----

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| DAVIS SERIES, INC. | Table of Contents |
|--------------------|-------------------|

| Shareholder Letter                                                                                                                                                 | 2      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Management's Discussion of Fund Performance:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
| Davis Opportunity Fund                                                                                                                                                                      | 3      |
| Davis Government Bond Fund                                                                                                                                                                  | 5      |
| Davis Financial Fund                                                                                                                                                                        | 7      |
| Davis Appreciation & Income Fund                                                                                                                                                        | 9      |
| Davis Real Estate Fund                                                                                                                                                                      | 11     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Fund Overview:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |
| Davis Opportunity Fund                                                                                                                                                                      | 13     |
| Davis Government Bond Fund                                                                                                                                                                  | 14     |
| Davis Government Money Market Fund                                                                                                                                                          | 15     |
| Davis Financial Fund                                                                                                                                                                        | 16     |
| Davis Appreciation & Income Fund                                                                                                                                                        | 17     |
| Davis Real Estate Fund                                                                                                                                                                      | 18     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Expense Example                                                                                                                                                    | 19     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Schedule of Investments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |
| Davis Opportunity Fund                                                                                                                                                                      | 22     |
| Davis Government Bond Fund                                                                                                                                                                  | 26     |
| Davis Government Money Market Fund                                                                                                                                                          | 29     |
| Davis Financial Fund                                                                                                                                                                        | 32     |
| Davis Appreciation & Income Fund                                                                                                                                                        | 34     |
| Davis Real Estate Fund                                                                                                                                                                      | 38     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Statements of Assets and Liabilities                                                                                                                               | 41     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Statements of Operations                                                                                                                                           | 43     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Statements of Changes in Net Assets                                                                                                                                | 44     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Notes to Financial Statements                                                                                                                                      | 46     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Financial Highlights                                                                                                                                               | 59     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Director Approval of Advisory Agreements                                                                                                                           | 67     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Fund Information                                                                                                                                                   | 71     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Privacy Notice and Householding                                                                                                                                    | 72     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |
| Directors and Officers                                                                                                                                             | 73     |

----

| DAVIS SERIES, INC. | Shareholder Letter |
|--------------------|--------------------|

----

| DAVIS SERIES, INC.     | Management’s Discussion of Fund Performance |
|------------------------|---------------------------------------------------|
| DAVIS OPPORTUNITY FUND |

----

----

| DAVIS SERIES, INC.                         | Management’s Discussion of Fund Performance |
|--------------------------------------------|---------------------------------------------------|
| DAVIS OPPORTUNITY FUND – (CONTINUED) |

|    Fund & Benchmark Index | 1-Year | 5-Year  | 10-Year | SinceInception | InceptionDate | Gross ExpenseRatio | Net ExpenseRatio |
|----------------------------------------------|--------|---------|---------|----------------|---------------|--------------------|------------------|
|  Class A - without sales charge         | 11.90% | (2.17)% | 1.79%   | 8.84%          | 12/01/94      | 1.06%              | 1.06%            |
|  Class A - with sales charge            | 6.60%  | (3.13)% | 1.30%   | 8.50%          | 12/01/94      | 1.06%              | 1.06%            |
|  Class B†, **                     | 6.94%  | (3.34)% | 1.21%   | 10.41%         | 05/01/84      | 1.99%              | 1.99%            |
|  Class C**                              | 10.01% | (2.92)% | 0.98%   | 3.07%          | 08/15/97      | 1.85%              | 1.85%            |
|  Class Y                                | 12.27% | (1.87)% | 2.12%   | 3.75%          | 09/18/97      | 0.75%              | 0.75%            |
|  Russell 3000® Index***            | 15.72% | (0.48)% | (0.92)% | 7.56%          |          |               |             |

----

| DAVIS SERIES, INC.         | Management’s Discussion of Fund Performance |
|----------------------------|---------------------------------------------------|
| DAVIS GOVERNMENT BOND FUND |

----

----

| DAVIS SERIES, INC.                             | Management’s Discussion of Fund Performance |
|------------------------------------------------|---------------------------------------------------|
| DAVIS GOVERNMENT BOND FUND – (CONTINUED) |

|  Fund & Benchmark Index                                               | 1-Year  | 5-Year | 10-Year | SinceInception | InceptionDate | Gross ExpenseRatio | Net ExpenseRatio |
|--------------------------------------------------------------------------------|---------|--------|---------|----------------|---------------|--------------------|------------------|
|  Class A - without sales charge                                           | 3.33%   | 3.79%  | 4.17%   | 4.48%          | 12/01/94      | 0.72%              | 0.72%            |
|  Class A - with sales charge                                              | (1.54)% | 2.78%  | 3.66%   | 4.15%          | 12/01/94      | 0.72%              | 0.72%            |
|  Class B†, **                                                       | (1.47)% | 2.66%  | 3.64%   | 5.58%          | 05/01/84      | 1.64%              | 1.64%            |
|  Class C**                                                                | 1.61%   | 3.04%  | 3.38%   | 3.10%          | 08/19/97      | 1.56%              | 1.56%            |
|  Class Y                                                                  | 3.39%   | 3.89%  | 4.33%   | 3.78%          | 09/01/98      | 0.58%              | 0.58%            |
|  Citigroup U.S. Treasury/Agency     1-3 Year Index*** | 2.69%   | 4.35%  | 4.51%   | 5.18%          |          |               |             |

----

| DAVIS SERIES, INC.   | Management’s Discussion of Fund Performance |
|----------------------|---------------------------------------------------|
| DAVIS FINANCIAL FUND |

----

----

| DAVIS SERIES, INC.                       | Management’s Discussion of Fund Performance |
|------------------------------------------|---------------------------------------------------|
| DAVIS FINANCIAL FUND – (CONTINUED) |

|  Fund & Benchmark Index     | 1-Year | 5-Year  | 10-Year | SinceInception | InceptionDate | Gross ExpenseRatio | Net ExpenseRatio |
|--------------------------------------|--------|---------|---------|----------------|---------------|--------------------|------------------|
|  Class A - without sales charge | 17.89% | (1.57)% | 2.20%   | 11.28%         | 05/01/91      | 0.96%              | 0.96%            |
|  Class A - with sales charge    | 12.29% | (2.52)% | 1.71%   | 10.99%         | 05/01/91      | 0.96%              | 0.96%            |
|  Class B†, **             | 12.63% | (2.82)% | 1.58%   | 9.39%          | 12/27/94      | 2.08%              | 2.08%            |
|  Class C**                      | 15.86% | (2.43)% | 1.32%   | 3.12%          | 08/12/97      | 1.85%              | 1.85%            |
|  Class Y                        | 17.98% | (1.46)% | 2.35%   | 5.29%          | 03/10/97      | 0.88%              | 0.88%            |
|  S&P 500® Index***     | 14.43% | (0.79)% | (1.59)% | 7.52%          |          |               |             |

----

| DAVIS SERIES, INC.                   | Management’s Discussion of Fund Performance |
|--------------------------------------|---------------------------------------------------|
| DAVIS APPRECIATION & INCOME FUND |

----

----

| DAVIS SERIES, INC.                                       | Management’s Discussion of Fund Performance |
|----------------------------------------------------------|---------------------------------------------------|
| DAVIS APPRECIATION & INCOME FUND – (CONTINUED) |

|  Fund & Benchmark Index     | 1-Year | 5-Year  | 10-Year | SinceInception | InceptionDate | Gross ExpenseRatio | Net ExpenseRatio |
|--------------------------------------|--------|---------|---------|----------------|---------------|--------------------|------------------|
|  Class A - without sales charge | 25.00% | 1.12%   | 2.68%   | 8.01%          | 05/01/92      | 0.95%              | 0.95%            |
|  Class A - with sales charge    | 19.09% | 0.14%   | 2.18%   | 7.73%          | 05/01/92      | 0.95%              | 0.95%            |
|  Class B†, **             | 19.84% | (0.09)% | 2.03%   | 7.38%          | 02/03/95      | 1.85%              | 1.85%            |
|  Class C**                      | 22.95% | 0.29%   | 1.79%   | 3.20%          | 08/12/97      | 1.76%              | 1.76%            |
|  Class Y                        | 25.25% | 1.38%   | 2.91%   | 6.00%          | 11/13/96      | 0.72%              | 0.72%            |
|  S&P 500® Index***     | 14.43% | (0.79)% | (1.59)% | 7.28%          |          |               |             |

----

| DAVIS SERIES, INC.     | Management’s Discussion of Fund Performance |
|------------------------|---------------------------------------------------|
| DAVIS REAL ESTATE FUND |

----

----

| DAVIS SERIES, INC.                         | Management’s Discussion of Fund Performance |
|--------------------------------------------|---------------------------------------------------|
| DAVIS REAL ESTATE FUND – (CONTINUED) |

|  Fund & Benchmark Indices                  | 1-Year       | 5-Year        | 10-Year     | SinceInception | InceptionDate | Gross ExpenseRatio | Net ExpenseRatio |
|-----------------------------------------------------|--------------|---------------|-------------|----------------|---------------|--------------------|------------------|
|  Class A - without sales charge                | 46.58%       | (1.94)%       | 7.96%       | 8.99%          | 01/03/94      | 1.10%              | 1.10%            |
|  Class A - with sales charge                   | 39.60%       | (2.88)%       | 7.43%       | 8.67%          | 01/03/94      | 1.10%              | 1.10%            |
|  Class B†, **                            | 40.99%       | (3.05)%       | 7.37%       | 8.65%          | 12/27/94      | 2.20%              | 2.20%            |
|  Class C**                                     | 44.32%       | (2.71)%       | 7.13%       | 5.15%          | 08/13/97      | 1.92%              | 1.92%            |
|  Class Y                                       | 47.20%       | (1.59)%       | 8.36%       | 7.87%          | 11/08/96      | 0.75%              | 0.75%            |
|  S&P 500® Index***                    | 14.43%       | (0.79)%       | (1.59)%     | 6.94%          |          |               |             |
|  Wilshire U.S. Real Estate Securities Index*** |  56.07% |  (0.47)% |  9.49% |  9.28%    |          |               |             |

----

| DAVIS SERIES, INC.     | Fund Overview             |
|------------------------|---------------------------|
| DAVIS OPPORTUNITY FUND | June 30, 2010 (Unaudited) |

| Portfolio Composition          |    | Industry Weightings   |
|--------------------------------|---------|-----------------------|
| (% of Fund’s Net Assets) |    | (% of Stock Holdings) |
|                           |    |                  |   |   |   |
|                           |    |                  |   |         Fund | Russell 3000® |
| Common Stock (U.S.)            | 77.26%  |                  | Health Care | 19.55% | 12.32% |
| Common Stock (Foreign)         | 19.99%  |                  | Information Technology | 19.30% | 18.39% |
| Stock Warrants                 | 0.52%   |                  | Materials | 9.19% | 3.86% |
| Short Term Investments         | 1.63%   |                  | Diversified Financials | 9.07% | 6.77% |
| Other Assets & Liabilities | 0.60%   |                  | Food, Beverage & Tobacco | 7.81% | 5.21% |
|                           | 100.00% |                  | Energy | 6.28% | 9.98% |
|                           |    |                  | Insurance | 4.92% | 4.21% |
|                           |    |                  | Media | 4.39% | 3.11% |
|                           |    |                  | Capital Goods | 4.27% | 8.25% |
|                           |    |                  | Consumer Services | 3.23% | 2.15% |
|                           |    |                  | Food & Staples Retailing | 3.17% | 2.10% |
|                           |    |                  | Consumer Durables & Apparel | 2.42% | 1.37% |
|                           |    |                  | Transportation | 2.22% | 1.92% |
|                           |    |                  | Other | 2.20% | 16.85% |
|                           |    |                  | Banks | 1.98% | 3.51% |
|                           |    |                  |   | 100.00% | 100.00% |
|                           |    |                  |   |   |   |
|                           |    |                  |   |   |   |

|                               |                                               |   |
|------------------------------------|----------------------------------------------------|--------|
| Merck & Co., Inc.              | Pharmaceuticals, Biotechnology & Life Sciences | 5.47%  |
| Johnson & Johnson              | Pharmaceuticals, Biotechnology & Life Sciences | 5.00%  |
| Oaktree Capital Group LLC, Class A | Diversified Financial Services                     | 4.59%  |
| Texas Instruments Inc.             | Semiconductors & Semiconductor Equipment       | 3.37%  |
| Microsoft Corp.                    | Software & Services                            | 3.19%  |
| Coca-Cola Co.                      | Food, Beverage & Tobacco                       | 3.19%  |
| Yum! Brands, Inc.                  | Consumer Services                                  | 3.04%  |
| CVS Caremark Corp.                 | Food & Staples Retailing                       | 2.98%  |
| Walt Disney Co.                    | Media                                              | 2.90%  |
| Google Inc., Class A               | Software & Services                            | 2.89%  |

----

| DAVIS SERIES, INC.         | Fund Overview             |
|----------------------------|---------------------------|
| DAVIS GOVERNMENT BOND FUND | June 30, 2010 (Unaudited) |

| Portfolio Composition          |    | Industry Weightings |                                |
|--------------------------------|---------|---------------------|-------------------------------------|
| (% of Fund’s Net Assets) |    | (% of Fixed Income) |                                |
|                           |    |                |                                |   |   |
| Fixed Income                   | 97.06%  |                | Collateralized Mortgage Obligations | 62.27% |   |
| Short Term Investments         | 2.31%   |                | Fannie Mae Mortgage Pools           | 18.44% |   |
| Other Assets & Liabilities | 0.63%   |                | Freddie Mac Mortgage Pools          | 11.29% |   |
|                           | 100.00% |                | Government Agency Notes             | 6.96% |   |
|                           |    |                | Ginnie Mae Mortgage Pools           | 0.82% |   |
|                           |    |                | Other Agencies                      | 0.22% |   |
|                           |    |                |                                | 100.00% |   |

|                                          |                                |   |
|-----------------------------------------------|-------------------------------------|--------|
| Freddie Mac, 4.50%, 08/15/32                  | Collateralized Mortgage Obligations | 3.41%  |   |
| Freddie Mac, 4.50%, 06/15/29                  | Collateralized Mortgage Obligations | 3.40%  |   |
| Freddie Mac, 4.00%, 09/15/18                  | Collateralized Mortgage Obligations | 3.36%  |   |
| Fannie Mae, 4.00%, 04/25/19                   | Collateralized Mortgage Obligations | 3.36%  |   |
| Freddie Mac, 3.50%, 07/15/24                  | Collateralized Mortgage Obligations | 3.29%  |   |
| Fannie Mae, 2.383%, 10/01/35, Pool No. 836852 | Fannie Mae Mortgage Pools           | 3.14%  |   |
| Fannie Mae, 4.00%, 03/25/27                   | Collateralized Mortgage Obligations | 3.12%  |   |
| Fannie Mae, 2.00%, 06/25/19                   | Collateralized Mortgage Obligations | 3.00%  |   |
| Freddie Mac, 4.50%, 09/15/23                  | Collateralized Mortgage Obligations | 2.96%  |   |
| Fannie Mae, 2.659%, 06/01/36, Pool No. AD0169 | Fannie Mae Mortgage Pools           | 2.94%  |   |

----

| DAVIS SERIES, INC.                 | Fund Overview             |
|------------------------------------|---------------------------|
| DAVIS GOVERNMENT MONEY MARKET FUND | June 30, 2010 (Unaudited) |

| Portfolio Composition          |    | Maturity Diversification  |
|--------------------------------|---------|---------------------------|
| (% of Fund’s Net Assets) |    | (% of Portfolio Holdings) |
|                           |    |                      |   |   |
| Repurchase Agreements          | 37.89%  |                      | 0-30 Days | 79.60% |
| Federal Home Loan Bank         | 20.32%  |                      | 31-90 Days | 11.89% |
| Federal Farm Credit Bank       | 15.28%  |                      | 91-180 Days | 7.81% |
| Freddie Mac                    | 8.36%   |                      | 181-397 Days | 0.70% |
| Fannie Mae                     | 6.39%   |                      |   | 100.00% |
| Other Agencies                 | 4.47%   |                      |   |   |
| Other Assets & Liabilities | 7.29%   |                      |   |   |
|                           | 100.00% |                      |   |   |
|                           |    |                      |   |   |
|                           |    |                      |   |   |
|                           |    |                      |   |   |
|                           |    |                      |   |   |
|                           |    |                      |   |   |

----

| DAVIS SERIES, INC.   | Fund Overview             |
|----------------------|---------------------------|
| DAVIS FINANCIAL FUND | June 30, 2010 (Unaudited) |

| Portfolio Composition          |    | Industry Weightings   |
|--------------------------------|---------|-----------------------|
| (% of Fund’s Net Assets) |    | (% of Stock Holdings) |
|                           |    |                  |   |   |   |
|                           |    |                  |   | Fund | S&P 500® |
| Common Stock (U.S.)            | 72.60%  |                  | Diversified Financials |         42.00% |     7.74% |
| Common Stock (Foreign)         | 27.09%  |                  | Insurance |         33.37% |     3.98% |
| Short Term Investments         | 0.08%   |                  | Banks |         16.23% |     3.20% |
| Other Assets & Liabilities | 0.23%   |                  | Energy |                     5.67% |           10.75% |
|                           | 100.00% |                  | Commercial & Professional Services |             2.73% |             0.64% |
|                           |    |                  | Information Technology |          – |           18.76% |
|                           |    |                  | Health Care |          – |           12.09% |
|                           |    |                  | Capital Goods |          ­– |             7.76% |
|                           |    |                  | Food, Beverage & Tobacco |          ­– |             6.18% |
|                           |    |                  | Other |          ­– |           28.90% |
|                           |    |                  |   |       100.00% |         100.00% |
|                           |    |                  |   |   |   |

|                               |                              |   |
|------------------------------------|-----------------------------------|--------|
| American Express Co.               | Consumer Finance                  | 9.45%  |
| Transatlantic Holdings, Inc.       | Reinsurance                       | 9.07%  |
| Loews Corp.                        | Multi-line Insurance              | 8.18%  |
| State Bank of India Ltd., GDR      | Commercial Banks                  | 7.63%  |
| Wells Fargo & Co.              | Commercial Banks                  | 6.94%  |
| Oaktree Capital Group LLC, Class A | Diversified Financial Services    | 6.32%  |
| Canadian Natural Resources Ltd.    | Energy                            | 5.65%  |
| Bank of New York Mellon Corp.      | Capital Markets                   | 4.83%  |
| Markel Corp.                       | Property & Casualty Insurance | 4.50%  |
| Progressive Corp.                  | Property & Casualty Insurance | 3.89%  |

----

| DAVIS SERIES, INC.                   | Fund Overview             |
|--------------------------------------|---------------------------|
| DAVIS APPRECIATION & INCOME FUND | June 30, 2010 (Unaudited) |

| Portfolio Composition          |    | Industry Weightings        |
|--------------------------------|---------|----------------------------|
| (% of Fund’s Net Assets) |    | (% of Long Term Portfolio) |
|                           |    |                       |   |   |   |
|                           |    |                       |   | Fund | S&P 500® |
| Common Stock                   | 48.84%  |                       | Capital Goods |      11.82% |      7.76% |
| Convertible Bonds              | 35.47%  |                       | Commercial & Professional Services |      11.39% |      0.64% |
| Preferred Stocks               | 9.11%   |                       | Real Estate |      10.96% |      1.39% |
| Corporate Bonds                | 3.51%   |                       | Energy |      10.73% |     10.75% |
| Short Term Investments         | 2.90%   |                       | Diversified Financials |      9.84% |      7.74% |
| Other Assets & Liabilities | 0.17%   |                       | Materials |      7.96% |      3.44% |
|                           | 100.00% |                       | Information Technology |      7.28% |     18.76% |
|                           |    |                       | Retailing |      6.09% |      3.46% |
|                           |    |                       | Food, Beverage & Tobacco |      5.78% |      6.18% |
|                           |    |                       | Utilities |      4.60% |      3.67% |
|                           |    |                       | Health Care |      4.50% |     12.09% |
|                           |    |                       | Food & Staples Retailing |      3.01% |      2.53% |
|                           |    |                       | Other |      2.15% |     15.63% |
|                           |    |                       | Media |      2.01% |      3.14% |
|                           |    |                       | Household & Personal Products |      1.88% |      2.82% |
|                           |    |                       |   |   100.00% |   100.00% |
|                           |    |                       |   |   |   |
|                           |    |                       |   |   |   |

|                                                                 |                                   |   |
|----------------------------------------------------------------------|----------------------------------------|--------|
| Forest City Enterprises, Inc., Conv. Sr. Notes,3.625%, 10/15/14      | Real Estate                            | 5.43%  |
| School Specialty, Inc., Conv. Sub. Notes, 3.75%/Zerocoupon, 08/01/23 | Commercial & Professional Services | 5.25%  |
| Tyson Foods, Inc., Conv. Sr. Notes, 3.25%, 10/15/13                  | Food, Beverage & Tobacco           | 4.08%  |
| Quanta Services, Inc.                                                | Capital Goods                          | 3.84%  |
| Kohl's Corp.                                                         | Retailing                              | 3.69%  |
| Devon Energy Corp.                                                   | Energy                                 | 3.32%  |
| Citigroup Inc.                                                       | Diversified Financial Services         | 3.24%  |
| AES Trust III, 6.75%, Conv. Pfd.                                     | Utilities                              | 3.13%  |
| Whole Foods Market, Inc.                                             | Food & Staples Retailing           | 2.92%  |
| Allegheny Technologies, Inc., Conv. Sr. Notes,4.25%, 06/01/14        | Materials                              | 2.86%  |

----

| DAVIS SERIES, INC.     | Fund Overview             |
|------------------------|---------------------------|
| DAVIS REAL ESTATE FUND | June 30, 2010 (Unaudited) |

| Portfolio Composition          |    | Industry Weightings        |
|--------------------------------|---------|----------------------------|
| (% of Fund’s Net Assets) |    | (% of Long Term Portfolio) |
|                           |    |                       |   |   |   |
|                           |    |                       |   |   | Wilshire U.S. |
| Common Stock                   | 85.36%  |                       |   |   | Real Estate |
| Preferred Stock                | 10.55%  |                       |   | Fund | Securities Index |
| Convertible Bonds              | 3.28%   |                       | Office REITs |    39.46% |    16.63% |   |
| Short Term Investments         | 0.63%   |                       | Retail REITs |    13.13% |    23.89% |   |
| Other Assets & Liabilities | 0.18%   |                       | Residential REITs |    11.74% |    17.01% |   |
|                           | 100.00% |                       | Specialized REITs |      8.90% |    25.71% |   |
|                           |    |                       | Telecommunication Services |      7.94% |      – |   |
|                           |    |                       | Diversified REITs |      5.45% |      8.61% |   |
|                           |    |                       | Real Estate Operating Companies |      5.42% |      2.06% |   |
|                           |    |                       | Industrial REITs |      5.11% |      5.42% |   |
|                           |    |                       | Other |      2.85% |      0.67% |   |
|                           |    |                       |   |  100.00% |   100.00% |   |
|                           |    |                       |   |   |   |   |

|                                   |                            |   |   |
|----------------------------------------|---------------------------------|--------|--------|
| Corporate Office Properties Trust      | Office REITs                    | 5.86%  |
| American Campus Communities, Inc.      | Residential REITs               | 5.50%  |
| Alexandria Real Estate Equities, Inc.  | Office REITs                    | 5.22%  |
| Digital Realty Trust, Inc.             | Office REITs                    | 5.07%  |
| Forest City Enterprises, Inc., Class A | Real Estate Operating Companies | 4.98%  |
| Essex Property Trust, Inc.             | Residential REITs               | 4.08%  |
| Douglas Emmett, Inc.                   | Office REITs                    | 3.80%  |
| DCT Industrial Trust Inc.              | Industrial REITs                | 3.70%  |
| Federal Realty Investment Trust        | Retail REITs                    | 3.68%  |
| Regency Centers Corp.                  | Retail REITs                    | 3.59%  |

----

| DAVIS SERIES, INC. | Expense Example (Unaudited) |
|--------------------|-----------------------------|

----

| DAVIS SERIES, INC. | Expense Example (Unaudited) – (Continued) |
|--------------------|-------------------------------------------------|

|                                                      | BeginningAccount Value(01/01/10) | EndingAccount Value(06/30/10) | Expenses PaidDuring Period*(01/01/10-06/30/10)                                                                                                                                                    |
|-----------------------------------------------------------|----------------------------------|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Davis Opportunity Fund                                    |                             |                          |                                                                                                                                                                                              |
| Class A (annualized expense ratio 1.06%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |     $905.38    | $5.01                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        | $1,019.54                     | $5.31                                                                                                                                                                                             |
| Class B (annualized expense ratio 1.99%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |     $901.22    | $9.38                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,014.93               | $9.94                                                                                                                                                                                             |
| Class C (annualized expense ratio 1.85%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |     $902.22    | $8.73                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,015.62               | $9.25                                                                                                                                                                                             |
| Class Y (annualized expense ratio 0.75%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |     $907.02    | $3.55                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,021.08               | $3.76                                                                                                                                                                                             |
|                                                      |                             |                          |                                                                                                                                                                                              |
| Davis Government Bond Fund                                |                             |                          |                                                                                                                                                                                              |
| Class A (annualized expense ratio 0.72%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |  $1,017.55               | $3.60                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,021.22               | $3.61                                                                                                                                                                                             |
| Class B (annualized expense ratio 1.64%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |  $1,012.89               | $8.19                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,016.66               | $8.20                                                                                                                                                                                             |
| Class C (annualized expense ratio 1.56%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |  $1,015.06               | $7.79                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,017.06               | $7.80                                                                                                                                                                                             |
| Class Y (annualized expense ratio 0.58%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |  $1,018.15               | $2.90                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,021.92               | $2.91                                                                                                                                                                                             |
|                                                      |                             |                          |                                                                                                                                                                                              |
| Davis Government Money Market Fund                        |                             |                          |                                                                                                                                                                                              |
| Class A, B, C, & Y (annualized expense ratio 0.18%**) |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |  $1,000.19               | $0.89                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,023.90               | $0.90                                                                                                                                                                                             |
|                                                      |                             |                          |                                                                                                                                                                                              |
| Davis Financial Fund                                      |                             |                          |                                                                                                                                                                                              |
| Class A (annualized expense ratio 0.96%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |     $927.69    | $4.59                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,020.03               | $4.81                                                                                                                                                                                             |
| Class B (annualized expense ratio 2.08%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |     $922.15    | $9.91                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,014.48               |                                 $10.39 |
| Class C (annualized expense ratio 1.85%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |     $923.74    | $8.82                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,015.62               | $9.25                                                                                                                                                                                             |
| Class Y (annualized expense ratio 0.88%**)                |                             |                          |                                                                                                                                                                                              |
| Actual                                                    | $1,000.00                        |     $927.90    | $4.21                                                                                                                                                                                             |
| Hypothetical                                              | $1,000.00                        |  $1,020.43               | $4.41                                                                                                                                                                                             |

