a)......... $  872,647,570
                  Liabilities Less Other Assets - (0.09%)......................................       (814,812)
                                                                                                --------------
                           Net Assets - (100.00%).............................................. $  871,832,758
                                                                                                ==============

*Non-Income Producing Security.

(a) Aggregate cost for Federal Income Tax purposes is $468,670,104. At June 30,
2005 unrealized appreciation (depreciation) of securities for Federal Income Tax
purposes is as follows:

                  Unrealized appreciation...................................................... $  404,460,478
                  Unrealized depreciation......................................................       (483,012)
                                                                                                --------------
                           Net unrealized appreciation......................................... $  403,977,466
                                                                                                ==============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS

                                       29
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS APPRECIATION & INCOME FUND

<TABLE>
<CAPTION>

                                                                                                        VALUE
SHARES/PRINCIPAL                                 SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                           <C>
CONVERTIBLE PREFERRED STOCK - (7.30%)

   CAPITAL GOODS - (2.02%)
       166,700    United Rentals Trust I, 6.50%, 08/01/28, Conv. Pfd. .........................  $   7,001,400
                                                                                                 -------------
   COMMERCIAL BANKS - (1.09%)
        90,000    HSBC Finance Corp., (Convertible into HSBC Holdings PLC), 8.875%,
                     02/15/06, Adjustable Conversion-Rate Equity Security Cum. Conv. Pfd. .....      3,779,100
                                                                                                 -------------
   PROPERTY & CASUALTY INSURANCE - (0.77%)
       119,400    Travelers Property Casualty Corp., 4.50%, 04/15/32, Conv. Pfd. ..............      2,672,172
                                                                                                 -------------
   TRANSPORTATION - (1.06%)
       161,300    Continental Airlines Finance Trust II, 6.00%, 11/15/30, Cum. Conv. Pfd. .....      3,669,575
                                                                                                 -------------
   UTILITIES - (2.36%)
       169,000    AES Trust III, 6.75%, 10/15/29, Conv. Pfd. ..................................      8,162,700
                                                                                                 -------------

                           Total Convertible Preferred Stock - (identified cost $20,815,286)...     25,284,947
                                                                                                 -------------

CONVERTIBLE BONDS - (44.72%)

   CAPITAL GOODS - (3.89%)
$   10,600,000    Masco Corp., Series B Conv. Sr. Notes, Zero Cpn., 2.919%, 07/20/31 (c)(d)....      4,915,750
     5,500,000    Quanta Services, Inc., Conv. Sub. Deb., 4.50%, 10/01/23 .....................      5,692,500
     3,000,000    Quanta Services, Inc., Conv. Sub. Notes, 4.00%, 07/01/07.....................      2,868,750
                                                                                                 -------------
                                                                                                    13,477,000
   COMMERCIAL SERVICES & SUPPLIES - (7.97%)
     9,160,000    NCO Group Inc., Conv. Sub. Notes, 4.75%, 04/15/06............................      9,125,650
     7,200,000    School Specialty, Inc., Conv. Sub. Notes, 3.75%/Zero Cpn., 08/01/23 (e)......      8,559,000
     8,260,000    Waste Connections, Inc., Conv. Sub. Notes, 3.71%, 05/01/22 (f)...............      9,953,300
                                                                                                 -------------
                                                                                                    27,637,950
   CONSUMER FINANCE - (5.45%)
    11,100,000    American Express Co., Ser. 144A Conv. Sr. Notes, 1.85%/Zero Cpn.,
                       12/01/33 (b)(e).........................................................     11,294,250
    14,200,000    Providian Financial Corp., Conv. Notes, Zero Cpn., 6.58%, 02/15/21 (c)(d)....      7,597,000
                                                                                                 -------------
                                                                                                    18,891,250
   CONSUMER SERVICES - (3.00%)
     4,900,000    GTECH Holdings Corp., Conv. Deb., 1.75%, 12/15/21............................     10,412,500
                                                                                                 -------------
   ENERGY - (4.72%)
    12,400,000    Lehman Brothers Holdings Inc., Conv. Notes, (Convertible into
                     Devon Energy Corp.), 0.25%, 08/23/11 (g)..................................     16,360,560
                                                                                                 -------------
   FOOD & STAPLES RETAILING - (0.83%)
     2,800,000    Costco Wholesale Corp., Conv. Sub. Notes, Zero Cpn., 1.03%,
                      08/19/17 (c)(d)..........................................................      2,866,500
                                                                                                 -------------
</TABLE>


                                       30
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS APPRECIATION & INCOME FUND - (CONTINUED)

<TABLE>
<CAPTION>

                                                                                                        VALUE
PRINCIPAL/SHARES                                 SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                            <C>
CONVERTIBLE BONDS - (CONTINUED)

   HEALTH CARE EQUIPMENT & SERVICES - (2.64%)
$  12,900,000     Universal Health Services, Inc., Conv. Deb., 0.426%, 06/23/20................  $   9,159,000
                                                                                                 -------------
   MATERIALS - (2.58%)
     9,000,000    Sealed Air Corp., Ser. 144A Conv. Sr. Notes, 3.00%, 06/30/33 (b).............      8,943,750
                                                                                                 -------------
   MEDIA - (2.19%)
    13,050,000    News America Inc., Conv. Notes, Zero Cpn., 3.36%, 02/28/21 (c)(d)............      7,601,625
                                                                                                 -------------
   MULTI-LINE INSURANCE - (3.98%)
     2,500,000    American International Group, Inc., Conv. Sr. Deb., Zero Cpn., 1.76%,
                      11/09/31 (c)(d)..........................................................      1,678,125
    12,895,000    American International Group, Inc., Conv. Sr. Notes, 0.50%, 05/15/07.........     12,121,300
                                                                                                 -------------
                                                                                                    13,799,425
   PHARMACEUTICALS & BIOTECHNOLOGY - (1.09%)
     1,400,000    Valeant Pharmaceuticals International, Conv. Sub. Notes, 4.00%, 11/15/13.....      1,205,750
     3,000,000    Valeant Pharmaceuticals International, Ser. 144A Conv. Sub. Notes,
                      4.00%, 11/15/13 (b)......................................................      2,583,750
                                                                                                 -------------
                                                                                                     3,789,500
   REAL ESTATE - (2.68%)
     9,000,000    Vornado Realty L.P., Conv. Sr. Deb., 3.875%, 04/15/25........................      9,270,000
                                                                                                 -------------
   RESIDENTIAL/COMMERCIAL BUILDING - (0.60%)
     1,600,000    WCI Communities, Inc., Ser. 144A Conv. Sr. Sub. Notes, 4.00%,
                      08/05/23 (b).............................................................      2,060,000
                                                                                                 -------------
   SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT - (3.10%)
     2,675,000    Fairchild Semiconductor Corp., Conv. Sr. Sub., 5.00%, 11/01/08...............      2,618,156
     8,220,000    International Rectifier Corp., Conv. Sub. Notes, 4.25%, 07/15/07.............      8,137,800
                                                                                                 -------------
                                                                                                    10,755,956

                           Total Convertible Bonds  - (identified cost $142,842,107)...........    155,025,016
                                                                                                 -------------

CORPORATE BONDS - (0.97%)

   AUTOMOTIVE RETAIL - (0.54%)
     1,900,000    AutoZone, Inc., Sr. Notes, 5.50%, 11/15/15...................................      1,888,756
                                                                                                 -------------
   ENERGY - (0.43%)
     1,300,000    Occidental Petroleum Corp., Sr. Notes, 6.75%, 01/15/12.......................      1,473,324
                                                                                                 -------------

                           Total Corporate Bonds  - (identified cost $3,403,125)...............      3,362,080
                                                                                                 -------------

COMMON STOCK - (24.87%)

   AUTOMOTIVE RETAIL - (1.28%)
        47,900    AutoZone, Inc.*..............................................................      4,428,834
                                                                                                 -------------
</TABLE>


                                       31
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS APPRECIATION & INCOME FUND - (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                        VALUE
SHARES/PRINCIPAL                                 SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                           <C>
COMMON STOCK - (CONTINUED)

   CAPITAL GOODS - (1.59%)
        88,700    Masco Corp. .................................................................  $   2,817,112
       306,700    Quanta Services, Inc.* ......................................................      2,698,960
                                                                                                 -------------
                                                                                                     5,516,072
   COMMERCIAL SERVICES & SUPPLIES - (1.27%)
       118,000    Waste Connections, Inc.* ....................................................      4,400,220
                                                                                                 -------------
   DEPARTMENT STORES - (2.13%)
       140,350    J. C. Penney Co., Inc. ......................................................      7,379,603
                                                                                                 -------------
   DIVERSIFIED FINANCIAL SERVICES - (1.49%)
       111,500    Citigroup Inc. ..............................................................      5,154,645
                                                                                                 -------------
   ENERGY - (0.32%)
        14,500    Occidental Petroleum Corp. ..................................................      1,115,485
                                                                                                 -------------
   FOOD & STAPLES RETAILING - (0.84%)
        64,900    Costco Wholesale Corp. ......................................................      2,903,301
                                                                                                 -------------
   REAL ESTATE - (13.40%)
        70,000    Avalonbay Communities, Inc. .................................................      5,656,000
       163,112    Centerpoint Properties Trust.................................................      6,899,638
       174,200    Developers Diversified Realty Corp. .........................................      8,006,232
       245,667    General Growth Properties, Inc. .............................................     10,094,457
       245,160    SL Green Realty Corp. .......................................................     15,812,820
                                                                                                 -------------
                                                                                                    46,469,147
   RESIDENTIAL/COMMERCIAL BUILDING - (1.26%)
       136,800    WCI Communities, Inc.*.......................................................      4,381,704
                                                                                                 -------------
   SOFTWARE & SERVICES - (1.29%)
       103,000    SAP AG-ADR...................................................................      4,459,900
                                                                                                 -------------


                           Total Common Stock - (identified cost $46,969,779)..................     86,208,911
                                                                                                 -------------

SHORT TERM INVESTMENTS - (21.51%)

$   24,571,000  Goldman, Sachs & Co. Joint Repurchase Agreement, 3.43%,
                  07/01/05, dated 06/30/05, repurchase value of $24,573,341
                  (collateralized by: U.S. Government agency obligations in a pooled
                  cash account, total market value $25,062,420)................................     24,571,000
    26,313,000  Nomura Securities International, Inc. Joint Repurchase Agreement, 3.44%,
                  07/01/05, dated 06/30/05, repurchase value of $24,315,514
                  (collateralized by: U.S. Government agency obligations in a pooled
                  cash account, total market value $26,839,260)................................     26,313,000
    23,682,000  UBS Financial Services Inc. Joint Repurchase Agreement, 3.43%,
                  07/01/05, dated 06/30/05, repurchase value of $23,684,256
                  (collateralized by: U.S. Government agency obligations in a pooled
                  cash account, total market value $24,155,640)................................     23,682,000
                                                                                                --------------
                           Total Short Term Investments - (identified cost $74,566,000)........     74,566,000
                                                                                                --------------
</TABLE>


                                       32
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS APPRECIATION & INCOME FUND - (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                        VALUE
                                                                                                      (NOTE 1)
==============================================================================================================
<S>                                                                                             <C>
                  Total Investments - (99.37%) - (identified cost $288,596,297) - (a).......... $  344,446,954
                  Other Assets Less Liabilities - (0.63%)......................................      2,189,296
                                                                                                --------------
                           Net Assets - (100.00%).............................................. $  346,636,250
                                                                                                ==============

*Non-Income Producing Security.

(a) Aggregate cost for Federal Income Tax purposes is $288,677,722. At June 30,
2005 unrealized appreciation (depreciation) of securities for Federal Income Tax
purposes is as follows:

                  Unrealized appreciation...................................................... $   58,927,811
                  Unrealized depreciation......................................................     (3,158,579)
                                                                                                --------------
                           Net unrealized appreciation......................................... $   55,769,232
                                                                                                ==============
</TABLE>

(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 $24,881,750 or 7.18% of
the Fund's net assets, as of June 30, 2005.

(c) As of June 30, 2005, zero coupon bonds represented $24,659,000 or 7.11% 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.

(d) Zero coupon bonds reflect effective yield on the date of purchase.

(e) Represents a step-down bond - a bond that pays one coupon rate for an
initial period followed by a lower coupon rate.

(f) The interest rates on floating rate securities, shown as of June 30, 2005,
may change daily or less frequently.

(g) Illiquid security - See Note 9 of the Notes to Financial Statements.

SEE NOTES TO FINANCIAL STATEMENTS

                                       33
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS REAL ESTATE FUND

<TABLE>
<CAPTION>

                                                                                                        VALUE
SHARES                                           SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                           <C>
COMMON STOCK - (95.30%)

   APARTMENT REITS - (10.18%)
        35,000    American Campus Communities, Inc. ...........................................  $     793,800
       324,000    Archstone-Smith Trust........................................................     12,512,880
       218,000    Camden Property Trust........................................................     11,717,500
       229,333    Essex Property Trust, Inc. ..................................................     19,048,399
       771,921    United Dominion Realty Trust, Inc. ..........................................     18,564,700
                                                                                                 -------------
                                                                                                    62,637,279
                                                                                                 -------------
   DIVERSIFIED REITS - (14.23%)
       587,300    Capital Automotive REIT......................................................     22,396,686
       670,000    Cousins Properties, Inc. ....................................................     19,818,600
       520,673    Duke Realty Corp. ...........................................................     16,484,507
       142,000    iStar Financial Inc. ........................................................      5,905,780
       284,562    Vornado Realty Trust.........................................................     22,878,785
                                                                                                 -------------
                                                                                                    87,484,358
                                                                                                 -------------
   HEALTH CARE REITS - (1.92%)
       391,000    Ventas, Inc. ................................................................     11,808,200
                                                                                                 -------------
   MORTGAGE REITS - (1.53%)
       384,300    Gramercy Capital Corp. ......................................................      9,399,978
                                                                                                 -------------
   OFFICE PROPERTY REITS - (24.70%)
       289,113    Alexandria Real Estate Equities, Inc. .......................................     21,235,350
       416,900    Arden Realty, Inc. ..........................................................     15,000,062
       259,842    Boston Properties, Inc. .....................................................     18,188,940
       480,400    Brandywine Realty Trust......................................................     14,724,260
       460,356    CarrAmerica Realty Corp. ....................................................     16,655,680
       208,000    Columbia Equity Trust, Inc.*.................................................      3,192,800
       618,138    Corporate Office Properties Trust............................................     18,204,164
       388,600    Kilroy Realty Corp. .........................................................     18,454,614
       406,358    SL Green Realty Corp. .......................................................     26,210,091
                                                                                                 -------------
                                                                                                   151,865,961
                                                                                                 -------------
   REAL ESTATE OPERATIONS/DEVELOPMENT - (8.07%)
     1,420,183    Brixton PLC..................................................................      9,064,933
        63,300    Derwent Valley Holdings PLC..................................................      1,349,634
       349,142    Forest City Enterprises, Inc., Class A.......................................     24,789,082
       184,000    Hammerson PLC................................................................      2,932,440
       490,000    Liberty International PLC....................................................      8,502,783
       319,000    Slough Estates PLC...........................................................      2,980,646
                                                                                                 -------------
                                                                                                    49,619,518
                                                                                                 -------------
   REGIONAL MALL REITS - (8.28%)
       547,557    General Growth Properties, Inc. .............................................     22,499,117
       246,800    Mills Corp. .................................................................     15,002,972
       185,253    Simon Property Group, Inc. ..................................................     13,428,990
                                                                                                 -------------
                                                                                                    50,931,079
                                                                                                 -------------
</TABLE>

                                       34
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS REAL ESTATE FUND - (CONTINUED)

<TABLE>
<CAPTION>

                                                                                                        VALUE
SHARES                                           SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                           <C>
COMMON STOCK - (CONTINUED)

   RESIDENTIAL/COMMERCIAL BUILDING - (0.96%)
       185,400    WCI Communities, Inc.*.......................................................  $   5,938,362
                                                                                                 -------------
   SHOPPING CENTER REITS - (12.55%)
       476,808    Developers Diversified Realty Corp. .........................................     21,914,096
       312,795    Kimco Realty Corp. ..........................................................     18,426,754
       270,400    Pan Pacific Retail Properties, Inc. .........................................     17,949,152
       329,778    Regency Centers Corp. .......................................................     18,863,302
                                                                                                 -------------
                                                                                                    77,153,304
   WAREHOUSE & INDUSTRIAL REITS - (12.88%)
       496,148    Catellus Development Corp. ..................................................     16,273,654
       948,254    Centerpoint Properties Trust.................................................     40,111,144
       566,492    ProLogis.....................................................................     22,795,638
                                                                                                 -------------
                                                                                                    79,180,436

                           Total Common Stock - (identified cost $385,069,227).................    586,018,475
                                                                                                 -------------

PREFERRED STOCK - (0.47%)

   APARTMENT REITS - (0.47%)
        43,700    Equity Residential, 7.00%, Series E, Cum. Conv. Pfd. ........................      1,802,625
        32,000    Equity Residential, 8.60%, Series D, Cum. Pfd. ..............................        852,320
        10,000    Equity Residential, 9.125%, Series C, Cum. Pfd. .............................        262,800
                                                                                                 -------------

                           Total Preferred Stock - (identified cost $2,204,017)................      2,917,745
                                                                                                 -------------
</TABLE>


                                       35
<PAGE>

DAVIS SERIES, INC.
SCHEDULE OF INVESTMENTS AT JUNE 30, 2005 (Unaudited)
DAVIS REAL ESTATE FUND - (CONTINUED)

<TABLE>
<CAPTION>
                                                                                                        VALUE
PRINCIPAL                                        SECURITY                                             (NOTE 1)
==============================================================================================================
<S>               <C>                                                                          <C>
SHORT TERM INVESTMENTS - (3.91%)

$    7,919,000    Goldman, Sachs & Co., Joint Repurchase Agreement, 3.43%,
                   07/01/05, dated 06/30/05, repurchase value of $7,919,755
                    (collateralized by: U.S. Government agency obligations in a pooled
                   cash account, total market value $8,077,380)................................ $    7,919,000
     8,481,000    Nomura Securities International, Inc. Joint Repurchase Agreement, 3.44%,
                   07/01/05, dated 06/30/05, repurchase value of $8,481,810
                    (collateralized by: U.S. Government agency obligations in a pooled
                   cash account, total market value $8,650,620)................................      8,481,000
     7,633,000    UBS Financial Services Inc. Joint Repurchase Agreement, 3.43%,
                   07/01/05, dated 06/30/05, repurchase value of $7,633,727
                    (collateralized by: U.S. Government agency obligations in a pooled
                   cash account, total market value $7,785,660)................................      7,633,000
                                                                                                --------------

                           Total Short Term Investments - (identified cost $24,033,000)........     24,033,000
                                                                                                --------------

                  Total Investments - (99.68%) - (identified cost $411,306,244) - (a)..........    612,969,220
                  Other Assets Less Liabilities - (0.32%)......................................      1,963,605
                                                                                                --------------
                           Net Assets - (100.00%).............................................. $  614,932,825
                                                                                                ==============

*Non-Income Producing Security.