----

| DAVIS SERIES, INC. | Expense Example (Unaudited) – (Continued) |
|--------------------|-------------------------------------------------|

|                                                                                                                                                                                          | Beginning Account Value(01/01/10) | EndingAccount Value(06/30/10) | Expenses PaidDuring Period*(01/01/10-06/30/10) |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------|-------------------------------|------------------------------------------------|--------|
|                                                                                                                                                                                          |                                   |                          |                                           |   |
| Davis Appreciation & Income Fund                                                                                                                                                          |                                   |                          |                                           |   |
| Class A (annualized expense ratio 0.95%**)                                                                                                                                                    |                                   |                          |                                           |   |
| Actual                                                                                                                                                                                        | $1,000.00                              |    $993.74          |   $4.70                                   |   |
| Hypothetical                                                                                                                                                                                  | $1,000.00                              | $1,020.08                     |   $4.76                                   |   |
| Class B (annualized expense ratio 1.85%**)                                                                                                                                                    |                                   |                          |                                           |   |
| Actual                                                                                                                                                                                        | $1,000.00                              |    $989.46          |   $9.13                                   |   |
| Hypothetical                                                                                                                                                                                  | $1,000.00                              | $1,015.62                     |   $9.25                                   |   |
| Class C (annualized expense ratio 1.76%**)                                                                                                                                                    |                                   |                          |                                           |   |
| Actual                                                                                                                                                                                        | $1,000.00                              |    $989.79          |   $8.68                                   |   |
| Hypothetical                                                                                                                                                                                  | $1,000.00                              | $1,016.07                     |   $8.80                                   |   |
| Class Y (annualized expense ratio 0.72%**)                                                                                                                                                    |                                   |                          |                                           |   |
| Actual                                                                                                                                                                                        | $1,000.00                              |    $994.86     |   $3.56                                   |   |
| Hypothetical                                                                                                                                                                                  | $1,000.00                              | $1,021.22                     |   $3.61                                   |   |
|                                                                                                                                                                                          |                                   |                          |                                           |   |
| Davis Real Estate Fund                                                                                                                                                                        |                                   |                          |                                           |   |
| Class A (annualized expense ratio 1.10%**)                                                                                                                                                    |                                   |                          |                                           |   |
| Actual                                                                                                                                                                                        | $1,000.00                              | $1,041.25                     |   $5.57                                   |   |
| Hypothetical                                                                                                                                                                                  | $1,000.00                              | $1,019.34                     |   $5.51                                   |   |
| Class B (annualized expense ratio 2.20%**)                                                                                                                                                    |                                   |                          |                                           |   |
| Actual                                                                                                                                                                                        | $1,000.00                              | $1,035.03                     | $11.10                                         |   |
| Hypothetical                                                                                                                                                                                  | $1,000.00                              | $1,013.88                     | $10.99                                         |   |
| Class C (annualized expense ratio 1.92%**)                                                                                                                                                    |                                   |                          |                                           |   |
| Actual                                                                                                                                                                                        | $1,000.00                              | $1,036.68                     |   $9.70                                   |   |
| Hypothetical                                                                                                                                                                                  | $1,000.00                              | $1,015.27                     |   $9.59                                   |   |
| Class Y (annualized expense ratio 0.75%**)                                                                                                                                                    |                                   |                          |                                           |   |
| Actual                                                                                                                                                                                        | $1,000.00                              | $1,043.31                     |   $3.80                                   |   |
| Hypothetical                                                                                                                                                                                  | $1,000.00                              | $1,021.08                     |   $3.76                                   |   |
|                                                                                                                                                                                          |                                   |                          |                                           |   |
|                                                                                                                                                                                          |
| Hypothetical assumes 5% annual return before expenses.                                                                                                                                        |
|                                                                                                                                                                                          |
| *Expenses are equal to each Class's annualized operating expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
|                                                                                                                                                                                          |
| **The expense ratios reflect the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements and/or waivers from the Adviser.                                  |

----

| DAVIS SERIES, INC.     | Schedule of Investments   |
|------------------------|---------------------------|
| DAVIS OPPORTUNITY FUND | June 30, 2010 (Unaudited) |

| Shares                        |                                            | Security                                             |   | Value(Note 1) |       |
|-------------------------------|-------------------------------------------------|------------------------------------------------------|--------|---------------|------------|
| COMMON STOCK – (97.25%) |                                            |
|                          | CONSUMER DISCRETIONARY – (10.06%)         |                                                 |
|                          | Automobiles & Components – (0.09%)    |                                                 |
|                          | 16,780                      | Johnson Controls, Inc.                               |   | $             | 450,879    |   |
|                          |
|                          | Consumer Durables & Apparel – (2.37%) |                                                 |
|                          | 316,329                     | Hunter Douglas NV  (Netherlands)           |   |          | 11,553,403 |   |
|                          |
|                          | Consumer Services – (3.16%)               |                                                 |
|                          | 36,940                      | H&R Block, Inc.                                  |   |          | 579,589    |   |
|                          | 380,000                     | Yum! Brands, Inc.                                    |   |          | 14,835,200 |   |
|                          |
|                          |                                            | 15,414,789                                           |   |
|                          |
|                          | Media – (4.29%)                           |                                                 |
|                          | 390,290                     | Grupo Televisa S.A., ADR  (Mexico)         |   |          | 6,794,949  |   |
|                          | 449,480                     | Walt Disney Co.                                      |   |          | 14,158,620 |   |
|                          |
|                          |                                            | 20,953,569                                           |   |
|                          |
|                          | Retailing – (0.15%)                       |                                                 |
|                          | 36,060                      | CarMax, Inc.  *                            |   |          | 717,594    |   |
|                          |
|                          | Total Consumer Discretionary                    |                                                 |   | 49,090,234    |       |
|                          |
|                          | CONSUMER STAPLES – (10.73%)               |                                                 |
|                          | Food & Staples Retailing – (3.09%)    |                                                 |
|                          | 10,490                      | Costco Wholesale Corp.                               |   |          | 575,114    |   |
|                          | 495,630                     | CVS Caremark Corp.                                   |   |          | 14,531,872 |   |
|                          |
|                          |                                            | 15,106,986                                           |   |
|                          |
|                          | Food, Beverage & Tobacco – (7.64%)    |                                                 |
|                          | 310,500                     | Coca-Cola Co.                                        |   |          | 15,562,260 |   |
|                          | 218,475                     | Heineken Holding NV  (Netherlands)         |   |          | 7,981,368  |   |
|                          | 126,250                     | Mead Johnson Nutrition Co.                           |   |          | 6,327,650  |   |
|                          | 154,000                     | Nestle S.A.  (Switzerland)                 |   |          | 7,425,700  |   |
|                          |
|                          |                                            | 37,296,978                                           |   |
|                          |
|                          | Total Consumer Staples                          |                                                 |   | 52,403,964    |       |
|                          |
|                          | ENERGY – (6.14%)                          |                                                 |
|                          | 84,084                      | Devon Energy Corp.                                   |   |          | 5,122,397  |   |
|                          | 109,564                     | Occidental Petroleum Corp.                           |   |          | 8,452,863  |   |
|                          | 219,630                     | Tenaris S.A., ADR  (Argentina)             |   |          | 7,601,394  |   |
|                          | 190,279                     | Transocean Ltd.  *                         |   |          | 8,815,626  |   |
|                          |
|                          | Total Energy                                    |                                                 |   | 29,992,280    |       |
|                          |
|                          | FINANCIALS – (15.09%)                     |                                                 |
|                          | Banks – (1.41%)                           |                                                 |
|                          | Commercial Banks – (1.41%)                |                                                 |
|                          | 185,910                     | Banco Santander Brasil S.A., ADS  (Brazil) |   |          | 1,920,450  |   |
|                          | 194,100                     | Wells Fargo & Co.                                |   |          | 4,968,960  |   |
|                          |
|                          |                                            | 6,889,410                                            |   |
|                          |
|                          | Diversified Financials – (8.87%)          |                                                 |
|                          | Capital Markets – (2.93%)                 |                                                 |
|                          | 373,590                     | Bank of New York Mellon Corp.                        |   |          | 9,223,937  |   |
|                          | 358,320                     | Charles Schwab Corp.                                 |   |          | 5,080,978  |   |
|                          |
|                          | 14,304,915                                      |                                                 |
|                          |
|                          | Diversified Financial Services – (5.94%)  |                                                 |
|                          | 1,121                       | CME Group Inc.                                       |   |          | 315,814    |   |

----

| DAVIS SERIES, INC.                   | Schedule of Investments   |
|--------------------------------------|---------------------------|
| DAVIS OPPORTUNITY FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

| Shares                           |                                                                | Security                                                      |   | Value(Note 1) |       |
|----------------------------------|---------------------------------------------------------------------|---------------------------------------------------------------|--------|---------------|------------|
| COMMON STOCK – (CONTINUED) |                                                                |
|                             | FINANCIALS – (CONTINUED)                                      |                                                          |
|                             | Diversified Financials – (Continued)                          |                                                          |
|                             | Diversified Financial Services – (Continued)                  |                                                          |
|                             | 654,750                                         | Oaktree Capital Group LLC, Class A  (a)             |   | $             | 22,425,187 |   |
|                             | 95,165                                          | Pargesa Holdings S.A., Bearer Shares  (Switzerland) |   |          | 6,240,378  |   |
|                             |
|                             | 28,981,379                                                          |                                                          |
|                             |
|                             |                                                                | 43,286,294                                                    |   |
|                             |
|                             | Insurance – (4.81%)                                           |                                                          |
|                             | Insurance Brokers – (0.29%)                                   |                                                          |
|                             | 22,740                                          | Aon Corp.                                                     |   |          | 844,109    |   |
|                             | 31,066                                          | Brown & Brown, Inc.                                       |   |          | 594,603    |   |
|                             |
|                             | 1,438,712                                                           |                                                          |
|                             |
|                             | Property & Casualty Insurance – (3.28%)                   |                                                          |
|                             | 85,881                                          | Berkshire Hathaway Inc., Class B  *                 |   |          | 6,843,857  |   |
|                             | 26,124                                          | Markel Corp.  *                                     |   |          | 8,882,160  |   |
|                             | 10,680                                          | W. R. Berkley Corp.                                           |   |          | 282,593    |   |
|                             |
|                             | 16,008,610                                                          |                                                          |
|                             |
|                             | Reinsurance – (1.24%)                                         |                                                          |
|                             | 10,540                                          | Everest Re Group, Ltd.                                        |   |          | 745,389    |   |
|                             | 5,290                                           | RenaissanceRe Holdings Ltd.                                   |   |          | 297,668    |   |
|                             | 104,435                                         | Transatlantic Holdings, Inc.                                  |   |          | 5,008,703  |   |
|                             |
|                             | 6,051,760                                                           |                                                          |
|                             |
|                             |                                                                | 23,499,082                                                    |   |
|                             |
|                             | Total Financials                                                    |                                                          |   | 73,674,786    |       |
|                             |
|                             | HEALTH CARE – (19.12%)                                        |                                                          |
|                             | Health Care Equipment & Services – (6.92%)                |                                                          |
|                             | 196,780                                         | Baxter International Inc.                                     |   |          | 7,997,139  |   |
|                             | 197,665                                         | Becton, Dickinson and Co.                                     |   |          | 13,366,108 |   |
|                             | 32,677                                          | CareFusion Corp.  *                                 |   |          | 741,768    |   |
|                             | 174,150                                         | IDEXX Laboratories, Inc.  *                         |   |          | 10,604,864 |   |
|                             | 5,145                                           | Laboratory Corp. of America Holdings  *             |   |          | 387,676    |   |
|                             | 23,640                                          | UnitedHealth Group Inc.                                       |   |          | 671,376    |   |
|                             |
|                             |                                                                | 33,768,931                                                    |   |
|                             |
|                             | Pharmaceuticals, Biotechnology & Life Sciences – (12.20%) |                                                          |
|                             | 413,650                                         | Johnson & Johnson                                         |   |          | 24,430,169 |   |
|                             | 763,316                                         | Merck & Co., Inc.                                         |   |          | 26,693,160 |   |
|                             | 6,300                                           | Millipore Corp.  *                                  |   |          | 671,895    |   |
|                             | 545,030                                         | Pfizer Inc.                                                   |   |          | 7,772,128  |   |
|                             |
|                             |                                                                | 59,567,352                                                    |   |
|                             |
|                             | Total Health Care                                                   |                                                          |   | 93,336,283    |       |
|                             |
|                             | INDUSTRIALS – (7.44%)                                         |                                                          |
|                             | Capital Goods – (4.17%)                                       |                                                          |
|                             | 207,840                                         | ABB Ltd., ADR  (Switzerland)                        |   |          | 3,591,475  |   |
|                             | 706,968                                         | Blount International, Inc.  *                       |   |          | 7,260,561  |   |
|                             | 9,738                                           | Lockheed Martin Corp.                                         |   |          | 725,481    |   |
|                             | 257,320                                         | Shaw Group Inc.  *                                  |   |          | 8,805,491  |   |
|                             |
|                             |                                                                | 20,383,008                                                    |   |
|                             |
|                             | Commercial & Professional Services – (1.10%)              |                                                          |
|                             | 238,820                                         | Iron Mountain Inc.                                            |   |          | 5,363,897  |   |
|                             |

----

| DAVIS SERIES, INC.                   | Schedule of Investments   |
|--------------------------------------|---------------------------|
| DAVIS OPPORTUNITY FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

| Shares                           |                                                         | Security                                                                  |   | Value(Note 1) |       |
|----------------------------------|--------------------------------------------------------------|---------------------------------------------------------------------------|--------|---------------|------------|
| COMMON STOCK – (CONTINUED) |                                                         |
|                             | INDUSTRIALS – (CONTINUED)                              |                                                                      |
|                             | Transportation – (2.17%)                               |                                                                      |
|                             | 958,000                                            | Clark Holdings, Inc.  *(b)                                      |   | $             | 296,980    |   |
|                             | 80,920                                             | Kuehne & Nagel International AG  (Switzerland)              |   |          | 8,329,805  |   |
|                             | 71,930                                             | Ryanair Holdings PLC, ADR  (Ireland)*                           |   |          | 1,948,584  |   |
|                             |
|                             |                                                         | 10,575,369                                                                |   |
|                             |
|                             | Total Industrials                                            |                                                                      |   | 36,322,274    |       |
|                             |
|                             | INFORMATION TECHNOLOGY – (18.87%)                      |                                                                      |
|                             | Semiconductors & Semiconductor Equipment – (4.12%) |                                                                      |
|                             | 147,000                                            | Altera Corp.                                                              |   |          | 3,646,335  |   |
|                             | 707,090                                            | Texas Instruments Inc.                                                    |   |          | 16,461,055 |   |
|                             |
|                             |                                                         | 20,107,390                                                                |   |
|                             |
|                             | Software & Services – (10.51%)                     |                                                                      |
|                             | 652,200                                            | Activision Blizzard, Inc.                                                 |   |          | 6,844,839  |   |
|                             | 31,720                                             | Google Inc., Class A  *                                         |   |          | 14,112,228 |   |
|                             | 18,820                                             | International Business Machines Corp.                                     |   |          | 2,323,894  |   |
|                             | 677,410                                            | Microsoft Corp.                                                           |   |          | 15,583,817 |   |
|                             | 172,840                                            | NetEase.com Inc., ADR  (China)*                                 |   |          | 5,480,756  |   |
|                             | 157,500                                            | SAP AG, ADR  (Germany)                                          |   |          | 6,977,250  |   |
|                             |
|                             |                                                         | 51,322,784                                                                |   |
|                             |
|                             | Technology Hardware & Equipment – (4.24%)          |                                                                      |
|                             | 420,860                                            | Agilent Technologies, Inc.  *                                   |   |          | 11,965,050 |   |
|                             | 43,980                                             | Cisco Systems, Inc.  *                                          |   |          | 936,994    |   |
|                             | 95,810                                             | Harris Corp.                                                              |   |          | 3,990,486  |   |
|                             | 87,810                                             | Hewlett-Packard Co.                                                       |   |          | 3,800,417  |   |
|                             |
|                             |                                                         | 20,692,947                                                                |   |
|                             |
|                             | Total Information Technology                                 |                                                                      |   | 92,123,121    |       |
|                             |
|                             | MATERIALS – (8.98%)                                    |                                                                      |
|                             | 143,960                                            | Monsanto Co.                                                              |   |          | 6,653,831  |   |
|                             | 78,700                                             | Sherwin-Williams Co.                                                      |   |          | 5,445,253  |   |
|                             | 256,910                                            | Sigma-Aldrich Corp.                                                       |   |          | 12,803,110 |   |
|                             | 942,170                                            | Sino-Forest Corp.  (Canada)*                                    |   |          | 13,390,665 |   |
|                             | 5,628,500                                          | Yingde Gases Group Co., Ltd.  (China)*                          |   |          | 5,560,257  |   |
|                             |
|                             | Total Materials                                              |                                                                      |   | 43,853,116    |       |
|                             |
|                             | TELECOMMUNICATION SERVICES – (0.82%)                   |                                                                      |
|                             | 59,000                                             | America Movil SAB de C.V., Series L, ADR  (Mexico)              |   |          | 2,802,500  |   |
|                             | 26,450                                             | American Tower Corp., Class A  *                                |   |          | 1,177,025  |   |
|                             |
|                             | Total Telecommunication Services                             |                                                                      |   | 3,979,525     |       |
|                             |
|                             | TOTAL COMMON STOCK – (Identified cost $453,618,204)    |                                                                      |   | 474,775,583   |       |
|                             |
| STOCK WARRANTS – (0.52%)   |                                                         |
|                             | FINANCIALS – (0.52%)                                   |                                                                      |
|                             |  Banks – (0.52%)                                  |                                                                      |
|                             |  Commercial Banks – (0.52%)                       |                                                                      |
|                             | 330,600                                            | Wells Fargo & Co., strike price $34.01, expires 10/28/18  * |   |          | 2,552,232  |   |
|                             |
|                             | TOTAL STOCK WARRANTS – (Identified cost $2,628,772)    |                                                                      |   | 2,552,232     |       |
|                             |

----

| DAVIS SERIES, INC.                   | Schedule of Investments   |
|--------------------------------------|---------------------------|
| DAVIS OPPORTUNITY FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

| Principal                                                                                                                          |                                                                                                                                            | Security                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Value(Note 1) |           |
|------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|----------------|
| SHORT TERM INVESTMENTS – (1.63%)                                                                                             |                                                                                                                                            |
| $                                                                                                                                  | 1,403,000                                                                                                                   | Banc of America Securities LLC Joint Repurchase Agreement, |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |           |   |   |   |   |   |
|                                                                                                                               | 0.03%, 07/01/10, dated 06/30/10, repurchase value of $1,403,001                                                                                 |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |           |   |   |   |   |
|                                                                                                                               | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.00%, 12/08/10-07/15/20, total market value $1,431,060) |                                                       | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 1,403,000     |           |
|                                                                                                                               | 2,046,000                                                                                                                   | Goldman, Sachs & Co. Joint Repurchase Agreement,       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |           |   |   |   |   |   |
|                                                                                                                               | 0.01%, 07/01/10, dated 06/30/10, repurchase value of $2,046,001                                                                                 |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |           |   |   |   |   |
|                                                                                                                               | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.05%, 08/30/10-01/26/15, total market value $2,086,920) |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2,046,000     |           |
|                                                                                                                               | 4,489,000                                                                                                                   | Mizuho Securities USA Inc. Joint Repurchase Agreement,     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |           |   |   |   |   |   |
|                                                                                                                               | 0.14%, 07/01/10, dated 06/30/10, repurchase value of $4,489,017                                                                                 |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |           |   |   |   |   |
|                                                                                                                               | (collateralized by: U.S. Government agency mortgages in a pooled cash account, 2.421%-6.229%, 09/01/19-07/01/40, total market value $4,578,780) |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 4,489,000     |           |
|                                                                                                                               |
|                                                                                                                               | TOTAL SHORT TERM INVESTMENTS – (Identified cost $7,938,000)                                                                               |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 7,938,000     |           |
|                                                                                                                               |
|                                                                                                                               | Total Investments – (99.40%) – (Identified cost $464,184,976) – (c)                                                           |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 485,265,815   |           |
|                                                                                                                               | Other Assets Less Liabilities – (0.60%)                                                                                                   |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 2,907,818     |           |
|                  Net Assets – (100.00%) |                                                                                                                                            |                                                       | $                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | 488,173,633   |           |
|                                                                                                                               |
|                                                                                                                               | ADR: American Depositary Receipt                                                                                                                |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                               |                                                                                                                                            |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                               | ADS: American Depositary Share                                                                                                                  |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                               |                                                                                                                                            |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                               | *                                                                                                                                               |                                                       | Non-Income producing security.                                                                                                                                                                                                                                                                                                                                                                                                                                            |          |
|                                                                                                                               |                                                                                                                                            |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |
|                                                                                                                               | (a)                                                                                                                                             |                                                       | Illiquid Security – See Note 8 of the Notes to Financial Statements.                                                                                                                                                                                                                                                                                                                                                                                                |          |
|                                                                                                                               |                                                                                                                                            |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |
|                                                                                                                               | (b)                                                                                                                                             |                                                       | Affiliated Company.  Represents ownership of at least 5% of the voting securities of the issuer and is an affiliate, as defined in the Investment Company Act of 1940, at or during the six months ended June 30, 2010.  The aggregate fair value of the securities of affiliated companies held by the Fund as of June 30, 2010, amounts to $296,980.  Transactions during the period in which the issuers were affiliates are as follows: |          |
|                                                                                                                               |                                                                                                                                            |                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |          |
|                                                                                                                               | Security                                                                                                                                        |                                                       | Shares December 31,2009                                                                                                                                                                                                                                                                                                                                                                                                                                              |          | GrossAdditions |   | GrossReductions |   | SharesJune 30,2010 |   | DividendIncome |   |
|                                                                                                                               | Clark Holdings, Inc.                                                                                                                            |                                                       | 958,000                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |          | –        |   | – |   | 958,000 | $ | – |   |

|                              | (c)                         |   | Aggregate cost for federal income tax purposes is $468,090,505.  At June 30, 2010 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows: |         |
|-----------------------------------|-----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|
|                              |                        |   |                                                                                                                                                                                            |         |
|                              | Unrealized appreciation     |   | $                                                                                                                                                                                               | 65,808,315   |   |
|                              | Unrealized depreciation     |   |                                                                                                                                                                                            | (48,633,005) |   |
|                              | Net unrealized appreciation |   | $                                                                                                                                                                                               | 17,175,310   |   |
|                              |
|                              |
| See Notes to Financial Statements |                        |

----

| DAVIS SERIES, INC.         | Schedule of Investments   |
|----------------------------|---------------------------|
| DAVIS GOVERNMENT BOND FUND | June 30, 2010 (Unaudited) |

| Principal                               |                                                                                                                                                                                                                                                               | Security                                                 |   | Value(Note 1) |      |
|-----------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|--------|---------------|-----------|
| GOVERNMENT AGENCY NOTES – (6.75%) |                                                                                                                                                                                                                                                               |
| $                                       | 500,000                                                                                                                                                                                                                                        | Fannie Mae, 5.00%, 07/28/10                              |   | $             | 501,863   |   |
|                                    | 400,000                                                                                                                                                                                                                                        | Fannie Mae, 4.00%, 01/28/13                              |   |          | 430,756   |   |
|                                    | 340,000                                                                                                                                                                                                                                        | Federal Farm Credit Bank, 4.50%, 10/04/10                |   |          | 343,787   |   |
|                                    | 185,000                                                                                                                                                                                                                                        | Federal Home Loan Bank, 4.75%, 08/13/10                  |   |          | 186,005   |   |
|                                    | 4,357,974                                                                                                                                                                                                                                      | Federal Home Loan Bank, 4.75%, 10/25/10                  |   |          | 4,407,007 |   |
|                                    | 811,187                                                                                                                                                                                                                                        | Federal Home Loan Bank, 5.30%, 06/15/12                  |   |          | 856,079   |   |
|                                    | 2,786,850                                                                                                                                                                                                                                      | Federal Home Loan Bank, 2.60%, 04/20/15                  |   |          | 2,823,246 |   |
|                                    | 851,654                                                                                                                                                                                                                                        | Final Maturity Amortizing Notes, 4.10%, 11/25/10         |   |          | 860,786   |   |
|                                    | 200,000                                                                                                                                                                                                                                        | Freddie Mac, 5.00%, 10/18/10                             |   |          | 202,857   |   |
|                                    |
|                                    | TOTAL GOVERNMENT AGENCY NOTES –                                (Identified cost $10,524,709) |                                                     |   | 10,612,386    |      |
|                                    |
| MORTGAGES – (90.10%)              |                                                                                                                                                                                                                                                               |
|                                    | COLLATERALIZED MORTGAGE OBLIGATIONS – (60.44%)                                                                                                                                                                                                               |                                                     |
|                                    | 355,561                                                                                                                                                                                                                                        | Fannie Mae, 4.50%, 01/25/14                              |   |          | 370,945   |   |
|                                    | 745,755                                                                                                                                                                                                                                        | Fannie Mae, 3.50%, 09/25/16                              |   |          | 764,984   |   |
|                                    | 822,221                                                                                                                                                                                                                                        | Fannie Mae, 5.00%, 02/25/17                              |   |          | 846,413   |   |
|                                    | 1,746,012                                                                                                                                                                                                                                      | Fannie Mae, 5.00%, 12/25/17                              |   |          | 1,785,991 |   |
|                                    | 1,265,000                                                                                                                                                                                                                                      | Fannie Mae, 4.00%, 01/25/19                              |   |          | 1,333,389 |   |
|                                    | 5,000,000                                                                                                                                                                                                                                      | Fannie Mae, 4.00%, 04/25/19                              |   |          | 5,282,403 |   |
|                                    | 4,671,533                                                                                                                                                                                                                                      | Fannie Mae, 2.00%, 06/25/19                              |   |          | 4,710,960 |   |
|                                    | 650,576                                                                                                                                                                                                                                        | Fannie Mae, 4.50%, 07/25/21                              |   |          | 657,481   |   |
|                                    | 3,843,568                                                                                                                                                                                                                                      | Fannie Mae, 4.00%, 07/25/23                              |   |          | 4,033,806 |   |
|                                    | 2,929,333                                                                                                                                                                                                                                      | Fannie Mae, 4.00%, 11/25/23                              |   |          | 3,077,027 |   |
|                                    | 122,515                                                                                                                                                                                                                                        | Fannie Mae, 8.00%, 12/17/24                              |   |          | 123,719   |   |
|                                    | 24,388                                                                                                                                                                                                                                         | Fannie Mae, 5.00%, 02/25/25                              |   |          | 24,398    |   |
|                                    | 4,706,364                                                                                                                                                                                                                                      | Fannie Mae, 4.00%, 03/25/27                              |   |          | 4,910,105 |   |
|                                    | 321,739                                                                                                                                                                                                                                        | Fannie Mae, 5.50%, 03/25/28                              |   |          | 326,362   |   |
|                                    | 650,449                                                                                                                                                                                                                                        | Fannie Mae, 5.00%, 02/25/35                              |   |          | 683,332   |   |
|                                    | 407,621                                                                                                                                                                                                                                        | Freddie Mac, 4.00%, 09/15/10                             |   |          | 410,001   |   |
|                                    | 32,727                                                                                                                                                                                                                                         | Freddie Mac, 4.50%, 02/15/15                             |   |          | 32,833    |   |
|                                    | 647,162                                                                                                                                                                                                                                        | Freddie Mac, 4.00%, 09/15/15                             |   |          | 652,823   |   |
|                                    | 1,854,504                                                                                                                                                                                                                                      | Freddie Mac, 4.00%, 10/15/15                             |   |          | 1,877,762 |   |
|                                    | 722,104                                                                                                                                                                                                                                        | Freddie Mac, 4.50%, 05/15/16                             |   |          | 736,367   |   |
|                                    | 1,777,932                                                                                                                                                                                                                                      | Freddie Mac, 4.00%, 09/15/16                             |   |          | 1,825,949 |   |
|                                    | 600,000                                                                                                                                                                                                                                        | Freddie Mac, 4.00%, 01/15/17                             |   |          | 626,583   |   |
|                                    | 579,589                                                                                                                                                                                                                                        | Freddie Mac, 3.50%, 01/15/18                             |   |          | 601,543   |   |
|                                    | 974,365                                                                                                                                                                                                                                        | Freddie Mac, 5.00%, 01/15/18                             |   |          | 1,011,004 |   |
|                                    | 2,753,999                                                                                                                                                                                                                                      | Freddie Mac, 4.00%, 06/15/18                             |   |          | 2,857,234 |   |
|                                    | 5,000,000                                                                                                                                                                                                                                      | Freddie Mac, 4.00%, 09/15/18                             |   |          | 5,286,400 |   |
|                                    | 125,640                                                                                                                                                                                                                                        | Freddie Mac, 4.50%, 09/15/18                             |   |          | 126,096   |   |
|                                    | 453,958                                                                                                                                                                                                                                        | Freddie Mac, 5.00%, 05/15/19                             |   |          | 478,507   |   |
|                                    | 1,855,683                                                                                                                                                                                                                                      | Freddie Mac, 5.00%, 12/15/22                             |   |          | 1,880,842 |   |
|                                    | 4,415,413                                                                                                                                                                                                                                      | Freddie Mac, 4.50%, 09/15/23                             |   |          | 4,652,953 |   |
|                                    | 4,278,669                                                                                                                                                                                                                                      | Freddie Mac, 1.425%, 03/15/24    (a) |   |          | 4,334,230 |   |
|                                    | 5,000,000                                                                                                                                                                                                                                      | Freddie Mac, 3.50%, 07/15/24                             |   |          | 5,163,865 |   |
|                                    | 113,776                                                                                                                                                                                                                                        | Freddie Mac, 5.00%, 06/15/25                             |   |          | 115,173   |   |
|                                    | 300,000                                                                                                                                                                                                                                        | Freddie Mac, 5.00%, 05/15/27                             |   |          | 306,999   |   |
|                                    | 40,973                                                                                                                                                                                                                                         | Freddie Mac, 5.50%, 12/15/27                             |   |          | 40,994    |   |
|                                    | 670,919                                                                                                                                                                                                                                        | Freddie Mac, 5.50%, 12/15/27                             |   |          | 677,315   |   |

----

| DAVIS SERIES, INC.                       | Schedule of Investments   |
|------------------------------------------|---------------------------|
| DAVIS GOVERNMENT BOND FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

| Principal                     |                                                    | Security                                      |   | Value(Note 1) |      |
|-------------------------------|---------------------------------------------------------|-----------------------------------------------|--------|---------------|-----------|
| MORTGAGES – (CONTINUED) |                                                    |
|                          | COLLATERALIZED MORTGAGE OBLIGATIONS – (CONTINUED) |                                          |
| $                             | 2,000,000                           | Freddie Mac, 5.00%, 09/15/28                  |   | $             | 2,062,797 |   |
|                          | 5,183,011                           | Freddie Mac, 4.50%, 06/15/29                  |   |          | 5,350,810 |   |
|                          | 145,250                             | Freddie Mac, 6.00%, 03/15/30                  |   |          | 147,491   |   |
|                          | 890,754                             | Freddie Mac, 4.50%, 08/15/30                  |   |          | 897,064   |   |
|                          | 5,000,000                           | Freddie Mac, 4.50%, 08/15/32                  |   |          | 5,351,670 |   |
|                          | 886,801                             | Freddie Mac, 4.25%, 06/15/33                  |   |          | 911,887   |   |
|                          | 4,271,827                           | Freddie Mac Reference REMIC, 5.125%, 06/15/18 |   |          | 4,404,922 |   |
|                          | 2,343,319                           | Ginnie Mae, 4.50%, 10/20/20                   |   |          | 2,414,374 |   |
|                          | 4,114,566                           | Ginnie Mae, 4.00%, 11/20/30                   |   |          | 4,337,594 |   |
|                          | 4,178,200                           | Ginnie Mae, 5.00%, 02/16/32                   |   |          | 4,348,107 |   |
|                          | 2,109,694                           | Ginnie Mae, 5.00%, 08/20/32                   |   |          | 2,144,704 |   |
|                          |
|                          | Total Collateralized Mortgage Obligations               |                                          |   | 94,998,208    |      |
|                          |
|                          | FANNIE MAE POOLS – (17.90%)                       |                                          |
|                          | 59,649                              | 4.00%, 08/01/10, Pool No. 254861              |   |          | 59,929    |   |
|                          | 1,135,580                           | 3.50%, 04/01/11, Pool No. 255245              |   |          | 1,144,735 |   |
|                          | 1,159,459                           | 4.565%, 01/01/15, Pool No. 725788             |   |          | 1,241,216 |   |
|                          | 2,209,378                           | 6.00%, 09/01/17, Pool No. 665776              |   |          | 2,408,545 |   |
|                          | 1,097,631                           | 5.00%, 03/01/18, Pool No. 357369              |   |          | 1,184,229 |   |
|                          | 1,812,427                           | 4.50%, 08/01/18, Pool No. 254833              |   |          | 1,935,889 |   |
|                          | 1,636,928                           | 5.00%, 12/01/18, Pool No. 257504              |   |          | 1,760,503 |   |
|                          | 1,356,763                           | 4.00%, 01/01/19, Pool No. 976841              |   |          | 1,437,222 |   |
|                          | 130,752                             | 6.50%, 07/01/32, Pool No. 635069              |   |          | 145,788   |   |
|                          | 1,405,544                           | 2.655%, 10/01/32, Pool No. 648917 (b)         |   |          | 1,439,123 |   |
|                          | 803,498                             | 4.739%, 05/01/35, Pool No. 826242 (b)         |   |          | 844,022   |   |
|                          | 4,839,224                           | 2.383%, 10/01/35, Pool No. 836852 (b)         |   |          | 4,937,768 |   |
|                          | 776,149                             | 4.978%, 01/01/36, Pool No. 848973 (b)         |   |          | 821,825   |   |
|                          | 269,119                             | 2.285%, 03/01/36, Pool No. 843396 (b)         |   |          | 272,494   |   |
|                          | 914,022                             | 5.609%, 04/01/36, Pool No. 851605 (b)         |   |          | 985,230   |   |
|                          | 4,423,548                           | 2.659%, 06/01/36, Pool No. AD0169 (b)         |   |          | 4,619,459 |   |
|                          | 2,747,615                           | 3.204%, 01/01/40, Pool No. AD0881 (b)         |   |          | 2,893,077 |   |
|                          |
|                          | Total Fannie Mae Pools                                  |                                          |   | 28,131,054    |      |
|                          |
|                          | FREDDIE MAC POOLS – (10.96%)                      |                                          |
|                          | 535,949                             | 3.00%, 10/01/10, Pool No. M91001              |   |          | 536,308   |   |
|                          | 1,387,095                           | 4.50%, 10/01/10, Pool No. M80856              |   |          | 1,398,228 |   |
|                          | 342,867                             | 4.00%, 11/01/10, Pool No. M80864              |   |          | 345,625   |   |
|                          | 1,417,601                           | 4.50%, 11/01/10, Pool No. M80865              |   |          | 1,429,818 |   |
|                          | 556,556                             | 4.00%, 02/01/11, Pool No. M80897              |   |          | 564,293   |   |
|                          | 1,156,154                           | 4.00%, 03/01/11, Pool No. M80903              |   |          | 1,172,227 |   |
|                          | 575,740                             | 5.00%, 03/01/12, Pool No. M80963              |   |          | 595,670   |   |
|                          | 652,389                             | 3.50%, 04/01/12, Pool No. M80974              |   |          | 665,116   |   |
|                          | 758,533                             | 4.00%, 12/01/12, Pool No. M81008              |   |          | 790,190   |   |
|                          | 584,586                             | 4.50%, 03/01/15, Pool No. B18794              |   |          | 614,944   |   |
|                          | 1,302,184                           | 5.50%, 12/01/18, Pool No. G11684              |   |          | 1,414,864 |   |
|                          | 1,757,117                           | 5.00%, 05/01/21, Pool No. G13296              |   |          | 1,894,336 |   |
|                          | 1,518,772                           | 5.00%, 09/01/21, Pool No. G12673              |   |          | 1,628,835 |   |
|                          | 967,596                             | 5.50%, 06/01/22, Pool No. G12688              |   |          | 1,047,090 |   |
|                          | 470,187                             | 2.852%, 12/01/34, Pool No. 1H1238 (b)         |   |          | 490,529   |   |
|                          | 2,465,758                           | 4.772%, 04/01/35, Pool No. 782528 (b)         |   |          | 2,633,531 |   |
|                          |
|                          | Total Freddie Mac Pools                                 |                                          |   | 17,221,604    |      |
|                          |

----

| DAVIS SERIES, INC.                       | Schedule of Investments   |
|------------------------------------------|---------------------------|
| DAVIS GOVERNMENT BOND FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

| Principal                                                                                                                                |                                                                                                                                            | Security                                                   |                                                                                                                                                                                                                                                                                                                                                                     | Value(Note 1)                                                                                                                                                                                                                                                                                                                     |      |
|------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|
| MORTGAGES – (CONTINUED)                                                                                                            |                                                                                                                                            |
|                                                                                                                                     | GINNIE MAE POOLS – (0.80%)                                                                                                                |                                                       |
| $                                                                                                                                        | 1,171,924                                                                                                                   | 6.50%, 09/15/13, Pool No. 780856                           |                                                                                                                                                                                                                                                                                                                                                                     | $                                                                                                                                                                                                                                                                                                                                 | 1,257,242 |   |
|                                                                                                                                     |
|                                                                                                                                     | Total Ginnie Mae Pools                                                                                                                          |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | 1,257,242                                                                                                                                                                                                                                                                                                                         |      |
|                                                                                                                                     |
|                                                                                                                                     | TOTAL MORTGAGES – (Identified cost $139,086,683)                                                                                          |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | 141,608,108                                                                                                                                                                                                                                                                                                                       |      |
|                                                                                                                                     |
| OTHER AGENCIES – (0.21%)                                                                                                           |                                                                                                                                            |
|                                                                                                                                     | 300,000                                                                                                                     | Housing Urban Development, 6.00%, 08/01/20                 |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              | 329,524   |   |
|                                                                                                                                     |
|                                                                                                                                     | TOTAL OTHER AGENCIES – (Identified cost $324,309)                                                                                         |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | 329,524                                                                                                                                                                                                                                                                                                                           |      |
|                                                                                                                                     |
| SHORT TERM INVESTMENTS – (2.31%)                                                                                                   |                                                                                                                                            |
|                                                                                                                                     | 640,000                                                                                                                     | Banc of America Securities LLC Joint Repurchase Agreement, |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              |      |   |   |
|                                                                                                                                     | 0.03%, 07/01/10, dated 06/30/10, repurchase value of $640,001                                                                                   |                                                       |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              |      |   |
|                                                                                                                                     | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.00%, 12/08/10-07/15/20, total market value $652,800)   |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | 640,000                                                                                                                                                                                                                                                                                                                           |      |
|                                                                                                                                     | 934,000                                                                                                                     | Goldman, Sachs & Co. Joint Repurchase Agreement,       |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              |      |   |   |
|                                                                                                                                     | 0.01%, 07/01/10, dated 06/30/10, repurchase value of $934,000                                                                                   |                                                       |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              |      |   |
|                                                                                                                                     | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.05%, 08/30/10-01/26/15, total market value $952,680)   |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | 934,000                                                                                                                                                                                                                                                                                                                           |      |
|                                                                                                                                     | 2,048,000                                                                                                                   | Mizuho Securities USA Inc. Joint Repurchase Agreement,     |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              |      |   |   |
|                                                                                                                                     | 0.14%, 07/01/10, dated 06/30/10, repurchase value of $2,048,008                                                                                 |                                                       |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              |      |   |
|                                                                                                                                     | (collateralized by: U.S. Government agency mortgages in a pooled cash account, 2.421%-6.229%, 09/01/19-07/01/40, total market value $2,088,960) |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | 2,048,000                                                                                                                                                                                                                                                                                                                         |      |
|                                                                                                                                     |
|                                                                                                                                     | TOTAL SHORT TERM INVESTMENTS – (Identified cost $3,622,000)                                                                               |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | 3,622,000                                                                                                                                                                                                                                                                                                                         |      |
|                                                                                                                                     |
|                                                                                                                                     | Total Investments – (99.37%) – (Identified cost $153,557,701) – (c)                                                           |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | 156,172,018                                                                                                                                                                                                                                                                                                                       |      |
|                                                                                                                                     | Other Assets Less Liabilities – (0.63%)                                                                                                   |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | 988,702                                                                                                                                                                                                                                                                                                                           |      |
|                   Net Assets – (100.00%) |                                                                                                                                            |                                                       | $                                                                                                                                                                                                                                                                                                                                                                        | 157,160,720                                                                                                                                                                                                                                                                                                                       |      |
|                                                                                                                                     |
|                                                                                                                                     |
|                                                                                                                                     | (a)                                                                                                                                             |                                                       | The interest rates on floating rate securities, shown as of June 30, 2010, may change daily or less frequently and are based on indices of market interest rates.  For purposes of amortized cost valuation, the maturity dates of these securities are considered to be the effective maturities, based on the reset dates of the securities' variable rates. |                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                     |                                                                                                                                            |                                                       |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                     | (b)                                                                                                                                             |                                                       | The interest rates on adjustable rate securities, shown as of June 30, 2010, may change daily or less frequently and are based on indices of market interest rates.                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                     |                                                                                                                                            |                                                       |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                     | (c)                                                                                                                                             |                                                       | Aggregate cost for federal income tax purposes is $153,557,701.  At June 30, 2010 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                     |                                                                                                                                            |                                                       |                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                     | Unrealized appreciation                                                                                                                         |                                                       | $                                                                                                                                                                                                                                                                                                                                                                        |                                                     2,731,866 |      |
|                                                                                                                                     | Unrealized depreciation                                                                                                                         |                                                       |                                                                                                                                                                                                                                                                                                                                                                     | (117,549)                                                                                                                                                                                                                                                                                                                         |      |
|                  Net unrealized appreciation        |                                                                                                                                            |                                                       | $                                                                                                                                                                                                                                                                                                                                                                        |                                                     2,614,317 |      |
|                                                                                                                                     |
|                                                                                                                                     |
| See Notes to Financial Statements                                                                                                        |                                                                                                                                            |

----

| DAVIS SERIES, INC.                 | Schedule of Investments   |
|------------------------------------|---------------------------|
| DAVIS GOVERNMENT MONEY MARKET FUND | June 30, 2010 (Unaudited) |

| Principal                                 |                                                                 | Security                         |   | Value(Note 1) |       |
|-------------------------------------------|----------------------------------------------------------------------|----------------------------------|--------|---------------|------------|
| FANNIE MAE – (6.39%)                |                                                                 |
| $                                         | 700,000                                          | 0.24%, 07/07/10  (a)   |   | $             | 699,972    |   |
|                                      | 10,750,000                                       | 0.1878%, 07/13/10  (b) |   |          | 10,749,967 |   |
|                                      | 500,000                                          | 0.24%, 07/14/10  (a)   |   |          | 499,957    |   |
|                                      | 1,000,000                                        | 0.27%, 07/19/10  (a)   |   |          | 999,865    |   |
|                                      | 500,000                                          | 0.2966%, 08/05/10  (b) |   |          | 500,003    |   |
|                                      | 1,510,000                                        | 3.25%, 08/12/10                  |   |          | 1,515,281  |   |
|                                      | 5,000,000                                        | 0.22%, 08/18/10  (a)   |   |          | 4,998,534  |   |
|                                      | 3,000,000                                        | 0.24%, 09/24/10  (a)   |   |          | 2,998,300  |   |
|                                      |
|                                      | TOTAL FANNIE MAE – (Identified cost $22,961,879)               |                             |   | 22,961,879    |       |
|                                      |
| FEDERAL FARM CREDIT BANK – (15.28%) |                                                                 |
|                                      | 2,000,000                                        | 3.30%, 07/21/10                  |   |          | 2,003,339  |   |
|                                      | 9,000,000                                        | 0.202%, 08/23/10  (b)  |   |          | 8,999,833  |   |
|                                      | 9,700,000                                        | 0.3209%, 09/03/10  (b) |   |          | 9,700,000  |   |
|                                      | 14,000,000                                       | 0.13%, 09/21/10  (b)   |   |          | 13,999,683 |   |
|                                      | 9,500,000                                        | 0.2722%, 10/26/10  (b) |   |          | 9,500,000  |   |
|                                      | 510,000                                          | 0.6009%, 11/04/10  (b) |   |          | 510,572    |   |
|                                      | 10,000,000                                       | 0.2897%, 11/17/10  (b) |   |          | 9,999,997  |   |
|                                      | 200,000                                          | 5.81%, 01/10/11                  |   |          | 205,686    |   |
|                                      |
|                                      | TOTAL FEDERAL FARM CREDIT BANK – (Identified cost $54,919,110) |                             |   | 54,919,110    |       |
|                                      |
| FEDERAL HOME LOAN BANK – (20.32%)   |                                                                 |
|                                      | 1,000,000                                        | 0.052%, 07/06/10  (b)  |   |          | 999,977    |   |
|                                      | 4,000,000                                        | 0.19%, 07/07/10  (a)   |   |          | 3,999,873  |   |
|                                      | 4,560,000                                        | 0.145%, 07/09/10  (b)  |   |          | 4,559,998  |   |
|                                      | 500,000                                          | 4.375%, 07/13/10                 |   |          | 500,666    |   |
|                                      | 9,750,000                                        | 3.50%, 07/16/10                  |   |          | 9,763,058  |   |
|                                      | 380,000                                          | 0.251%, 07/27/10  (b)  |   |          | 380,017    |   |
|                                      | 500,000                                          | 0.26%, 07/30/10  (a)   |   |          | 499,895    |   |
|                                      | 2,500,000                                        | 0.55%, 08/04/10                  |   |          | 2,500,814  |   |
|                                      | 500,000                                          | 5.00%, 08/11/10                  |   |          | 502,668    |   |
|                                      | 325,000                                          | 4.125%, 08/13/10                 |   |          | 326,433    |   |
|                                      | 305,000                                          | 6.875%, 08/13/10                 |   |          | 307,401    |   |
|                                      | 500,000                                          | 1.375%, 08/23/10                 |   |          | 500,693    |   |
|                                      | 2,025,000                                        | 5.00%, 09/01/10                  |   |          | 2,041,128  |   |
|                                      | 5,000,000                                        | 1.22%, 10/15/10                  |   |          | 5,013,568  |   |
|                                      | 615,000                                          | 3.375%, 10/20/10                 |   |          | 620,698    |   |
|                                      | 355,000                                          | 4.375%, 10/22/10                 |   |          | 359,446    |   |
|                                      | 500,000                                          | 0.55%, 11/01/10  (b)   |   |          | 500,426    |   |
|                                      | 500,000                                          | 3.08%, 11/12/10                  |   |          | 504,917    |   |
|                                      | 1,000,000                                        | 3.125%, 11/12/10                 |   |          | 1,010,370  |   |
|                                      | 12,000,000                                       | 0.26%, 11/17/10  (b)   |   |          | 12,000,000 |   |
|                                      | 470,000                                          | 1.625%, 01/21/11                 |   |          | 473,199    |   |
|                                      | 150,000                                          | 5.07%, 01/27/11                  |   |          | 153,995    |   |
|                                      | 12,000,000                                       | 0.20%, 05/06/11  (b)   |   |          | 11,997,545 |   |
|                                      | 4,500,000                                        | 0.19%, 05/27/11  (b)   |   |          | 4,500,000  |   |
|                                      | 4,500,000                                        | 0.265%, 05/27/11  (b)  |   |          | 4,500,000  |   |

----

| DAVIS SERIES, INC.                               | Schedule of Investments   |
|--------------------------------------------------|---------------------------|
| DAVIS GOVERNMENT MONEY MARKET FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

| Principal                                  |                                                                                                                                             | Security                                                     |   | Value(Note 1) |      |
|--------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------|---------------|-----------|
| FEDERAL HOME LOAN BANK – (CONTINUED) |                                                                                                                                             |
| $                                          | 4,500,000                                                                                                                    | 0.33%, 06/15/11  (b)                               |   | $             | 4,500,000 |   |
|                                       |
|                                       | TOTAL FEDERAL HOME LOAN BANK – (Identified cost $73,016,785)                                                                               |                                                         |   | 73,016,785    |      |
|                                       |
| FREDDIE MAC – (8.36%)                |                                                                                                                                             |
|                                       | 480,000                                                                                                                      | 4.125%, 07/12/10                                             |   |          | 480,543   |   |
|                                       | 700,000                                                                                                                      | 0.25%, 07/20/10  (a)                               |   |          | 699,908   |   |
|                                       | 5,000,000                                                                                                                    | 0.21%, 08/09/10  (a)                               |   |          | 4,998,863 |   |
|                                       | 2,500,000                                                                                                                    | 0.23%, 08/30/10  (a)                               |   |          | 2,499,042 |   |
|                                       | 5,000,000                                                                                                                    | 0.23%, 09/01/10  (a)                               |   |          | 4,998,019 |   |
|                                       | 4,000,000                                                                                                                    | 0.225%, 09/07/10  (a)                              |   |          | 3,998,300 |   |
|                                       | 3,500,000                                                                                                                    | 3.125%, 09/10/10                                             |   |          | 3,519,664 |   |
|                                       | 2,500,000                                                                                                                    | 0.24%, 09/15/10  (a)                               |   |          | 2,498,733 |   |
|                                       | 900,000                                                                                                                      | 4.75%, 09/22/10                                              |   |          | 908,662   |   |
|                                       | 324,000                                                                                                                      | 3.125%, 10/25/10                                             |   |          | 326,886   |   |
|                                       | 2,100,000                                                                                                                    | 0.5134%, 12/30/10  (b)                             |   |          | 2,100,885 |   |
|                                       | 1,500,000                                                                                                                    | 0.3878%, 01/28/11  (b)                             |   |          | 1,501,118 |   |
|                                       | 469,000                                                                                                                      | 5.875%, 03/21/11                                             |   |          | 487,378   |   |
|                                       | 1,000,000                                                                                                                    | 3.50%, 05/05/11                                              |   |          | 1,025,213 |   |
|                                       |
|                                       | TOTAL FREDDIE MAC – (Identified cost $30,043,214)                                                                                          |                                                         |   | 30,043,214    |      |
|                                       |
| OTHER AGENCIES – (4.47%)             |                                                                                                                                             |
|                                       | 1,936,000                                                                                                                    | Fannie Mae Principal Strip, 0.3698%, 11/15/10  (a) |   |          | 1,933,335 |   |
|                                       | 2,800,000                                                                                                                    | FICO Strip, 0.3074%, 10/06/10    (a)     |   |          | 2,797,733 |   |
|                                       | 7,000,000                                                                                                                    | FICO Strip, 0.35%, 11/11/10    (a)       |   |          | 6,991,169 |   |
|                                       | 4,364,000                                                                                                                    | RFCO Strip, 0.3057%, 10/15/10    (a)     |   |          | 4,360,156 |   |
|                                       |
|                                       | TOTAL OTHER AGENCIES – (Identified cost $16,082,393)                                                                                       |                                                         |   | 16,082,393    |      |
|                                       |
| REPURCHASE AGREEMENTS – (37.89%)     |                                                                                                                                             |
|                                       | 24,060,000                                                                                                                   | Banc of America Securities LLC Joint Repurchase Agreement,   |   |          |      |   |   |
|                                       | 0.03%, 07/01/10, dated 06/30/10, repurchase value of $24,060,020                                                                                 |                                                         |   |          |      |   |
|                                       | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.00%, 12/08/10-07/15/20, total market value $24,541,200) |                                                         |   | 24,060,000    |      |
|                                       | 35,107,000                                                                                                                   | Goldman, Sachs & Co. Joint Repurchase Agreement,         |   |          |      |   |   |
|                                       | 0.01%, 07/01/10, dated 06/30/10, repurchase value of $35,107,010                                                                                 |                                                         |   |          |      |   |
|                                       | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.05%, 08/30/10-01/26/15, total market value $35,809,140) |                                                         |   | 35,107,000    |      |
|                                       | 76,993,000                                                                                                                   | Mizuho Securities USA Inc. Joint Repurchase Agreement,       |   |          |      |   |   |
|                                       | 0.14%, 07/01/10, dated 06/30/10, repurchase value of $76,993,299                                                                                 |                                                         |   |          |      |   |
|                                       | (collateralized by: U.S. Government agency mortgages in a pooled cash account, 2.421%-6.229%, 09/01/19-07/01/40, total market value $78,532,860) |                                                         |   | 76,993,000    |      |
|                                       |
|                                       | TOTAL REPURCHASE AGREEMENTS – (Identified cost $136,160,000)                                                                               |                                                         |   | 136,160,000   |      |
|                                       |

----

| DAVIS SERIES, INC.                               | Schedule of Investments   |
|--------------------------------------------------|---------------------------|
| DAVIS GOVERNMENT MONEY MARKET FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

|                              | Total Investments – (92.71%) – (Identified cost $333,183,381) – (c) |   | $                                                                                                                                                                                                                                                                                                                                                                        | 333,183,381 |   |
|-----------------------------------|---------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|--------|
|                              | Other Assets Less Liabilities – (7.29%)                                         |   |                                                                                                                                                                                                                                                                                                                                                                     | 26,191,044  |   |
|                              | Net Assets – (100.00%)                                                          |   | $                                                                                                                                                                                                                                                                                                                                                                        | 359,374,425 |   |
|                              |
|                              |
|                              | (a)                                                                                   |   | Zero coupon bonds reflect the effective yield on the date of purchase.                                                                                                                                                                                                                                                                                                   |        |
|                              |                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                     |        |
|                              | (b)                                                                                   |   | The interest rates on floating rate securities, shown as of June 30, 2010, may change daily or less frequently and are based on indices of market interest rates.  For purposes of amortized cost valuation, the maturity dates of these securities are considered to be the effective maturities, based on the reset dates of the securities' variable rates. |        |
|                              |                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                     |        |
|                              | (c)                                                                                   |   | Aggregate cost for federal income tax purposes is $333,183,381.                                                                                                                                                                                                                                                                                                          |        |
|                              |                                                                                  |   |                                                                                                                                                                                                                                                                                                                                                                     |        |
| See Notes to Financial Statements |                                                                                  |

----

| DAVIS SERIES, INC.   | Schedule of Investments   |
|----------------------|---------------------------|
| DAVIS FINANCIAL FUND | June 30, 2010 (Unaudited) |

| Shares                        |                                               | Security                                                      |   | Value(Note 1) |       |
|-------------------------------|----------------------------------------------------|---------------------------------------------------------------|--------|---------------|------------|
| COMMON STOCK – (99.69%) |                                               |
|                          | ENERGY – (5.65%)                             |                                                          |
|                          | 895,890                        | Canadian Natural Resources Ltd.  (Canada)           |   | $             | 29,770,425 |   |
|                          |
|                          | Total Energy                                       |                                                          |   | 29,770,425    |       |
|                          |
|                          | FINANCIALS – (91.32%)                        |                                                          |
|                          | Banks – (16.18%)                             |                                                          |
|                          | Commercial Banks – (16.18%)                  |                                                          |
|                          | 139,900                        | Banco Santander Brasil S.A., ADS  (Brazil)          |   |          | 1,445,167  |   |
|                          | 132,597                        | ICICI Bank Ltd., ADR  (India)                       |   |          | 4,792,056  |   |
|                          | 404,699                        | State Bank of India Ltd., GDR  (India)              |   |          | 40,200,235 |   |
|                          | 101,671                        | U.S. Bancorp                                                  |   |          | 2,272,347  |   |
|                          | 1,427,319                      | Wells Fargo & Co.                                         |   |          | 36,539,366 |   |
|                          |
|                          |                                               | 85,249,171                                                    |   |
|                          |
|                          | Diversified Financials – (41.87%)            |                                                          |
|                          | Capital Markets – (18.72%)                   |                                                          |
|                          | 271,354                        | Ameriprise Financial, Inc.                                    |   |          | 9,804,020  |   |
|                          | 1,030,874                      | Bank of New York Mellon Corp.                                 |   |          | 25,452,279 |   |
|                          | 697,390                        | Brookfield Asset Management Inc., Class A  (Canada) |   |          | 15,774,962 |   |
|                          | 125,998                        | Charles Schwab Corp.                                          |   |          | 1,786,652  |   |
|                          | 655,068                        | GAM Holding Ltd.  (Switzerland)*                    |   |          | 7,079,007  |   |
|                          | 138,492                        | Goldman Sachs Group, Inc.                                     |   |          | 18,179,845 |   |
|                          | 655,068                        | Julius Baer Group Ltd.  (Switzerland)               |   |          | 18,677,681 |   |
|                          | 41,530                         | T. Rowe Price Group Inc.                                      |   |          | 1,843,724  |   |
|                          |
|                          | 98,598,170                                         |                                                          |
|                          |
|                          | Consumer Finance – (10.03%)                  |                                                          |
|                          | 1,253,282                      | American Express Co.                                          |   |          | 49,755,296 |   |
|                          | 1,305,032                      | First Marblehead Corp.  *                           |   |          | 3,066,825  |   |
|                          |
|                          | 52,822,121                                         |                                                          |
|                          |
|                          | Diversified Financial Services – (13.12%)    |                                                          |
|                          | 121,264                        | Bank of America Corp.                                         |   |          | 1,742,564  |   |
|                          | 492,300                        | Cielo S.A.  (Brazil)                                |   |          | 4,145,684  |   |
|                          | 767,780                        | Moody's Corp.                                                 |   |          | 15,294,177 |   |
|                          | 972,000                        | Oaktree Capital Group LLC, Class A  (a)             |   |          | 33,291,000 |   |
|                          | 47,264                         | RHJ International  (Belgium)*                       |   |          | 350,115    |   |
|                          | 396,550                        | RHJ International, 144A  (Belgium)*(b)(c)           |   |          | 2,967,859  |   |
|                          | 160,137                        | Visa Inc., Class A                                            |   |          | 11,329,693 |   |
|                          |
|                          | 69,121,092                                         |                                                          |
|                          |
|                          |                                               | 220,541,383                                                   |   |
|                          |
|                          | Insurance – (33.27%)                         |                                                          |
|                          | Life & Health Insurance – (3.32%)        |                                                          |
|                          | 268,127                        | China Life Insurance Co., Ltd., ADR  (China)        |   |          | 17,481,881 |   |
|                          |
|                          | Multi-line Insurance – (8.18%)               |                                                          |
|                          | 1,293,945                      | Loews Corp.                                                   |   |          | 43,101,308 |   |
|                          |
|                          | Property & Casualty Insurance – (10.04%) |                                                          |
|                          | 168,496                        | ACE Ltd.                                                      |   |          | 8,674,174  |   |
|                          | 69,686                         | Markel Corp.  *                                     |   |          | 23,693,240 |   |
|                          | 1,094,565                      | Progressive Corp. (Ohio)                                      |   |          | 20,490,257 |   |
|                          |
|                          | 52,857,671                                         |                                                          |
|                          |
|                          | Reinsurance – (11.73%)                       |                                                          |
|                          | 197,972                        | Everest Re Group, Ltd.                                        |   |          | 14,000,580 |   |