(a) Aggregate cost for Federal Income Tax purposes is $413,955,932. At June 30,
2005 unrealized appreciation (depreciation) of securities for Federal Income Tax
purposes is as follows:

                  Unrealized appreciation...................................................... $  199,239,300
                  Unrealized depreciation.....................................................        (226,012)
                                                                                                --------------
                           Net unrealized appreciation......................................... $  199,013,288
                                                                                                ==============
</TABLE>

SEE NOTES TO FINANCIAL STATEMENTS

                                       36
<PAGE>

DAVIS SERIES, INC.
STATEMENTS OF ASSETS AND LIABILITIES
At June 30, 2005 (Unaudited)
================================================================================

<TABLE>
<CAPTION>
                                                                       DAVIS
                                                         DAVIS       GOVERNMENT                          DAVIS
                                         DAVIS        GOVERNMENT       MONEY            DAVIS         APPRECIATION        DAVIS
                                      OPPORTUNITY        BOND          MARKET          FINANCIAL        & INCOME       REAL ESTATE
                                         FUND            FUND           FUND             FUND             FUND            FUND
                                     -------------   -------------   -------------   -------------    -------------   -------------
<S>                                  <C>             <C>             <C>             <C>              <C>             <C>
ASSETS:
Investments in securities, at
  value * (see accompanying
  Schedules of Investments) .......  $ 607,151,899   $  56,396,304   $ 536,883,373   $ 872,647,570    $ 344,446,954   $ 612,969,220
Cash ..............................          5,546           4,757          14,586          37,703            4,165           7,251
Receivables:
  Dividends and interest ..........        585,516         478,862       1,946,936       1,305,053        1,058,933       2,285,337
  Capital stock sold ..............      2,849,465         399,965      28,150,681       3,080,361        2,535,755       2,335,902
  Investment securities sold ......           --              --              --              --               --         4,583,111
Prepaid expenses ..................         25,250          15,535          21,700           4,900           14,190          35,320
Other assets ......................           --            13,386            --              --               --              --
                                     -------------   -------------   -------------   -------------    -------------   -------------
    Total assets ..................    610,617,676      57,308,809     567,017,276     877,075,587      348,059,997     622,216,141
                                     -------------   -------------   -------------   -------------    -------------   -------------
LIABILITIES:
Payables:
  Capital stock reacquired ........      1,030,037         456,743         463,328       3,895,073          895,241       2,416,073
  Investment securities
  purchased .......................           --              --         6,552,995            --               --         3,908,950
  Distributions payable ...........           --            51,796          10,058            --               --              --
Accrued expenses ..................        220,371          61,032         113,725         280,897          123,291         236,109
Accrued management fees ...........        343,996          14,792         219,552         478,320          206,813         348,472
Options written, at value
  (premiums received $476,158)
  (see accompanying Schedules
  of Investments) .................        173,900            --              --              --               --              --
Distribution and service plan
  fees (Note 3) ...................        378,919          48,287            --           588,539          198,402         373,712
                                     -------------   -------------   -------------   -------------    -------------   -------------
    Total liabilities .............      2,147,223         632,650       7,359,658       5,242,829        1,423,747       7,283,316
                                     -------------   -------------   -------------   -------------    -------------   -------------
NET ASSETS ........................  $ 608,470,453   $  56,676,159   $ 559,657,618   $ 871,832,758    $ 346,636,250   $ 614,932,825
                                     =============   =============   =============   =============    =============   =============


NET ASSETS CONSIST OF:
Par value of shares of capital
  stock ...........................  $     267,625   $     102,096   $   5,596,576   $     225,843    $     124,407   $     150,785
Additional paid-in capital ........    482,410,132      63,486,011     554,061,042     463,973,461      286,071,855     378,200,027
Undistributed net investment
  income (loss) ...................         68,207            --              --          (537,324)         985,562       1,985,865
Accumulated net realized gains
  (losses) from investment and
  foreign currency transactions....     19,204,762      (6,500,021)           --         4,195,867        3,603,769      32,935,288
Net unrealized appreciation
  (depreciation) on investments
  and foreign currency
  transactions ....................    106,519,727        (411,927)           --       403,974,911       55,850,657     201,660,860
                                     -------------   -------------   -------------   -------------    -------------   -------------
                                     $ 608,470,453   $  56,676,159   $ 559,657,618   $ 871,832,758    $ 346,636,250   $ 614,932,825
                                     =============   =============   =============   =============    =============   =============
</TABLE>

* Including repurchase agreements of $275,501,000 and $74,566,000 for Davis
Government Money Market Fund and Davis Appreciation & Income Fund, respectively,
and cost of $500,929,163, $56,808,231, $536,883,373, $468,672,659, $288,596,297,
and $411,306,244 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.

                                       37
<PAGE>

DAVIS SERIES, INC.
STATEMENTS OF ASSETS AND LIABILITIES - (Continued)
At June 30, 2005 (Unaudited)
================================================================================

<TABLE>
<CAPTION>
                                                                       DAVIS
                                                        DAVIS        GOVERNMENT                      DAVIS
                                         DAVIS        GOVERNMENT       MONEY          DAVIS       APPRECIATION      DAVIS
                                       OPPORTUNITY       BOND          MARKET       FINANCIAL       & INCOME     REAL ESTATE
                                          FUND           FUND           FUND           FUND           FUND          FUND
                                      ------------   ------------   ------------   ------------   ------------   ------------
<S>                                   <C>            <C>            <C>            <C>            <C>            <C>
CLASS A SHARES
  Net assets ......................   $371,421,298   $ 19,456,877   $508,405,691   $541,811,406   $189,669,643   $345,341,526
  Shares outstanding ..............     15,758,556      3,500,231    508,405,691     13,645,241      6,793,277      8,468,083
  Net asset value and redemp-
    tion price per share (net
    assets/shares outstanding) ....   $      23.57   $       5.56   $       1.00   $      39.71   $      27.92   $      40.78
                                      ============   ============   ============   ============   ============   ============
  Maximum offering price per
    share (100/95.25 of net
    asset value) ..................   $      24.75   $       5.84   $       1.00   $      41.69   $      29.31   $      42.81
                                      ============   ============   ============   ============   ============   ============
CLASS B SHARES
  Net assets ......................   $100,502,468   $ 30,605,510   $ 43,628,577   $227,941,087   $ 81,408,071   $103,724,009
  Shares outstanding ..............      4,833,664      5,520,603     43,628,577      6,216,016      2,949,497      2,558,796
  Net asset value, offering and
    redemption price per share
    (net assets/shares
    outstanding) ..................   $      20.79   $       5.54   $       1.00   $      36.67   $      27.60   $      40.54
                                      ============   ============   ============   ============   ============   ============
CLASS C SHARES
  Net assets ......................   $109,935,578   $  6,383,971   $  7,623,350   $ 93,132,685   $ 43,254,474   $ 93,939,950
  Shares outstanding ..............      5,071,859      1,147,801      7,623,350      2,501,088      1,546,041      2,301,039
  Net asset value, offering and
    redemption price per share
    (net assets/shares
    outstanding) ..................   $      21.68   $       5.56   $       1.00   $      37.24   $      27.98   $      40.83
                                      ============   ============   ============   ============   ============   ============
CLASS Y SHARES
  Net assets ......................   $ 26,611,109   $    229,801   $       --     $  8,947,580   $ 32,304,062   $ 71,927,340
  Shares outstanding ..............      1,098,417         41,012           --          221,991      1,151,894      1,750,542
  Net asset value, offering and
  redemption price per share
  (net assets/shares
  outstanding) ....................   $      24.23   $       5.60   $       --     $      40.31   $      28.04   $      41.09
                                      ============   ============   ============   ============   ============   ============
</TABLE>


SEE NOTES TO FINANCIAL STATEMENTS


                                       38
<PAGE>

DAVIS SERIES, INC.
STATEMENTS OF OPERATIONS
For the six months ended June 30, 2005 (Unaudited)

================================================================================

<TABLE>
<CAPTION>
                                                                            DAVIS
                                                               DAVIS      GOVERNMENT                     DAVIS         DAVIS
                                                 DAVIS      GOVERNMENT      MONEY         DAVIS       APPRECIATION      REAL
                                              OPPORTUNITY      BOND         MARKET      FINANCIAL      & INCOME        ESTATE
                                                 FUND          FUND          FUND         FUND            FUND          FUND
                                             ------------  ------------  ------------  ------------   ------------   ------------
<S>                                          <C>           <C>           <C>           <C>            <C>            <C>
INVESTMENT INCOME
  (LOSS):
Income:
  Dividends .............................    $  2,925,153  $       --    $       --    $  5,549,895   $  2,155,161   $ 10,903,107
  Interest ..............................         735,673     1,128,247     7,158,143        22,578      3,032,027        576,333
                                             ------------  ------------  ------------  ------------   ------------   ------------
      Total income* .....................       3,660,826     1,128,247     7,158,143     5,572,473      5,187,188     11,479,440
                                             ------------  ------------  ------------  ------------   ------------   ------------
Expenses:
  Management fees (Note 2) ..............       1,902,665        95,692     1,257,480     2,885,564      1,127,718      1,941,775
  Custodian fees ........................          68,407        15,998        36,316        62,544         29,542         47,584
  Transfer agent fees
    Class A .............................         255,133        35,573        31,777       308,786         68,276        161,254
    Class B .............................          89,281        36,410        38,884       228,034         54,076         75,604
    Class C .............................          82,084         8,611         8,534        88,196         24,974         55,686
    Class Y .............................           8,570           400          --           7,059          2,966          4,748
  Audit fees ............................           7,800         6,000        10,200        15,000          8,400         10,200
  Legal fees ............................           2,663           331         3,100         5,631          1,745          3,218
  Accounting fees (Note 2) ..............           3,252         1,248        18,750         7,248          3,750          4,752
  Reports to s hareholders ..............          62,652         6,260        40,357       111,194         34,403         90,585
  Directors' fees and expenses ..........          26,525         5,234        26,114        41,228         14,828         26,516
  Registration and filing fees ..........          38,275        21,966        33,418        44,975         33,483         35,025
  Miscellaneous .........................           3,633         1,818         2,661        23,571          3,569          6,537
  Distribution plan payments (Note 3)
    Class A .............................         417,503        20,590          --         533,142        141,623        388,801
    Class B .............................         501,516       158,081          --       1,249,247        395,401        541,845
    Class C .............................         492,106        31,005          --         484,275        186,218        424,946
                                             ------------  ------------  ------------  ------------   ------------   ------------
      Total expenses ....................       3,962,065       445,217     1,507,591     6,095,694      2,130,972      3,819,076
      Expenses paid indirectly
      (Note 6) ..........................            (756)          (14)         (213)          (24)          (370)           (15)
                                             ------------  ------------  ------------  ------------   ------------   ------------
      Net expenses ......................       3,961,309       445,203     1,507,378     6,095,670      2,130,602      3,819,061
                                             ------------  ------------  ------------  ------------   ------------   ------------
        Net investment
          income (loss) .................        (300,483)      683,044     5,650,765      (523,197)     3,056,586      7,660,379
                                             ------------  ------------  ------------  ------------   ------------   ------------

REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS:
Net realized gain (loss) from:
  Investment transactions ...............      24,583,764      (166,126)         --      20,653,511      4,933,313     18,662,995
  Foreign currency transactions .........          30,543          --            --          (8,013)          --            5,255
Net change in unrealized
  appreciation (depreciation)
  on investments ........................     (15,335,617)     (303,491)         --     (51,980,717)      (567,437)    (4,600,796)
                                             ------------  ------------  ------------  ------------   ------------   ------------
Net realized and unrealized
  gain (loss) on investments and
  foreign currency ......................       9,278,690      (469,617)         --     (31,335,219)     4,365,876     14,067,454
                                             ------------  ------------  ------------  ------------   ------------   ------------
Net increase (decrease) in net assets
  resulting from operations .............    $  8,978,207  $    213,427  $  5,650,765  $(31,858,416)  $  7,422,462   $ 21,727,833
                                             ============  ============  ============  ============   ============   ============
*Net of foreign taxes
  withheld as follows: ..................    $    266,031          --            --    $     27,821   $      5,363   $     35,720
</TABLE>


SEE NOTES TO FINANCIAL STATEMENTS

                                       39
<PAGE>

DAVIS SERIES, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended June 30, 2005 (Unaudited)

================================================================================

<TABLE>
<CAPTION>
                                                                         DAVIS
                                                          DAVIS       GOVERNMENT                          DAVIS           DAVIS
                                           DAVIS       GOVERNMENT        MONEY            DAVIS       APPRECIATION         REAL
                                        OPPORTUNITY       BOND           MARKET        FINANCIAL        & INCOME         ESTATE
                                           FUND           FUND           FUND             FUND             FUND            FUND
                                      -------------   -------------   -------------   -------------   -------------   -------------
<S>                                   <C>             <C>             <C>             <C>             <C>             <C>
OPERATIONS:
  Net investment income (loss) .....  $    (300,483)  $     683,044   $   5,650,765   $    (523,197)  $   3,056,586   $   7,660,379
  Net realized gain (loss) from
    investments and foreign
    currency transactions ..........     24,614,307        (166,126)           --        20,645,498       4,933,313      18,668,250
  Net change in unrealized
    appreciation (depreciation) on
    investments ....................    (15,335,617)       (303,491)           --       (51,980,717)       (567,437)     (4,600,796)
                                      -------------   -------------   -------------   -------------   -------------   -------------
  Net increase (decrease) in net
    assets resulting from
    operations .....................      8,978,207         213,427       5,650,765     (31,858,416)      7,422,462      21,727,833

DIVIDENDS AND
  DISTRIBUTIONS TO
  SHAREHOLDERS FROM:

  Net investment income
    Class A ..........................         --          (267,540)     (5,100,436)           --        (1,065,912)     (1,667,230)
    Class B ..........................         --          (345,825)       (475,599)           --          (340,468)       (378,298)
    Class C ..........................         --           (66,376)        (74,730)           --          (161,553)       (308,033)
    Class Y ..........................         --            (3,303)           --              --          (218,906)       (423,458)

CAPITAL SHARE
  TRANSACTIONS:

  Net increase (decrease) in net
  assets resulting from capital
  share transactions (Note 5)
    Class A ........................     50,911,429         581,650     (10,244,095)    (23,265,309)     36,554,437      20,250,514
    Class B ........................     (5,712,129)     (4,047,388)     (3,353,763)    (39,414,491)       (350,366)    (23,834,568)
    Class C ........................     15,446,259        (253,862)        874,698      (7,730,165)      7,978,029       4,184,203
    Class Y ........................      8,807,041          12,220            --          (719,399)      1,515,422         377,612
                                      -------------   -------------   -------------   -------------   -------------   -------------

      Total increase (decrease)
        in net assets ..............     78,430,807      (4,176,997)    (12,723,160)   (102,987,780)     51,333,145      19,928,575

NET ASSETS:
  Beginning of period ..............    530,039,646      60,853,156     572,380,778     974,820,538     295,303,105     595,004,250
                                      -------------   -------------   -------------   -------------   -------------   -------------