----

| DAVIS SERIES, INC.                       | Schedule of Investments   |
|------------------------------------------|---------------------------|
| DAVIS FINANCIAL FUND – (CONTINUED) | June 30, 2010 (Unaudited) |

| Shares/Principal                                                                                                             |                                                                                                                                          | Security                                                   |                                                                                                                                                                                                                                                                                          | Value(Note 1) |       |
|------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|------------|
| COMMON STOCK – (CONTINUED)                                                                                             |                                                                                                                                          |
|                                                                                                                         | FINANCIALS – (CONTINUED)                                                                                                                |                                                       |
|                                                                                                                         | Insurance – (Continued)                                                                                                                 |                                                       |
|                                                                                                                         | Reinsurance – (Continued)                                                                                                               |                                                       |
|                                                                                                                         | 996,096                                                                                                                   | Transatlantic Holdings, Inc.                               |                                                                                                                                                                                                                                                                                          | $             | 47,772,764 |   |
|                                                                                                                         |
|                                                                                                                         | 61,773,344                                                                                                                                    |                                                       |
|                                                                                                                         |
|                                                                                                                         |                                                                                                                                          | 175,214,204                                                |                                                                                                                                                                                                                                                                                          |
|                                                                                                                         |
|                                                                                                                         | Total Financials                                                                                                                              |                                                       |                                                                                                                                                                                                                                                                                          | 481,004,758   |       |
|                                                                                                                         |
|                                                                                                                         | INDUSTRIALS – (2.72%)                                                                                                                   |                                                       |
|                                                                                                                         | Commercial & Professional Services – (2.72%)                                                                                        |                                                       |
|                                                                                                                         | 213,502                                                                                                                   | D&B Corp.                                              |                                                                                                                                                                                                                                                                                          |          | 14,330,254 |   |
|                                                                                                                         |
|                                                                                                                         | Total Industrials                                                                                                                             |                                                       |                                                                                                                                                                                                                                                                                          | 14,330,254    |       |
|                                                                                                                         |
|                                                                                                                         | TOTAL COMMON STOCK – (Identified cost $399,997,629)                                                                                     |                                                       |                                                                                                                                                                                                                                                                                          | 525,105,437   |       |
|                                                                                                                         |
| SHORT TERM INVESTMENTS – (0.08%)                                                                                       |                                                                                                                                          |
| $                                                                                                                            | 73,000                                                                                                                    | Banc of America Securities LLC Joint Repurchase Agreement, |                                                                                                                                                                                                                                                                                          |          |       |   |   |   |
|                                                                                                                         | 0.03%, 07/01/10, dated 06/30/10, repurchase value of $73,000                                                                                  |                                                       |                                                                                                                                                                                                                                                                                          |          |       |   |   |
|                                                                                                                         | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.00%, 12/08/10-07/15/20, total market value $74,460)  |                                                       |                                                                                                                                                                                                                                                                                          | 73,000        |       |
|                                                                                                                         | 107,000                                                                                                                   | Goldman, Sachs & Co. Joint Repurchase Agreement,       |                                                                                                                                                                                                                                                                                          |          |       |   |   |   |
|                                                                                                                         | 0.01%, 07/01/10, dated 06/30/10, repurchase value of $107,000                                                                                 |                                                       |                                                                                                                                                                                                                                                                                          |          |       |   |   |
|                                                                                                                         | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.05%, 08/30/10-01/26/15, total market value $109,140) |                                                       |                                                                                                                                                                                                                                                                                          | 107,000       |       |
|                                                                                                                         | 234,000                                                                                                                   | Mizuho Securities USA Inc. Joint Repurchase Agreement,     |                                                                                                                                                                                                                                                                                          |          |       |   |   |   |
|                                                                                                                         | 0.14%, 07/01/10, dated 06/30/10, repurchase value of $234,001                                                                                 |                                                       |                                                                                                                                                                                                                                                                                          |          |       |   |   |
|                                                                                                                         | (collateralized by: U.S. Government agency mortgages in a pooled cash account, 2.421%-6.229%, 09/01/19-07/01/40, total market value $238,680) |                                                       |                                                                                                                                                                                                                                                                                          | 234,000       |       |
|                                                                                                                         |
|                                                                                                                         | TOTAL SHORT TERM INVESTMENTS – (Identified cost $414,000)                                                                               |                                                       |                                                                                                                                                                                                                                                                                          | 414,000       |       |
|                                                                                                                         |
|                                                                                                                         | Total Investments – (99.77%) – (Identified cost $400,411,629) – (d)                                                         |                                                       |                                                                                                                                                                                                                                                                                          | 525,519,437   |       |
|                                                                                                                         | Other Assets Less Liabilities – (0.23%)                                                                                                 |                                                       |                                                                                                                                                                                                                                                                                          | 1,201,314     |       |
|                 Net Assets – (100.00%) |                                                                                                                                          |                                                       | $                                                                                                                                                                                                                                                                                             | 526,720,751   |       |
|                                                                                                                         |
|                                                                                                                         | ADR: American Depositary Receipt                                                                                                              |                                                       |                                                                                                                                                                                                                                                                                          |
|                                                                                                                         |                                                                                                                                          |                                                       |                                                                                                                                                                                                                                                                                          |
|                                                                                                                         | ADS: American Depositary Share                                                                                                                |                                                       |                                                                                                                                                                                                                                                                                          |
|                                                                                                                         |                                                                                                                                          |                                                       |                                                                                                                                                                                                                                                                                          |
|                                                                                                                         | GDR: Global Depositary Receipt                                                                                                                |                                                       |                                                                                                                                                                                                                                                                                          |
|                                                                                                                         |                                                                                                                                          |                                                       |                                                                                                                                                                                                                                                                                          |
|                                                                                                                         | *                                                                                                                                             |                                                       | Non-Income producing security.                                                                                                                                                                                                                                                                |          |
|                                                                                                                         |                                                                                                                                          |                                                       |                                                                                                                                                                                                                                                                                          |          |
|                                                                                                                         | (a)                                                                                                                                           |                                                       | Illiquid Security – See Note 8 of the Notes to Financial Statements.                                                                                                                                                                                                                    |          |
|                                                                                                                         |                                                                                                                                          |                                                       |                                                                                                                                                                                                                                                                                          |          |
|                                                                                                                         | (b)                                                                                                                                           |                                                       | This security is subject to Rule 144A.  The Board of Directors of the Fund has determined that there is sufficient liquidity in this security to realize current valuations.  This security amounted to $2,967,859 or 0.56% of the Fund's net assets as of June 30, 2010. |          |
|                                                                                                                         |                                                                                                                                          |                                                       |                                                                                                                                                                                                                                                                                          |          |
|                                                                                                                         | (c)                                                                                                                                           |                                                       | Restricted Security – See Note 8 of the Notes to Financial Statements.                                                                                                                                                                                                                  |          |
|                                                                                                                         |                                                                                                                                          |                                                       |                                                                                                                                                                                                                                                                                          |          |
|                                                                                                                         | (d)                                                                                                                                           |                                                       | Aggregate cost for federal income tax purposes is $400,795,010.  At June 30, 2010 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:                                                                                               |          |
|                                                                                                                         |                                                                                                                                          |                                                       |                                                                                                                                                                                                                                                                                          |          |
|                                                                                                                         | Unrealized appreciation                                                                                                                       |                                                       | $                                                                                                                                                                                                                                                                                             | 176,418,996   |       |
|                                                                                                                         | Unrealized depreciation                                                                                                                       |                                                       |                                                                                                                                                                                                                                                                                          | (51,694,569)  |       |
|                Net unrealized appreciation        |                                                                                                                                          |                                                       | $                                                                                                                                                                                                                                                                                             | 124,724,427   |       |
|                                                                                                                         |
|                                                                                                                         |
| See Notes to Financial Statements                                                                                            |                                                                                                                                          |

----

| DAVIS SERIES, INC.                   | Schedule of Investments   |
|--------------------------------------|---------------------------|
| DAVIS APPRECIATION & INCOME FUND | June 30, 2010 (Unaudited) |

| Shares                        |                                                   | Security                                 |   | Value(Note 1) |       |
|-------------------------------|--------------------------------------------------------|------------------------------------------|--------|---------------|------------|
| COMMON STOCK – (48.84%) |                                                   |
|                          | CONSUMER DISCRETIONARY – (7.12%)                 |                                     |
|                          | Media – (1.95%)                                  |                                     |
|                          | 621,300                            | News Corp., Class A                      |   | $             | 7,433,854  |   |
|                          |
|                          | Retailing – (5.17%)                              |                                     |
|                          | 51,913                             | Amazon.com, Inc.  *            |   |          | 5,674,091  |   |
|                          | 296,800                            | Kohl's Corp.  *                |   |          | 14,098,000 |   |
|                          |
|                          |                                                   | 19,772,091                               |   |
|                          |
|                          | Total Consumer Discretionary                           |                                     |   | 27,205,945    |       |
|                          |
|                          | CONSUMER STAPLES – (6.27%)                       |                                     |
|                          | Food & Staples Retailing – (2.92%)           |                                     |
|                          | 310,000                            | Whole Foods Market, Inc.  *    |   |          | 11,163,100 |   |
|                          |
|                          | Food, Beverage & Tobacco – (1.52%)           |                                     |
|                          | 355,100                            | Tyson Foods, Inc., Class A               |   |          | 5,820,089  |   |
|                          |
|                          | Household & Personal Products – (1.83%)      |                                     |
|                          | 263,300                            | Avon Products, Inc.                      |   |          | 6,977,450  |   |
|                          |
|                          | Total Consumer Staples                                 |                                     |   | 23,960,639    |       |
|                          |
|                          | ENERGY – (7.10%)                                 |                                     |
|                          | 208,100                            | Devon Energy Corp.                       |   |          | 12,677,452 |   |
|                          | 448,400                            | Nabors Industries Ltd.  *      |   |          | 7,900,808  |   |
|                          | 141,431                            | Transocean Ltd.  *             |   |          | 6,552,498  |   |
|                          |
|                          | Total Energy                                           |                                     |   | 27,130,758    |       |
|                          |
|                          | FINANCIALS – (7.61%)                             |                                     |
|                          | Diversified Financials – (7.61%)                 |                                     |
|                          | Consumer Finance – (2.33%)                       |                                     |
|                          | 224,000                            | American Express Co.                     |   |          | 8,892,800  |   |
|                          |
|                          | Diversified Financial Services – (5.28%)         |                                     |
|                          | 543,876                            | Bank of America Corp.                    |   |          | 7,815,498  |   |
|                          | 3,292,560                          | Citigroup Inc.  *              |   |          | 12,380,026 |   |
|                          |
|                          | 20,195,524                                             |                                     |
|                          |
|                          | 29,088,324                                             |                                     |
|                          |
|                          | Total Financials                                       |                                     |   | 29,088,324    |       |
|                          |
|                          | HEALTH CARE – (2.74%)                            |                                     |
|                          | Health Care Equipment & Services – (2.74%)   |                                     |
|                          | 274,500                            | Universal Health Services, Inc., Class B |   |          | 10,472,175 |   |
|                          |
|                          | Total Health Care                                      |                                     |   | 10,472,175    |       |
|                          |
|                          | INDUSTRIALS – (10.85%)                           |                                     |
|                          | Capital Goods – (7.30%)                          |                                     |
|                          | 400,200                            | General Electric Co.                     |   |          | 5,770,884  |   |
|                          | 529,500                            | Masco Corp.                              |   |          | 5,697,420  |   |
|                          | 710,790                            | Quanta Services, Inc.  *       |   |          | 14,677,814 |   |
|                          | 190,000                            | United Rentals, Inc.  *        |   |          | 1,770,800  |   |
|                          |
|                          |                                                   | 27,916,918                               |   |
|                          |
|                          | Commercial & Professional Services – (3.55%) |                                     |
|                          | 266,000                            | ADFITECH, Inc.  *(a)           |   |          | 691,600    |   |
|                          | 190,000                            | School Specialty, Inc.  *      |   |          | 3,437,100  |   |
|                          | 270,500                            | Waste Connections, Inc.  *     |   |          | 9,437,745  |   |
|                          |
|                          |                                                   | 13,566,445                               |   |
|                          |
|                          | Total Industrials                                      |                                     |   | 41,483,363    |       |
|                          |

----

| DAVIS SERIES, INC.                                 | Schedule of Investments   |
|----------------------------------------------------|---------------------------|
| DAVIS APPRECIATION & INCOME FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

| Shares/Principal                   |                                                         | Security                                                                                       |   | Value(Note 1) |       |
|------------------------------------|--------------------------------------------------------------|------------------------------------------------------------------------------------------------|--------|---------------|------------|
| COMMON STOCK – (CONTINUED)   |                                                         |
|                               | INFORMATION TECHNOLOGY – (2.54%)                       |                                                                                           |
|                               | Semiconductors & Semiconductor Equipment – (2.54%) |                                                                                           |
|                               | 423,297                                  | Fairchild Semiconductor International, Inc.  *                                       |   | $             | 3,559,928  |   |
|                               | 52,300                                   | Intel Corp.                                                                                    |   |          | 1,016,973  |   |
|                               | 277,100                                  | International Rectifier Corp.  *                                                     |   |          | 5,156,831  |   |
|                               |
|                               | 9,733,732                                                    |                                                                                           |
|                               |
|                               | Total Information Technology                                 |                                                                                           |   | 9,733,732     |       |
|                               |
|                               | MATERIALS – (3.28%)                                    |                                                                                           |
|                               | 104,241                                  | Freeport-McMoRan Copper & Gold Inc.                                                        |   |          | 6,163,770  |   |
|                               | 323,000                                  | Sealed Air Corp.                                                                               |   |          | 6,369,560  |   |
|                               |
|                               | Total Materials                                              |                                                                                           |   | 12,533,330    |       |
|                               |
|                               | UTILITIES – (1.33%)                                    |                                                                                           |
|                               | 551,700                                  | AES Corp.  *                                                                         |   |          | 5,097,708  |   |
|                               |
|                               | Total Utilities                                              |                                                                                           |   | 5,097,708     |       |
|                               |
|                               | TOTAL COMMON STOCK – (Identified cost $225,515,894)    |                                                                                           |   | 186,705,974   |       |
|                               |
| PREFERRED STOCK – (9.11%)    |                                                         |
|                               | FINANCIALS – (3.97%)                                   |                                                                                           |
|                               | Diversified Financials – (1.86%)                       |                                                                                           |
|                               | Diversified Financial Services – (1.86%)               |                                                                                           |
|                               | 113,800                                  | Citigroup Capital XII, 8.50%, TRUPS                                                            |   |          | 2,852,113  |   |
|                               | 38,000                                   | Citigroup Inc., 7.50%, Conv. Pfd., T-DECS                                                      |   |          | 4,279,940  |   |
|                               |
|                               |                                                         | 7,132,053                                                                                      |   |
|                               |
|                               | Real Estate – (2.11%)                                  |                                                                                           |
|                               | 374,010                                  | Alexandria Real Estate Equities, Inc., 7.00%, Series D, Conv. Pfd.                             |   |          | 8,052,884  |   |
|                               |
|                               | Total Financials                                             |                                                                                           |   | 15,184,937    |       |
|                               |
|                               | INDUSTRIALS – (2.01%)                                  |                                                                                           |
|                               | Capital Goods – (0.83%)                                |                                                                                           |
|                               | 104,241                                  | United Rentals Trust I, 6.50%, Conv. Pfd.                                                      |   |          | 3,185,865  |   |
|                               |
|                               | Transportation – (1.18%)                               |                                                                                           |
|                               | 153,200                                  | Continental Airlines Finance Trust II, 6.00%, Cum. Conv. Pfd.                                  |   |          | 4,509,825  |   |
|                               |
|                               | Total Industrials                                            |                                                                                           |   | 7,695,690     |       |
|                               |
|                               | UTILITIES – (3.13%)                                    |                                                                                           |
|                               | 274,410                                  | AES Trust III, 6.75%, Conv. Pfd.                                                               |   |          | 11,953,986 |   |
|                               |
|                               | Total Utilities                                              |                                                                                           |   | 11,953,986    |       |
|                               |
|                               | TOTAL PREFERRED STOCK – (Identified cost $29,370,348)  |                                                                                           |   | 34,834,613    |       |
|                               |
| CONVERTIBLE BONDS – (35.47%) |                                                         |
|                               | CONSUMER DISCRETIONARY – (0.90%)                       |                                                                                           |
|                               | Consumer Durables & Apparel – (0.90%)              |                                                                                           |
| $                                  | 3,800,000                                | Eastman Kodak Co., 144A Conv. Sr. Notes, 7.00%,  04/01/17    (b) |   |          | 3,429,500  |   |
|                               |
|                               | Total Consumer Discretionary                                 |                                                                                           |   | 3,429,500     |       |
|                               |
|                               | CONSUMER STAPLES – (4.08%)                             |                                                                                           |
|                               | Food, Beverage & Tobacco – (4.08%)                 |                                                                                           |
|                               | 13,300,000                               | Tyson Foods, Inc., Conv. Sr. Notes, 3.25%, 10/15/13                                            |   |          | 15,594,250 |   |
|                               |
|                               | Total Consumer Staples                                       |                                                                                           |   | 15,594,250    |       |
|                               |
|                               | ENERGY – (3.30%)                                       |                                                                                           |
|                               | 2,400,000                                | Nabors Industries Inc., Conv. Sr. Notes, 0.94%, 05/15/11                                       |   |          | 2,364,000  |   |

----

| DAVIS SERIES, INC.                                 | Schedule of Investments   |
|----------------------------------------------------|---------------------------|
| DAVIS APPRECIATION & INCOME FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

| Principal                             |                                                               | Security                                                                                         |   | Value(Note 1) |       |
|---------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|--------|---------------|------------|
| CONVERTIBLE BONDS – (CONTINUED) |                                                               |
|                                  | ENERGY – (CONTINUED)                                         |                                                                                             |
| $                                     | 12,300,000                                     | Transocean Ltd., Conv. Sr. Notes, 1.50%, 12/15/37                                                |   | $             | 10,239,750 |   |
|                                  |
|                                  | Total Energy                                                       |                                                                                             |   | 12,603,750    |       |
|                                  |
|                                  | FINANCIALS – (8.43%)                                         |                                                                                             |
|                                  | Diversified Financials – (0.06%)                             |                                                                                             |
|                                  | Capital Markets – (0.06%)                                    |                                                                                             |
|                                  | 250,000                                        | Janus Capital Group Inc., Conv. Sr. Notes, 3.25%, 07/15/14                                       |   |          | 251,875    |   |
|                                  |
|                                  | Real Estate – (8.37%)                                        |                                                                                             |
|                                  | 6,650,000                                      | Digital Realty Trust, Inc., 144A Conv. Sr. Notes, 5.50%, 0415/29    (b)      |   |          | 9,530,281  |   |
|                                  | 21,850,000                                     | Forest City Enterprises Inc., Conv. Sr. Notes, 3.625%, 10/15/14                                  |   |          | 20,743,844 |   |
|                                  | 1,600,000                                      | Forest City Enterprises, Inc., 144A Conv. Sr. Notes, 5.00%, 10/15/16    (b)  |   |          | 1,720,000  |   |
|                                  |
|                                  |                                                               | 31,994,125                                                                                       |   |
|                                  |
|                                  | Total Financials                                                   |                                                                                             |   | 32,246,000    |       |
|                                  |
|                                  | HEALTH CARE – (1.62%)                                        |                                                                                             |
|                                  | Pharmaceuticals, Biotechnology & Life Sciences – (1.62%) |                                                                                             |
|                                  | 3,700,000                                      | Valeant Pharmaceuticals International, Conv. Sub. Notes, 4.00%, 11/15/13                         |   |          | 6,211,375  |   |
|                                  |
|                                  | Total Health Care                                                  |                                                                                             |   | 6,211,375     |       |
|                                  |
|                                  | INDUSTRIALS – (8.19%)                                        |                                                                                             |
|                                  | Capital Goods – (0.92%)                                      |                                                                                             |
|                                  | 3,520,000                                      | United Rentals North America Inc., Conv. Sr. Sub., 1.875%, 10/15/23                              |   |          | 3,502,400  |   |
|                                  |
|                                  | Commercial & Professional Services – (7.27%)             |                                                                                             |
|                                  | 8,100,000                                      | School Specialty, Inc., Conv. Sub. Deb., 3.75%, 11/30/26                                         |   |          | 7,745,625  |   |
|                                  | 20,051,000                                     | School Specialty, Inc., Conv. Sub. Notes, 3.75%/Zero coupon, 08/01/23    (c) |   |          | 20,051,000 |   |
|                                  |
|                                  |                                                               | 27,796,625                                                                                       |   |
|                                  |
|                                  | Total Industrials                                                  |                                                                                             |   | 31,299,025    |       |
|                                  |
|                                  | INFORMATION TECHNOLOGY – (4.51%)                             |                                                                                             |
|                                  | Semiconductors & Semiconductor Equipment – (4.51%)       |                                                                                             |
|                                  | 7,600,000                                      | Intel Corp., 144A Conv. Jr. Sub. Deb., 3.25%, 08/01/39    (b)                |   |          | 8,597,500  |   |
|                                  | 9,050,000                                      | Intel Corp., Conv. Sub. Deb., 2.95%, 12/15/35                                                    |   |          | 8,642,750  |   |
|                                  |
|                                  | 17,240,250                                                         |                                                                                             |
|                                  |
|                                  | Total Information Technology                                       |                                                                                             |   | 17,240,250    |       |
|                                  |
|                                  | MATERIALS – (4.44%)                                          |                                                                                             |
|                                  | 8,555,000                                      | Allegheny Technologies, Inc., Conv. Sr. Notes, 4.25%, 06/01/14                                   |   |          | 10,930,296 |   |
|                                  | 4,300,000                                      | United States Steel Corp., Conv. Sr. Notes, 4.00%, 05/15/14                                      |   |          | 6,036,125  |   |
|                                  |
|                                  | Total Materials                                                    |                                                                                             |   | 16,966,421    |       |
|                                  |
|                                  | TOTAL CONVERTIBLE BONDS – (Identified cost $130,687,791)     |                                                                                             |   | 135,590,571   |       |
|                                  |
| CORPORATE BONDS – (3.51%)       |                                                               |
|                                  | CONSUMER DISCRETIONARY – (0.73%)                             |                                                                                             |
|                                  | Retailing – (0.73%)                                          |                                                                                             |
|                                  | 2,400,000                                      | Kohl's Corp., Sr. Notes, 6.25%, 12/15/17                                                         |   |          | 2,799,715  |   |
|                                  |
|                                  | Total Consumer Discretionary                                       |                                                                                             |   | 2,799,715     |       |
|                                  |
|                                  | FINANCIALS – (0.15%)                                         |                                                                                             |
|                                  | Real Estate – (0.15%)                                        |                                                                                             |
|                                  | 13,300,000                                     | Thornburg Mortgage, Inc., Sr. Notes, 8.00%, 05/15/13    (a)                  |   |          | 565,250    |   |
|                                  |
|                                  | Total Financials                                                   |                                                                                             |   | 565,250       |       |
|                                  |

----

| DAVIS SERIES, INC.                                 | Schedule of Investments   |
|----------------------------------------------------|---------------------------|
| DAVIS APPRECIATION & INCOME FUND - (CONTINUED) | June 30, 2010 (Unaudited) |

| Principal                                                                                                                                      |                                                                                                                                            | Security                                                             |                                                                                                                                                                                                                                                                                                     | Value(Note 1) |      |
|------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|-----------|
| CORPORATE BONDS – (CONTINUED)                                                                                                            |                                                                                                                                            |
|                                                                                                                                           | INDUSTRIALS – (2.63%)                                                                                                                     |                                                                 |
|                                                                                                                                           | Capital Goods – (2.41%)                                                                                                                   |                                                                 |
| $                                                                                                                                              | 9,500,000                                                                                                                   | Masco Corp., Sr. Notes, 6.125%, 10/03/16                             |                                                                                                                                                                                                                                                                                                     | $             | 9,203,467 |   |
|                                                                                                                                           |
|                                                                                                                                           | Commercial & Professional Services – (0.22%)                                                                                          |                                                                 |
|                                                                                                                                           | 1,040,991                                                                                                                   | ADFITECH, Inc., Sr. Bond, 8.00%, 03/15/20    (a) |                                                                                                                                                                                                                                                                                                     |          | 839,628   |   |
|                                                                                                                                           |
|                                                                                                                                           | Total Industrials                                                                                                                               |                                                                 |                                                                                                                                                                                                                                                                                                     | 10,043,095    |      |
|                                                                                                                                           |
|                                                                                                                                           | TOTAL CORPORATE BONDS – (Identified cost $22,799,186)                                                                                     |                                                                 |                                                                                                                                                                                                                                                                                                     | 13,408,060    |      |
|                                                                                                                                           |
| SHORT TERM INVESTMENTS – (2.90%)                                                                                                         |                                                                                                                                            |
|                                                                                                                                           | 1,959,000                                                                                                                   | Banc of America Securities LLC Joint Repurchase Agreement,           |                                                                                                                                                                                                                                                                                                     |          |      |   |   |   |
|                                                                                                                                           | 0.03%, 07/01/10, dated 06/30/10, repurchase value of $1,959,002                                                                                 |                                                                 |                                                                                                                                                                                                                                                                                                     |          |      |   |   |
|                                                                                                                                           | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.00%, 12/08/10-07/15/20, total market value $1,998,180) |                                                                 |                                                                                                                                                                                                                                                                                                     | 1,959,000     |      |
|                                                                                                                                           | 2,859,000                                                                                                                   | Goldman, Sachs & Co. Joint Repurchase Agreement,                 |                                                                                                                                                                                                                                                                                                     |          |      |   |   |   |
|                                                                                                                                           | 0.01%, 07/01/10, dated 06/30/10, repurchase value of $2,859,001                                                                                 |                                                                 |                                                                                                                                                                                                                                                                                                     |          |      |   |   |
|                                                                                                                                           | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.05%, 08/30/10-01/26/15, total market value $2,916,180) |                                                                 |                                                                                                                                                                                                                                                                                                     | 2,859,000     |      |
|                                                                                                                                           | 6,269,000                                                                                                                   | Mizuho Securities USA Inc. Joint Repurchase Agreement,               |                                                                                                                                                                                                                                                                                                     |          |      |   |   |   |
|                                                                                                                                           | 0.14%, 07/01/10, dated 06/30/10, repurchase value of $6,269,024                                                                                 |                                                                 |                                                                                                                                                                                                                                                                                                     |          |      |   |   |
|                                                                                                                                           | (collateralized by: U.S. Government agency mortgages in a pooled cash account, 2.421%-6.229%, 09/01/19-07/01/40, total market value $6,394,380) |                                                                 |                                                                                                                                                                                                                                                                                                     | 6,269,000     |      |
|                                                                                                                                           |
|                                                                                                                                           | TOTAL SHORT TERM INVESTMENTS – (Identified cost $11,087,000)                                                                              |                                                                 |                                                                                                                                                                                                                                                                                                     | 11,087,000    |      |
|                                                                                                                                           |
|                                                                                                                                           | Total Investments – (99.83%) – (Identified cost $419,460,219) – (d)                                                           |                                                                 |                                                                                                                                                                                                                                                                                                     | 381,626,218   |      |
|                                                                                                                                           | Other Assets Less Liabilities – (0.17%)                                                                                                   |                                                                 |                                                                                                                                                                                                                                                                                                     | 638,471       |      |
|                    Net Assets – (100.00%) |                                                                                                                                            |                                                                 | $                                                                                                                                                                                                                                                                                                        | 382,264,689   |      |
|                                                                                                                                           |
|                                                                                                                                           |
|                                                                                                                                           | T-DECS: Tangible Dividend Enhanced Common Stock                                                                                                 |                                                                 |                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                           |                                                                                                                                            |                                                                 |                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                           | TRUPS: Trust Preferred Securities                                                                                                               |                                                                 |                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                           |                                                                                                                                            |                                                                 |                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                           | *                                                                                                                                               |                                                                 | Non-Income producing security.                                                                                                                                                                                                                                                                           |          |
|                                                                                                                                           |                                                                                                                                            |                                                                 |                                                                                                                                                                                                                                                                                                     |          |
|                                                                                                                                           | (a)                                                                                                                                             |                                                                 | Illiquid Security – See Note 8 of the Notes to Financial Statements.                                                                                                                                                                                                                               |          |
|                                                                                                                                           |                                                                                                                                            |                                                                 |                                                                                                                                                                                                                                                                                                     |          |
|                                                                                                                                           | (b)                                                                                                                                             |                                                                 | These securities are subject to Rule 144A.  The Board of Directors of the Fund has determined that there is sufficient liquidity in these securities to realize current valuations.  These securities amounted to $23,277,281 or 6.09% of the Fund's net assets as of June 30, 2010. |          |
|                                                                                                                                           |                                                                                                                                            |                                                                 |                                                                                                                                                                                                                                                                                                     |          |
|                                                                                                                                           | (c)                                                                                                                                             |                                                                 | Represents a step-down bond: a bond that pays one coupon rate for an initial period followed by a lower coupon rate.                                                                                                                                                                                     |          |
|                                                                                                                                           |                                                                                                                                            |                                                                 |                                                                                                                                                                                                                                                                                                     |          |
|                                                                                                                                           | (d)                                                                                                                                             |                                                                 | Aggregate cost for federal income tax purposes is $419,508,199.  At June 30, 2010 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:                                                                                                          |          |
|                                                                                                                                           |                                                                                                                                            |                                                                 |                                                                                                                                                                                                                                                                                                     |          |
|                                                                                                                                           | Unrealized appreciation                                                                                                                         |                                                                 | $                                                                                                                                                                                                                                                                                                        | 35,899,273    |      |
|                                                                                                                                           | Unrealized depreciation                                                                                                                         |                                                                 |                                                                                                                                                                                                                                                                                                     | (73,781,254)  |      |
|                   Net unrealized depreciation        |                                                                                                                                            |                                                                 | $                                                                                                                                                                                                                                                                                                        | (37,881,981)  |      |
|                                                                                                                                           |
|                                                                                                                                           |
| See Notes to Financial Statements                                                                                                              |                                                                                                                                            |

----

| DAVIS SERIES, INC.     | Schedule of Investments   |
|------------------------|---------------------------|
| DAVIS REAL ESTATE FUND | June 30, 2010 (Unaudited) |

| Shares                        |                                                                                                                                                                                                                                                                                                                                         | Security                                            |   | Value(Note 1) |       |
|-------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|--------|---------------|------------|
| COMMON STOCK – (85.36%) |                                                                                                                                                                                                                                                                                                                                         |
|                          | FINANCIALS – (74.65%)                                                                                                                                                                                                                                                                                                                  |                                                |
|                          | Real Estate – (74.65%)                                                                                                                                                                                                                                                                                                                 |                                                |
|                          | Real Estate Investment Trusts (REITs) – (69.67%)                                                                                                                                                                                                                                                                                       |                                                |
|                          | Diversified REITs – (5.41%)                                                                                                                                                                                                                                                                                                            |                                                |
|                          | 771,090                                                                                                                                                                                                                                                                                                                  | Cousins Properties, Inc.                            |   | $             | 5,197,145  |   |
|                          | 137,314                                                                                                                                                                                                                                                                                                                  | Vornado Realty Trust                                |   |          | 10,017,056 |   |
|                          |
|                          | 15,214,201                                                                                                                                                                                                                                                                                                                                   |                                                |
|                          |
|                          |                                                   Industrial REITs – (3.70%) |                                                |
|                          | 2,301,400                                                                                                                                                                                                                                                                                                                | DCT Industrial Trust Inc.                           |   |          | 10,402,328 |   |
|                          |
|                          | Office REITs – (28.66%)                                                                                                                                                                                                                                                                                                                |                                                |
|                          | 231,813                                                                                                                                                                                                                                                                                                                  | Alexandria Real Estate Equities, Inc.               |   |          | 14,689,989 |   |
|                          | 130,100                                                                                                                                                                                                                                                                                                                  | Boston Properties, Inc.                             |   |          | 9,281,334  |   |
|                          | 436,938                                                                                                                                                                                                                                                                                                                  | Corporate Office Properties Trust                   |   |          | 16,498,779 |   |
|                          | 247,300                                                                                                                                                                                                                                                                                                                  | Digital Realty Trust, Inc.                          |   |          | 14,264,264 |   |
|                          | 752,800                                                                                                                                                                                                                                                                                                                  | Douglas Emmett, Inc.                                |   |          | 10,704,816 |   |
|                          | 397,000                                                                                                                                                                                                                                                                                                                  | DuPont Fabros Technology Inc.                       |   |          | 9,750,320  |   |
|                          | 197,300                                                                                                                                                                                                                                                                                                                  | Highwoods Properties, Inc.                          |   |          | 5,477,048  |   |
|                          |
|                          | 80,666,550                                                                                                                                                                                                                                                                                                                                   |                                                |
|                          |
|                          | Residential REITs – (10.92%)                                                                                                                                                                                                                                                                                                           |                                                |
|                          | 567,200                                                                                                                                                                                                                                                                                                                  | American Campus Communities, Inc.                   |   |          | 15,478,888 |   |
|                          | 117,800                                                                                                                                                                                                                                                                                                                  | Essex Property Trust, Inc.                          |   |          | 11,490,212 |   |
|                          | 196,500                                                                                                                                                                                                                                                                                                                  | UDR, Inc.                                           |   |          | 3,759,045  |   |
|                          |
|                          | 30,728,145                                                                                                                                                                                                                                                                                                                                   |                                                |
|                          |
|                          | Retail REITs – (12.15%)                                                                                                                                                                                                                                                                                                                |                                                |
|                          | 259,560                                                                                                                                                                                                                                                                                                                  | CBL & Associates Properties, Inc.               |   |          | 3,228,926  |   |
|                          | 147,500                                                                                                                                                                                                                                                                                                                  | Federal Realty Investment Trust                     |   |          | 10,364,825 |   |
|                          | 294,000                                                                                                                                                                                                                                                                                                                  | Regency Centers Corp.                               |   |          | 10,113,600 |   |
|                          | 78,582                                                                                                                                                                                                                                                                                                                   | Simon Property Group, Inc.                          |   |          | 6,345,497  |   |
|                          | 110,100                                                                                                                                                                                                                                                                                                                  | Taubman Centers, Inc.                               |   |          | 4,143,063  |   |
|                          |
|                          | 34,195,911                                                                                                                                                                                                                                                                                                                                   |                                                |
|                          |
|                          | Specialized REITs – (8.83%)                                                                                                                                                                                                                                                                                                            |                                                |
|                          | 822,547                                                                                                                                                                                                                                                                                                                  | Cogdell Spencer, Inc.                               |   |          | 5,560,418  |   |
|                          | 166,900                                                                                                                                                                                                                                                                                                                  | Entertainment Properties Trust                      |   |          | 6,353,883  |   |
|                          | 197,500                                                                                                                                                                                                                                                                                                                  | LaSalle Hotel Properties                            |   |          | 4,062,575  |   |
|                          | 188,700                                                                                                                                                                                                                                                                                                                  | Ventas, Inc.                                        |   |          | 8,859,465  |   |
|                          |
|                          | 24,836,341                                                                                                                                                                                                                                                                                                                                   |                                                |
|                          |
|                          | 196,043,476                                                                                                                                                                                                                                                                                                                                  |                                                |
|                          |
|                          | Real Estate Management & Development – (4.98%)                                                                                                                                                                                                                                                                                     |                                                |
|                          | Real Estate Operating Companies – (4.98%)                                                                                                                                                                                                                                                                                              |                                                |
|                          | 1,238,154                                                                                                                                                                                                                                                                                                                | Forest City Enterprises, Inc., Class A  * |   |          | 14,015,904 |   |
|                          |
|                          | 210,059,380                                                                                                                                                                                                                                                                                                                                  |                                                |
|                          |
|                          | Total Financials                                                                                                                                                                                                                                                                                                                             |                                                |   | 210,059,380   |       |
|                          |
|                          | INDUSTRIALS – (2.83%)                                                                                                                                                                                                                                                                                                                  |                                                |
|                          | Transportation – (2.83%)                                                                                                                                                                                                                                                                                                               |                                                |
|                          | 267,600                                                                                                                                                                                                                                                                                                                  | Alexander & Baldwin, Inc.                       |   |          | 7,969,128  |   |
|                          |
|                          | Total Industrials                                                                                                                                                                                                                                                                                                                            |                                                |   | 7,969,128     |       |
|                          |
|                          | TELECOMMUNICATION SERVICES – (7.88%)                                                                                                                                                                                                                                                                                                   |                                                |
|                          | 153,200                                                                                                                                                                                                                                                                                                                  | American Tower Corp., Class A  *          |   |          | 6,817,400  |   |
|                          | 215,400                                                                                                                                                                                                                                                                                                                  | Crown Castle International Corp.  *       |   |          | 8,025,804  |   |

----

| DAVIS SERIES, INC.                         | Schedule of Investments   |
|--------------------------------------------|---------------------------|
| DAVIS REAL ESTATE FUND – (CONTINUED) | June 30, 2010 (Unaudited) |

| Shares/Principal                       |                                                                                                                                          | Security                                                                            |   | Value(Note 1) |       |
|----------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|--------|---------------|------------|
| COMMON STOCK – (CONTINUED)       |                                                                                                                                          |
|                                   | TELECOMMUNICATION SERVICES – (CONTINUED)                                                                                                |                                                                                |
|                                   | 215,400                                                                                                                   | SBA Communications Corp., Class A  *                                      |   | $             | 7,325,754  |   |
|                                   |
|                                   | Total Telecommunication Services                                                                                                              |                                                                                |   | 22,168,958    |       |
|                                   |
|                                   | TOTAL COMMON STOCK – (Identified cost $233,716,773)                                                                                     |                                                                                |   | 240,197,466   |       |
|                                   |
| PREFERRED STOCK – (10.55%)       |                                                                                                                                          |
|                                   | FINANCIALS – (10.55%)                                                                                                                   |                                                                                |
|                                   | Real Estate – (10.55%)                                                                                                                  |                                                                                |
|                                   | Real Estate Investment Trusts (REITs) – (10.55%)                                                                                        |                                                                                |
|                                   | Industrial REITs – (1.37%)                                                                                                              |                                                                                |
|                                   | 171,000                                                                                                                   | AMB Property Corp., 6.75%, Series M                                                 |   |          | 3,848,355  |   |
|                                   |
|                                   | Office REITs – (7.59%)                                                                                                                  |                                                                                |
|                                   | 468,943                                                                                                                   | Alexandria Real Estate Equities, Inc., 7.00%, Series D, Conv. Pfd.                  |   |          | 10,096,906 |   |
|                                   | 79,500                                                                                                                    | Digital Realty Trust, Inc., 5.50%, Series D, Cum. Conv. Pfd.                        |   |          | 2,752,687  |   |
|                                   | 71,693                                                                                                                    | Digital Realty Trust, Inc., 8.50%, Series A                                         |   |          | 1,814,729  |   |
|                                   | 280,910                                                                                                                   | SL Green Realty Corp., 7.625%, Series C                                             |   |          | 6,700,406  |   |
|                                   |
|                                   | 21,364,728                                                                                                                                    |                                                                                |
|                                   |
|                                   | Residential REITs – (0.72%)                                                                                                             |                                                                                |
|                                   | 43,700                                                                                                                    | Equity Residential, 7.00%, Series E, Cum. Conv. Pfd.                                |   |          | 2,038,876  |   |
|                                   |
|                                   | Retail REITs – (0.87%)                                                                                                                  |                                                                                |
|                                   | 114,160                                                                                                                   | CBL & Associates Properties, Inc., 7.375%, Series D                             |   |          | 2,437,601  |   |
|                                   |
|                                   | Total Financials                                                                                                                              |                                                                                |   | 29,689,560    |       |
|                                   |
|                                   | TOTAL PREFERRED STOCK – (Identified cost $15,361,943)                                                                                   |                                                                                |   | 29,689,560    |       |
|                                   |
| CONVERTIBLE BONDS – (3.28%)      |                                                                                                                                          |
|                                   | FINANCIALS – (3.28%)                                                                                                                    |                                                                                |
|                                   | Real Estate – (3.28%)                                                                                                                   |                                                                                |
|                                   | Real Estate Investment Trusts (REITs) – (2.88%)                                                                                         |                                                                                |
|                                   | Office REITs – (2.88%)                                                                                                                  |                                                                                |
| $                                      | 4,815,000                                                                                                                 | Digital Realty Trust, Inc., 144A Conv. Sr. Notes, 5.50%, 0415/29  (a)     |   |          | 6,900,497  |   |
|                                   | 1,230,000                                                                                                                 | SL Green Realty Corp., 144A Conv. Sr. Notes, 3.00%, 03/30/27  (a)         |   |          | 1,199,250  |   |
|                                   |
|                                   | 8,099,747                                                                                                                                     |                                                                                |
|                                   |
|                                   | Real Estate Management & Development – (0.40%)                                                                                      |                                                                                |
|                                   | Real Estate Operating Companies – (0.40%)                                                                                               |                                                                                |
|                                   | 1,040,000                                                                                                                 | Forest City Enterprises, Inc., 144A Conv. Sr. Notes, 5.00%, 10/15/16  (a) |   |          | 1,118,000  |   |
|                                   |
|                                   | Total Financials                                                                                                                              |                                                                                |   | 9,217,747     |       |
|                                   |
|                                   | TOTAL CONVERTIBLE BONDS – (Identified cost $7,067,492)                                                                                  |                                                                                |   | 9,217,747     |       |
|                                   |
| SHORT TERM INVESTMENTS – (0.63%) |                                                                                                                                          |
|                                   | 315,000                                                                                                                   | Banc of America Securities LLC Joint Repurchase Agreement,                          |   |          |       |   |   |
|                                   | 0.03%, 07/01/10, dated 06/30/10, repurchase value of $315,000                                                                                 |                                                                                |   |          |       |   |
|                                   | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.00%, 12/08/10-07/15/20, total market value $321,300) |                                                                                |   | 315,000       |       |
|                                   | 459,000                                                                                                                   | Goldman, Sachs & Co. Joint Repurchase Agreement,                                |   |          |       |   |   |
|                                   | 0.01%, 07/01/10, dated 06/30/10, repurchase value of $459,000                                                                                 |                                                                                |   |          |       |   |
|                                   | (collateralized by: U.S. Government agency obligations in a pooled cash account, 0.00%-5.05%, 08/30/10-01/26/15, total market value $468,180) |                                                                                |   | 459,000       |       |

----

| DAVIS SERIES, INC.                         | Schedule of Investments   |
|--------------------------------------------|---------------------------|
| DAVIS REAL ESTATE FUND – (CONTINUED) | June 30, 2010 (Unaudited) |

| Principal                                                                                                                          |                                                                                                                                            | Security                                               |                                                                                                                                                                                                                                                                                                    | Value(Note 1) |   |
|------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------|--------|
| SHORT TERM INVESTMENTS – (CONTINUED)                                                                                         |                                                                                                                                            |
| $                                                                                                                                  | 1,007,000                                                                                                                   | Mizuho Securities USA Inc. Joint Repurchase Agreement, |                                                                                                                                                                                                                                                                                                    |          |   |   |   |
|                                                                                                                               | 0.14%, 07/01/10, dated 06/30/10, repurchase value of $1,007,004                                                                                 |                                                   |                                                                                                                                                                                                                                                                                                    |          |   |   |
|                                                                                                                               | (collateralized by: U.S. Government agency mortgages in a pooled cash account, 2.421%-6.229%, 09/01/19-07/01/40, total market value $1,027,140) |                                                   | $                                                                                                                                                                                                                                                                                                       | 1,007,000     |   |
|                                                                                                                               |
|                                                                                                                               | TOTAL SHORT TERM INVESTMENTS – (Identified cost $1,781,000)                                                                               |                                                   |                                                                                                                                                                                                                                                                                                    | 1,781,000     |   |
|                                                                                                                               |
|                                                                                                                               | Total Investments – (99.82%) – (Identified cost $257,927,208) – (b)                                                           |                                                   |                                                                                                                                                                                                                                                                                                    | 280,885,773   |   |
|                                                                                                                               | Other Assets Less Liabilities – (0.18%)                                                                                                   |                                                   |                                                                                                                                                                                                                                                                                                    | 517,175       |   |
|                  Net Assets – (100.00%) |                                                                                                                                            |                                                   | $                                                                                                                                                                                                                                                                                                       | 281,402,948   |   |
|                                                                                                                               |
|                                                                                                                               |
|                                                                                                                               | *                                                                                                                                               |                                                   | Non-Income producing security.                                                                                                                                                                                                                                                                          |          |
|                                                                                                                               |                                                                                                                                            |                                                   |                                                                                                                                                                                                                                                                                                    |          |
|                                                                                                                               | (a)                                                                                                                                             |                                                   | 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 $9,217,747 or 3.28% of the Fund's net assets as of June 30, 2010. |          |
|                                                                                                                               |                                                                                                                                            |                                                   |                                                                                                                                                                                                                                                                                                    |          |
|                                                                                                                               | (b)                                                                                                                                             |                                                   | Aggregate cost for federal income tax purposes is $271,616,558. At June 30, 2010 unrealized appreciation (depreciation) of securities for federal income tax purposes is as follows:                                                                                                                    |          |
|                                                                                                                               |                                                                                                                                            |                                                   |                                                                                                                                                                                                                                                                                                    |          |
|                                                                                                                               | Unrealized appreciation                                                                                                                         |                                                   | $                                                                                                                                                                                                                                                                                                       | 50,331,987    |   |
|                                                                                                                               | Unrealized depreciation                                                                                                                         |                                                   |                                                                                                                                                                                                                                                                                                    | (41,062,772)  |   |
|                  Net unrealized appreciation  |                                                                                                                                            |                                                   | $                                                                                                                                                                                                                                                                                                       | 9,269,215     |   |
|                                                                                                                               |
|                                                                                                                               |
| See Notes to Financial Statements                                                                                                  |                                                                                                                                            |

----

| DAVIS SERIES, INC. | Statements of Assets and Liabilities |
|--------------------|--------------------------------------|
|               | At June 30, 2010 (Unaudited)         |

|                                                                                        |                                                                               | DavisOpportunityFund |          | DavisGovernmentBond Fund |   | DavisGovernmentMoney MarketFund |        | Davis FinancialFund |        | DavisAppreciation &Income Fund |   | Davis Real EstateFund |
|---------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|----------------------|---------------|--------------------------|--------|---------------------------------|-------------|---------------------|-------------|------------------------------------|--------|-----------------------|
| ASSETS:                                                                                     |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |   |
| Investments in securities at value* (see accompanying Schedules of Investments):            |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |   |
|                                                                                        | Unaffiliated companies                                                             |                 | $             | 484,968,835              |   | $                               | 156,172,018 |                | $           | 333,183,381                        |   | $                     | 525,519,437 |   | $ | 381,626,218 |   | $ | 280,885,773 |   |
|                                                                                        | Affiliated companies                                                               |                 |          | 296,980                  |   |                            | –     |                |        | –                            |   |                  | – |   |   | – |   |   | – |   |
| Cash                                                                                        |                                                                               |                 | –       |                     |   | 4,328                           |        |                | 14,726      |                               |   | 16,600                |   |   | 4,527 |   |   | 7,320 |   |
| Cash - foreign currencies**                                                                 |                                                                               |                 | 2,630,395     |                     |   | –                         |        |                | –     |                               |   | –               |   |   | – |   |   | – |   |
| Receivables:                                                                                |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |   |
|                                                                                        | Capital stock sold                                                                 |                 |          | 1,277,454                |   |                            | 1,227,285   |                |        | 26,368,364                         |   |                  | 102,010 |   |   | 432,034 |   |   | 338,340 |   |
|                                                                                        | Dividends and interest                                                             |                 |          | 907,202                  |   |                            | 530,829     |                |        | 423,150                            |   |                  | 1,217,465 |   |   | 1,369,855 |   |   | 1,359,478 |   |
|                                                                                        | Investment securities sold                                                         |                 |          | 1,253,125                |   |                            | –     |                |        | –                            |   |                  | 1,001,434 |   |   | – |   |   | 1,469,131 |   |
| Prepaid expenses                                                                            |                                                                               |                 | 2,473         |                     |   | 914                             |        |                | 3,163       |                               |   | 5,258                 |   |   | 1,661 |   |   | 12,988 |   |
| Due from Adviser                                                                            |                                                                               |                 | –       |                     |   | –                         |        |                | 106,800     |                               |   | –               |   |   | – |   |   | – |   |
|                                                                                        | Total assets                                                                       |                 |          | 491,336,464              |   |                            | 157,935,374 |                |        | 360,099,584                        |   |                  | 527,862,204 |   |   | 383,434,295 |   |   | 284,073,030 |   |
|                                                                                        |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |   |
| LIABILITIES:                                                                                |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |   |
| Cash overdraft                                                                              |                                                                               |                 | 659,463       |                     |   | –                         |        |                | –     |                               |   | –               |   |   | – |   |   | – |   |
| Payables:                                                                                   |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |   |
|                                                                                        | Capital stock redeemed                                                             |                 |          | 812,621                  |   |                            | 474,937     |                |        | 441,887                            |   |                  | 341,438 |   |   | 584,878 |   |   | 834,726 |   |
|                                                                                        | Distributions payable                                                              |                 |          | –                  |   |                            | 81,693      |                |        | 432                                |   |                  | – |   |   | – |   |   | – |   |
|                                                                                        | Investment securities purchased                                                    |                 |          | 863,220                  |   |                            | –     |                |        | –                            |   |                  | – |   |   | – |   |   | 1,369,439 |   |
| Accrued distribution and service plan fees                                                  |                                                                               |                 | 292,696       |                     |   | 88,278                          |        |                | –     |                               |   | 286,970               |   |   | 223,255 |   |   | 158,917 |   |
| Accrued management fees                                                                     |                                                                               |                 | 262,440       |                     |   | 43,539                          |        |                | 155,923     |                               |   | 281,914               |   |   | 205,608 |   |   | 151,979 |   |
| Accrued transfer agent fees                                                                 |                                                                               |                 | 189,920       |                     |   | 32,241                          |        |                | 33,187      |                               |   | 164,545               |   |   | 97,552 |   |   | 131,493 |   |
| Other accrued expenses                                                                      |                                                                               |                 | 82,471        |                     |   | 53,966                          |        |                | 93,730      |                               |   | 66,586                |   |   | 58,313 |   |   | 23,528 |   |
|                                                                                        | Total liabilities                                                                  |                 |          | 3,162,831                |   |                            | 774,654     |                |        | 725,159                            |   |                  | 1,141,453 |   |   | 1,169,606 |   |   | 2,670,082 |   |
|                                                                                        |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |
| NET ASSETS                                                                                  |                                                                               | $                    | 488,173,633   |                     | $      | 157,160,720                     |        | $                   | 359,374,425 |                               | $      | 526,720,751           |   | $ | 382,264,689 |   | $ | 281,402,948 |   |
|                                                                                        |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |
| NET ASSETS CONSIST OF:                                                                      |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |   |
| Par value of shares of capital stock                                                        |                                                                               | $                    | 275,276       |                     | $      | 276,542                         |        | $                   | 3,593,744   |                               | $      | 201,276               |   | $ | 162,829 |   | $ | 137,110 |   |
| Additional paid-in capital                                                                  |                                                                               |                 | 631,788,412   |                     |   | 159,133,291                     |        |                | 355,780,681 |                               |   | 403,812,970           |   |   | 536,404,855 |   |   | 422,823,204 |   |
| Undistributed net investment income                                                         |                                                                               |                 | 4,037,292     |                     |   | –                         |        |                | –     |                               |   | 4,976,366             |   |   | 1,744,005 |   |   | 4,683,050 |   |
| Accumulated net realized losses from investments and foreign currency transactions          |                                                                               |                 | (169,014,035) |                     |   | (4,863,430)                     |        |                | –     |                               |   | (7,379,626)           |   |   | (118,212,999) |   |   | (169,192,981) |   |
| Net unrealized appreciation (depreciation) on investments and foreign currency transactions |                                                                               |                 | 21,086,688    |                     |   | 2,614,317                       |        |                | –     |                               |   | 125,109,765           |   |   | (37,834,001) |   |   | 22,952,565 |   |
|                                                                                        | Net Assets                                                                         |                 | $             | 488,173,633              |   | $                               | 157,160,720 |                | $           | 359,374,425                        |   | $                     | 526,720,751 |   | $ | 382,264,689 |   | $ | 281,402,948 |   |
|                                                                                        |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |
|                                                                                        |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |
| *Including:                                                                                 |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |   |   |   |
|                                                                                        | Cost of unaffiliated companies                                                     |                 | $             | 456,475,684              |   | $                               | 153,557,701 |                | $           | 333,183,381                        |   | $                     | 400,411,629 |   | $ | 419,460,219 |   | $ | 257,927,208 |   |
|                                                                                        | Cost of affiliated companies                                                       |                 |          | 7,709,292                |   |                            | –     |                |        | –                            |   |                  | – |   |   | – |   |   | – |   |
|                                                                                        | Cost and market value of repurchase agreements (if greater than 10% of net assets) |                 |          | –                  |   |                            | –     |                |        | 136,160,000                        |   |                  | – |   |   | – |   |   | – |   |
|                                                                                        |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |
| **Cost of cash - foreign currencies                                                         |                                                                               |                 | 2,639,860     |                     |   | –                         |        |                | –     |                               |   | –               |   |   | – |   |   | – |   |
|                                                                                        |                                                                               |                 |          |                     |   |                            |        |                |        |                               |   |                  |   |   |   |   |   |