  End of period* ...................  $ 608,470,453   $  56,676,159   $ 559,657,618   $ 871,832,758   $ 346,636,250   $ 614,932,825
                                      =============   =============   =============   =============   =============   =============
    *Including undistributed
      net investment
      income (loss) of .............  $      68,207            --              --     $    (537,324)  $     985,562   $   1,985,865
</TABLE>


SEE NOTES TO FINANCIAL STATEMENTS

                                       40
<PAGE>

DAVIS SERIES, INC.
STATEMENTS OF CHANGES IN NET ASSETS
For the year ended December 31, 2004

================================================================================

<TABLE>
<CAPTION>
                                                                          DAVIS
                                                         DAVIS         GOVERNMENT                         DAVIS           DAVIS
                                         DAVIS        GOVERNMENT          MONEY           DAVIS       APPRECIATION        REAL
                                      OPPORTUNITY        BOND             MARKET       FINANCIAL        & INCOME         ESTATE
                                          FUND           FUND             FUND            FUND            FUND            FUND
                                     -------------   -------------   -------------   -------------   -------------   -------------
<S>                                  <C>             <C>             <C>             <C>             <C>             <C>
OPERATIONS:
  Net investment income (loss).....  $     455,746   $   1,056,705   $   4,860,826   $  (2,933,485)  $   5,545,884   $   8,131,272
  Net realized gain (loss) from
    investments and foreign
    currency transactions .........     11,335,610        (811,806)           --         3,832,203       9,109,960      44,031,123
  Net change in unrealized
    appreciation (depreciation) on
    investments ...................     44,965,985        (442,417)           --       103,620,216      16,785,438      89,237,413
                                     -------------   -------------   -------------   -------------   -------------   -------------
  Net increase (decrease) in net
    assets resulting from
    operations ....................     56,757,341        (197,518)      4,860,826     104,518,934      31,441,282     141,399,808

DIVIDENDS AND
  DISTRIBUTIONS TO
  SHAREHOLDERS FROM:

  Net investment income
    Class A .......................           --          (524,437)     (4,324,920)           --        (3,242,374)     (5,409,746)
    Class B .......................           --          (825,650)       (460,928)           --        (1,243,573)     (1,807,079)
    Class C .......................           --          (158,571)        (74,978)           --          (475,223)     (1,105,564)
    Class Y .......................           --            (6,543)           --              --          (760,635)     (1,592,398)

  Return of capital
    Class A .......................           --           (11,049)           --              --              --              --
    Class B .......................           --           (17,394)           --              --              --              --
    Class C .......................           --            (3,341)           --              --              --              --
    Class Y .......................           --              (138)           --              --              --              --

CAPITAL SHARE
  TRANSACTIONS:

  Net increase (decrease) in net
  assets resulting from capital
  share transactions (Note 5)
    Class A .......................     76,403,515      (5,675,919)     22,033,738     (14,714,722)     22,939,552      55,916,138
    Class B .......................     (3,375,430)    (26,549,215)    (17,969,867)    (57,150,094)      1,150,314     (14,537,597)
    Class C .......................     24,470,358      (6,073,516)     (3,114,348)    (14,994,142)      7,243,485      10,424,182
    Class Y .......................      9,163,756         (38,399)           --        (2,772,790)      1,643,607        (488,828)
                                     -------------   -------------   -------------   -------------   -------------   -------------

      Total increase (decrease)
        in net assets .............    163,419,540     (40,081,690)        949,523      14,887,186      58,696,435     182,798,916

NET ASSETS:
  Beginning of year ...............    366,620,106     100,934,846     571,431,255     959,933,352     236,606,670     412,205,334
                                     -------------   -------------   -------------   -------------   -------------   -------------

  End of year* ....................  $ 530,039,646   $  60,853,156   $ 572,380,778   $ 974,820,538   $ 295,303,105   $ 595,004,250
                                     =============   =============   =============   =============   =============   =============
    *Including undistributed
      net investment
      income (loss) of ............  $     368,690            --              --     $     (14,127)  $    (284,185)  $  (2,897,495)
</TABLE>


SEE NOTES TO FINANCIAL STATEMENTS

                                       41
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2005 (Unaudited)
================================================================================

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Davis Series, Inc. (the "Company") is registered under the Investment
Company Act of 1940 (the "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 "the Funds"):

DAVIS OPPORTUNITY FUND seeks to achieve 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 FUND seeks 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. Effective February 1, 2005, the
Fund modified its investment strategy to maintain a weighted average maturity of
three years or less. Previously, the Fund sought to maintain a weighted average
maturity of between three and ten years.

DAVIS GOVERNMENT MONEY MARKET FUND seeks 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 FUND seeks to achieve growth of capital. It invests primarily in
common stocks and other equity securities, and will concentrate investments in
companies principally engaged in the banking and financial services industries.

DAVIS APPRECIATION & INCOME FUND seeks to achieve total return. 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 FUND seeks 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.

                                       42
<PAGE>

DAVIS SERIES, INC. NOTES TO
FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

A. VALUATION OF SECURITIES - Portfolio securities listed on national securities
exchanges are valued at the last reported sales price on the day of valuation.
Securities traded in the over the counter market and listed securities for which
no sale was reported on that date are stated at the average of closing bid and
asked prices. Securities for which market quotations are not readily available,
or whose values have been affected by a significant event occurring after the
close of their primary markets, are valued at fair value as determined in good
faith by the Board of Directors. Short-term obligations are valued at amortized
cost, which approximates fair value. The valuation procedures are reviewed and
subject to approval by the Board of Directors.

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. Securities pledged as
collateral for repurchase agreements are held by a custodian bank 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 and
maturities of investments, 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 Fund's 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 statement of operations.


                                       43
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (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. At June 30, 2005, Davis Government Bond Fund had approximately $84,000
of post October 2004 losses available to offset future capital gains if any,
which expire in 2013. At June 30, 2005, Davis Financial Fund had approximately
$3,458,000 of post October 2004 losses available to offset future capital gains
if any, which expire in 2013. Additionally, Davis Financial Fund had $14,000 of
post October 2004 foreign currency losses which were deferred. At June 30, 2005,
Davis Appreciation & Income Fund had approximately $59,000 of post October 2004
losses available to offset future capital gains if any, which expire in 2013. At
June 30, 2005, each Fund had available for federal income tax purposes unused
capital loss carryforwards as follows:

<TABLE>
<CAPTION>
                                                    DAVIS                              DAVIS
                                 DAVIS            GOVERNMENT         DAVIS          APPRECIATION
                              OPPORTUNITY            BOND          FINANCIAL         & INCOME
                                  FUND               FUND             FUND             FUND
                            --------------      --------------   --------------   --------------
         EXPIRING
         --------
<S>                         <C>                 <C>              <C>              <C>
        12/31/2007          $       -           $    1,973,000   $       -        $       -
        12/31/2008                  -                  906,000           -                -
        12/31/2009                  -                  -                 -                -
        12/31/2010               3,342,000             -                 -             1,482,000
        12/31/2011                  -                2,128,000       12,994,000           -
        12/31/2012                  -                1,243,000           -                -
                            --------------      --------------   --------------   --------------
          TOTAL             $    3,342,000      $    6,250,000   $   12,994,000   $    1,482,000
</TABLE>

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. SECURITIES TRANSACTIONS AND RELATED INVESTMENT INCOME - Securities
transactions are accounted for on the trade date (date the order to buy or sell
is executed) with realized gain or loss on the sale of securities being
determined based upon identified cost. Dividend income is recorded on the
ex-dividend date. Interest income, which includes accretion of discount and
amortization of premium, is accrued as earned.

                                       44
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - (CONTINUED)

H. 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) of
investments may differ for financial statement and tax purposes primarily
because of the recognition of certain foreign currency gains (losses) as
ordinary income (loss) for tax purposes, the tax deferral of losses on "wash
sale" transactions, tax treatment of paydowns on fixed income securities and net
operating losses. 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 AFFILIATE

     Advisory fees are paid monthly to Davis Advisors, the Funds' investment
adviser (the "Adviser"). The fee 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 of average net assets, and 0.40% of average net assets in excess of $500
million. The fee for the Davis Government Bond Fund was 0.50% of average net
assets. Effective February 1, 2005, the fee for the Davis Government Bond Fund
is 0.30% of average net assets. The fee for each of the Davis Opportunity Fund,
Davis Financial Fund, Davis Appreciation & Income Fund, and Davis Real Estate
Fund is 0.75% of the average net assets for the first $250 million, 0.65% of the
average net assets 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, 2005, approximated 0.68%, 0.34%, 0.47%, 0.63%, 0.73%, and 0.68% of average
net assets 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, respectively.

     State Street Bank & Trust Company ("State Street Bank") 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, 2005 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 $21,790, $3,225, $5,940, $40,658, $9,912, and
$17,385, respectively. 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 the six months ended June 30, 2005 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 $3,252, $1,248, $18,750, $7,248, $3,750, and
$4,752, 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.

                                       45
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (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, 2005, Davis Distributors, LLC, the
Funds' Underwriter (the "Underwriter" or "Distributor") received $545,828,
$7,473, $182,743, $395,615, and $413,755 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 $81,234, $1,139, $25,965, $61,501, and $65,386 was
retained by the Underwriter and the remaining $464,594, $6,334, $156,778,
$334,114, and $348,369 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 by it 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% 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, 2005 was $417,503, $20,590,
$533,142, $141,623, and $388,801, 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) pay 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 National Association of
Securities Dealers, Inc., ("NASD"), which currently is 1.00%. Therefore, the
effective rate of the Class B Distribution Plan is currently 1%, of which 0.75%
may be used to pay distribution expenses and 0.25% may be used to pay
shareholder service fees. The NASD rules also limit the aggregate amount the
Funds may pay for distribution to 6.25% of gross Funds sales since inception of
the Distribution Plans plus interest at 1% over the prime rate on unpaid
amounts. The Distributor intends to seek full payment (plus interest at prime
rate plus 1%) of distribution charges that exceed the 1% annual limit in some
future period or periods when the plan limits have not been reached.

                                       46
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 3 - DISTRIBUTION AND UNDERWRITING FEES - (CONTINUED)

     During the six months ended June 30, 2005, 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 $377,005, $118,685, $939,743,
$296,996, and $407,516, respectively and service fees of $124,511, $39,396,
$309,504, $98,405, and $134,329, respectively.

     Commission advances by the Distributor during the six months ended June 30,
2005 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 $146,756, $4,207, $64,599, $123,350, and
$113,474, respectively, all of which was reallowed 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
$2,634,704, $4,853,193, $24,612,419, $7,252,595, and $13,960,424, respectively,
representing the cumulative commission advances by the Distributor on the sale
of the Funds' 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 charges and 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% 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, 2005, 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 $62,445, $41,835, $155,574, $52,860, and $46,418, respectively.

     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 less a contingent deferred sales charge of 1% if redeemed within
one year of purchase. 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 National Association of Securities Dealers, Inc., ("NASD"),
which currently is 1.00%. Therefore, the effective rate of the Class C
Distribution Plan is currently 1%, 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% limitations applicable to
the Class B Distribution Plan.


                                       47
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 3 - DISTRIBUTION AND UNDERWRITING FEES - (CONTINUED)

     During the six months ended June 30, 2005, 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 fees of
$369,079, $23,254, $363,206, $139,663, and $318,709, respectively and service
fees of $123,027, $7,751, $121,069, $46,555, and $106,237. During the six months
ended June 30, 2005, the Distributor received $7,765, $10, $1,440, $2,732, and
$4,982 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, 2005 for the Davis Opportunity
Fund, Davis Government Bond Fund, Davis Financial Fund, Davis Appreciation &
Income Fund, and Davis Real Estate Fund were as follows:

<TABLE>
<CAPTION>
                                                    DAVIS                          DAVIS
                              DAVIS              GOVERNMENT         DAVIS       APPRECIATION          DAVIS
                           OPPORTUNITY              BOND          FINANCIAL       & INCOME         REAL ESTATE
                               FUND                 FUND             FUND           FUND               FUND
                          -------------        --------------   -------------  ---------------   ---------------
<S>                       <C>                  <C>              <C>            <C>               <C>
Cost of purchases         $ 210,417,274        $   20,284,801   $   5,320,870  $    16,429,000   $    91,253,388
Proceeds of sales         $ 143,338,453        $   20,831,268   $  80,922,305  $    15,540,749   $    49,098,172
</TABLE>


                                       48
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 5 - CAPITAL STOCK

     At June 30, 2005, 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:

<TABLE>
<CAPTION>
                                                                       SIX MONTHS ENDED
                                                                        JUNE 30, 2005
CLASS A                                                                   (UNAUDITED)
                                --------------------------------------------------------------------------------------------------
                                                                    DAVIS
                                                     DAVIS        GOVERNMENT                           DAVIS             DAVIS
                                    DAVIS         GOVERNMENT         MONEY             DAVIS        APPRECIATION         REAL
                                 OPPORTUNITY         BOND            MARKET          FINANCIAL        & INCOME          ESTATE
                                     FUND            FUND             FUND              FUND             FUND            FUND
                                -------------    -------------    -------------    -------------    -------------    -------------
<S>                             <C>              <C>              <C>              <C>              <C>              <C>
Shares sold .................       3,429,410          599,610      246,572,532        1,007,077        1,739,129        1,486,365
Shares issued in reinvestment
  of distributions ..........            --             40,127        5,084,120             --             30,918           43,696
                                -------------    -------------    -------------    -------------    -------------    -------------
                                    3,429,410          639,737      251,656,652        1,007,077        1,770,047        1,530,061
Shares redeemed .............      (1,227,146)        (534,857)    (261,900,747)      (1,590,292)        (419,352)        (991,453)
                                -------------    -------------    -------------    -------------    -------------    -------------
  Net increase (decrease)....       2,202,264          104,880      (10,244,095)        (583,215)       1,350,695          538,608
                                =============    =============    =============    =============    =============    =============

Proceeds from shares sold ...   $  79,130,949    $   3,334,577    $ 246,572,532    $  40,349,464    $  47,052,016    $  56,187,758
Proceeds from shares issued
  in reinvestment of
  distributions .............            --            223,154        5,084,120             --            827,358        1,583,527
                                -------------    -------------    -------------    -------------    -------------    -------------
                                   79,130,949        3,557,731      251,656,652       40,349,464       47,879,374       57,771,285
Cost of shares redeemed .....     (28,219,520)      (2,976,081)    (261,900,747)     (63,614,773)     (11,324,937)     (37,520,771)
                                -------------    -------------    -------------    -------------    -------------    -------------
  Net increase (decrease)....   $  50,911,429    $     581,650    $ (10,244,095)   $ (23,265,309)   $  36,554,437    $  20,250,514
                                =============    =============    =============    =============    =============    =============
</TABLE>

<TABLE>
<CAPTION>
                                                                            YEAR ENDED
CLASS A                                                                  DECEMBER 31, 2004
                                --------------------------------------------------------------------------------------------------
                                                                     DAVIS
                                                      DAVIS        GOVERNMENT                           DAVIS             DAVIS
                                    DAVIS          GOVERNMENT         MONEY            DAVIS        APPRECIATION         REAL
                                 OPPORTUNITY          BOND            MARKET         FINANCIAL        & INCOME           ESTATE
                                     FUND             FUND             FUND             FUND             FUND             FUND
                                -------------    -------------    -------------    -------------    -------------    -------------
<S>                             <C>              <C>              <C>              <C>              <C>              <C>
Shares sold .................       5,947,705          818,851      477,407,253        2,360,132        1,473,357        3,375,894
Shares issued in reinvestment
  of distributions ..........            --             78,776        4,284,733             --            114,054          145,405
                                -------------    -------------    -------------    -------------    -------------    -------------
                                    5,947,705          897,627      481,691,986        2,360,132        1,587,411        3,521,299
Shares redeemed .............      (2,355,653)      (1,897,961)    (459,658,248)      (2,767,530)        (714,743)      (1,875,358)
                                -------------    -------------    -------------    -------------    -------------    -------------
  Net increase (decrease)....       3,592,052       (1,000,334)      22,033,738         (407,398)         872,668        1,645,941
                                =============    =============    =============    =============    =============    =============

Proceeds from shares sold ...   $ 125,781,889    $   4,632,306    $ 477,407,253    $  90,445,659    $  38,248,105    $ 111,968,065
Proceeds from shares issued
  in reinvestment of
  distributions                          --            446,234        4,284,733             --          2,961,362        5,075,111
                                -------------    -------------    -------------    -------------    -------------    -------------
                                  125,781,889        5,078,540      481,691,986       90,445,659       41,209,467      117,043,176
Cost of shares redeemed .....     (49,378,374)     (10,754,459)    (459,658,248)    (105,160,381)     (18,269,915)     (61,127,038)
                                -------------    -------------    -------------    -------------    -------------    -------------
     Net increase (decrease)    $  76,403,515    $  (5,675,919)   $  22,033,738    $ (14,714,722)   $  22,939,552    $  55,916,138
                                =============    =============    =============    =============    =============    =============
</TABLE>

                                       49
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 5 - CAPITAL STOCK - (CONTINUED)