----

| DAVIS SERIES, INC. | Statements of Assets and Liabilities – (Continued) |
|--------------------|----------------------------------------------------------|
|               | At June 30, 2010 (Unaudited)                             |

|                                                                    |                                                                                          | DavisOpportunityFund |   | DavisGovernmentBond Fund |   | DavisGovernmentMoney MarketFund |       | Davis FinancialFund |   | DavisAppreciation &Income Fund |   | Davis Real EstateFund |        |
|-------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|----------------------|--------|--------------------------|--------|---------------------------------|------------|---------------------|--------|------------------------------------|--------|-----------------------|-------------|
| CLASS A SHARES:                                                         |                                                                                          |                 |   |                     |   |                            |       |                |   |                               |   |                  |        |   |   |   |   |   |   |   |
|                                                                    | Net assets                                                                                    |                 | $      | 262,536,821              |   | $                               | 97,055,636 |                | $      | 321,765,688                        |   | $                     | 428,545,561 |   | $ | 257,460,460 |   | $ | 230,160,689 |   |
|                                                                    | Shares outstanding                                                                            |                 |   | 14,438,412               |   |                            | 17,077,887 |                |   | 321,765,688                        |   |                  | 16,064,900  |   |   | 10,970,232 |   |   | 11,217,827 |   |
|                                                                    | Net asset value and redemptionprice per share (Net assets ÷Shares outstanding)           |                 | $      | 18.18                    |   | $                               | 5.68       |                | $      | 1.00                               |   | $                     | 26.68       |   | $ | 23.47 |   | $ | 20.52 |   |
|                                                                    | Maximum offering price pershare (100/95.25 of net assetvalue)†                          |                 | $      | 19.09                    |   | $                               | 5.96       |                | $      | NA                                 |   | $                     | 28.01       |   | $ | 24.64 |   | $ | 21.54 |   |
|                                                                    |                                                                                          |                 |   |                     |   |                            |       |                |   |                               |   |                  |        |   |   |   |   |   |   |   |
| CLASS B SHARES:                                                         |                                                                                          |                 |   |                     |   |                            |       |                |   |                               |   |                  |        |   |   |   |   |   |   |   |
|                                                                    | Net assets                                                                                    |                 | $      | 18,883,556               |   | $                               | 15,759,026 |                | $      | 20,377,769                         |   | $                     | 11,616,205  |   | $ | 17,375,665 |   | $ | 5,864,324 |   |
|                                                                    | Shares outstanding                                                                            |                 |   | 1,217,335                |   |                            | 2,780,931  |                |   | 20,377,769                         |   |                  | 508,040     |   |   | 750,204 |   |   | 290,272 |   |
|                                                                    | Net asset value, offering, andredemption price per share(Net assets ÷ Sharesoutstanding) |                 | $      | 15.51                    |   | $                               | 5.67       |                | $      | 1.00                               |   | $                     | 22.86       |   | $ | 23.16 |   | $ | 20.20 |   |
|                                                                    |                                                                                          |                 |   |                     |   |                            |       |                |   |                               |   |                  |        |   |   |   |   |   |   |   |
| CLASS C SHARES:                                                         |                                                                                          |                 |   |                     |   |                            |       |                |   |                               |   |                  |        |   |   |   |   |   |   |   |
|                                                                    | Net assets                                                                                    |                 | $      | 106,130,929              |   | $                               | 40,122,206 |                | $      | 15,367,907                         |   | $                     | 64,659,705  |   | $ | 78,869,681 |   | $ | 28,511,548 |   |
|                                                                    | Shares outstanding                                                                            |                 |   | 6,499,572                |   |                            | 7,057,501  |                |   | 15,367,907                         |   |                  | 2,752,059   |   |   | 3,351,500 |   |   | 1,392,284 |   |
|                                                                    | Net asset value, offering, andredemption price per share(Net assets ÷ Sharesoutstanding) |                 | $      | 16.33                    |   | $                               | 5.69       |                | $      | 1.00                               |   | $                     | 23.50       |   | $ | 23.53 |   | $ | 20.48 |   |
|                                                                    |                                                                                          |                 |   |                     |   |                            |       |                |   |                               |   |                  |        |   |   |   |   |   |   |   |
| CLASS Y SHARES:                                                         |                                                                                          |                 |   |                     |   |                            |       |                |   |                               |   |                  |        |   |   |   |   |   |   |   |
|                                                                    | Net assets                                                                                    |                 | $      | 100,622,327              |   | $                               | 4,223,852  |                | $      | 1,863,061                          |   | $                     | 21,899,280  |   | $ | 28,558,883 |   | $ | 16,866,387 |   |
|                                                                    | Shares outstanding                                                                            |                 |   | 5,372,249                |   |                            | 737,837    |                |   | 1,863,061                          |   |                  | 802,622     |   |   | 1,210,946 |   |   | 810,645 |   |
|                                                                    | Net asset value, offering, andredemption price per share(Net assets ÷ Sharesoutstanding) |                 | $      | 18.73                    |   | $                               | 5.72       |                | $      | 1.00                               |   | $                     | 27.28       |   | $ | 23.58 |   | $ | 20.81 |   |
|                                                                    |                                                                                          |                 |   |                     |   |                            |       |                |   |                               |   |                  |        |   |   |   |   |
| †On purchases of $100,000 or more, the offering price is reduced. |                                                                                          |                 |   |                     |
|                                                                    |                                                                                          |                 |   |                     |   |                            |       |                |   |                               |   |                  |        |   |   |   |   |
| See Notes to Financial Statements                                       |

----

| DAVIS SERIES, INC. | Statements of Operations                           |
|--------------------|----------------------------------------------------|
|               | For the six months ended June 30, 2010 (Unaudited) |

|                                                                                    |                                                                                     | Davis Opportunity Fund |         | Davis Government Bond Fund |   | Davis Government Money Market Fund |      | Davis Financial Fund |    | Davis Appreciation & Income Fund |   | Davis Real Estate Fund |         |
|-----------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|------------------------|--------------|----------------------------|--------|------------------------------------|-----------|----------------------|---------|--------------------------------------|--------|------------------------|--------------|
| INVESTMENT INCOME:                                                                      |                                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |   |   |   |
| Income:                                                                                 |                                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |   |   |   |
|                                                                                    | Dividends*                                                                               |                   | $            | 7,502,107                  |   | $                                  | –   |                 | $       | –                              |   | $                      | 6,178,662    |   | $ | 2,410,764 |   | $ | 5,026,687 |   |
|                                                                                    | Interest                                                                                 |                   |         | 244,897                    |   |                               | 2,622,710 |                 |    | 337,763                              |   |                   | 634          |   |   | 2,955,455 |   |   | 254,549 |   |
|                                                                                    | Total income                                                                             |                   |         | 7,747,004                  |   |                               | 2,622,710 |                 |    | 337,763                              |   |                   | 6,179,296    |   |   | 5,366,219 |   |   | 5,281,236 |   |
|                                                                                    |                                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |
| Expenses:                                                                               |                                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |   |   |   |
|                                                                                    | Management fees (Note 3)                                                                 |                   |         | 1,480,063                  |   |                               | 223,410   |                 |    | 756,017                              |   |                   | 1,734,649    |   |   | 1,150,591 |   |   | 807,964 |   |
|                                                                                    | Custodian fees                                                                           |                   |         | 48,687                     |   |                               | 23,077    |                 |    | 22,497                               |   |                   | 52,277       |   |   | 34,300 |   |   | 30,493 |   |
|                                                                                    | Transfer agent fees:                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |   |   |   |   |
|                                                                                    | Class A                                                                                  |                   |         | 272,202                    |   |                               | 52,533    |                 |    | 81,517                               |   |                   | 365,598      |   |   | 169,911 |   |   | 263,973 |   |
|                                                                                    | Class B                                                                                  |                   |         | 38,545                     |   |                               | 17,202    |                 |    | 6,548                                |   |                   | 30,763       |   |   | 21,304 |   |   | 17,828 |   |
|                                                                                    | Class C                                                                                  |                   |         | 128,897                    |   |                               | 27,515    |                 |    | 4,794                                |   |                   | 79,182       |   |   | 55,674 |   |   | 38,711 |   |
|                                                                                    | Class Y                                                                                  |                   |         | 50,414                     |   |                               | 2,431     |                 |    | 197                                  |   |                   | 25,410       |   |   | 15,711 |   |   | 9,238 |   |
|                                                                                    | Audit fees                                                                               |                   |         | 10,800                     |   |                               | 9,000     |                 |    | 10,800                               |   |                   | 16,800       |   |   | 11,400 |   |   | 15,000 |   |
|                                                                                    | Legal fees                                                                               |                   |         | 7,968                      |   |                               | 2,430     |                 |    | 4,500                                |   |                   | 10,100       |   |   | 9,300 |   |   | 4,416 |   |
|                                                                                    | Accounting fees (Note 3)                                                                 |                   |         | 3,750                      |   |                               | 1,500     |                 |    | 3,000                                |   |                   | 4,500        |   |   | 3,252 |   |   | 2,250 |   |
|                                                                                    | Reports to shareholders                                                                  |                   |         | 57,500                     |   |                               | 12,995    |                 |    | 17,499                               |   |                   | 59,000       |   |   | 37,496 |   |   | 45,000 |   |
|                                                                                    | Directors’ fees and expenses                                                       |                   |         | 36,387                     |   |                               | 12,302    |                 |    | 22,218                               |   |                   | 40,868       |   |   | 28,519 |   |   | 21,258 |   |
|                                                                                    | Registration and filing fees                                                             |                   |         | 37,503                     |   |                               | 22,503    |                 |    | 27,500                               |   |                   | 44,000       |   |   | 37,500 |   |   | 25,000 |   |
|                                                                                    | Interest expense                                                                         |                   |         | –                    |   |                               | –   |                 |    | –                              |   |                   | 4,587        |   |   | – |   |   | – |   |
|                                                                                    | Excise tax expense (Note 1)                                                              |                   |         | 39,500                     |   |                               | –   |                 |    | –                              |   |                   | –      |   |   | – |   |   | – |   |
|                                                                                    | Miscellaneous                                                                            |                   |         | 10,772                     |   |                               | 7,168     |                 |    | 6,368                                |   |                   | 12,183       |   |   | 11,774 |   |   | 9,393 |   |
|                                                                                    | Payments under distribution plan (Note 7):                                               |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |   |   |   |   |
|                                                                                    | Class A                                                                                  |                   |         | 354,589                    |   |                               | 82,115    |                 |    | –                              |   |                   | 502,391      |   |   | 272,344 |   |   | 268,133 |   |
|                                                                                    | Class B                                                                                  |                   |         | 109,218                    |   |                               | 76,928    |                 |    | –                              |   |                   | 66,076       |   |   | 96,706 |   |   | 32,158 |   |
|                                                                                    | Class C                                                                                  |                   |         | 616,568                    |   |                               | 193,529   |                 |    | –                              |   |                   | 353,643      |   |   | 431,708 |   |   | 147,198 |   |
|                                                                                    | Total expenses                                                                           |                   |         | 3,303,363                  |   |                               | 766,638   |                 |    | 963,455                              |   |                   | 3,402,027    |   |   | 2,387,490 |   |   | 1,738,013 |   |
|                                                                                    | Expenses paid indirectly (Note 4)                                                        |                   |         | (26)                       |   |                               | (2)       |                 |    | (36)                                 |   |                   | (3)          |   |   | (18) |   |   | (2) |   |
|                                                                                    | Reimbursement/waiver of expenses by Adviser (Note 3)                                     |                   |         | –                    |   |                               | –   |                 |    | (689,926)                            |   |                   | –      |   |   | – |   |   | – |   |
|                                                                                    | Net expenses                                                                             |                   |         | 3,303,337                  |   |                               | 766,636   |                 |    | 273,493                              |   |                   | 3,402,024    |   |   | 2,387,472 |   |   | 1,738,011 |   |
|                                                                                    | Net investment income                                                                    |                   |         | 4,443,667                  |   |                               | 1,856,074 |                 |    | 64,270                               |   |                   | 2,777,272    |   |   | 2,978,747 |   |   | 3,543,225 |   |
|                                                                                    |                                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |
| REALIZED & UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS: |                                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |   |   |   |
| Net realized gain (loss) from:                                                          |                                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |   |   |   |
|                                                                                    | Investment transactions                                                                  |                   |         | 536,307                    |   |                               | (258,302) |                 |    | –                              |   |                   | 46,515,146   |   |   | (8,958,312) |   |   | 10,354,665 |   |
|                                                                                    | Foreign currency transactions                                                            |                   |         | (32,775)                   |   |                               | –   |                 |    | –                              |   |                   | (78,704)     |   |   | – |   |   | – |   |
| Net change in unrealized appreciation (depreciation)                                    |                                                                                     |                   | (56,484,296) |                       |   | 817,028                            |      |                 | – |                                 |   | (84,784,265)           |         |   | 4,439,977 |   |   | (2,336,760) |   |
|                                                                                    | Net realized and unrealized gain (loss) on investments and foreign currency transactions |                   |         | (55,980,764)               |   |                               | 558,726   |                 |    | –                              |   |                   | (38,347,823) |   |   | (4,518,335) |   |   | 8,017,905 |   |
|                                                                                    | Net increase (decrease) in net assets resulting from operations                          |                   | $            | (51,537,097)               |   | $                                  | 2,414,800 |                 | $       | 64,270                               |   | $                      | (35,570,551) |   | $ | (1,539,588) |   | $ | 11,561,130 |   |
|                                                                                    |                                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |
| *Net of foreign taxes withheld as follows                                               |                                                                                     | $                      | 598,372      |                       | $      | –                            |      | $                    | – |                                 | $      | 134,309                |         | $ | 33 |   | $ | 5,527 |   |
|                                                                                    |                                                                                     |                   |         |                       |   |                               |      |                 |    |                                 |   |                   |         |   |   |   |   |
| See Notes to Financial Statements                                                       |

----

| DAVIS SERIES, INC. | Statements of Changes in Net Assets                |
|--------------------|----------------------------------------------------|
|               | For the six months ended June 30, 2010 (Unaudited) |

|                                              |                                                                                                  | DavisOpportunityFund |      | DavisGovernmentBond Fund |   | DavisGovernmentMoney MarketFund |        | Davis FinancialFund |    | DavisAppreciation &Income Fund |   | Davis Real EstateFund |          |
|---------------------------------------------------|-------------------------------------------------------------------------------------------------------|----------------------|-----------|--------------------------|--------|---------------------------------|-------------|---------------------|---------|------------------------------------|--------|-----------------------|---------------|
|                                              |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |
| OPERATIONS:                                       |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |   |   |   |
|                                              | Net investment income                                                                                 |                 | $         | 4,443,667                |   | $                               | 1,856,074   |                | $       | 64,270                             |   | $                     | 2,777,272     |   | $ | 2,978,747 |   | $ | 3,543,225 |   |
|                                              | Net realized gain (loss) from investments and foreign currency transactions                           |                 |      | 503,532                  |   |                            | (258,302)   |                |    | –                            |   |                  | 46,436,442    |   |   | (8,958,312) |   |   | 10,354,665 |   |
|                                              | Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |                 |      | (56,484,296)             |   |                            | 817,028     |                |    | –                            |   |                  | (84,784,265)  |   |   | 4,439,977 |   |   | (2,336,760) |   |
|                                              | Net increase (decrease) in net assets resulting from operations                                       |                 |      | (51,537,097)             |   |                            | 2,414,800   |                |    | 64,270                             |   |                  | (35,570,551)  |   |   | (1,539,588) |   |   | 11,561,130 |   |
|                                              |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |
| DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |   |   |   |
|                                              | Net investment income:                                                                                |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |   |   |   |   |
|                                              | Class A                                                                                               |                 |      | –                  |   |                            | (1,286,694) |                |    | (57,001)                           |   |                  | –       |   |   | (1,002,494) |   |   | (1,043,371) |   |
|                                              | Class B                                                                                               |                 |      | –                  |   |                            | (145,267)   |                |    | (3,918)                            |   |                  | –       |   |   | (28,563) |   |   | (11,580) |   |
|                                              | Class C                                                                                               |                 |      | –                  |   |                            | (378,976)   |                |    | (2,997)                            |   |                  | –       |   |   | (141,886) |   |   | (68,637) |   |
|                                              | Class Y                                                                                               |                 |      | –                  |   |                            | (45,137)    |                |    | (354)                              |   |                  | –       |   |   | (126,330) |   |   | (80,363) |   |
|                                              |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |
| CAPITAL SHARE TRANSACTIONS:                       |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |   |   |   |
|                                              | Net increase (decrease) in net assets resulting from capital share transactions (Note 5):             |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |   |   |   |   |
|                                              | Class A                                                                                               |                 |      | (29,565,667)             |   |                            | (3,907,850) |                |    | 64,370,784                         |   |                  | (128,775,631) |   |   | (15,532,680) |   |   | (12,400,546) |   |
|                                              | Class B                                                                                               |                 |      | (2,531,252)              |   |                            | (621,066)   |                |    | (3,295,306)                        |   |                  | (1,789,038)   |   |   | (2,286,826) |   |   | (986,371) |   |
|                                              | Class C                                                                                               |                 |      | (14,090,722)             |   |                            | (901,028)   |                |    | (3,075,439)                        |   |                  | (4,229,040)   |   |   | (8,229,398) |   |   | (1,670,442) |   |
|                                              | Class Y                                                                                               |                 |      | 32,294,463               |   |                            | 1,178,780   |                |    | 1,732,137                          |   |                  | 8,054,009     |   |   | (17,910,595) |   |   | (9,677,158) |   |
|                                              | Total increase (decrease) in net assets                                                               |                 |      | (65,430,275)             |   |                            | (3,692,438) |                |    | 59,732,176                         |   |                  | (162,310,251) |   |   | (46,798,360) |   |   | (14,377,338) |   |
|                                              |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |
| NET ASSETS:                                       |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |   |   |   |
|                                              | Beginning of period                                                                                   |                 |      | 553,603,908              |   |                            | 160,853,158 |                |    | 299,642,249                        |   |                  | 689,031,002   |   |   | 429,063,049 |   |   | 295,780,286 |   |
|                                              | End of period*                                                                                        |                 | $         | 488,173,633              |   | $                               | 157,160,720 |                | $       | 359,374,425                        |   | $                     | 526,720,751   |   | $ | 382,264,689 |   | $ | 281,402,948 |   |
|                                              |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |
| *Including undistributed net investment income of |                                                                                                  | $                    | 4,037,292 |                     | $      | –                         |        | $                   | – |                               | $      | 4,976,366             |          | $ | 1,744,005 |   | $ | 4,683,050 |   |
|                                              |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |          |   |   |   |   |
| See Notes to Financial Statements                 |

----

| DAVIS SERIES, INC. | Statements of Changes in Net Assets  |
|--------------------|--------------------------------------|
|               | For the year ended December 31, 2009 |

|                                                                |                                                                                                  | DavisOpportunityFund |      | DavisGovernmentBond Fund |   | DavisGovernmentMoney MarketFund |        | Davis FinancialFund |    | DavisAppreciation &Income Fund |   | Davis Real EstateFund |         |
|---------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|----------------------|-----------|--------------------------|--------|---------------------------------|-------------|---------------------|---------|------------------------------------|--------|-----------------------|--------------|
|                                                                |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |
| OPERATIONS:                                                         |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |   |   |   |
|                                                                | Net investment income                                                                                 |                 | $         | 1,691,620                |   | $                               | 4,068,681   |                | $       | 1,063,410                          |   | $                     | 2,229,688    |   | $ | 6,962,276 |   | $ | 6,105,794 |   |
|                                                                | Net realized gain (loss) from investments and foreign currency transactions                           |                 |      | (53,239,160)             |   |                            | 460,405     |                |    | –                            |   |                  | (45,321,845) |   |   | (104,423,812) |   |   | (169,934,631) |   |
|                                                                | Net change in unrealized appreciation (depreciation) on investments and foreign currency transactions |                 |      | 224,767,280              |   |                            | 407,368     |                |    | –                            |   |                  | 265,159,148  |   |   | 249,462,410 |   |   | 233,356,725 |   |
|                                                                | Net increase in net assets resulting from operations                                                  |                 |      | 173,219,740              |   |                            | 4,936,454   |                |    | 1,063,410                          |   |                  | 222,066,991  |   |   | 152,000,874 |   |   | 69,527,888 |   |
|                                                                |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |
| DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:                   |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |   |   |   |
|                                                                | Net investment income:                                                                                |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |   |   |   |   |
|                                                                | Class A                                                                                               |                 |      | (1,220,051)              |   |                            | (3,235,568) |                |    | (887,940)                          |   |                  | (717,066)    |   |   | (4,919,857) |   |   | (3,004,137) |   |
|                                                                | Class B                                                                                               |                 |      | –                  |   |                            | (391,386)   |                |    | (88,252)                           |   |                  | –      |   |   | (198,424) |   |   | (47,527) |   |
|                                                                | Class C                                                                                               |                 |      | –                  |   |                            | (975,534)   |                |    | (86,828)                           |   |                  | –      |   |   | (960,119) |   |   | (248,437) |   |
|                                                                | Class Y                                                                                               |                 |      | (552,961)                |   |                            | (80,952)    |                |    | (390)                              |   |                  | (30,470)     |   |   | (984,491) |   |   | (419,679) |   |
|                                                                |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |
| CAPITAL SHARE TRANSACTIONS:                                         |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |   |   |   |
|                                                                | Net increase (decrease) in net assets resulting from capital share transactions (Note 5):             |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |   |   |   |   |
|                                                                | Class A                                                                                               |                 |      | (46,442,118)             |   |                            | 8,602,758   |                |    | (73,637,810)                       |   |                  | (30,178,606) |   |   | (44,681,910) |   |   | (21,257,761) |   |
|                                                                | Class B                                                                                               |                 |      | (5,978,278)              |   |                            | (151,208)   |                |    | (8,242,572)                        |   |                  | (4,518,956)  |   |   | (3,836,556) |   |   | (2,323,010) |   |
|                                                                | Class C                                                                                               |                 |      | (29,855,044)             |   |                            | 1,560,325   |                |    | (13,670,227)                       |   |                  | (7,572,111)  |   |   | (21,878,449) |   |   | (5,766,914) |   |
|                                                                | Class Y                                                                                               |                 |      | 14,161,637               |   |                            | 1,407,905   |                |    | (18,129)                           |   |                  | 2,459,346    |   |   | (19,321,443) |   |   | (9,209,842) |   |
|                                                                | Total increase (decrease) in net assets                                                               |                 |      | 103,332,925              |   |                            | 11,672,794  |                |    | (95,568,738)                       |   |                  | 181,509,128  |   |   | 55,219,625 |   |   | 27,250,581 |   |
|                                                                |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |
| NET ASSETS:                                                         |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |   |   |   |
|                                                                | Beginning of year                                                                                     |                 |      | 450,270,983              |   |                            | 149,180,364 |                |    | 395,210,987                        |   |                  | 507,521,874  |   |   | 373,843,424 |   |   | 268,529,705 |   |
|                                                                | End of year*                                                                                          |                 | $         | 553,603,908              |   | $                               | 160,853,158 |                | $       | 299,642,249                        |   | $                     | 689,031,002  |   | $ | 429,063,049 |   | $ | 295,780,286 |   |
|                                                                |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |
| *Including undistributed (overdistributed) net investment income of |                                                                                                  | $                    | (406,375) |                     | $      | –                         |        | $                   | – |                               | $      | 2,199,094             |         | $ | 64,531 |   | $ | 2,343,776 |   |
|                                                                |                                                                                                  |                 |      |                     |   |                            |        |                |    |                               |   |                  |         |   |   |   |   |
| See Notes to Financial Statements                                   |

----

| DAVIS SERIES, INC. | Notes to Financial Statements |
|--------------------|-------------------------------|
|               | June 30, 2010 (Unaudited)     |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

|         Level 3 – significant unobservable inputs (including Fund’s own assumptions in determining the fair value of investments) |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

|                                                                                     | Investments in Securities at Value |        |
|------------------------------------------------------------------------------------------|------------------------------------|-------------|
|                                                                                     |                               |        |   |   | Davis |   |   |   | Davis |   |   |   |
|                                                                                     | Davis                              |        | Davis |   | Government |   | Davis |   | Appreciation |   | Davis |   |
|                                                                                     | Opportunity                        |        | Government |   | Money Market |   | Financial |   | & Income |   | Real Estate |   |
|                                                                                     | Fund                               |        | Bond Fund |   | Fund |   | Fund |   | Fund |   | Fund |   |
| Valuation inputs                                                                         |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Level 1 – Quoted prices:                                                           |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities:                                                                       |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer discretionary                                                                   | $                                  | 37,536,831  |   | $ | – |   | $ | – |   | $ | – |   | $ | 27,205,945 |   | $ | – |   |
| Consumer staples                                                                         |                               | 36,996,896  |   |   | – |   |   | – |   |   | – |   |   | 23,960,639 |   |   | – |   |
| Energy                                                                                   |                               | 29,992,280  |   |   | – |   |   | – |   |   | 29,770,425 |   |   | 27,130,758 |   |   | – |   |
| Financials                                                                               |                               | 47,561,453  |   |   | – |   |   | – |   |   | 381,406,720 |   |   | 44,273,261 |   |   | 236,996,253 |   |
| Health care                                                                              |                               | 93,336,283  |   |   | – |   |   | – |   |   | – |   |   | 10,472,175 |   |   | – |   |
| Industrials                                                                              |                               | 27,992,469  |   |   | – |   |   | – |   |   | 14,330,254 |   |   | 40,791,763 |   |   | 7,969,128 |   |
| Information technology                                                                   |                               | 92,123,121  |   |   | – |   |   | – |   |   | – |   |   | 9,733,732 |   |   | – |   |
| Materials                                                                                |                               | 38,292,859  |   |   | – |   |   | – |   |   | – |   |   | 12,533,330 |   |   | – |   |
| Telecommunication services                                                               |                               | 3,979,525   |   |   | – |   |   | – |   |   | – |   |   | – |   |   | 22,168,958 |   |
| Utilities                                                                                |                               | –     |   |   | – |   |   | – |   |   | – |   |   | 17,051,694 |   |   | – |   |
| Level 2 – Other Significant                                                        |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Observable Inputs:                                                                       |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities issued by U.S. Treasuries and U.S. government corporations and agencies: |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term                                                                                |                               | –     |   |   | 152,550,018 |   |   | – |   |   | – |   |   | – |   |   | – |   |
| Short-term                                                                               |                               | –     |   |   | – |   |   | 197,023,381 |   |   | – |   |   | – |   |   | – |   |
| Convertible debt securities                                                              |                               | –     |   |   | – |   |   | – |   |   | – |   |   | 135,590,571 |   |   | 9,217,747 |   |
| Corporate debt securities                                                                |                               | –     |   |   | – |   |   | – |   |   | – |   |   | 13,408,060 |   |   | – |   |
| Equity securities*:                                                                      |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer discretionary                                                                   |                               | 11,553,403  |   |   | – |   |   | – |   |   | – |   |   | – |   |   | – |   |
| Consumer staples                                                                         |                               | 15,407,068  |   |   | – |   |   | – |   |   | – |   |   | – |   |   | – |   |
| Financials                                                                               |                               | 28,665,565  |   |   | – |   |   | – |   |   | 99,598,038 |   |   | – |   |   | 2,752,687 |   |
| Industrials                                                                              |                               | 8,329,805   |   |   | – |   |   | – |   |   | – |   |   | 8,387,290 |   |   | – |   |
| Materials                                                                                |                               | 5,560,257   |   |   | – |   |   | – |   |   | – |   |   | – |   |   | – |   |
| Short-term securities                                                                    |                               | 7,938,000   |   |   | 3,622,000 |   |   | 136,160,000 |   |   | 414,000 |   |   | 11,087,000 |   |   | 1,781,000 |   |
| Level 3 – Significant Unobservable                                                 |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Inputs:                                                                                  |                               | –     |   |   | – |   |   | – |   |   | – |   |   | – |   |   | – |   |
| Total                                                                                    | $                                  | 485,265,815 |   | $ | 156,172,018 |   | $ | 333,183,381 |   | $ | 525,519,437 |   | $ | 381,626,218 |   | $ | 280,885,773 |   |
|                                                                                     |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Level 1 to Level 2 transfers**                                                           | $                                  | –     |   | $ | – |   | $ | – |   | $ | 18,677,681 |   | $ | – |   | $ | – |   |
|                                                                                     |                               |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

|       | Capital Loss Carryforwards |        |
|------------|----------------------------|-------------|
|       |                       |        |   |   |   |   | Davis |   |   |   |
|       | Davis                      |        | Davis |   | Davis |   | Appreciation |   | Davis |   |
|       | Opportunity                |        | Government |   | Financial |   | & Income |   | Real Estate |   |
|       | Fund                       |        | Bond Fund |   | Fund |   | Fund |   | Fund |   |
| Expiring   |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 12/31/2010 | $                          | –     |   | $ | – |   | $ | – |   | $ | – |   | $ | – |   |
| 12/31/2011 |                       | –     |   |   | 2,128,000 |   |   | – |   |   | – |   |   | – |   |
| 12/31/2012 |                       | –     |   |   | 1,243,000 |   |   | – |   |   | – |   |   | – |   |
| 12/31/2013 |                       | –     |   |   | 403,000 |   |   | – |   |   | – |   |   | – |   |
| 12/31/2014 |                       | –     |   |   | 304,000 |   |   | – |   |   | – |   |   | – |   |
| 12/31/2015 |                       | –     |   |   | 136,000 |   |   | – |   |   | – |   |   | – |   |
| 12/31/2016 |                       | 86,853,000  |   |   | – |   |   | 8,111,000 |   |   | 430,000 |   |   | 8,689,000 |   |
| 12/31/2017 |                       | 76,750,000  |   |   | 355,000 |   |   | 45,322,000 |   |   | 89,303,000 |   |   | 157,169,000 |   |
|       | $                          | 163,603,000 |   | $ | 4,569,000 |   | $ | 53,433,000 |   | $ | 89,733,000 |   | $ | 165,858,000 |   |
|       |                       |        |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                                                                                            | Post October2009 Capital Losses(expiring 12/31/2018) |       |
|---------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|------------|
|                Davis Government Bond Fund                 | $                                                    | 36,000     |   |
|                 Davis Appreciation & Income Fund |                                                 | 19,474,000 |   |
|                                                                                                                            |                                                 |       |   |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

|              |        |       |       |   |       |   | Davis        |        |        |   |
|-------------------|-------------|------------|------------|--------|------------|--------|--------------|-------------|-------------|--------|
|              | Davis       |       | Davis      |   | Davis      |   | Appreciation |        | Davis       |   |
|              | Opportunity |       | Government |   | Financial  |   | & Income |        | Real Estate |   |
|              | Fund        |       | Bond Fund  |   | Fund       |   | Fund         |        | Fund        |   |
| Cost of purchases | $           | 72,266,045 |       | $      | 47,379,282 |   | $            | 5,099,688   |        | $      | 41,201,879 |   | $ | 88,396,750 |   |
| Proceeds of sales |        | 75,529,347 |       |   | 25,777,483 |   |         | 130,777,348 |        |   | 92,402,185 |   |   | 89,778,628 |   |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

| Class A                                                      |                    | Six months ended June 30, 2010 (Unaudited) |
|--------------------------------------------------------------|-------------------------|--------------------------------------------|
|                                                         |                    |                                       | DavisOpportunityFund |   |   | DavisGovernmentBond Fund |   |   | DavisGovernmentMoney MarketFund |   |   | Davis FinancialFund |   |   | DavisAppreciation &Income Fund |   |   | Davis RealEstate Fund |
| Shares sold                                                  |                    |                                       | 893,362 |   |   | 4,716,765 |   |   | 252,297,229 |   |   | 896,881 |   |   | 942,867 |   |   | 908,243 |
| Shares issued in reinvestment of distributions               |                    |                                       | – |   |   | 209,832 |   |   | 55,956 |   |   | – |   |   | 29,079 |   |   | 43,304 |
|                                                         |                    |                                       | 893,362 |   |   | 4,926,597 |   |   | 252,353,185 |   |   | 896,881 |   |   | 971,946 |   |   | 951,547 |
| Shares redeemed *                                            |                    |                                       | (2,384,777) |   |   | (5,621,308) |   |   | (187,982,401) |   |   | (5,160,035) |   |   | (1,622,736) |   |   | (1,554,811) |
|                                                         | Net increase (decrease) |                                       |   | (1,491,415) |   |   | (694,711) |   |   | 64,370,784 |   |   | (4,263,154) |   |   | (650,790) |   |   | (603,264) |
|                                                         |                    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from shares sold                                    |                    | $                                          | 17,929,246 |   | $ | 26,735,289 |   | $ | 252,297,229 |   | $ | 26,030,696 |   | $ | 23,734,383 |   | $ | 18,990,727 |
| Proceeds from shares issued in reinvestment of distributions |                    |                                       | – |   |   | 1,190,480 |   |   | 55,956 |   |   | – |   |   | 749,652 |   |   | 930,614 |
|                                                         |                    |                                       | 17,929,246 |   |   | 27,925,769 |   |   | 252,353,185 |   |   | 26,030,696 |   |   | 24,484,035 |   |   | 19,921,341 |
| Cost of shares redeemed *                                    |                    |                                       | (47,494,913) |   |   | (31,833,619) |   |   | (187,982,401) |   |   | (154,806,327) |   |   | (40,016,715) |   |   | (32,321,887) |
|                                                         | Net increase (decrease) |                                       | $ | (29,565,667) |   | $ | (3,907,850) |   | $ | 64,370,784 |   | $ | (128,775,631) |   | $ | (15,532,680) |   | $ | (12,400,546) |
|                                                         |                    |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| Class A                                                      |                    | Year ended December 31, 2009 |
|--------------------------------------------------------------|-------------------------|------------------------------|
|                                                         |                    |                         | DavisOpportunityFund |   |   | DavisGovernmentBond Fund |   |   | DavisGovernmentMoney MarketFund |   |   | Davis FinancialFund |   |   | DavisAppreciation &Income Fund |   |   | Davis RealEstate Fund |
| Shares sold                                                  |                    |                         | 2,541,205 |   |   | 10,003,448 |   |   | 490,192,494 |   |   | 3,779,450 |   |   | 2,044,107 |   |   | 2,318,057 |
| Shares issued in reinvestment of distributions               |                    |                         | 57,859 |   |   | 522,251 |   |   | 872,174 |   |   | 18,948 |   |   | 181,514 |   |   | 196,560 |
|                                                         |                    |                         | 2,599,064 |   |   | 10,525,699 |   |   | 491,064,668 |   |   | 3,798,398 |   |   | 2,225,621 |   |   | 2,514,617 |
| Shares redeemed                                              |                    |                         | (5,810,823) |   |   | (9,002,348) |   |   | (564,702,478) |   |   | (5,062,362) |   |   | (4,716,485) |   |   | (3,965,647) |
|                                                         | Net increase (decrease) |                         |   | (3,211,759) |   |   | 1,523,351 |   |   | (73,637,810) |   |   | (1,263,964) |   |   | (2,490,864) |   |   | (1,451,030) |
|                                                         |                    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from shares sold                                    |                    | $                            | 41,481,623 |   | $ | 56,639,743 |   | $ | 490,192,494 |   | $ | 83,479,766 |   | $ | 38,353,766 |   | $ | 34,092,824 |
| Proceeds from shares issued in reinvestment of distributions |                    |                         | 1,150,228 |   |   | 2,959,875 |   |   | 872,174 |   |   | 539,583 |   |   | 3,712,634 |   |   | 2,675,552 |
|                                                         |                    |                         | 42,631,851 |   |   | 59,599,618 |   |   | 491,064,668 |   |   | 84,019,349 |   |   | 42,066,400 |   |   | 36,768,376 |
| Cost of shares redeemed                                      |                    |                         | (89,073,969) |   |   | (50,996,860) |   |   | (564,702,478) |   |   | (114,197,955) |   |   | (86,748,310) |   |   | (58,026,137) |
|                                                         | Net increase (decrease) |                         | $ | (46,442,118) |   | $ | 8,602,758 |   | $ | (73,637,810) |   | $ | (30,178,606) |   | $ | (44,681,910) |   | $ | (21,257,761) |
|                                                         |                    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

| Class B                                                      |         | Six months ended June 30, 2010 (Unaudited) |
|--------------------------------------------------------------|--------------|--------------------------------------------|
|                                                         |         |                                       | DavisOpportunityFund |   |   | DavisGovernmentBond Fund |   |   | DavisGovernmentMoney MarketFund |   |   | Davis FinancialFund |   |   | DavisAppreciation &Income Fund |   |   | Davis RealEstate Fund |
| Shares sold                                                  |         |                                       | 38,820 |   |   | 579,261 |   |   | 3,809,069 |   |   | 24,285 |   |   | 72,727 |   |   | 13,834 |
| Shares issued in reinvestment of distributions               |         |                                       | – |   |   | 20,990 |   |   | 3,725 |   |   | – |   |   | 970 |   |   | 503 |
|                                                         |         |                                       | 38,820 |   |   | 600,251 |   |   | 3,812,794 |   |   | 24,285 |   |   | 73,697 |   |   | 14,337 |
| Shares redeemed                                              |         |                                       | (188,363) |   |   | (710,543) |   |   | (7,108,100) |   |   | (97,086) |   |   | (168,078) |   |   | (62,525) |
|                                                         | Net decrease |                                       |   | (149,543) |   |   | (110,292) |   |   | (3,295,306) |   |   | (72,801) |   |   | (94,381) |   |   | (48,188) |
|                                                         |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from shares sold                                    |         | $                                          | 665,853 |   | $ | 3,276,237 |   | $ | 3,809,069 |   | $ | 608,468 |   | $ | 1,795,883 |   | $ | 287,487 |
| Proceeds from shares issued in reinvestment of distributions |         |                                       | – |   |   | 118,777 |   |   | 3,725 |   |   | – |   |   | 24,727 |   |   | 10,681 |
|                                                         |         |                                       | 665,853 |   |   | 3,395,014 |   |   | 3,812,794 |   |   | 608,468 |   |   | 1,820,610 |   |   | 298,168 |
| Cost of shares redeemed                                      |         |                                       | (3,197,105) |   |   | (4,016,080) |   |   | (7,108,100) |   |   | (2,397,506) |   |   | (4,107,436) |   |   | (1,284,539) |
|                                                         | Net decrease |                                       | $ | (2,531,252) |   | $ | (621,066) |   | $ | (3,295,306) |   | $ | (1,789,038) |   | $ | (2,286,826) |   | $ | (986,371) |
|                                                         |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class B                                                      |         | Year ended December 31, 2009               |
|                                                         |         |                                       | DavisOpportunityFund |   |   | DavisGovernmentBond Fund |   |   | DavisGovernmentMoney MarketFund |   |   | Davis FinancialFund |   |   | DavisAppreciation &Income Fund |   |   | Davis RealEstate Fund |
| Shares sold                                                  |         |                                       | 173,839 |   |   | 1,802,024 |   |   | 9,798,332 |   |   | 91,436 |   |   | 148,134 |   |   | 21,555 |
| Shares issued in reinvestment of distributions               |         |                                       | – |   |   | 56,065 |   |   | 79,384 |   |   | – |   |   | 8,419 |   |   | 3,431 |
|                                                         |         |                                       | 173,839 |   |   | 1,858,089 |   |   | 9,877,716 |   |   | 91,436 |   |   | 156,553 |   |   | 24,986 |
| Shares redeemed                                              |         |                                       | (636,333) |   |   | (1,883,839) |   |   | (18,120,288) |   |   | (339,617) |   |   | (368,673) |   |   | (187,518) |
|                                                         | Net decrease |                                       |   | (462,494) |   |   | (25,750) |   |   | (8,242,572) |   |   | (248,181) |   |   | (212,120) |   |   | (162,532) |
|                                                         |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from shares sold                                    |         | $                                          | 2,540,065 |   | $ | 10,175,367 |   | $ | 9,798,332 |   | $ | 1,721,208 |   | $ | 2,846,327 |   | $ | 340,230 |
| Proceeds from shares issued in reinvestment of distributions |         |                                       | – |   |   | 316,821 |   |   | 79,384 |   |   | – |   |   | 173,077 |   |   | 44,441 |
|                                                         |         |                                       | 2,540,065 |   |   | 10,492,188 |   |   | 9,877,716 |   |   | 1,721,208 |   |   | 3,019,404 |   |   | 384,671 |
| Cost of shares redeemed                                      |         |                                       | (8,518,343) |   |   | (10,643,396) |   |   | (18,120,288) |   |   | (6,240,164) |   |   | (6,855,960) |   |   | (2,707,681) |
|                                                         | Net decrease |                                       | $ | (5,978,278) |   | $ | (151,208) |   | $ | (8,242,572) |   | $ | (4,518,956) |   | $ | (3,836,556) |   | $ | (2,323,010) |
|                                                         |         |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

| NOTE 5 - CAPITAL STOCK - (CONTINUED)                         |                    |                                       |                 |         |   |                     |      |
|--------------------------------------------------------------|-------------------------|--------------------------------------------|----------------------|--------------|--------|--------------------------|-----------|
|                                                         |                    |                                       |                 |         |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Class C                                                      |                    | Six months ended June 30, 2010 (Unaudited) |
|                                                         |                    |                                       | DavisOpportunityFund |         |   | DavisGovernmentBond Fund |      |   | DavisGovernmentMoney MarketFund |   |   | Davis FinancialFund |   |   | DavisAppreciation & ncome Fund |   |   | Davis RealEstate Fund |
| Shares sold                                                  |                    |                                       | 180,558              |         |   | 1,783,002                |      |   | 4,944,693 |   |   | 250,213 |   |   | 201,034 |   |   | 103,432 |
| Shares issued in reinvestment of distributions               |                    |                                       | –              |         |   | 57,725                   |      |   | 2,874 |   |   | – |   |   | 5,004 |   |   | 2,975 |
|                                                         |                    |                                       | 180,558              |         |   | 1,840,727                |      |   | 4,947,567 |   |   | 250,213 |   |   | 206,038 |   |   | 106,407 |
| Shares redeemed                                              |                    |                                       | (970,541)            |         |   | (2,001,860)              |      |   | (8,023,006) |   |   | (427,634) |   |   | (539,034) |   |   | (190,104) |
|                                                         | Net decrease            |                                       |                 | (789,983)    |   |                     | (161,133) |   |   | (3,075,439) |   |   | (177,421) |   |   | (332,996) |   |   | (83,697) |
|                                                         |                    |                                       |                 |         |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Proceeds from shares sold                                    |                    | $                                          | 3,280,223            |         | $      | 10,116,220               |      | $ | 4,944,693 |   | $ | 6,471,495 |   | $ | 5,022,978 |   | $ | 2,191,622 |
| Proceeds from shares issued in reinvestment of distributions |                    |                                       | –              |         |   | 327,605                  |      |   | 2,874 |   |   | – |   |   | 129,609 |   |   | 63,922 |
|                                                         |                    |                                       | 3,280,223            |         |   | 10,443,825               |      |   | 4,947,567 |   |   | 6,471,495 |   |   | 5,152,587 |   |   | 2,255,544 |
| Cost of shares redeemed                                      |                    |                                       | (17,370,945)         |         |   | (11,344,853)             |      |   | (8,023,006) |   |   | (10,700,535) |   |   | (13,381,985) |   |   | (3,925,986) |
|                                                         | Net decrease            |                                       | $                    | (14,090,722) |   | $                        | (901,028) |   | $ | (3,075,439) |   | $ | (4,229,040) |   | $ | (8,229,398) |   | $ | (1,670,442) |
|                                                         |                    |                                       |                 |         |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Class C                                                      |                    | Year ended December 31, 2009               |
|                                                         |                    |                                       | DavisOpportunityFund |         |   | DavisGovernmentBond Fund |      |   | DavisGovernmentMoney MarketFund |   |   | Davis FinancialFund |   |   | DavisAppreciation &Income Fund |   |   | Davis RealEstate Fund |
| Shares sold                                                  |                    |                                       | 568,321              |         |   | 5,383,225                |      |   | 17,141,127 |   |   | 506,584 |   |   | 496,987 |   |   | 179,522 |
| Shares issued in reinvestment of distributions               |                    |                                       | –              |         |   | 147,757                  |      |   | 80,409 |   |   | – |   |   | 41,422 |   |   | 17,069 |
|                                                         |                    |                                       | 568,321              |         |   | 5,530,982                |      |   | 17,221,536 |   |   | 506,584 |   |   | 538,409 |   |   | 196,591 |
| Shares redeemed                                              |                    |                                       | (2,773,565)          |         |   | (5,255,547)              |      |   | (30,891,763) |   |   | (902,551) |   |   | (1,762,872) |   |   | (599,769) |
|                                                         | Net increase (decrease) |                                       |                 | (2,205,244)  |   |                     | 275,435   |   |   | (13,670,227) |   |   | (395,967) |   |   | (1,224,463) |   |   | (403,178) |
|                                                         |                    |                                       |                 |         |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Proceeds from shares sold                                    |                    | $                                          | 8,579,004            |         | $      | 30,496,325               |      | $ | 17,141,127 |   | $ | 10,057,264 |   | $ | 9,405,139 |   | $ | 2,820,892 |
| Proceeds from shares issued in reinvestment of distributions |                    |                                       | –              |         |   | 837,568                  |      |   | 80,409 |   |   | – |   |   | 857,125 |   |   | 227,557 |
|                                                         |                    |                                       | 8,579,004            |         |   | 31,333,893               |      |   | 17,221,536 |   |   | 10,057,264 |   |   | 10,262,264 |   |   | 3,048,449 |
| Cost of shares redeemed                                      |                    |                                       | (38,434,048)         |         |   | (29,773,568)             |      |   | (30,891,763) |   |   | (17,629,375) |   |   | (32,140,713) |   |   | (8,815,363) |
|                                                         | Net increase (decrease) |                                       | $                    | (29,855,044) |   | $                        | 1,560,325 |   | $ | (13,670,227) |   | $ | (7,572,111) |   | $ | (21,878,449) |   | $ | (5,766,914) |
|                                                         |                    |                                       |                 |         |   |                     |      |   |   |   |   |   |   |   |   |   |   |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

| NOTE 5 - CAPITAL STOCK - (CONTINUED)                         |                    |                                       |                 |       |   |                     |      |
|--------------------------------------------------------------|-------------------------|--------------------------------------------|----------------------|------------|--------|--------------------------|-----------|
|                                                         |                    |                                       |                 |       |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Class Y                                                      |                    | Six months ended June 30, 2010 (Unaudited) |
|                                                         |                    |                                       | DavisOpportunityFund |       |   | DavisGovernmentBond Fund |      |   | DavisGovernmentMoney MarketFund |   |   | Davis FinancialFund |   |   | DavisAppreciation &Income Fund |   |   | Davis RealEstate Fund |
| Shares sold                                                  |                    |                                       | 3,268,113            |       |   | 459,106                  |      |   | 1,988,321 |   |   | 402,988 |   |   | 375,844 |   |   | 308,258 |
| Shares issued in reinvestment of distributions               |                    |                                       | –              |       |   | 7,152                    |      |   | 354 |   |   | – |   |   | 4,595 |   |   | 3,551 |
|                                                         |                    |                                       | 3,268,113            |       |   | 466,258                  |      |   | 1,988,675 |   |   | 402,988 |   |   | 380,439 |   |   | 311,809 |
| Shares redeemed*                                             |                    |                                       | (1,683,775)          |       |   | (260,154)                |      |   | (256,538) |   |   | (126,761) |   |   | (1,106,597) |   |   | (795,516) |
|                                                         | Net increase (decrease) |                                       |                 | 1,584,338  |   |                     | 206,104   |   |   | 1,732,137 |   |   | 276,227 |   |   | (726,158) |   |   | (483,707) |
|                                                         |                    |                                       |                 |       |   |                     |      |   |   |   |   |   |   |   |   |   |   |
| Proceeds from shares sold                                    |                    | $                                          | 67,658,128           |       | $      | 2,621,695                |      | $ | 1,988,321 |   | $ | 11,764,738 |   | $ | 9,208,652 |   | $ | 6,506,999 |
| Proceeds from shares issued in reinvestment of distributions |                    |                                       | –              |       |   | 40,866                   |      |   | 354 |   |   | – |   |   | 118,968 |   |   | 77,319 |
|                                                         |                    |                                       | 67,658,128           |       |   | 2,662,561                |      |   | 1,988,675 |   |   | 11,764,738 |   |   | 9,327,620 |   |   | 6,584,318 |
| Cost of shares redeemed*                                     |                    |                                       | (35,363,665)         |       |   | (1,483,781)              |      |   | (256,538) |   |   | (3,710,729) |   |   | (27,238,215) |   |   | (16,261,476) |
|                                                         | Net increase (decrease) |                                       | $                    | 32,294,463 |   | $                        | 1,178,780 |   | $ | 1,732,137 |   | $ | 8,054,009 |   | $ | (17,910,595) |   | $ | (9,677,158) |
|                                                         |                    |                                       |                 |       |   |                     |      |   |   |   |   |   |   |   |   |   |   |

| Class Y                                                      |                    | Year ended December 31, 2009 |
|--------------------------------------------------------------|-------------------------|------------------------------|
|                                                         |                    |                         | DavisOpportunityFund |   |   | DavisGovernmentBond Fund |   |   | DavisGovernmentMoney MarketFund |   |   | Davis FinancialFund |   |   | DavisAppreciation &Income Fund |   |   | Davis RealEstate Fund |
| Shares sold                                                  |                    |                         | 2,365,816 |   |   | 883,870 |   |   | 130,867 |   |   | 250,077 |   |   | 302,545 |   |   | 323,839 |
| Shares issued in reinvestment of distributions               |                    |                         | 24,730 |   |   | 12,136 |   |   | 383 |   |   | 973 |   |   | 45,493 |   |   | 29,536 |
|                                                         |                    |                         | 2,390,546 |   |   | 896,006 |   |   | 131,250 |   |   | 251,050 |   |   | 348,038 |   |   | 353,375 |
| Shares redeemed                                              |                    |                         | (1,544,945) |   |   | (649,885) |   |   | (149,379) |   |   | (168,931) |   |   | (1,450,969) |   |   | (952,687) |
|                                                         | Net increase (decrease) |                         |   | 845,601 |   |   | 246,121 |   |   | (18,129) |   |   | 82,119 |   |   | (1,102,931) |   |   | (599,312) |
|                                                         |                    |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from shares sold                                    |                    | $                            | 39,245,500 |   | $ | 5,043,877 |   | $ | 130,867 |   | $ | 6,251,031 |   | $ | 5,828,478 |   | $ | 4,522,877 |
| Proceeds from shares issued in reinvestment of distributions |                    |                         | 505,740 |   |   | 69,268 |   |   | 383 |   |   | 28,299 |   |   | 927,169 |   |   | 402,591 |
|                                                         |                    |                         | 39,751,240 |   |   | 5,113,145 |   |   | 131,250 |   |   | 6,279,330 |   |   | 6,755,647 |   |   | 4,925,468 |
| Cost of shares redeemed                                      |                    |                         | (25,589,603) |   |   | (3,705,240) |   |   | (149,379) |   |   | (3,819,984) |   |   | (26,077,090) |   |   | (14,135,310) |
|                                                         | Net increase (decrease) |                         | $ | 14,161,637 |   | $ | 1,407,905 |   | $ | (18,129) |   | $ | 2,459,346 |   | $ | (19,321,443) |   | $ | (9,209,842) |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

|                                                | Six months ended June 30, 2010 (Unaudited) |
|-----------------------------------------------------|--------------------------------------------|
|                                                |                                       |   |   |   |   |   | Davis |   |   |
|                                                | Davis                                      |   | Davis |   | Davis |   | Appreciation |   | Davis |
|                                                | Opportunity                                |   | Government |   | Financial |   | & Income |   | Real Estate |
|                                                | Fund                                       |   | Bond Fund |   | Fund |   | Fund |   | Fund |
| Commissions retained by Underwriter                 | $                                          | 13,916 |   | $ | 6,289 |   | $ | 25,048 |   | $ | 9,179 |   | $ | 7,865 |
| Commissions re-allowed to investment dealers        |                                       | 76,964 |   |   | 35,232 |   |   | 138,409 |   |   | 50,425 |   |   | 43,159 |
| Total commissions earned on sales of Class A shares | $                                          | 90,880 |   | $ | 41,521 |   | $ | 163,457 |   | $ | 59,604 |   | $ | 51,024 |
|                                                |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Class A service fee                                 | $                                          | 354,589 |   | $ | 82,115 |   | $ | 502,391 |   | $ | 272,344 |   | $ | 268,133 |
|                                                |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                              | Six months ended June 30, 2010 (Unaudited) |
|---------------------------------------------------|--------------------------------------------|
|                                              |                                       |   |   |   |   |   | Davis |   |   |
|                                              | Davis                                      |   | Davis |   | Davis |   | Appreciation |   | Davis |
|                                              | Opportunity                                |   | Government |   | Financial |   | & Income |   | Real Estate |
|                                              | Fund                                       |   | Bond Fund |   | Fund |   | Fund |   | Fund |
| Distribution Plan Payments:                       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distribution fees                                 | $                                          | 82,063 |   | $ | 58,009 |   | $ | 49,901 |   | $ | 72,763 |   | $ | 24,259 |
| Service fees                                      |                                       | 27,155 |   |   | 18,919 |   |   | 16,175 |   |   | 23,943 |   |   | 7,899 |
| Commission advances by the Distributor            |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  on the sale of Class B shares               |                                       | 15,664 |   |   | 27,127 |   |   | 13,061 |   |   | 30,643 |   |   | 6,234 |
| Contingent deferred sales charges received by the |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributor from Class B shares                   |                                       | 18,778 |   |   | 18,078 |   |   | 13,877 |   |   | 26,317 |   |   | 3,382 |
|                                              |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

|                                              | Six months ended June 30, 2010 (Unaudited) |
|---------------------------------------------------|--------------------------------------------|
|                                              |                                       |   |   |   |   |   | Davis |   |   |
|                                              | Davis                                      |   | Davis |   | Davis |   | Appreciation |   | Davis |
|                                              | Opportunity                                |   | Government |   | Financial |   | & Income |   | Real Estate |
|                                              | Fund                                       |   | Bond Fund |   | Fund |   | Fund |   | Fund |
| Distribution Plan Payments:                       |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distribution fees                                 | $                                          | 462,426 |   | $ | 145,147 |   $ | 265,232 |   | $ | 323,781 |   | $ | 110,399 |   |
| Service fees                                      |                                       | 154,142 |   |   |   48,382 |   |   88,411 |   |   | 107,927 |   |   |   36,799 |   |
| Commission advances by the Distributor            |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on the sale of Class C shares                     |                                       |   24,508 |   |   |   18,808 |   |   59,249 |   |   |    28,311 |   |   |   13,358 |   |
| Contingent deferred sales charges received by the |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributor from Class C shares                   |                                       |    2,794 |   |   |    7,566 |   |     4,027 |   |   |     1,864 |   |   |        790 |   |
|                                              |                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| DAVIS SERIES, INC. | Notes to Financial Statements – (Continued) |
|--------------------|---------------------------------------------------|
|               | June 30, 2010 (Unaudited)                         |

| Fund               |   | Security                   | AcquisitionDate | Principal |       | Units/Shares |    | Cost perUnit/Share |   | Valuation perUnit/Share as ofJune 30, 2010 |
|--------------------|--------|----------------------------|-----------------|-----------|------------|--------------|---------|--------------------|--------|-------------------------------------------------|
|               |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Davis              |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Opportunity        |   | Oaktree Capital Group      |            |      |       |         |    |               |   |                                            |   |   |   |
| Fund               |   | LLC, Class A               | 05/21/07        |      | NA         |         | 654,750 |               | $      | 27.02                                           |   | $ | 34.25 |
|               |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Davis Financial    |   | Oaktree Capital Group      |            |      |       |         |    |               |   |                                            |   |   |   |
| Fund               |   | LLC, Class A               | 05/21/07        |      | NA         |         | 972,000 |               | $      | 21.03                                           |   | $ | 34.25 |
|               |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Davis Financial    |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Fund               |   | RHJ International, 144A    | 06/04/07        |      | NA         |         | 396,550 |               | $      | 19.64                                           |   | $ | 7.48 |
|               |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Davis              |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Appreciation & |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Income Fund        |   | ADFITECH, Inc.             | 03/15/10        |      | NA         |         | 266,000 |               | $      | 2.16                                            |   | $ | 2.60 |
|               |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Davis              |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Appreciation & |   | ADFITECH, Inc., Sr. Bond,  |            |      |       |         |    |               |   |                                            |   |   |   |
| Income Fund        |   | 8.00%, 03/15/20            | 03/15/10        | $         | 1,040,991  |         | 10,410  |               | $      | 96.93                                           |   | $ | 80.66 |
|               |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Davis              |   |                       |            |      |       |         |    |               |   |                                            |   |   |   |
| Appreciation & |   | Thornburg Mortgage, Inc.,  |            |      |       |         |    |               |   |                                            |   |   |   |
| Income Fund        |   | Sr. Notes, 8.00%, 05/15/13 | 10/22/07        | $         | 13,300,000 |         | 133,000 |               | $      | 74.60                                           |   | $ | 4.25 |