<TABLE>
<CAPTION>
                                                                         SIX MONTHS ENDED
                                                                          JUNE 30, 2005
CLASS B                                                                     (UNAUDITED)
                                     --------------------------------------------------------------------------------------------
                                                                        DAVIS
                                                        DAVIS         GOVERNMENT                         DAVIS           DAVIS
                                        DAVIS         GOVERNMENT        MONEY           DAVIS        APPRECIATION        REAL
                                     OPPORTUNITY         BOND           MARKET        FINANCIAL        & INCOME         ESTATE
                                         FUND            FUND            FUND            FUND            FUND            FUND
                                     ------------    ------------    ------------    ------------    ------------    ------------
<S>                                  <C>             <C>             <C>             <C>             <C>             <C>
Shares sold ..................            370,077         895,219      13,062,975          69,464         349,615         132,416
Shares issued in reinvestment
  of distributions ...........               --            48,510         431,736            --            10,785           9,109
                                     ------------    ------------    ------------    ------------    ------------    ------------
                                          370,077         943,729      13,494,711          69,464         360,400         141,525
Shares redeemed ..............           (650,151)     (1,672,039)    (16,848,474)     (1,135,984)       (373,905)       (772,786)
                                     ------------    ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....           (280,074)       (728,310)     (3,353,763)     (1,066,520)        (13,505)       (631,261)
                                     ============    ============    ============    ============    ============    ============


Proceeds from shares sold ....       $  7,548,927    $  4,965,189    $ 13,062,975    $  2,587,856    $  9,399,390    $  4,974,586
Proceeds from shares issued in
  reinvestment of
  distributions ..............               --           269,084         431,736            --           285,922         328,745
                                     ------------    ------------    ------------    ------------    ------------    ------------
                                        7,548,927       5,234,273      13,494,711       2,587,856       9,685,312       5,303,331
Cost of shares redeemed ......        (13,261,056)     (9,281,661)    (16,848,474)    (42,002,347)    (10,035,678)    (29,137,899)
                                     ------------    ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....       $ (5,712,129)   $ (4,047,388)   $ (3,353,763)   $(39,414,491)   $   (350,366)   $(23,834,568)
                                     ============    ============    ============    ============    ============    ============
</TABLE>

<TABLE>
<CAPTION>
                                                                         YEAR ENDED
CLASS B                                                               DECEMBER 31, 2004
                                 --------------------------------------------------------------------------------------------
                                                                   DAVIS
                                                    DAVIS        GOVERNMENT                         DAVIS           DAVIS
                                     DAVIS        GOVERNMENT        MONEY          DAVIS        APPRECIATION        REAL
                                  OPPORTUNITY        BOND           MARKET        FINANCIAL       & INCOME         ESTATE
                                     FUND            FUND            FUND           FUND             FUND           FUND
                                 ------------    ------------    ------------    ------------    ------------    ------------
<S>                              <C>             <C>             <C>             <C>             <C>             <C>
Shares sold ..................      1,009,859         927,957      27,958,920         277,785         666,371         575,068
Shares issued in reinvestment
  of distributions ...........           --           113,715         407,051            --            40,276          45,100
                                 ------------    ------------    ------------    ------------    ------------    ------------
                                    1,009,859       1,041,672      28,365,971         277,785         706,647         620,168
Shares redeemed ..............     (1,195,009)     (5,746,211)    (46,335,838)     (1,894,047)       (663,569)     (1,082,733)
                                 ------------    ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....       (185,150)     (4,704,539)    (17,969,867)     (1,616,262)         43,078        (462,565)
                                 ============    ============    ============    ============    ============    ============


Proceeds from shares sold ....   $ 19,064,666    $  5,255,340    $ 27,958,920    $  9,892,462    $ 16,953,880    $ 19,044,307
Proceeds from shares issued in
  reinvestment of
  distributions ..............           --           643,702         407,051            --         1,030,797       1,549,373
                                 ------------    ------------    ------------    ------------    ------------    ------------
                                   19,064,666       5,899,042      28,365,971       9,892,462      17,984,677      20,593,680
Cost of shares redeemed ......    (22,440,096)    (32,448,257)    (46,335,838)    (67,042,556)    (16,834,363)    (35,131,277)
                                 ------------    ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....   $ (3,375,430)   $(26,549,215)   $(17,969,867)   $(57,150,094)   $  1,150,314    $(14,537,597)
                                 ============    ============    ============    ============    ============    ============
</TABLE>


                                       50
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 5 - CAPITAL STOCK - (CONTINUED)

<TABLE>
<CAPTION>
                                                                       SIX MONTHS ENDED
                                                                         JUNE 30, 2005
CLASS C                                                                   (UNAUDITED)
                                    --------------------------------------------------------------------------------------------
                                                                      DAVIS
                                                       DAVIS        GOVERNMENT                          DAVIS          DAVIS
                                        DAVIS        GOVERNMENT        MONEY           DAVIS        APPRECIATION        REAL
                                     OPPORTUNITY        BOND           MARKET        FINANCIAL        & INCOME         ESTATE
                                         FUND           FUND            FUND            FUND            FUND            FUND
                                    ------------    ------------    ------------    ------------    ------------    ------------
<S>                                 <C>             <C>             <C>             <C>             <C>             <C>
Shares sold ..................         1,094,539         268,502       3,956,166         126,348         402,566         306,972
Shares issued in reinvestment
  of distributions ...........              --             9,570          66,589            --             5,124           7,525
                                    ------------    ------------    ------------    ------------    ------------    ------------
                                       1,094,539         278,072       4,022,755         126,348         407,690         314,497
Shares redeemed ..............          (371,267)       (323,126)     (3,148,057)       (331,475)       (115,418)       (204,370)
                                    ------------    ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....           723,272         (45,054)        874,698        (205,127)        292,272         110,127
                                    ============    ============    ============    ============    ============    ============

Proceeds from shares sold ....      $ 23,335,740    $  1,492,155    $  3,956,166    $  4,774,552    $ 10,970,823    $ 11,653,609
Proceeds from shares issued in
  reinvestment of
  distributions ..............              --            53,267          66,589            --           137,678         273,480
                                    ------------    ------------    ------------    ------------    ------------    ------------
                                      23,335,740       1,545,422       4,022,755       4,774,552      11,108,501      11,927,089
Cost of shares redeemed ......        (7,889,481)     (1,799,284)     (3,148,057)    (12,504,717)     (3,130,472)     (7,742,886)
                                    ------------    ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....      $ 15,446,259    $   (253,862)   $    874,698    $ (7,730,165)   $  7,978,029    $  4,184,203
                                    ============    ============    ============    ============    ============    ============
</TABLE>

<TABLE>
<CAPTION>
                                                                        YEAR ENDED
CLASS C                                                               DECEMBER 31, 2004
                                   --------------------------------------------------------------------------------------------
                                                                      DAVIS
                                                       DAVIS        GOVERNMENT                         DAVIS          DAVIS
                                      DAVIS         GOVERNMENT        MONEY           DAVIS        APPRECIATION       REAL
                                   OPPORTUNITY         BOND           MARKET        FINANCIAL        & INCOME         ESTATE
                                       FUND            FUND            FUND            FUND            FUND            FUND
                                   ------------    ------------    ------------    ------------    ------------    ------------
<S>                                <C>             <C>             <C>             <C>             <C>             <C>
Shares sold ..................        1,669,316         230,729       7,513,060         329,707         494,527         643,004
Shares issued in reinvestment
  of distributions ...........             --            22,254          63,889            --            15,533          27,792
                                   ------------    ------------    ------------    ------------    ------------    ------------
                                      1,669,316         252,983       7,576,949         329,707         510,060         670,796
Shares redeemed ..............         (427,329)     (1,321,274)    (10,691,297)       (747,263)       (235,154)       (375,566)
                                   ------------    ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....        1,241,987      (1,068,291)     (3,114,348)       (417,556)        274,906         295,230
                                   ============    ============    ============    ============    ============    ============

Proceeds from shares sold ....     $ 32,862,166    $  1,309,046    $  7,513,060    $ 11,933,190    $ 12,843,318    $ 21,689,773
Proceeds from shares issued in
  reinvestment of
  distributions ..............             --           126,445          63,889            --           403,412         965,967
                                   ------------    ------------    ------------    ------------    ------------    ------------
                                     32,862,166       1,435,491       7,576,949      11,933,190      13,246,730      22,655,740
Cost of shares redeemed ......       (8,391,808)     (7,509,007)    (10,691,297)    (26,927,332)     (6,003,245)    (12,231,558)
                                   ------------    ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....     $ 24,470,358    $ (6,073,516)   $ (3,114,348)   $(14,994,142)   $  7,243,485    $ 10,424,182
                                   ============    ============    ============    ============    ============    ============
</TABLE>


                                       51
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 5 - CAPITAL STOCK - (CONTINUED)

<TABLE>
<CAPTION>
                                                                  SIX MONTHS ENDED
                                                                    JUNE 30, 2005
CLASS Y                                                              (UNAUDITED)
                                     ----------------------------------------------------------------------------

                                                         DAVIS                          DAVIS           DAVIS
                                         DAVIS       GOVERNMENT         DAVIS        APPRECIATION       REAL
                                     OPPORTUNITY         BOND         FINANCIAL        & INCOME         ESTATE
                                         FUND            FUND            FUND            FUND            FUND
                                     ------------    ------------    ------------    ------------    ------------
<S>                                  <C>             <C>             <C>             <C>             <C>
Shares sold ..................            465,198           2,140          20,735          67,450          29,406
Shares issued in reinvestment
  of distributions ...........               --               542            --             7,883          11,346
                                     ------------    ------------    ------------    ------------    ------------
                                          465,198           2,682          20,735          75,333          40,752
Shares redeemed ..............            (92,874)           (500)        (38,728)        (19,457)        (30,602)
                                     ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....            372,324           2,182         (17,993)         55,876          10,150
                                     ============    ============    ============    ============    ============

Proceeds from shares sold ....       $ 11,009,734    $     11,984    $    850,926    $  1,833,733    $  1,126,832
Proceeds from shares issued in
  reinvestment of
  distributions ..............               --             3,037            --           211,734         413,907
                                     ------------    ------------    ------------    ------------    ------------
                                       11,009,734          15,021         850,926       2,045,467       1,540,739
Cost of shares redeemed ......         (2,202,693)         (2,801)     (1,570,325)       (530,045)     (1,163,127)
                                     ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....       $  8,807,041    $     12,220    $   (719,399)   $  1,515,422    $    377,612
                                     ============    ============    ============    ============    ============
</TABLE>

<TABLE>
<CAPTION>
                                                              YEAR ENDED
CLASS Y                                                    DECEMBER 31, 2004
                                 ----------------------------------------------------------------------------

                                                    DAVIS                           DAVIS           DAVIS
                                    DAVIS         GOVERNMENT        DAVIS        APPRECIATION       REAL
                                 OPPORTUNITY         BOND         FINANCIAL        & INCOME         ESTATE
                                    FUND             FUND            FUND            FUND           FUND
                                 ------------    ------------    ------------    ------------    ------------
<S>                              <C>             <C>             <C>             <C>             <C>
Shares sold ..................        689,645          13,490          31,662          59,811          54,043
Shares issued in reinvestment
  of distributions ...........           --               802            --            28,568          44,657
                                 ------------    ------------    ------------    ------------    ------------
                                      689,645          14,292          31,662          88,379          98,700
Shares redeemed ..............       (277,719)        (21,044)       (103,910)        (26,322)       (119,648)
                                 ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....        411,926          (6,752)        (72,248)         62,057         (20,948)
                                 ============    ============    ============    ============    ============

Proceeds from shares sold ....   $ 15,130,205    $     77,500    $  1,232,991    $  1,582,464    $  1,868,363
Proceeds from shares issued in
  reinvestment of
  distributions ..............           --             4,566            --           744,839       1,563,965
                                 ------------    ------------    ------------    ------------    ------------
                                   15,130,205          82,066       1,232,991       2,327,303       3,432,328
Cost of shares redeemed ......     (5,966,449)       (120,465)     (4,005,781)       (683,696)     (3,921,156)
                                 ------------    ------------    ------------    ------------    ------------
  Net increase (decrease) ....   $  9,163,756    $    (38,399)   $ (2,772,790)   $  1,643,607    $   (488,828)
                                 ============    ============    ============    ============    ============
</TABLE>


                                       52
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 6 - EXPENSES PAID INDIRECTLY

     Under an agreement with the custodian bank, custody fees are reduced by
credits for cash balances. Such reductions amounted to $756, $14, $213, $24,
$370, and $15 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, 2005.

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, 2005, Davis Financial Fund had no borrowings outstanding. For the
six months ended June 30, 2005, the average daily loan balance was $1,031,315 at
an average interest rate of 3.5433%. Davis Financial Fund had gross borrowings
and gross repayments of $40,493,000 and $41,673,000, respectively, during the
six months ended June 30, 2005. The maximum amount of borrowings outstanding at
any month end was $1,949,000. 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, 2005.

NOTE 8 - OPTION ACTIVITY

     Each Fund may purchase or sell options (including "put options") to pursue
its investment objective or for hedging purposes. When selling a put option, the
purchaser receives the right to sell, and the writer (the Fund) the obligation
to buy, the underlying investment at the exercise price during the option
period.

     When writing a put option on a security, to secure its obligation to pay
for the underlying security, each Fund will deposit, in escrow, liquid assets
with a value equal to or greater than the exercise price of the underlying
securities. Each Fund therefore, foregoes the opportunity of investing the
segregated assets. The premium each Fund receives from writing a put option
represents a profit, as long as the price of the underlying investment remains
equal to or above the exercise price of the put. However, each Fund also assumes
the obligation, during the option period, to buy the underlying investment from
the buyer of the put at the exercise price, even if the value of the investment
falls below the exercise price. See the Statement of Additional Information for
more information concerning the Funds' use of options.

     Options are valued daily based upon the Funds' valuation procedures (Note
1) and unrealized appreciation or depreciation is recorded. Each Fund will
realize a gain or loss upon the expiration or closing of the option transaction.
Put options written are reported as a liability in the Statement of Assets and
Liabilities. Realized and unrealized gains and losses are reported in the
Statement of Operations.

                                       53
<PAGE>

DAVIS SERIES, INC.
NOTES TO FINANCIAL STATEMENTS - (Continued)
June 30, 2005 (Unaudited)
================================================================================

NOTE 8 - OPTION ACTIVITY - (CONTINUED)

Written put option activity for the six months ended June 30, 2005 was as
follows:

<TABLE>
<CAPTION>
                                                                          DAVIS OPPORTUNITY FUND
                                                                          ----------------------
                                                                       Number of             Amount of
                                                                       Contracts             Premiums
                                                                    ---------------      ---------------
<S>                                                                 <C>                 <C>
   Options outstanding as of December 31, 2004.....................         235          $     476,158
       Options written.............................................         -                    -
       Options closed or expired...................................         -                    -
       Options exercised...........................................         -                    -
                                                                    ---------------      ---------------
   Options outstanding as of June 30, 2005.........................         235          $     476,158
                                                                    ===============      ===============
</TABLE>

NOTE 9 - ILLIQUID 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. The aggregate value
of illiquid securities in Davis Opportunity Fund and Davis Appreciation & Income
Fund amounted to $4,990,160 or 0.82% and $16,360,560 or 4.72% of the Fund's net
assets, respectively, as of June 30, 2005.

<TABLE>
<CAPTION>
                                                                                                        Valuation per Unit
                                                              Acquisition                   Cost per      as of June 30,
Fund                  Security                                    Date        Principal       Unit            2005
----                  --------                                ------------    ---------    ----------   ------------------
<S>                   <C>                                     <C>             <C>           <C>               <C>
Davis                 Level 3 Communications, Inc.,
Opportunity Fund      Conv. Sr. Notes, 10.00%,
                      05/01/11                                  4/04/05       5,600,000      $ 100.00          $  89.11

Davis                 Lehman Brothers Holdings Inc.,
Appreciation &        Conv. Notes, (Convertible into
Income Fund           Devon Energy Corp.), 0.25%,
                      08/23/11                                  8/16/04       12,400,000     $ 100.00          $ 131.94
</TABLE>

NOTE 10 - LITIGATION MATTERS

     On June 2, 2004, a proposed class action lawsuit was filed in the United
States District Court for the Southern District of New York on behalf of
investors in certain mutual funds ("Funds") managed by Davis Selected Advisers
L.P. ("Davis Advisors") including the Davis Funds. The plaintiffs claim that
Davis Advisors and its affiliates, and the individual directors of the Funds
(collectively the "Defendants") used Fund assets to pay brokers to market the
Funds and that the Defendants disguised such payments as brokerage commissions
and further failed to disclose such payments in public filings or elsewhere. The
lawsuit seeks damages of unspecified amounts. Three substantially identical
proposed class action lawsuits were filed against the Defendants later in June
and July 2004 in the United States Court for the Southern District of New York.
All four suits have been consolidated into a single action. Davis Advisors
believes the actions are without merit and the Defendants intend to vigorously
defend the proceedings. Although no determination can be made at this time, the
Funds do not expect this lawsuit to have a material adverse effect on the assets
or results of the Funds.

                                       54
<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS OPPORTUNITY FUND
================================================================================

     The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS A

<TABLE>
<CAPTION>
                                                      SIX MONTHS
                                                         ENDED                       YEAR ENDED DECEMBER 31,
                                                     JUNE 30, 2005  ----------------------------------------------------------
                                                      (UNAUDITED)     2004       2003         2002          2001        2000(3)
                                                     -------------  -------     -------      -------      -------      -------
<S>                                                     <C>         <C>         <C>          <C>          <C>           <C>
Net Asset Value, Beginning of Period ...............    $ 23.20     $ 20.47     $ 14.53      $ 16.81      $ 18.60      $ 22.17
                                                        -------     -------     -------      -------      -------      -------

Income  (Loss) From Investment  Operations
   Net Investment Income (Loss) ....................       0.01        0.08       (0.07)       (0.07)       (0.07)       (0.11)
   Net Realized and Unrealized Gains (Losses).......       0.36        2.65        6.01        (2.21)       (1.44)        2.22
                                                        -------     -------     -------      -------      -------      -------
       Total From Investment Operations ............       0.37        2.73        5.94        (2.28)       (1.51)        2.11
                                                        -------     -------     -------      -------      -------      -------

Dividends and Distributions
   Distributions from Realized Gains ...............         --          --          --           --        (0.27)       (5.68)
   Distributions in Excess of Net Realized Gains....         --          --          --           --        (0.01)          --
                                                        -------     -------     -------      -------      -------      -------
       Total Dividends and Distributions ...........         --          --          --           --        (0.28)       (5.68)
                                                        -------     -------     -------      -------      -------      -------
Net Asset Value, End of Period .....................    $ 23.57     $ 23.20     $ 20.47      $ 14.53      $ 16.81      $ 18.60
                                                        =======     =======     =======      =======      =======      =======

Total Return(1) ....................................       1.59%      13.34%      40.88%      (13.56)%      (8.06)%      11.49%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted) ........   $371,421    $314,526    $204,015     $111,685     $101,057      $83,607
   Ratio of Expenses to Average Net Assets .........       1.16%*      1.20%       1.30%        1.31%        1.23%        1.19%
   Ratio of Net Investment Income (Loss) to
     Average Net Assets ............................       0.16%*      0.39%      (0.47)%      (0.49)%      (0.50)%      (0.59)%
   Portfolio Turnover Rate(2) ......................      27.66%      22.22%      42.34%       42.74%       40.96%       60.06%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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)  In 2000 the 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.

*    Annualized.


SEE NOTES TO FINANCIAL STATEMENTS

                                       55
<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS OPPORTUNITY FUND
================================================================================

        The following financial information represents selected data for each
share of capital stock outstanding throughout each period:

CLASS B

<TABLE>
<CAPTION>
                                                       SIX MONTHS
                                                          ENDED                       YEAR ENDED DECEMBER 31,
                                                      JUNE 30, 2005     ------------------------------------------------------
                                                       (UNAUDITED)       2004        2003        2002        2001       2000(3)
                                                      -------------     ------      ------      ------      ------      ------
<S>                                                       <C>           <C>         <C>         <C>         <C>         <C>
Net Asset Value, Beginning of Period ...............     $ 20.55       $ 18.28     $ 13.07     $ 15.24     $ 17.05     $ 20.95
                                                         -------       -------     -------     -------     -------     -------

Income  (Loss) From Investment  Operations
   Net Investment Loss .............................       (0.07)        (0.08)      (0.19)      (0.17)      (0.18)      (0.23)
   Net Realized and Unrealized Gains (Losses) ......        0.31          2.35        5.40       (2.00)      (1.35)       2.01
                                                         -------       -------     -------     -------     -------     -------
       Total From Investment Operations ............        0.24          2.27        5.21       (2.17)      (1.53)       1.78
                                                         -------       -------     -------     -------     -------     -------

Dividends and Distributions
   Distributions from Realized Gains ...............          --            --          --          --       (0.27)      (5.68)
   Distributions in Excess of Net Realized Gains....          --            --          --          --       (0.01)         --
                                                         -------       -------     -------     -------     -------     -------
       Total Dividends and Distributions ...........          --            --          --          --       (0.28)      (5.68)
                                                         -------       -------     -------     -------     -------     -------
Net Asset Value, End of Period .....................     $ 20.79       $ 20.55     $ 18.28     $ 13.07      $ 15.24    $ 17.05
                                                         =======       =======     =======     =======     =======     =======
Total Return(1) ....................................        1.17%        12.42%      39.86%     (14.24)%     (8.92)%     10.57%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted) ........    $100,502      $105,077     $96,854     $68,895     $69,903     $66,271
   Ratio of Expenses to Average Net Assets .........        1.94%*        1.97%       2.06%       2.09%       2.06%       2.08%
   Ratio of Net Investment Loss to Average
     Net Assets ....................................       (0.62)%*      (0.38)%     (1.23)%     (1.27)%     (1.33)%     (1.48)%
   Portfolio Turnover Rate(2) ......................       27.66%        22.22%      42.34%      42.74%      40.96%      60.06%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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)  In 2000 the 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.

*    Annualized.


SEE NOTES TO FINANCIAL STATEMENTS

                                       56
<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS OPPORTUNITY FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS C

<TABLE>
<CAPTION>
                                                        SIX MONTHS
                                                           ENDED                        YEAR ENDED DECEMBER 31,
                                                       JUNE 30, 2005    ------------------------------------------------------
                                                        (UNAUDITED)      2004        2003        2002        2001       2000(3)
                                                       -------------    ------      ------      ------      ------      ------
<S>                                                    <C>             <C>         <C>         <C>         <C>         <C>
Net Asset Value, Beginning of Period ...............      $ 21.42      $ 19.05     $ 13.62     $ 15.89     $ 17.76     $ 21.62
                                                          -------      -------     -------     -------     -------     -------

Income (Loss) From Investment Operations
   Net Investment Loss .............................        (0.05)       (0.06)      (0.17)      (0.16)      (0.13)      (0.17)
   Net Realized and Unrealized Gains (Losses) ......         0.31         2.43        5.60       (2.11)      (1.46)       1.99
                                                          -------      -------     -------     -------     -------     -------
       Total From Investment Operations ............         0.26         2.37        5.43       (2.27)      (1.59)       1.82
                                                          -------      -------     -------     -------     -------     -------

Dividends and Distributions
   Distributions from Realized Gains ...............           --           --          --          --       (0.27)      (5.68)
   Distributions  in Excess of Net Realized Gains ..           --           --          --          --       (0.01)         --
                                                          -------      -------     -------     -------     -------     -------
       Total Dividends and Distributions ...........           --           --          --          --       (0.28)      (5.68)
                                                          -------      -------     -------     -------     -------     -------
Net Asset Value, End of Period .....................      $ 21.68      $ 21.42     $ 19.05     $ 13.62     $ 15.89     $ 17.76
                                                          =======      =======     =======     =======     =======     =======

Total Return(1) ....................................         1.21%       12.44%      39.87%     (14.29)%     (8.90)%     10.42%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted) ........     $109,936      $93,149     $59,174     $38,793     $30,879     $13,326
   Ratio of Expenses to Average Net Assets .........         1.93%*       1.97%       2.05%       2.06%       2.08%       2.15%
   Ratio of Net Investment Loss to
     Average  Net Assets ...........................        (0.61)%*     (0.38)%     (1.22)%     (1.24)%     (1.35)%     (1.55)%
   Portfolio Turnover Rate(2) ......................        27.66%       22.22%      42.34%      42.74%      40.96%      60.06%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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)  In 2000 the 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.

*    Annualized.


SEE NOTES TO FINANCIAL STATEMENTS

                                       57
<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS OPPORTUNITY FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS Y

<TABLE>
<CAPTION>
                                                       SIX MONTHS
                                                          ENDED                        YEAR ENDED DECEMBER 31,
                                                      JUNE 30, 2005     -----------------------------------------------------
                                                       (UNAUDITED)       2004       2003        2002        2001       2000(3)
                                                      -------------     ------     ------      ------      ------      ------
<S>                                                   <C>              <C>        <C>         <C>         <C>         <C>
Net Asset Value, Beginning of Period ...........         $ 23.81       $ 20.93    $ 14.80     $ 17.07     $ 18.83     $ 22.31
                                                         -------       -------    -------     -------     -------     -------

Income (Loss) From Investment Operations
   Net Investment Income (Loss) ................            0.06(4)       0.17      (0.02)      (0.02)      (0.03)      (0.04)
   Net Realized and Unrealized  Gains (Losses) .            0.36          2.71       6.15       (2.25)      (1.45)       2.24
                                                         -------       -------    -------     -------     -------     -------
       Total From Investment Operations ........            0.42          2.88       6.13       (2.27)      (1.48)       2.20
                                                         -------       -------    -------     -------     -------     -------

Dividends and Distributions
   Distributions from Realized Gains ...........              --            --         --          --       (0.27)      (5.68)
   Distributions in Excess of Net Realized Gains              --            --         --          --       (0.01)         --
                                                         -------       -------    -------     -------     -------     -------
       Total Dividends and Distributions .......              --            --         --          --       (0.28)      (5.68)
                                                         -------       -------    -------     -------     -------     -------
Net Asset Value, End of Period .................         $ 24.23       $ 23.81    $ 20.93     $ 14.80     $ 17.07     $ 18.83
                                                         =======       =======    =======     =======     =======     =======

Total Return(1) ................................            1.76%        13.76%     41.42%     (13.30)%     (7.81)%     11.83%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted) ....         $26,611       $17,287     $6,577      $4,353      $4,309      $4,176
   Ratio of Expenses to Average Net Assets .....            0.83%*        0.86%      0.93%       0.93%       0.91%       0.93%
   Ratio of Net Investment Income (Loss) to
     Average  Net Assets .......................            0.49%*        0.73%     (0.10)%     (0.11)%     (0.18)%     (0.33)%
   Portfolio Turnover Rate(2) ..................           27.66%        22.22%     42.34%      42.74%      40.96%      60.06%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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)  In 2000 the 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.

(4)  Per share calculations were based on average shares outstanding for the
     period.

*    Annualized.

SEE NOTES TO FINANCIAL STATEMENTS

                                       58
<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS GOVERNMENT BOND FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS A

<TABLE>
<CAPTION>
                                                       SIX MONTHS
                                                          ENDED                       YEAR ENDED DECEMBER 31,
                                                      JUNE 30, 2005    ------------------------------------------------------
                                                       (UNAUDITED)      2004         2003        2002        2001       2000
                                                      -------------    ------       ------      ------      ------     ------
<S>                                                       <C>          <C>          <C>         <C>         <C>        <C>
Net Asset Value, Beginning of Period ...............      $ 5.60       $ 5.73       $ 5.92      $ 5.68      $ 5.60     $ 5.38
                                                          ------       ------       ------      ------      ------     ------

Income From Investment  Operations
   Net Investment Income ...........................        0.08         0.14         0.09        0.21        0.26       0.29
   Net Realized and Unrealized Gains (Losses) ......       (0.04)       (0.13)       (0.08)       0.27        0.08       0.22
                                                          ------       ------       ------      ------      ------     ------
       Total From Investment Operations ............        0.04         0.01         0.01        0.48        0.34       0.51
                                                          ------       ------       ------      ------      ------     ------

Dividends and Distributions
   Net Investment Income ...........................       (0.08)       (0.14)       (0.17)      (0.23)      (0.26)     (0.29)
   Return of Capital ...............................          --           --(3)     (0.03)         --          --         --(3)
   Distribution in Excess of Net
     Investment Income .............................          --           --           --       (0.01)         --         --
                                                          ------       ------       ------      ------      ------     ------
       Total Dividends and Distributions ...........       (0.08)       (0.14)       (0.20)      (0.24)      (0.26)     (0.29)
                                                          ------       ------       ------      ------      ------     ------
Net Asset Value, End of Period .....................      $ 5.56       $ 5.60       $ 5.73      $ 5.92      $ 5.68     $ 5.60
                                                          ======       ======       ======      ======      ======     ======

Total Return(1) ....................................        0.68%        0.17%        0.10%       8.66%       6.27%      9.81%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted) ........     $19,457      $19,025      $25,168     $29,892     $18,198    $15,548
   Ratio of Expenses to Average Net Assets .........        1.14%*       1.25%        1.13%       1.08%       1.22%      1.27%
   Ratio of Net Investment Income
     to Average Net Assets .........................        2.82%*       1.84%        1.96%       3.40%       4.59%      5.33%
   Portfolio Turnover Rate(2) ......................       39.01%      165.17%      121.61%      69.89%     149.03%    140.66%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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)  Less than $0.005 per share.

*    Annualized.

SEE NOTES TO FINANCIAL STATEMENTS


                                       59
<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS GOVERNMENT BOND FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS B

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                                  <C>           <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period ...........     $ 5.59        $ 5.71       $ 5.91       $ 5.66       $ 5.58       $ 5.37
                                                     ------        ------       ------       ------       ------       ------

Income (Loss) From Investment Operations
   Net Investment Income .......................       0.06          0.10         0.03         0.17         0.23         0.24
   Net Realized and Unrealized Gains (Losses)...      (0.05)        (0.12)       (0.08)        0.28         0.07         0.21
                                                     ------        ------       ------       ------       ------       ------
       Total From Investment Operations ........       0.01         (0.02)       (0.05)        0.45         0.30         0.45
                                                     ------        ------       ------       ------       ------       ------
Dividends and Distributions
   Net Investment Income .......................      (0.06)        (0.10)       (0.12)       (0.19)       (0.22)       (0.24)
   Return of Capital ...........................         --            --(3)     (0.03)          --           --           --(3)
   Distribution in Excess of Net
     Investment Income .........................         --            --           --        (0.01)          --           --
                                                     ------        ------       ------       ------       ------       ------
       Total Dividends and Distributions .......      (0.06)        (0.10)       (0.15)       (0.20)       (0.22)       (0.24)
                                                     ------        ------       ------       ------       ------       ------

Net Asset Value, End of Period .................     $ 5.54        $ 5.59       $ 5.71       $ 5.91       $ 5.66       $ 5.58
                                                     ======        ======       ======       ======       ======       ======

Total Return(1) ................................       0.18%        (0.33)%      (0.80)%       8.05%        5.48%        8.80%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted) ....    $30,606       $34,921      $62,549      $99,461      $37,541      $17,331
   Ratio of Expenses to Average Net Assets .....       1.77%*        1.89%        1.82%        1.82%        1.94%        2.00%
   Ratio of Net Investment Income
     to Average Net Assets .....................       2.19%*        1.20%        1.27%        2.66%        3.87%        4.60%
   Portfolio Turnover Rate(2) ..................      39.01%       165.17%      121.61%       69.89%      149.03%      140.66%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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)  Less than $0.005 per share.

*    Annualized.


SEE NOTES TO FINANCIAL STATEMENTS

                                       60
<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS GOVERNMENT BOND FUND
================================================================================


    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS C

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001        2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                                  <C>           <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period......           $ 5.61        $ 5.73       $ 5.93       $ 5.68       $ 5.60       $ 5.39
                                                     ------        ------       ------       ------       ------       ------

Income (Loss) From Investment Operations
   Net Investment Income.................              0.06          0.10         0.01         0.17         0.23         0.24
   Net Realized and Unrealized Gains (Losses)         (0.05)        (0.12)       (0.06)        0.28         0.07         0.21
                                                     ------        ------       ------       ------       ------       ------

       Total From Investment Operations...             0.01         (0.02)       (0.05)        0.45         0.30         0.45
                                                     ------        ------       ------       ------       ------       ------

Dividends and Distributions
   Net Investment Income..................            (0.06)        (0.10)       (0.12)       (0.19)       (0.22)       (0.24)
   Return of Capital......................               --            --(3)     (0.03)          --           --           --(3)
   Distribution in Excess of Net
     Investment Income....................               --            --           --        (0.01)          --           --
                                                     ------        ------       ------       ------       ------       ------
       Total Dividends and Distributions..            (0.06)        (0.10)       (0.15)       (0.20)       (0.22)       (0.24)
                                                     ------        ------       ------       ------       ------       ------


Net Asset Value, End of Period............           $ 5.56        $ 5.61       $ 5.73       $ 5.93       $ 5.68       $ 5.60
                                                     ======        ======       ======       ======       ======       ======

Total Return(1)...........................             0.16%        (0.34)%      (0.80)%       8.03%        5.44%        8.75%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted)          $6,384        $6,688      $12,955      $25,107      $12,335       $2,872
   Ratio of Expenses to Average Net Assets             1.82%*        1.93%        1.85%        1.83%        1.96%        2.07%
   Ratio of Net Investment Income to
     Average Net Assets...................             2.14%*        1.16%        1.24%        2.65%        3.85%        4.53%
   Portfolio Turnover Rate(2).............            39.01%       165.17%      121.61%       69.89%      149.03%      140.66%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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)  Less than $0.005 per share.

*    Annualized.




SEE NOTES TO FINANCIAL STATEMENTS


                                       61

<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS GOVERNMENT BOND FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS Y



<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001        2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                                  <C>           <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period......           $ 5.65        $ 5.77       $ 5.97       $ 5.72       $ 5.64       $ 5.42
                                                     ------        ------       ------       ------       ------       ------
Income (Loss) From Investment  Operations
   Net Investment  Income.................             0.09          0.15         0.11         0.22         0.29         0.31
   Net Realized and Unrealized
     Gains (Losses).......................            (0.05)        (0.12)       (0.10)        0.28         0.07         0.22
                                                     ------        ------       ------       ------       ------       ------
       Total From Investment Operations...             0.04          0.03         0.01         0.50         0.36         0.53
                                                     ------        ------       ------       ------       ------       ------

Dividends and Distributions
   Net Investment Income..................            (0.09)        (0.15)       (0.18)       (0.25)       (0.28)       (0.31)
   Return of Capital......................               --            --(3)     (0.03)          --           --           --(3)
   Distribution in Excess of Net
     Investment Income....................               --            --           --           --(3)        --           --
                                                     ------        ------       ------       ------       ------       -----
       Total Dividends and Distributions..            (0.09)        (0.15)       (0.21)       (0.25)       (0.28)       (0.31)
                                                     ------        ------       ------       ------       ------       ------


Net Asset Value, End of Period............           $ 5.60        $ 5.65       $ 5.77       $ 5.97       $ 5.72       $ 5.64
                                                     ======        ======       ======       ======       ======       ======

Total Return(1)...........................             0.63%         0.61%        0.17%        9.05%        6.54%       10.08%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted)            $230          $219         $263         $296         $438         $117
   Ratio of Expenses to Average Net Assets             0.91%*        1.02%        0.92%        0.88%        0.96%        1.02%
   Ratio of Net Investment Income to
     Average Net Assets...................             3.05%*        2.07%        2.17%        3.60%        4.85%        5.58%
   Portfolio Turnover Rate(2).............            39.01%       165.17%      121.61%       69.89%      149.03%      140.66%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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)  Less than $0.005 per share.

*    Annualized.


SEE NOTES TO FINANCIAL STATEMENTS

                                       62

<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS GOVERNMENT MONEY MARKET FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

 CLASSES A, B, C, & Y

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                                  <C>           <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period....               $ 1.000     $ 1.000      $ 1.000      $ 1.000      $ 1.000      $ 1.000
                                                       -------     -------      -------      -------      -------      -------

Income From Investment Operations
    Net Investment Income...............                  .010        .008         .006         .014         .037         .058

Dividends
   Net Investment Income................                 (.010)      (.008)       (.006)       (.014)       (.037)       (.058)
                                                       -------     -------      -------      -------      -------      -------

Net Asset Value, End of Period..........               $ 1.000     $ 1.000      $ 1.000      $ 1.000      $ 1.000      $ 1.000
                                                       =======     =======      =======      =======      =======      =======

Total Return(1) ........................                  1.05%       0.83%        0.62%        1.38%        3.77%        5.91%

Ratios/Supplemental Data
     Net Assets, End of Period
       (000 omitted)....................              $559,658    $572,381     $571,431     $600,912     $505,713     $559,216
     Ratio of Expenses to Average Net
       Assets...........................                  0.56%*      0.58%        0.60%        0.59%        0.59%        0.59%
     Ratio of Net Investment Income to
       Average Net Assets...............                  2.11%*      0.83%        0.62%        1.35%        3.75%        5.77%
</TABLE>


(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. Total
    returns are not annualized for periods of less than one full year.

*   Annualized.




SEE NOTES TO FINANCIAL STATEMENTS

                                       63

<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS FINANCIAL FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS A

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                                  <C>           <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period....             $ 41.00       $ 36.57      $ 26.72      $ 32.98      $ 36.30      $ 29.07
                                                     -------       -------      -------      -------      -------      -------

Income (Loss) From Investment  Operations
   Net Investment Income (Loss).........                0.04          0.02         0.08         0.06        (0.06)       (0.06)
   Net Realized and Unrealized
     Gains (Losses).....................               (1.33)         4.41         9.77        (6.32)       (3.26)        9.22
                                                     -------       -------      -------      -------      -------      -------
       Total From Investment Operations.               (1.29)         4.43         9.85        (6.26)       (3.32)        9.16
                                                     -------       -------      -------      -------      -------      -------

Dividends and Distributions
   Distributions from Realized Gains....                  --            --           --           --           --        (1.91)
   Distribution in Excess of Net
     Realized Gains.....................                  --            --           --           --           --        (0.02)
                                                     -------       -------      -------      -------      -------      -------
       Total Dividends and Distributions                  --            --           --           --           --        (1.93)
                                                     -------       -------      -------      -------      -------      -------


Net Asset Value, End of Period..........             $ 39.71       $ 41.00      $ 36.57      $ 26.72      $ 32.98       $ 36.30
                                                     =======       =======      =======      =======      =======       =======

Total Return(1).........................               (3.15)%       12.11%       36.86%      (18.98)%      (9.15)%       32.16%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted)         $541,811      $583,387     $535,300     $415,641     $600,540      $637,882
   Ratio of Expenses to Average Net Assets              1.00%*        1.01%        1.10%        1.11%        1.08%         1.05%
   Ratio of Net Investment Income (Loss)
     to Average Net Assets..............                0.22%*        0.05%        0.27%        0.18%       (0.20)%       (0.21)%
   Portfolio Turnover Rate(2)...........                0.58%          --          9.29%       14.88%       17.80%        34.72%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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.

*    Annualized.









SEE NOTES TO FINANCIAL STATEMENTS

                                       64

<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS FINANCIAL FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS B

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                                 <C>            <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period......          $ 38.03        $ 34.22      $ 25.21      $ 31.39      $ 34.85      $ 28.22
                                                    -------        -------      -------      -------      -------      -------

Income  (Loss) From Investment  Operations
   Net Investment Loss....................            (0.13)         (0.33)       (0.18)       (0.21)       (0.33)       (0.31)
   Net Realized and Unrealized Gains (Losses)         (1.23)          4.14         9.19        (5.97)       (3.13)        8.87
                                                    -------        -------      -------      -------      -------      -------
       Total From Investment Operations...            (1.36)          3.81         9.01        (6.18)       (3.46)        8.56
                                                    -------        -------      -------      -------      -------      -------

Dividends and Distributions
   Distributions from Realized Gains......               --             --           --           --           --        (1.91)
   Distribution  in  Excess  of  Net
     Realized Gains.......................               --             --           --           --           --        (0.02)
                                                    -------        -------      -------      -------      -------      -------
       Total Dividends and Distributions..               --             --           --           --           --        (1.93)
                                                    -------        -------      -------      -------      -------      -------

Net Asset Value, End of Period............          $ 36.67        $ 38.03      $ 34.22      $ 25.21      $ 31.39      $ 34.85
                                                    =======        =======      =======      =======      =======      =======

Total Return(1)...........................            (3.58)%        11.13%       35.74%      (19.69)%      (9.93)%      31.00%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted)        $227,941       $276,945     $304,513     $270,645     $415,607     $447,199
   Ratio of Expenses to Average Net Assets             1.88%*         1.88%        1.98%        1.95%        1.90%        1.95%
   Ratio of Net Investment Loss
      to Average Net Assets...............            (0.66)%*       (0.82)%      (0.61)%      (0.66)%      (1.02)%      (1.11)%
   Portfolio Turnover Rate(2).............             0.58%            --         9.29%       14.88%       17.80%       34.72%
</TABLE>

(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
     are not annualized for periods of less than one full year.

(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.

*    Annualized.










SEE NOTES TO FINANCIAL STATEMENTS

                                       65

<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS FINANCIAL FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS C

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                              <C>              <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period.....           $ 38.62       $ 34.75      $ 25.61      $ 31.88      $ 35.40      $ 28.63
                                                    -------       -------      -------      -------      -------      -------

Income  (Loss) From Investment  Operations
   Net Investment Loss...................             (0.13)        (0.32)       (0.18)       (0.21)       (0.32)       (0.27)
   Net Realized and Unrealized Gains (Losses)         (1.25)         4.19         9.32        (6.06)       (3.20)        8.97
                                                    -------       -------      -------      -------      -------      -------
       Total From Investment Operations..             (1.38)         3.87         9.14        (6.27)       (3.52)        8.70
                                                    -------       -------      -------      -------      -------      -------

Dividends and Distributions
   Distributions from Realized Gains.....                --            --           --           --           --        (1.91)
   Distribution  in Excess  of Net
      Realized Gains ....................                --            --           --           --           --        (0.02)
                                                    -------       -------      -------      -------      -------      -------
       Total Dividends and Distributions.                --            --           --           --           --        (1.93)
                                                    -------       -------      -------      -------      -------      -------
Net Asset Value, End of Period...........           $ 37.24       $ 38.62      $ 34.75      $ 25.61      $ 31.88      $ 35.40
                                                    =======       =======      =======      =======      =======      =======

Total Return(1)..........................             (3.57)%       11.14%       35.69%      (19.67)%      (9.94)%      31.04%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted)         $93,133      $104,508     $108,557      $94,557     $145,817     $142,081
   Ratio of Expenses to Average Net Assets             1.88%*        1.89%        1.99%        1.96%        1.90%        1.93%
   Ratio of Net Investment Loss
     to Average Net Assets...............             (0.66)%*      (0.83)%      (0.62)%      (0.67)%      (1.02)%      (1.09)%
   Portfolio Turnover Rate(2)............              0.58%           --         9.29%       14.88%       17.80%       34.72%
</TABLE>


(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
     are not annualized for periods of less than one full year.

(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.

*    Annualized.








SEE NOTES TO FINANCIAL STATEMENTS

                                       66

<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS FINANCIAL FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS Y

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                              <C>               <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period.....           $ 41.59        $ 37.03      $ 27.00      $ 33.27      $ 36.56      $ 29.21
                                                    -------        -------      -------      -------      -------      -------

Income  (Loss) From Investment  Operations
   Net Investment Income (Loss)..........              0.08           0.09         0.17         0.14           --(3)     (0.01)
   Net Realized and Unrealized Gains (Losses)         (1.36)          4.47         9.86        (6.41)       (3.29)        9.29
                                                    -------        --------     -------      -------      -------      -------
       Total From Investment Operations..             (1.28)          4.56        10.03        (6.27)       (3.29)        9.28
                                                    -------        --------     -------      -------      -------      -------

Dividends and Distributions
   Distributions from Realized Gains.....                --             --           --           --           --        (1.91)
   Distribution in Excess of Net
     Realized Gains......................                --             --           --           --           --        (0.02)
                                                    -------        -------      -------      -------      -------      --------
       Total Dividends and Distributions.                --             --           --           --           --        (1.93)
                                                    -------        -------      -------      -------      -------      --------

Net Asset Value, End of Period...........           $ 40.31        $ 41.59      $ 37.03      $ 27.00      $ 33.27      $ 36.56
                                                    =======        =======      =======      =======      =======      =======

Total Return(1)..........................             (3.08)%        12.31%       37.15%      (18.85)%      (9.00)%      32.42%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted)          $8,948         $9,980      $11,563      $12,727      $23,266      $22,394
   Ratio of Expenses to Average Net Assets             0.85%*         0.85%        0.91%        0.88%        0.87%        0.89%
   Ratio of Net Investment Income
     (Loss) to Average Net Assets........              0.37%*         0.21%        0.46%        0.41%        0.01%       (0.05)%
   Portfolio Turnover Rate(2)............              0.58%            --         9.29%       14.88%       17.80%       34.72%
</TABLE>


(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
     are not annualized for periods of less than one full year.

(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)  Less than $0.005 per share.

*    Annualized.






SEE NOTES TO FINANCIAL STATEMENTS

                                       67

<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS APPRECIATION & INCOME FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS A

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                              <C>               <C>          <C>          <C>         <C>          <C>
Net Asset Value, Beginning of Period........         $ 27.50       $ 24.95      $ 20.30      $ 21.36     $ 23.96      $ 25.21
                                                     -------       -------      -------      -------     -------      -------

Income (Loss)  From Investment  Operations
   Net Investment Income....................            0.30          0.65         0.74         0.80        0.76         0.80
   Net Realized and Unrealized Gains (Losses)           0.30          2.57         4.65        (1.06)      (2.57)       (1.01)
                                                     -------       -------      -------      -------     -------      -------
       Total From Investment Operations.....            0.60          3.22         5.39        (0.26)      (1.81)       (0.21)
                                                     -------       -------      -------      -------     -------      -------

Dividends and Distributions
   Net Investment Income....................           (0.18)        (0.67)       (0.74)       (0.80)      (0.76)       (0.83)
   Distributions from Realized Gains........              --            --           --           --          --        (0.19)
   Return of Capital........................              --            --           --           --       (0.03)       (0.02)
                                                     -------       -------      -------      -------     -------      -------
       Total Dividends and Distributions....           (0.18)        (0.67)       (0.74)       (0.80)      (0.79)       (1.04)
                                                     -------       -------      -------      -------     -------      -------

Net Asset Value, End of Period..............         $ 27.92       $ 27.50      $ 24.95      $ 20.30     $ 21.36      $ 23.96
                                                     =======       =======      =======      =======     =======      =======

Total Return(1).............................            2.21%        13.08%       26.94%       (1.21)%     (7.56)%      (0.97)%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted).        $189,670      $149,687     $114,003      $80,751     $89,077     $102,702
   Ratio of Expenses to Average Net Assets..            1.07%*        1.08%        1.10%        1.09%       1.09%        1.07%
   Ratio of Net Investment Income
     to Average  Net Assets.................            2.29%*        2.52%        3.38%        3.69%       3.31%        3.02%
   Portfolio Turnover Rate(2)...............            5.98%        21.26%       33.35%       34.26%      20.38%       24.50%
</TABLE>

(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 are not
    annualized for periods of less than one full year.

(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.

*   Annualized.












SEE NOTES TO FINANCIAL STATEMENTS


                                       68

<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS APPRECIATION & INCOME FUND
================================================================================


    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:


CLASS B

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                              <C>               <C>         <C>           <C>          <C>          <C>
Net Asset Value, Beginning of Period....            $ 27.25        $ 24.72      $ 20.13      $ 21.16      $ 23.74      $ 24.98
                                                    -------        -------      -------      -------      -------      -------

Income (Loss) From Investment Operations
   Net Investment Income................               0.19           0.41         0.52         0.60         0.54         0.55
   Net Realized and Unrealized Gains (Losses)          0.28           2.54         4.59        (1.03)       (2.55)       (0.99)
                                                    -------        -------      -------      -------      -------      -------
       Total From  Investment Operations               0.47           2.95         5.11        (0.43)       (2.01)       (0.44)
                                                    -------        -------      -------      -------      -------      -------

Dividends and Distributions
   Net  Investment Income...............              (0.12)         (0.42)       (0.52)       (0.60)       (0.54)       (0.59)
   Distributions from Realized Gains....                 --             --           --           --           --        (0.19)
   Return of  Capital...................                 --             --           --           --        (0.03)       (0.02)
                                                    -------        -------      -------      --------     -------      -------
       Total Dividends and Distributions              (0.12)         (0.42)       (0.52)       (0.60)       (0.57)       (0.80)
                                                    -------        -------      -------      --------     -------      -------

Net Asset Value, End of Period..........            $ 27.60        $ 27.25      $ 24.72      $ 20.13      $ 21.16      $ 23.74
                                                    =======        =======      =======      ========     =======      =======

Total Return(1).........................               1.72%         12.06%       25.71%       (2.01)%      (8.47)%      (1.86)%

Ratios/Supplemental Data
   Net Assets,  End of Period
     (000 omitted)......................            $81,408        $80,729      $72,181      $53,326      $57,692      $71,789
   Ratio of Expenses to Average Net Assets             1.95%*         1.99%        2.03%        2.03%        2.01%(3)     2.02%(3)
   Ratio of Net Investment Income
     to Average Net Assets..............               1.41%*         1.61%        2.45%        2.75%        2.40%        2.08%
   Portfolio Turnover Rate(2)...........               5.98%         21.26%       33.35%       34.26%       20.38%       24.50%

</TABLE>


(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
     are not annualized for periods of less than one full year.

(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)  Ratio of expenses to average net assets after the reduction of expenses
     paid indirectly was 2.00% and 2.01% for 2001 and 2000, respectively.


*    Annualized.







SEE NOTES TO FINANCIAL STATEMENTS

                                       69


<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS APPRECIATION & INCOME FUND
================================================================================


    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS C

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                              <C>               <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period....             $ 27.62       $ 25.06      $ 20.40      $ 21.45      $ 24.06      $ 25.31
                                                     -------       -------      -------      -------      -------      -------

Income (Loss) From Investment Operations
   Net Investment Income................                0.19          0.42         0.53         0.61         0.55         0.56
   Net Realized and Unrealized Gains (Losses)           0.29          2.57         4.66        (1.05)       (2.58)       (1.00)
                                                     -------       -------      -------      -------      -------      -------
       Total From  Investment operations                0.48          2.99         5.19        (0.44)       (2.03)       (0.44)
                                                     -------       -------      -------      -------      -------      -------

Dividends and Distributions
   Net  Investment Income...............               (0.12)        (0.43)       (0.53)       (0.61)       (0.55)       (0.60)
   Distributions from Realized Gains....                  --            --           --           --           --        (0.19)
   Return of  Capital...................                  --            --           --           --        (0.03)       (0.02)
                                                     -------       -------      -------      -------      -------      -------
       Total Dividends and Distributions               (0.12)        (0.43)       (0.53)       (0.61)       (0.58)       (0.81)
                                                     -------       -------      -------      -------      -------      -------

Net Asset Value, End of Period..........             $ 27.98       $ 27.62      $ 25.06      $ 20.40      $ 21.45      $ 24.06
                                                     =======       =======      =======      =======      ========     =======

Total Return(1).........................                1.75%        12.05%       25.75%       (2.04)%      (8.44)%      (1.83)%

Ratios/Supplemental Data
   Net Assets,  End of Period
     (000 omitted)......................             $43,254       $34,627      $24,531      $14,428      $12,717      $15,983
   Ratio of Expenses to Average Net
     Assets...............                              1.95%*        1.98%        2.02%        2.05%(3)     2.02%        2.01%(3)
   Ratio of Net Investment Income
     to Average Net Assets..............                1.41%*        1.62%        2.46%        2.74%        2.38%        2.09%
   Portfolio Turnover Rate(2)...........                5.98%        21.26%       33.35%       34.26%       20.38%       24.50%

</TABLE>

(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 are not
    annualized for periods of less than one full year.

(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) Ratio of expenses to average net assets after the reduction of expenses paid
    indirectly was 2.04% and 2.00% for 2002 and 2000, respectively.


*   Annualized.





SEE NOTES TO FINANCIAL STATEMENTS

                                       70


<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS APPRECIATION & INCOME FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS Y

<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                              <C>               <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period....             $ 27.61       $ 25.04      $ 20.38      $ 21.43      $ 24.05      $ 25.29
                                                     -------       -------      -------      -------      -------      -------

Income (Loss) From Investment Operations
   Net Investment Income................                0.34          0.71         0.78         0.84         0.82         0.86
   Net Realized and Unrealized Gains (Losses)           0.29          2.58         4.66        (1.05)       (2.61)       (1.00)
                                                     -------       -------      -------      -------      -------      -------
       Total From  Investment Operations                0.63          3.29         5.44        (0.21)       (1.79)       (0.14)
                                                     -------       -------      -------      -------      -------      -------

Dividends and Distributions
   Net Investment Income................               (0.20)        (0.72)       (0.78)       (0.84)       (0.82)       (0.89)
   Distributions from Realized Gains....                  --            --           --           --           --        (0.19)
   Return of  Capital...................                  --            --           --           --        (0.01)       (0.02)
                                                     -------       -------      -------      -------      -------      -------
       Total Dividends and Distributions               (0.20)        (0.72)       (0.78)       (0.84)       (0.83)       (1.10)
                                                     -------       -------      -------      -------      -------      -------

Net Asset Value, End of Period..........             $ 28.04       $ 27.61      $ 25.04      $ 20.38      $ 21.43      $ 24.05
                                                     =======       =======      =======      =======      =======      =======

Total Return(1).........................                2.30%        13.35%       27.13%       (0.96)%      (7.43)%      (0.70)%

Ratios/Supplemental Data
   Net Assets,  End of Period
     (000 omitted)......................             $32,304       $30,260      $25,892      $19,445      $20,865      $28,865
   Ratio of Expenses to Average Net Assets              0.83%*        0.86%        0.88%        0.88%        0.88%        0.88%(3)
   Ratio of Net Investment Income
     to Average Net Assets..............                2.53%*        2.74%        3.60%        3.90%        3.52%        3.22%
   Portfolio Turnover Rate(2)...........                5.98%        21.26%       33.35%       34.26%       20.38%       24.50%

</TABLE>

(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
     are not annualized for periods of less than one full year.

(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)  Ratio of expenses to average net assets after the reduction of expenses
     paid indirectly was 0.87% for 2000.

*   Annualized.







SEE NOTES TO FINANCIAL STATEMENTS

                                       71


<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS REAL ESTATE FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS A


<TABLE>
<CAPTION>
                                                  SIX MONTHS
                                                     ENDED                        YEAR ENDED DECEMBER 31,
                                                 JUNE 30, 2005     ---------------------------------------------------------
                                                  (UNAUDITED)       2004         2003         2002         2001         2000
                                                 -------------     ------       ------       ------       ------       ------
<S>                                              <C>               <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period......          $ 39.52        $ 30.32      $ 22.79      $ 22.29      $ 22.06      $ 18.27
                                                    -------        -------      -------      -------      -------      -------

Income From Investment  Operations
   Net Investment Income..................             0.55           0.64         0.90         0.82         0.77         0.75
   Net Realized and Unrealized Gains......             0.91           9.32         7.53         0.50         0.45         3.88
                                                    -------        -------      -------      -------      -------      -------
       Total From  Investment Operations..             1.46           9.96         8.43         1.32         1.22         4.63
                                                    -------        -------      -------      -------      -------      -------

Dividends and Distributions
   Net Investment Income..................            (0.20)         (0.76)       (0.90)       (0.82)       (0.77)       (0.75)
   Distribution in Excess of Net
     Investment Income                                   --             --           --           --        (0.22)       (0.09)
                                                    --------       -------      -------      -------      -------      -------
       Total Dividends and Distributions..            (0.20)         (0.76)       (0.90)       (0.82)       (0.99)       (0.84)
                                                    --------       -------      -------      -------      -------      -------

Net Asset Value, End of Period............          $ 40.78        $ 39.52      $ 30.32      $ 22.79      $ 22.29      $ 22.06
                                                    =======        =======      =======      =======      =======      =======

Total Return(1)...........................             3.76%         33.22%       37.52%        5.89%        5.66%       25.76%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted)        $345,342       $313,378     $190,505     $143,585     $167,043     $176,123
   Ratio of Expenses to Average Net
     Assets...............................             1.11%*         1.26%        1.30%        1.28%        1.19%        1.17%(3)
   Ratio of Net Investment Income to
     Average Net Assets...................             2.91%*         1.93%        3.40%        3.17%        3.41%        3.76%
   Portfolio Turnover Rate(2).............             9.15%         31.37%       25.93%       52.57%       34.91%       17.68%

</TABLE>


(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
     are not annualized for periods of less than one full year.

(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)  Ratio of expenses to average net assets after the reduction of expenses
     paid indirectly was 1.16% for 2000.

*    Annualized.









SEE NOTES TO FINANCIAL STATEMENTS

                                       72


<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS REAL ESTATE FUND


    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS B

<TABLE>
<CAPTION>
                                                   SIX MONTHS
                                                      ENDED                       YEAR ENDED DECEMBER 31,
                                                  JUNE 30, 2005    ---------------------------------------------------------
                                                   (UNAUDITED)      2004         2003         2002         2001         2000
                                                  -------------    ------       ------       ------       ------       ------
<S>                                                  <C>           <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period........         $ 39.36       $ 30.20      $ 22.71      $ 22.21      $ 21.99      $ 18.21
                                                     -------       -------      -------      -------      -------      -------

Income From Investment  Operations
   Net Investment Income....................            0.39          0.43         0.72         0.65         0.56         0.58
   Net Realized and Unrealized Gains........            0.92          9.26         7.49         0.50         0.45         3.87
                                                     -------       -------      -------      -------      -------      -------
       Total From  Investment Operations....            1.31          9.69         8.21         1.15         1.01         4.45
                                                     -------       -------      -------      -------      -------      -------

Dividends and Distributions
   Net Investment Income....................           (0.13)        (0.53)       (0.72)       (0.65)       (0.56)       (0.58)
   Distributions in Excess of Net
     Investment Income......................              --            --           --           --        (0.23)       (0.09)
                                                     -------       -------      -------      -------      -------      -------
       Total Dividends and Distributions....           (0.13)        (0.53)       (0.72)       (0.65)       (0.79)       (0.67)
                                                     -------       -------      -------      -------      -------      -------

Net Asset Value, End of Period..............         $ 40.54       $ 39.36      $ 30.20      $ 22.71      $ 22.21      $ 21.99
                                                     =======       =======      =======      =======      =======      =======

Total Return(1).............................            3.38%        32.34%       36.52%        5.13%        4.70%       24.74%

Ratios/Supplemental Data
   Net Assets, End of Period (000 omitted)..        $103,724      $125,550     $110,303      $91,740      $87,899      $90,417
   Ratio of Expenses to Average Net Assets..            1.90%*        1.94%        1.99%        2.00%        1.99%        2.11%
   Ratio of Net Investment Income to
     Average Net Assets.....................            2.12%*        1.25%        2.71%        2.45%        2.61%        2.81%
   Portfolio Turnover Rate(2)...............            9.15%        31.37%       25.93%       52.57%       34.91%       17.68%

</TABLE>


(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
     are not annualized for periods of less than one full year.

(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.

*    Annualized.












SEE NOTES TO FINANCIAL STATEMENTS

                                       73


<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS REAL ESTATE FUND
================================================================================

    The following financial information represents selected data for each share
of capital stock outstanding throughout each period:

CLASS C


<TABLE>
<CAPTION>
                                                   SIX MONTHS
                                                      ENDED                       YEAR ENDED DECEMBER 31,
                                                  JUNE 30, 2005    ---------------------------------------------------------
                                                   (UNAUDITED)      2004         2003         2002         2001         2000
                                                  -------------    ------       ------       ------       ------       ------
<S>                                               <C>              <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period.............    $ 39.63       $ 30.41      $ 22.87      $ 22.37      $ 22.14      $ 18.34
                                                     -------       -------      -------      -------      -------      -------

Income From Investment  Operations
   Net Investment Income.........................       0.42          0.43         0.72         0.65         0.56         0.58
   Net Realized and Unrealized Gains.............       0.92          9.33         7.54         0.50         0.47         3.89
                                                     -------       -------      -------      -------      -------      -------
       Total From  Investment Operations.........       1.34          9.76         8.26         1.15         1.03         4.47
                                                     -------       -------      -------      -------      -------      -------

Dividends and Distributions
   Net Investment Income.........................      (0.14)        (0.54)       (0.72)       (0.65)       (0.56)       (0.58)
   Distributions in Excess of Net Investment
      Income.....................................         --            --           --           --        (0.24)       (0.09)
                                                     -------       -------      -------      -------      -------      -------
       Total Dividends and Distributions.........      (0.14)        (0.54)       (0.72)       (0.65)       (0.80)       (0.67)
                                                     -------       -------      -------      -------      -------      -------

Net Asset Value, End of Period...................    $ 40.83       $ 39.63      $ 30.41      $ 22.87      $ 22.37      $ 22.14
                                                     =======       =======      =======      =======      =======      =======

Total Return(1) .................................       3.42%        32.37%       36.52%        5.11%        4.75%       24.71%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted)......    $93,940       $86,835      $57,657      $38,299      $39,165      $36,084
   Ratio of Expenses to Average Net Assets.......       1.89%*        1.93%        1.97%        1.97%        1.97%(3)     2.03%(3)
   Ratio of Net Investment Income to Average Net
     Assets......................................       2.13%*        1.26%        2.73%        2.48%        2.64%        2.90%
   Portfolio Turnover Rate(2)....................       9.15%        31.37%       25.93%       52.57%       34.91%       17.68%

</TABLE>


(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
     are not annualized for periods of less than one full year.

(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)  Ratio of expenses to average net assets after the reduction of expenses
     paid indirectly was 1.96% and 2.02% for 2001 and 2000, respectively.

*    Annualized.






SEE NOTES TO FINANCIAL STATEMENTS

                                       74


<PAGE>

DAVIS SERIES, INC.
FINANCIAL HIGHLIGHTS
DAVIS REAL ESTATE FUND
================================================================================

The following financial information represents selected data for each share of
capital stock outstanding throughout each period:

CLASS Y

<TABLE>
<CAPTION>
                                                   SIX MONTHS
                                                      ENDED                       YEAR ENDED DECEMBER 31,
                                                  JUNE 30, 2005    ---------------------------------------------------------
                                                   (UNAUDITED)      2004         2003         2002         2001         2000
                                                  -------------    ------       ------       ------       ------       ------
<S>                                               <C>              <C>          <C>          <C>          <C>          <C>
Net Asset Value, Beginning of Period........         $ 39.78       $ 30.51      $ 22.93      $ 22.42      $ 22.20      $ 18.38
                                                     -------       -------      -------      -------      -------      -------

Income From Investment  Operations
   Net Investment Income....................            0.62          0.82         1.02         0.91         0.85         0.83
   Net Realized and Unrealized Gains........            0.93          9.37         7.58         0.51         0.44         3.91
                                                     -------       -------      -------      -------      -------      -------
       Total From  Investment Operations....            1.55         10.19         8.60         1.42         1.29         4.74
                                                     -------       -------      -------      -------      -------      -------

Dividends and Distributions
   Net Investment Income....................           (0.24)        (0.92)       (1.02)       (0.91)       (0.85)       (0.83)
   Distribution in Excess of Net Investment
     Income.................................              --            --           --           --        (0.22)       (0.09)
                                                     -------       -------      -------      -------      -------      -------
       Total Dividends and Distributions....           (0.24)        (0.92)       (1.02)       (0.91)       (1.07)       (0.92)
                                                     -------       -------      -------      -------      -------      -------

Net Asset Value, End of Period..............         $ 41.09       $ 39.78      $ 30.51      $ 22.93      $ 22.42      $ 22.20
                                                     =======       =======      =======      =======      =======      =======

Total Return(1).............................            3.98%        33.85%       38.10%        6.33%        5.95%       26.24%

Ratios/Supplemental Data
   Net Assets,  End of Period (000 omitted).         $71,927       $69,241      $53,740      $39,456      $39,203      $43,432
   Ratio of Expenses to Average Net Assets..            0.77%*        0.80%        0.84%        0.84%        0.85%        0.89%
   Ratio of Net Investment Income to Average
     Net Assets.............................            3.25%*        2.39%        3.86%        3.61%        3.75%        4.03%
   Portfolio Turnover Rate(2)...............            9.15%        31.37%       25.93%       52.57%       34.91%       17.68%

</TABLE>


(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
     are not annualized for periods of less than one full year.

(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.

*    Annualized.










SEE NOTES TO FINANCIAL STATEMENTS


                                       75


<PAGE>

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.











                                       76











<PAGE>




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, prepares questions which it submits to
Davis Advisors in anticipation of the annual contract review. In a separate
meeting held prior to the March 2005 board meeting, the Independent Directors
reviewed and evaluated all information which they deemed reasonably necessary in
the circumstances. Upon completion of this review, the Independent Directors
recommended that the full Board of Directors approve the continuance of the
Advisory Agreements, which occurred at the March 2005 board meeting.

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 for each of the Davis Funds described below.

The Independent Directors noted the importance of reviewing quantitative
measures, but also recognize that qualitative factors, some of which are
mentioned below, could be equally or more important in assessing whether Davis
Fund shareholders have been, or are likely to be, well served by the renewal of
the management contract. 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 Davis Funds. In connection with reviewing comparative
performance information, the Independent Directors generally give weight to
longer-term measurements.

The Independent Directors believe that shareholders of Davis Funds should, and
will, expect Davis Advisors to employ a disciplined, company specific, research
driven, businesslike, long-term investment philosophy. The Independent Directors
concluded that the willingness of Davis Advisors and related persons to invest a
substantial amount of their own money alongside and on the same terms as other
shareholders in the Davis Funds demonstrates a good alignment of interest
between Davis Advisors and Davis Fund shareholders.

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 the longer-term; (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.


                                       77


<PAGE>


DAVIS SERIES, INC.
DIRECTOR APPROVAL OF ADVISORY AGREEMENTS - (Continued)
================================================================================

The Independent Directors also noted that Davis Advisors provides a number of
services to the Davis Funds in addition to investment management. Non-investment
management services provided by Davis Advisors to the Davis Funds include (a)
extensive customer services to Fund shareholders; (b) responsibility for
complying with legal duties and regulatory obligations; and (c) responsibility
for general administrative and business services. Davis Advisors is reimbursed a
portion of its costs in providing some, but not all, of these services.

The Independent Directors reviewed (a) comparative fee and expense information
for competitive 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 and, if applicable, breakpoints of the
various Davis Funds, including an assessment of competitive fee schedules.

The Independent Directors reviewed the profitability of each Davis Fund to Davis
Advisors. The Independent Directors considered various potential benefits that
Davis Advisors may receive in connection with the services it provides under the
Advisory Agreements with each Davis Fund, 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 third-party research services.

DAVIS OPPORTUNITY FUND

The Independent Directors noted that Davis Opportunity Fund out-performed its
benchmark, the Dow Jones Wilshire 5000 Index, and exceeded the average
performance of its peer group, as determined by an independent service provider,
over longer-term investment horizons.

The Independent Directors considered the expense ratio for Davis Opportunity
Fund and concluded that it is reasonable and competitive with the range of
average expense ratios of its peer group as determined by an independent service
provider.

The Independent Directors considered the advisory fee schedule for Davis
Opportunity Fund and concluded that it represents an appropriate sharing between
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 its
benchmark, the Lehman Brothers Intermediate Term U.S. Securities Index, and
trailed the average performance of its peer group, as determined by an
independent service provider, over longer-term investment horizons. In February
2005, Davis Government Bond Fund changed its investment strategy from focusing
upon intermediate government bonds to shorter-term government bonds. The
Independent Directors will continue to closely monitor the performance of the
Fund.

In February 2005 the Fund's advisory fee was reduced from 50 basis points to 30
basis points. The Independent Directors determined that the new advisory fee for
Davis Government Bond Fund is reasonable in light of the nature, quality and
extent of the services being provided to Davis Government Bond Fund, 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.


                                       78

<PAGE>


DAVIS SERIES, INC.
DIRECTOR APPROVAL OF ADVISORY AGREEMENTS - (Continued)
================================================================================

DAVIS GOVERNMENT BOND FUND - (CONTINUED)

The Independent Directors considered the current expense ratio for Davis
Government Bond Fund, including the effects of the fee reduction in February
2005, and concluded that it is reasonable and competitive with the range of
average expense ratios of its peer group as determined by an independent service
provider.

The Independent Directors considered the advisory fee schedule (a flat fee which
is typical for many competitive funds) for Davis Government Bond Fund and
concluded that it represents an appropriate sharing between 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, as determined by an independent
service provider, over all reviewed investment horizons.

The Independent Directors considered the expense ratio for Davis Government
Money Market Fund and concluded that it is reasonable and competitive with the
range of average expense ratios of its peer group as determined by an
independent service provider.

The Independent Directors considered the advisory fee schedule for Davis
Government Money Market Fund and concluded that it represents an appropriate
sharing between 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(R) Index, over longer-term investment
horizons. Davis Financial Fund exceeded the average performance of its peer
group, as determined by an independent service provider, over the 10-year
investment horizon, while trailing the peer group over shorter investment
horizons. The Fund also had positive absolute performance over all reviewed
periods.

The Independent Directors considered the expense ratio for Davis Financial Fund
and concluded that it is reasonable and competitive with the range of average
expense ratios of its peer group as determined by an independent service
provider.

The Independent Directors considered the advisory fee schedule for Davis
Financial Fund and concluded that it represents an appropriate sharing between
Fund shareholders and Davis Advisors of such economies of scale as may exist in
the management of the Fund at current asset levels.


                                       79

<PAGE>


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(R) Index, over shorter
investment periods, and exceeded the average performance of its peer group, as
determined by an independent service provider, over all investment horizons
reviewed.

The Independent Directors considered the expense ratio for Davis Appreciation &
Income Fund and concluded that it is reasonable and competitive with the range
of average expense ratios of its peer group as determined by an independent
service provider.

The Independent Directors considered the advisory fee schedule for Davis
Appreciation & Income Fund and concluded that it represents an appropriate
sharing between 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 trailed its
benchmark, the Dow Jones Wilshire Real Estate Securities Index, over longer-term
investment horizons. Davis Real Estate Fund exceeded the average performance of
its peer group, as determined by an independent service provider, over the
1-year investment horizon, trailed the peer group over the 5-year investment
horizon, and approximately equaled the peer group over the 10-year investment
horizon. The Fund also had strong absolute performance over all reviewed
periods.

The Independent Directors considered the expense ratio for Davis Real Estate
Fund and concluded that it is reasonable and competitive with the range of
average expense ratios of its peer group as determined by an independent service
provider.

The Independent Directors considered the advisory fee schedule for Davis Real
Estate Fund and concluded that it represents an appropriate sharing between Fund
shareholders and Davis Advisors of such economies of scale as may exist in the
management of the Fund at current asset levels.

APPROVAL OF ADVISORY ARRANGEMENTS

After their review of all factors, including the recent reduction in the
Government Bond Fund advisory fee, the Independent Directors determined that the
advisory fee for each Davis Series Fund was reasonable in light of the nature,
quality and extent of the services being provided to each Fund, 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 therefore recommended
continuation of the advisory agreements.


                                       80


<PAGE>


DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================


                                    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
85706. 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-two
(72), except that any person who was a Director on July 1, 1994, and at that
date was seventy-three (73) years of age or less shall retire from the Board of
Directors and cease being a Director at the close of business on the last day of
the year in which the Director attains age seventy-four (74).


<TABLE>
<CAPTION>

                                                                               NUMBER OF
                                    TERM OF                                    PORTFOLIOS IN
                                    OFFICE AND     PRINCIPAL                   FUND COMPLEX     OTHER
                   POSITION(S)      LENGTH OF      OCCUPATION(S) DURING        OVERSEEN BY      DIRECTORSHIPS HELD
NAME AND AGE       HELD WITH FUND   TIME SERVED    PAST FIVE YEARS             DIRECTOR         BY DIRECTOR
------------------ ---------------- -------------- ------------------------    ---------------- --------------------
<S>                <C>              <C>            <C>                              <C>         <C>
INDEPENDENT DIRECTORS

WESLEY E.          Director         director       President, Bass &                 12         none
BASS, JR.                           since 1990     Associates (financial
(born 8/21/31)                                     consulting); formerly
                                                   First Deputy City Treasurer,
                                                   City of Chicago; and
                                                   Executive Vice President,
                                                   Chicago Title and Trust
                                                   Company (bank and trust).

MARC P. BLUM       Director         director       Chief Executive                   12         Director, Legg
(born 9/9/42)                       since 1986     Officer, World Total                         Mason Trust (asset
                                                   Return Fund, LLLP; Of                        management
                                                   Counsel to Gordon,                           company) and
                                                   Feinblatt, Rothman,                          Rodney Trust
                                                   Hoffberger and                               Company (Delaware).
                                                   Hollander, LLC (law
                                                   firm).

THOMAS S. GAYNER   Director         director       Executive Vice                    12         none
(born 12/16/61)                     since 2004     President and Chief
                                                   Investment Officer,
                                                   Markel Corporation
                                                   (insurance company).


JERRY D. GEIST     Director         director       Chairman, Santa Fe                12         Director,
(born 5/23/34)                      since 1986     Center Enterprises                           CH2M-Hill, Inc.
                                                   (energy project                              (engineering);
                                                   development); Retired                        Chairman, Santa Fe
                                                   Chairman and                                 Center
                                                   President, Public                            Enterprizes,
                                                   Service Company of New                       Investment
                                                   Mexico.                                      Committee for
                                                                                                Microgeneration
                                                                                                Technology Fund,
                                                                                                UTECH Funds.
</TABLE>


                                       81


<PAGE>


DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================

<TABLE>
<CAPTION>
                              DIRECTORS - CONTINUED

                                                                                 NUMBER OF
                                    TERM OF                                      PORTFOLIOS IN
                                    OFFICE AND     PRINCIPAL                     FUND COMPLEX     OTHER
                   POSITION(S)      LENGTH OF      OCCUPATION(S) DURING          OVERSEEN BY      DIRECTORSHIPS HELD
NAME AND AGE       HELD WITH FUND   TIME SERVED    PAST FIVE YEARS               DIRECTOR         BY DIRECTOR
------------------ ---------------- -------------- ------------------------      ---------------- --------------------
<S>                <C>              <C>            <C>                                <C>         <C>

INDEPENDENT DIRECTORS - CONTINUED

D. JAMES GUZY      Director         director       Chairman, PLX                       12         Director, Intel
(born 3/7/36)                       since 1982     Technology, Inc.                               Corp.
                                                   (semi-conductor                                (semi-conductor
                                                   manufacturer).                                 manufacturer),
                                                                                                  Cirrus Logic Corp.
                                                                                                  (semi-conductor
                                                                                                  manufacturer),
                                                                                                  Alliance
                                                                                                  Technology Fund (a
                                                                                                  mutual fund),
                                                                                                  Micro Component
                                                                                                  Technology, Inc.
                                                                                                  (micro-circuit
                                                                                                  handling and
                                                                                                  testing equipment
                                                                                                  manufacturer),
                                                                                                  LogicVision, Inc.
                                                                                                  (semi-conductor
                                                                                                  software company),
                                                                                                  and Tessera
                                                                                                  Technologies, Inc.
                                                                                                  (semi-conductor
                                                                                                  packaging company.

G. BERNARD         Director         director       Managing General                    12         none
HAMILTON                            since 1978     Partner, Avanti
(born 3/18/37)                                     Partners, L.P.
                                                   (investment
                                                   partnership).

ROBERT P.          Director         director       Chairman, Northroad                 12         none
MORGENTHAU                          since 2002     Capital Management,
(born 3/22/57)                                     LLC (an investment
                                                   management firm) since June
                                                   2002; President of Private
                                                   Advisory Services of Bank of
                                                   America (an investment
                                                   management firm) from 2001
                                                   until 2002; prior to that a
                                                   managing director and global
                                                   head of marketing and
                                                   distribution for Lazard Asset
                                                   Management (an investment
                                                   management firm) for ten
                                                   years.

THEODORE B.        Director         director       Chairman, Cantrock                  12         none
SMITH, JR.                          since 1994     Realty and Mayor,
(born 12/23/32)                                    Incorporated Village
                                                   of Mill Neck, NY.
</TABLE>

                                       82

<PAGE>

DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================


                              DIRECTORS - CONTINUED

<TABLE>
<CAPTION>

                                                                                 NUMBER OF
                                    TERM OF                                      PORTFOLIOS IN
                                    OFFICE AND     PRINCIPAL                     FUND COMPLEX     OTHER
                   POSITION(S)      LENGTH OF      OCCUPATION(S) DURING          OVERSEEN BY      DIRECTORSHIPS HELD
NAME AND AGE       HELD WITH FUND   TIME SERVED    PAST FIVE YEARS               DIRECTOR         BY DIRECTOR
------------------ ---------------- -------------- ------------------------      ---------------- --------------------
<S>                <C>              <C>            <C>                                <C>         <C>

INDEPENDENT DIRECTORS - CONTINUED

CHRISTIAN R.       Director         director       General Partner,                    12         none
SONNE                               since 1990     Tuxedo Park Associates
(born 5/6/36)                                      (land holding and
                                                   development firm);
                                                   President and Chief
                                                   Executive Officer,
                                                   Mulford Securities
                                                   Corporation (private
                                                   investment fund) until
                                                   1990; formerly Vice
                                                   President of Goldman
                                                   Sachs & Co.
                                                   (investment banking).

MARSHA WILLIAMS    Director         director       Executive Vice                      15         Director of the
(born 3/28/51)                      since 1999     President and Chief                            Selected Funds
                                                   Financial Officer of                           (consisting of
                                                   Equity Office                                  three portfolios)
                                                   Properties Trust (a                            since 1996;
                                                   real estate investment                         Director, Modine
                                                   trust); Former Chief                           Manufacturing,
                                                   Administrative Officer                         Inc. (heat
                                                   of Crate & Barrel                              transfer
                                                   (home furnishings                              technology);
                                                   retailer); former Vice                         Director, Chicago
                                                   President and                                  Bridge & Iron
                                                   Treasurer, Amoco                               Company, N.V.
                                                   Corporation (oil & gas                         (industrial
                                                   company).                                      construction and
                                                                                                  engineering).

INSIDE DIRECTORS*

JEREMY H. BIGGS    Director/        director       Vice Chairman, Member               12         none
(born 8/16/35)     Chairman         since 1994     of the Investment
                                                   Policy Committee and Member
                                                   of the International
                                                   Investment Committee, all for
                                                   Fiduciary Trust Company
                                                   International (money
                                                   management firm); Consultant
                                                   to Davis Selected Advisers,
                                                   L.P.
</TABLE>



                                       83

<PAGE>


DAVIS SERIES, INC.
2949 East Elvira Road, Suite 101
Tucson, Arizona 85706
================================================================================


                              DIRECTORS - CONTINUED


<TABLE>
<CAPTION>
                                                                            NUMBER OF
                                    TERM OF                                 PORTFOLIOS IN
                                    OFFICE AND     PRINCIPAL                FUND COMPLEX     OTHER
                   POSITION(S)      LENGTH OF      OCCUPATION(S) DURING     OVERSEEN BY      DIRECTORSHIPS HELD
NAME AND AGE       HELD WITH FUND   TIME SERVED    PAST FIVE YEARS          DIRECTOR         BY DIRECTOR
------------------ ---------------- -------------- ------------------------ ---------------- --------------------
<S>                <C>              <C>            <C>                           <C>         <C>

INSIDE DIRECTORS* - CONTINUED

ANDREW A. DAVIS    Director         director       President or Vice              15         Director of the
(born 6/25/63)                      since 1997     President of each                         Selected Funds
                                                   Davis Fund and                            (consisting of
                                                   Selected Fund;                            three portfolios)
                                                   President, Davis                          since 1998.
                                                   Selected Advisers,
                                                   L.P., and also serves
                                                   as an executive
                                                   officer in certain
                                                   companies affiliated
                                                   with the Adviser.

CHRISTOPHER C.     Director         director       Chief Executive                15         Director of the
DAVIS                               since 1997     Officer, President or                     Selected Funds
(born 7/13/65)                                     Vice President of each                    (consisting of
                                                   Davis Fund and                            three portfolios)
                                                   Selected Fund;                            since 1998.
                                                   Chairman and Chief
                                                   Executive Officer,
                                                   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).

</TABLE>


*    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.



                                       84
<PAGE>












                 (This page has been left blank intentionally.)
















<PAGE>





                               DAVIS SERIES, INC.
                  2949 East Elvira Road, Tucson, Arizona 85706
================================================================================
<TABLE>
<CAPTION>
<S>                                                                    <C>
                                DIRECTORS                                 OFFICERS
                            Wesley E. Bass, Jr.                        Jeremy H. Biggs
                            Jeremy H. Biggs                              Chairman
                            Marc P. Blum                               Andrew A. Davis
                            Andrew A. Davis                              President - Davis Appreciation & Income
                            Christopher C. Davis                         Fund, Davis Real Estate Fund & Vice
                            Thomas S. Gayner                             President - Davis Opportunity
                            Jerry D. Geist                               Fund, Davis Government Bond Fund, Davis
                            D. James Guzy                                Government Money Market Fund, & Davis
                            G. Bernard Hamilton                          Financial Fund
                            Robert P. Morgenthau                       Christopher C. Davis
                            Theodore B. Smith, Jr.                       President - Davis Opportunity
                            Christian R. Sonne                           Fund, Davis Financial Fund & Vice
                            Marsha Williams                              President - Davis Government Bond Fund,
                                                                         Davis Government Money Market Fund,
                                                                         Davis Appreciation & Income Fund, &
                                                                         Davis Real Estate Fund
                                                                       Creston A. King
                                                                         President - Davis Government Money
                                                                         Market Fund & Davis Government Bond
                                                                         Fund
INVESTMENT ADVISER                                                     Kenneth C. Eich
Davis Selected Advisers, L.P. (Doing business as "Davis Advisors")       Executive Vice President &
2949 East Elvira Road, Suite 101                                         Principal Executive Officer
Tucson, Arizona 85706                                                  Sharra L. Reed
(800) 279-0279                                                           Vice President & Chief Compliance Officer
                                                                       Douglas A. Haines
DISTRIBUTOR                                                              Vice President
Davis Distributors, LLC                                                  & Principal Accounting Officer
2949 East Elvira Road, Suite 101                                       Thomas D. Tays
Tucson, Arizona 85706                                                    Vice President & Secretary

TRANSFER AGENT & CUSTODIAN
State Street Bank and Trust Company
c/o The Davis Funds
P.O. Box 8406
Boston, Massachusetts 02266-8406

COUNSEL
Seyfarth Shaw LLC
55 East Monroe Street, Suite 4200
Chicago, Illinois 60603-5803

AUDITORS
KPMG LLP
707 Seventeenth Street, Suite 2700
Denver, Colorado 80202

</TABLE>



================================================================================
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.
================================================================================


<PAGE>




                                               Davis Advisors
                                               2949 East Elvira Road, Suite 101
                                               Tucson, AZ 85706
                                               800-279-0279
                                               davisfunds.com





[DAVIS FUNDS LOGO]

Item 2.  Code of Ethics - Not Applicable

Item 3.  Audit Committee Financial Expert - Not Applicable

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

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.  Purchase of Equity Securities by Closed-End Mangement Investment
         Company and Affiliated Purchases - Not Applicable

Item 10. Submission of Matters to a Vote of Security Holders.

	 There have been no changes to the procedures by which shareholders
	 may recommend nominees to the registrant's Board of Trustees.

Item 11. Controls and Procedures.

	 (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-2(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

	 EX-99.CERT - Section 302 Certification
	 EX-99.906 CERT - Section 906 Certification

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 it behalf by the undersigned, thereunto duly authorized.

DAVIS SERIES, INC.

By /s/ Kenneth C. Eich
   Kenneth C. Eich
   Principal Executive Officer

Date:  September 7, 2005


Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.

By /s/ Kenneth C. Eich
   Kenneth C. Eich
   Principal Executive Officer

Date:  September 7, 2005

By /s/ Douglas A. Haines
   Douglas A. Haines
   Principal Financial officer

Date:  September 7, 2005