----

| DAVIS SERIES, INC.                                                                                                                                                                                                                                                                                                                                                      |                                |                        |                                       |                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-----------------------------|--------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                    |                                |                        |                                       |                           |
| The following financial information represents selected data for each share of capital stock outstanding throughout each period:                                                                                                                                                                                                                                        |                                |                        |                                       |                           |
|                                                                                                                                                                                                                                                                                                                                                                    |                                |                        |                                       |                           |
|                                          Income (Loss) from Investment Operations              |                                |                        |                                       |                           |
|                                                                                                                                                                                                                                                                                                                                                                    | Net Asset Value, Beginning ofPeriod | Net InvestmentIncome (Loss) | Net Realized and Unrealized Gains (Losses) | Total fromInvestmentOperations |   |
| Davis Opportunity Fund Class A:                                                                                                                                                                                                                                                                                                                                         |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                         | $20.08                              | $0.18e                      | $(2.08)                                    | $(1.90)                        |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                            | $13.92                              | $0.09e                      | $6.15                                      | $6.24                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                            | $25.19                              | $0.09e                      | $(11.35)                                   | $(11.26)                       |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                            | $27.52                              | $0.05e                      | $(0.43)                                    | $(0.38)                        |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                            | $24.29                              | $–e,g                 | $4.25                                      | $4.25                          |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                            | $23.20                              | $0.05e                      | $1.88                                      | $1.93                          |
| Davis Opportunity Fund Class B:                                                                                                                                                                                                                                                                                                                                         |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                         | $17.21                              | $0.07e                      | $(1.77)                                    | $(1.70)                        |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                            | $12.00                              | $(0.05)e                    | $5.26                                      | $5.21                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                            | $21.89                              | $(0.07)e                    | $(9.82)                                    | $(9.89)                        |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                            | $24.17                              | $(0.15)e                    | $(0.36)                                    | $(0.51)                        |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                            | $21.44                              | $(0.18)e                    | $3.72                                      | $3.54                          |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                            | $20.55                              | $(0.13)e                    | $1.66                                      | $1.53                          |   |
| Davis Opportunity Fund Class C:                                                                                                                                                                                                                                                                                                                                         |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                         | $18.10                              | $0.09e                      | $(1.86)                                    | $(1.77)                        |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                            | $12.60                              | $(0.03)e                    | $5.53                                      | $5.50                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                            | $22.97                              | $(0.05)e                    | $(10.32)                                   | $(10.37)                       |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                            | $25.27                              | $(0.15)e                    | $(0.38)                                    | $(0.53)                        |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                            | $22.37                              | $(0.18)e                    | $3.90                                      | $3.72                          |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                            | $21.42                              | $(0.13)e                    | $1.73                                      | $1.60                          |
| Davis Opportunity Fund Class Y:                                                                                                                                                                                                                                                                                                                                         |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                         | $20.65                              | $0.23e                      | $(2.15)                                    | $(1.92)                        |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                            | $14.31                              | $0.15e                      | $6.33                                      | $6.48                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                            | $25.94                              | $0.17e                      | $(11.73)                                   | $(11.56)                       |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                            | $28.29                              | $0.13e                      | $(0.44)                                    | $(0.31)                        |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                            | $24.95                              | $0.07e                      | $4.37                                      | $4.44                          |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                            | $23.81                              | $0.13e                      | $1.93                                      | $2.06                          |   |
| Davis Government Bond Fund Class A:                                                                                                                                                                                                                                                                                                                                     |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                         | $5.66                               | $0.08                       | $0.02                                      | $0.10                          |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                            | $5.65                               | $0.18                       | $0.01                                      | $0.19                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                            | $5.60                               | $0.19                       | $0.05                                      | $0.24                          |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                            | $5.52                               | $0.21                       | $0.08                                      | $0.29                          |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                            | $5.50                               | $0.18                       | $0.02                                      | $0.20                          |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                            | $5.60                               | $0.15                       | $(0.10)                                    | $0.05                          |
| Davis Government Bond Fund Class B:                                                                                                                                                                                                                                                                                                                                     |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                         | $5.65                               | $0.05                       | $0.02                                      | $0.07                          |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                            | $5.64                               | $0.13                       | $0.01                                      | $0.14                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                            | $5.58                               | $0.15                       | $0.06                                      | $0.21                          |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                            | $5.51                               | $0.17                       | $0.07                                      | $0.24                          |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                            | $5.49                               | $0.14                       | $0.02                                      | $0.16                          |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                            | $5.59                               | $0.12                       | $(0.10)                                    | $0.02                          |   |

----

| Financial Highlights                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------|-----------------------------------|-------------------|---------------------|--------------------------------|---------------|------------------------------------------|---------------------|--------------------|------------------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       Dividends and Distributions                                                                                                                                       Ratios to Average Net Assets                     |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | Dividends from Net Investment Income | Distributions from Realized Gains | Return of Capital | Total Distributions | Net Asset Value, End of Period | Total Returna | Net Assets, End of Period (in thousands) | Gross Expense Ratio | Net Expense Ratiob | Net Investment Income (Loss) Ratio | Portfolio Turnoverc |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $–          | $–            | $18.18                         | (9.46)%       | $262,537                                 | 1.06%f              | 1.06%f             | 1.82%f                             | 14%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.08)                              | $–                          | $–          | $(0.08)             | $20.08                         | 44.81%        | $319,877                                 | 1.17%               | 1.17%              | 0.56%                              | 24%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $(0.01)           | $(0.01)             | $13.92                         | (44.71)%      | $266,525                                 | 1.15%               | 1.15%              | 0.47%                              | 29%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.18)                              | $(1.77)                           | $–          | $(1.95)             | $25.19                         | (1.42)%       | $676,995                                 | 1.06%               | 1.06%              | 0.16%                              | 37%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.23)                              | $(0.79)                           | $–          | $(1.02)             | $27.52                         | 17.59%        | $680,181                                 | 1.10%               | 1.10%              | (0.02)%                            | 40%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.24)                              | $(0.60)                           | $–          | $(0.84)             | $24.29                         | 8.33%         | $446,794                                 | 1.15%               | 1.15%              | 0.18%                              | 36%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $–          | $–            | $15.51                         | (9.88)%       | $18,884                                  | 1.99%f              | 1.99%f             | 0.89%f                             | 14%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $–          | $–            | $17.21                         | 43.42%        | $23,525                                  | 2.11%               | 2.11%              | (0.38)%                            | 24%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $–          | $–            | $12.00                         | (45.18)%      | $21,951                                  | 2.00%               | 2.00%              | (0.38)%                            | 29%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $(1.77)                           | $–          | $(1.77)             | $21.89                         | (2.15)%       | $60,386                                  | 1.85%               | 1.85%              | (0.63)%                            | 37%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.02)                              | $(0.79)                           | $–          | $(0.81)             | $24.17                         | 16.60%        | $81,788                                  | 1.88%               | 1.88%              | (0.80)%                            | 40%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.04)                              | $(0.60)                           | $–          | $(0.64)             | $21.44                         | 7.49%         | $96,501                                  | 1.92%               | 1.90%              | (0.57)%                            | 36%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $–          | $–            | $16.33                         | (9.78)%       | $106,131                                 | 1.85%f              | 1.85%f             | 1.03%f                             | 14%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $–          | $–            | $18.10                         | 43.65%        | $131,972                                 | 1.96%               | 1.96%              | (0.23)%                            | 24%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $–          | $–            | $12.60                         | (45.15)%      | $119,676                                 | 1.91%               | 1.91%              | (0.29)%                            | 29%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $(1.77)                           | $–          | $(1.77)             | $22.97                         | (2.14)%       | $287,054                                 | 1.81%               | 1.81%              | (0.59)%                            | 37%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.03)                              | $(0.79)                           | $–          | $(0.82)             | $25.27                         | 16.70%        | $260,254                                 | 1.84%               | 1.84%              | (0.76)%                            | 40%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.05)                              | $(0.60)                           | $–          | $(0.65)             | $22.37                         | 7.48%         | $150,844                                 | 1.91%               | 1.90%              | (0.57)%                            | 36%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $–          | $–            | $18.73                         | (9.30)%       | $100,622                                 | 0.75%f              | 0.75%f             | 2.13%f                             | 14%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.14)                              | $–                          | $–          | $(0.14)             | $20.65                         | 45.31%        | $78,231                                  | 0.81%               | 0.81%              | 0.92%                              | 24%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $–                             | $–                          | $(0.07)           | $(0.07)             | $14.31                         | (44.54)%      | $42,119                                  | 0.85%               | 0.85%              | 0.77%                              | 29%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.27)                              | $(1.77)                           | $–          | $(2.04)             | $25.94                         | (1.13)%       | $78,537                                  | 0.78%               | 0.78%              | 0.44%                              | 37%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.31)                              | $(0.79)                           | $–          | $(1.10)             | $28.29                         | 17.91%        | $68,591                                  | 0.81%               | 0.81%              | 0.27%                              | 40%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.32)                              | $(0.60)                           | $–          | $(0.92)             | $24.95                         | 8.70%         | $50,142                                  | 0.85%               | 0.85%              | 0.48%                              | 36%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.08)                              | $–                          | $–          | $(0.08)             | $5.68                          | 1.76%         | $97,056                                  | 0.72%f              | 0.72%f             | 2.80%f                             | 18%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.18)                              | $–                          | $–          | $(0.18)             | $5.66                          | 3.37%         | $100,617                                 | 0.72%               | 0.72%              | 2.78%                              | 48%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.19)                              | $–                          | $–          | $(0.19)             | $5.65                          | 4.38%         | $91,852                                  | 0.87%               | 0.87%              | 3.29%                              | 67%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.21)                              | $–                          | $–          | $(0.21)             | $5.60                          | 5.45%         | $27,224                                  | 1.03%               | 1.03%              | 3.95%                              | 60%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.18)                              | $–                          | $–          | $(0.18)             | $5.52                          | 3.73%         | $22,134                                  | 1.05%               | 1.05%              | 3.30%                              | 65%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.15)                              | $–                          | $–          | $(0.15)             | $5.50                          | 0.98%         | $19,340                                  | 1.10%               | 1.08%              | 2.52%                              | 55%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                 |                              |              |                |                           |          |                                     |                |               |                               |                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.05)                              | $–                          | $–          | $(0.05)             | $5.67                          | 1.29%         | $15,759                                  | 1.64%f              | 1.64%f             | 1.88%f                             | 18%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.13)                              | $–                          | $–          | $(0.13)             | $5.65                          | 2.42%         | $16,322                                  | 1.65%               | 1.65%              | 1.85%                              | 48%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.15)                              | $–                          | $–          | $(0.15)             | $5.64                          | 3.77%         | $16,442                                  | 1.69%               | 1.69%              | 2.47%                              | 67%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.17)                              | $–                          | $–          | $(0.17)             | $5.58                          | 4.49%         | $10,402                                  | 1.77%               | 1.77%              | 3.21%                              | 60%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.14)                              | $–                          | $–          | $(0.14)             | $5.51                          | 3.02%         | $14,058                                  | 1.76%               | 1.76%              | 2.59%                              | 65%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | $(0.12)                              | $–                          | $–          | $(0.12)             | $5.49                          | 0.33%         | $25,208                                  | 1.79%               | 1.77%              | 1.83%                              | 55%                 |   |

----

| DAVIS SERIES, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                |                        |                                       |                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-----------------------------|--------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                |                        |                                       |                           |
| The following financial information represents selected data for each share of capital stock outstanding throughout each period:                                                                                                                                                                                                                                                                                                                                        |                                |                        |                                       |                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                |                        |                                       |                           |
|                Income (Loss) from Investment Operations                                                        |                                |                        |                                       |                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Net Asset Value, Beginning ofPeriod | Net InvestmentIncome (Loss) | Net Realized and Unrealized Gains (Losses) | Total fromInvestmentOperations |   |
| Davis Government Bond Fund Class C:                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                                                                                                                         | $5.66                               | $0.05                       | $0.03                                      | $0.08                          |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.65                               | $0.13                       | $0.01                                      | $0.14                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.60                               | $0.15                       | $0.05                                      | $0.20                          |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.52                               | $0.17                       | $0.08                                      | $0.25                          |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.51                               | $0.14                       | $0.01                                      | $0.15                          |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.61                               | $0.12                       | $(0.10)                                    | $0.02                          |
| Davis Government Bond Fund Class Y:                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                                                                                                                         | $5.70                               | $0.08                       | $0.02                                      | $0.10                          |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.69                               | $0.18                       | $0.01                                      | $0.19                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.64                               | $0.20                       | $0.05                                      | $0.25                          |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.57                               | $0.22                       | $0.07                                      | $0.29                          |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.55                               | $0.19                       | $0.02                                      | $0.21                          |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                            | $5.65                               | $0.17                       | $(0.10)                                    | $0.07                          |   |
| Davis Government Money Market Fund Class A, B, C, & Y:                                                                                                                                                                                                                                                                                                                                                                                                              |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                                                                                                                         | $1.000                              | $–h                   | $–                                   | $–h                      |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                            | $1.000                              | $0.003                      | $–                                   | $0.003                         |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                            | $1.000                              | $0.022                      | $–                                   | $0.022                         |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                            | $1.000                              | $0.046                      | $–                                   | $0.046                         |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                            | $1.000                              | $0.044                      | $–                                   | $0.044                         |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                            | $1.000                              | $0.026                      | $–                                   | $0.026                         |
| Davis Financial Fund Class A:                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                                                                                                                         | $28.76                              | $0.14e                      | $(2.22)                                    | $(2.08)                        |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                            | $19.72                              | $0.12e                      | $8.96                                      | $9.08                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                            | $40.71                              | $0.16e                      | $(19.02)                                   | $(18.86)                       |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                            | $47.48                              | $0.20                       | $(2.56)                                    | $(2.36)                        |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                            | $42.40                              | $0.04                       | $7.81                                      | $7.85                          |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                            | $41.00                              | $0.04                       | $3.27                                      | $3.31                          |   |
| Davis Financial Fund Class B:                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                                                                                                                         | $24.79                              | $(0.01)e                    | $(1.92)                                    | $(1.93)                        |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                            | $17.17                              | $(0.11)e                    | $7.73                                      | $7.62                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                            | $36.03                              | $(0.14)e                    | $(16.75)                                   | $(16.89)                       |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                            | $42.82                              | $(0.20)e                    | $(2.28)                                    | $(2.48)                        |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                            | $38.83                              | $(0.33)e                    | $7.09                                      | $6.76                          |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                            | $38.03                              | $(0.29)e                    | $3.00                                      | $2.71                          |
| Davis Financial Fund Class C:                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                                                                                                                         | $25.44                              | $0.02e                      | $(1.96)                                    | $(1.94)                        |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                            | $17.58                              | $(0.08)e                    | $7.94                                      | $7.86                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                            | $36.77                              | $(0.11)e                    | $(17.11)                                   | $(17.22)                       |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                            | $43.58                              | $(0.18)e                    | $(2.32)                                    | $(2.50)                        |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                            | $39.46                              | $(0.32)e                    | $7.21                                      | $6.89                          |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                            | $38.62                              | $(0.30)e                    | $3.05                                      | $2.75                          |   |   |   |   |

----

| Financial Highlights – (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                              |                            |              |                |                          |          |                                    |              |              |                             |                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|---------------------------------|-------------------|---------------------|-------------------------------|---------------|-----------------------------------------|-------------------|-------------------|----------------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              |                            |              |                |                          |          |                                    |              |              |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              |                            |              |                |                          |          |                                    |              |              |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              |                            |              |                |                          |          |                                    |              |              |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        Dividends and Distributions                                                                                                                                     Ratios to Average Net Assets                             |                              |                            |              |                |                          |          |                                    |              |              |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Dividendsfrom NetInvestmentIncome | Distributions fromRealizedGains | Return of Capital | Total Distributions | Net Asset Value, Endof Period | Total Returna | Net Assets, End of Period (inthousands) | GrossExpenseRatio | Net ExpenseRatiob | NetInvestment Income(Loss) Ratio | Portfolio Turnoverc |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              |                            |              |                |                          |          |                                    |              |              |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.05)                           | $–                        | $–          | $(0.05)             | $5.69                         | 1.51%         | $40,122                                 | 1.56%f            | 1.56%f            | 1.96%f                           | 18%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.13)                           | $–                        | $–          | $(0.13)             | $5.66                         | 2.49%         | $40,882                                 | 1.58%             | 1.58%             | 1.92%                            | 48%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.15)                           | $–                        | $–          | $(0.15)             | $5.65                         | 3.63%         | $39,261                                 | 1.63%             | 1.63%             | 2.53%                            | 67%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.17)                           | $–                        | $–          | $(0.17)             | $5.60                         | 4.66%         | $14,754                                 | 1.75%             | 1.75%             | 3.23%                            | 60%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.14)                           | $–                        | $–          | $(0.14)             | $5.52                         | 2.78%         | $7,483                                  | 1.79%             | 1.79%             | 2.56%                            | 65%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.12)                           | $–                        | $–          | $(0.12)             | $5.51                         | 0.29%         | $5,358                                  | 1.84%             | 1.82%             | 1.78%                            | 55%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              |                            |              |                |                          |          |                                    |              |              |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.08)                           | $–                        | $–          | $(0.08)             | $5.72                         | 1.82%         | $4,224                                  | 0.58%f            | 0.58%f            | 2.94%f                           | 18%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.18)                           | $–                        | $–          | $(0.18)             | $5.70                         | 3.44%         | $3,032                                  | 0.64%             | 0.64%             | 2.86%                            | 48%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.20)                           | $–                        | $–          | $(0.20)             | $5.69                         | 4.43%         | $1,626                                  | 0.82%             | 0.82%             | 3.34%                            | 67%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.22)                           | $–                        | $–          | $(0.22)             | $5.64                         | 5.32%         | $410                                    | 0.99%             | 0.99%             | 3.99%                            | 60%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.19)                           | $–                        | $–          | $(0.19)             | $5.57                         | 3.86%         | $302                                    | 0.93%             | 0.93%             | 3.42%                            | 65%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.17)                           | $–                        | $–          | $(0.17)             | $5.55                         | 1.22%         | $115                                    | 0.98%             | 0.97%             | 2.63%                            | 55%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              |                            |              |                |                          |          |                                    |              |              |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–h                         | $–                        | $–          | $–h           | $1.000                        | 0.02%         | $359,374                                | 0.62%f            | 0.18%f            | 0.04%f                           | NA                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.003)                          | $–                        | $–          | $(0.003)            | $1.000                        | 0.28%         | $299,642                                | 0.63%             | 0.47%             | 0.30%                            | NA                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.022)                          | $–                        | $–          | $(0.022)            | $1.000                        | 2.26%         | $395,211                                | 0.57%             | 0.57%             | 2.30%                            | NA                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.046)                          | $–                        | $–          | $(0.046)            | $1.000                        | 4.69%         | $596,446                                | 0.55%             | 0.55%             | 4.59%                            | NA                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.044)                          | $–                        | $–          | $(0.044)            | $1.000                        | 4.47%         | $558,107                                | 0.56%             | 0.56%             | 4.41%                            | NA                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.026)                          | $–                        | $–          | $(0.026)            | $1.000                        | 2.68%         | $513,221                                | 0.57%             | 0.56%             | 2.65%                            | NA                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              |                            |              |                |                          |          |                                    |              |              |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $–                        | $–          | $–            | $26.68                        | (7.23)%       | $428,546                                | 0.96%f            | 0.96%f            | 1.00%f                           | 1%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.04)                           | $–                        | $–          | $(0.04)             | $28.76                        | 46.02%i       | $584,626                                | 1.05%             | 1.05%             | 0.51%                            | 9%                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.16)                           | $(1.97)                         | $–          | $(2.13)             | $19.72                        | (45.62)%      | $425,854                                | 1.06%             | 1.06%             | 0.50%                            | 9%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $(0.10)                           | $(4.31)                         | $–          | $(4.41)             | $40.71                        | (5.31)%       | $740,235                                | 0.97%             | 0.97%             | 0.44%                            | 15%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(2.77)                         | $–          | $(2.77)             | $47.48                        | 18.74%        | $818,054                                | 0.98%             | 0.98%             | 0.09%                            | 4%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(1.91)                         | $–          | $(1.91)             | $42.40                        | 8.03%         | $613,683                                | 0.99%             | 0.98%             | 0.10%                            | 5%                  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              |                            |              |                |                          |          |                                    |              |              |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $–                        | $–          | $–            | $22.86                        | (7.79)%       | $11,616                                 | 2.08%f            | 2.08%f            | (0.12)%f                         | 1%                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $–                        | $–          | $–            | $24.79                        | 44.38%i       | $14,397                                 | 2.19%             | 2.19%             | (0.63)%                          | 9%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(1.97)                         | $–          | $(1.97)             | $17.17                        | (46.13)%      | $14,236                                 | 2.08%             | 2.08%             | (0.52)%                          | 9%                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(4.31)                         | $–          | $(4.31)             | $36.03                        | (6.17)%       | $50,341                                 | 1.87%             | 1.87%             | (0.46)%                          | 15%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(2.77)                         | $–          | $(2.77)             | $42.82                        | 17.65%        | $95,545                                 | 1.88%             | 1.88%             | (0.81)%                          | 4%                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(1.91)                         | $–          | $(1.91)             | $38.83                        | 7.08%         | $192,049                                | 1.88%             | 1.85%             | (0.77)%                          | 5%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                              |                            |              |                |                          |          |                                    |              |              |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $–                        | $–          | $–            | $23.50                        | (7.63)%       | $64,660                                 | 1.85%f            | 1.85%f            | 0.11%f                           | 1%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $–                        | $–          | $–            | $25.44                        | 44.71%i       | $74,530                                 | 1.95%             | 1.95%             | (0.39)%                          | 9%                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(1.97)                         | $–          | $(1.97)             | $17.58                        | (46.09)%      | $58,474                                 | 1.94%             | 1.94%             | (0.38)%                          | 9%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(4.31)                         | $–          | $(4.31)             | $36.77                        | (6.10)%       | $87,216                                 | 1.83%             | 1.83%             | (0.42)%                          | 15%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(2.77)                         | $–          | $(2.77)             | $43.58                        | 17.70%        | $96,478                                 | 1.85%             | 1.85%             | (0.78)%                          | 4%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | $–                          | $(1.91)                         | $–          | $(1.91)             | $39.46                        | 7.07%         | $94,512                                 | 1.87%             | 1.85%             | (0.77)%                          | 5%                  |   |   |   |   |   |   |   |   |   |   |   |   |

----

| DAVIS SERIES, INC.                                                                                                                                                                                                                                                                                                                                                |                                |                        |                                       |                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-----------------------------|--------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                              |                                |                        |                                       |                           |
| The following financial information represents selected data for each share of capital stock outstanding throughout each period:                                                                                                                                                                                                                                  |                                |                        |                                       |                           |
|                                                                                                                                                                                                                                                                                                                                                              |                                |                        |                                       |                           |
|                                   Income (Loss) from Investment Operations                    |                                |                        |                                       |                           |
|                                                                                                                                                                                                                                                                                                                                                              | Net Asset Value, Beginning ofPeriod | Net InvestmentIncome (Loss) | Net Realized and Unrealized Gains (Losses) | Total fromInvestmentOperations |   |
| Davis Financial Fund Class Y:                                                                                                                                                                                                                                                                                                                                     |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                   | $29.40                              | $0.15e                      | $(2.27)                                    | $(2.12)                        |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                      | $20.16                              | $0.14e                      | $9.16                                      | $9.30                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                      | $41.57                              | $0.20e                      | $(19.44)                                   | $(19.24)                       |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                      | $48.38                              | $0.28                       | $(2.61)                                    | $(2.33)                        |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                      | $43.10                              | $0.11                       | $7.94                                      | $8.05                          |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                      | $41.59                              | $0.09                       | $3.33                                      | $3.42                          |
| Davis Appreciation & Income Fund Class A:                                                                                                                                                                                                                                                                                                                     |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                   | $23.70                              | $0.20e                      | $(0.34)                                    | $(0.14)                        |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                      | $16.15                              | $0.38e                      | $7.58                                      | $7.96                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                      | $28.21                              | $0.54e                      | $(12.06)                                   | $(11.52)                       |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                      | $29.71                              | $0.61                       | $(0.18)                                    | $0.43                          |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                      | $27.94                              | $0.68                       | $3.52                                      | $4.20                          |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                      | $27.50                              | $0.59                       | $1.11                                      | $1.70                          |   |
| Davis Appreciation & Income Fund Class B:                                                                                                                                                                                                                                                                                                                     |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                   | $23.44                              | $0.09e                      | $(0.33)                                    | $(0.24)                        |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                      | $15.98                              | $0.20e                      | $7.49                                      | $7.69                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                      | $27.90                              | $0.33e                      | $(11.92)                                   | $(11.59)                       |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                      | $29.40                              | $0.38e                      | $(0.21)                                    | $0.17                          |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                      | $27.67                              | $0.45e                      | $3.46                                      | $3.91                          |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                      | $27.25                              | $0.35                       | $1.08                                      | $1.43                          |
| Davis Appreciation & Income Fund Class C:                                                                                                                                                                                                                                                                                                                     |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                   | $23.81                              | $0.10e                      | $(0.34)                                    | $(0.24)                        |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                      | $16.24                              | $0.23e                      | $7.59                                      | $7.82                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                      | $28.34                              | $0.35e                      | $(12.10)                                   | $(11.75)                       |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                      | $29.84                              | $0.38e                      | $(0.20)                                    | $0.18                          |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                      | $28.06                              | $0.45e                      | $3.51                                      | $3.96                          |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                      | $27.62                              | $0.36                       | $1.10                                      | $1.46                          |   |
| Davis Appreciation & Income Fund Class Y:                                                                                                                                                                                                                                                                                                                     |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                   | $23.80                              | $0.22e                      | $(0.33)                                    | $(0.11)                        |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                      | $16.22                              | $0.44e                      | $7.60                                      | $8.04                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                      | $28.33                              | $0.61e                      | $(12.11)                                   | $(11.50)                       |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                      | $29.84                              | $0.72e                      | $(0.22)                                    | $0.50                          |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                      | $28.05                              | $0.76                       | $3.54                                      | $4.30                          |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                      | $27.61                              | $0.66                       | $1.11                                      | $1.77                          |
| Davis Real Estate Fund Class A:                                                                                                                                                                                                                                                                                                                                   |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                   | $19.79                              | $0.26e                      | $0.56                                      | $0.82                          |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                      | $15.29                              | $0.39e                      | $4.35                                      | $4.74                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                      | $30.50                              | $0.42e                      | $(14.70)                                   | $(14.28)                       |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                      | $46.42                              | $0.81e                      | $(7.45)                                    | $(6.64)                        |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                      | $40.23                              | $0.61e                      | $13.28                                     | $13.89                         |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                      | $39.52                              | $0.59                       | $4.37                                      | $4.96                          |   |   |   |   |

----

| Financial Highlights – (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|---------------------------------|-------------------|---------------------|-------------------------------|---------------|-----------------------------------------|-------------------|--------------------|----------------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              |                            |              |                |                          |          |                                    |              |               |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              |                            |              |                |                          |          |                                    |              |               |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                       Dividends and Distributions                                                                                                                                        Ratios to Average Net Assets                          |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Dividendsfrom NetInvestmentIncome | Distributions fromRealizedGains | Return of Capital | Total Distributions | Net Asset Value, Endof Period | Total Returna | Net Assets, End of Period (inthousands) | GrossExpenseRatio | Net Expense Ratiob | NetInvestment Income(Loss) Ratio | Portfolio Turnoverc |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $–                          | $–                        | $–          | $–            | $27.28                        | (7.21)%       | $21,899                                 | 0.88%f            | 0.88%f             | 1.08%f                           | 1%                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.06)                           | $–                        | $–          | $(0.06)             | $29.40                        | 46.13%i       | $15,478                                 | 0.95%             | 0.95%              | 0.61%                            | 9%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.20)                           | $(1.97)                         | $–          | $(2.17)             | $20.16                        | (45.56)%      | $8,958                                  | 0.97%             | 0.97%              | 0.59%                            | 9%                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.17)                           | $(4.31)                         | $–          | $(4.48)             | $41.57                        | (5.15)%       | $8,844                                  | 0.84%             | 0.84%              | 0.57%                            | 15%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $–                          | $(2.77)                         | $–          | $(2.77)             | $48.38                        | 18.90%        | $10,566                                 | 0.84%             | 0.84%              | 0.23%                            | 4%                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $–                          | $(1.91)                         | $–          | $(1.91)             | $43.10                        | 8.18%         | $11,815                                 | 0.85%             | 0.84%              | 0.24%                            | 5%                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              |                            |              |                |                          |          |                                    |              |               |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.09)                           | $–                        | $–          | $(0.09)             | $23.47                        | (0.62)%       | $257,460                                | 0.95%f            | 0.95%f             | 1.62%f                           | 10%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.41)                           | $–                        | $–          | $(0.41)             | $23.70                        | 49.68%        | $275,411                                | 1.06%             | 1.06%              | 1.98%                            | 15%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.54)                           | $–                        | $–          | $(0.54)             | $16.15                        | (41.43)%      | $227,940                                | 1.07%             | 1.07%              | 2.24%                            | 28%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.60)                           | $(1.33)                         | $–          | $(1.93)             | $28.21                        | 1.30%         | $567,728                                | 1.01%             | 1.01%              | 2.04%                            | 23%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.64)                           | $(1.79)                         | $–          | $(2.43)             | $29.71                        | 15.19%        | $393,888                                | 1.06%             | 1.06%              | 2.35%                            | 25%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.62)                           | $(0.64)                         | $–          | $(1.26)             | $27.94                        | 6.29%         | $224,600                                | 1.07%             | 1.07%              | 2.12%                            | 17%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.04)                           | $–                        | $–          | $(0.04)             | $23.16                        | (1.05)%       | $17,376                                 | 1.85%f            | 1.85%f             | 0.72%f                           | 10%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.23)                           | $–                        | $–          | $(0.23)             | $23.44                        | 48.28%        | $19,801                                 | 1.99%             | 1.99%              | 1.05%                            | 15%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.33)                           | $–                        | $–          | $(0.33)             | $15.98                        | (41.92)%      | $16,891                                 | 1.93%             | 1.93%              | 1.38%                            | 28%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.34)                           | $(1.33)                         | $–          | $(1.67)             | $27.90                        | 0.46%         | $44,099                                 | 1.84%             | 1.84%              | 1.21%                            | 23%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.39)                           | $(1.79)                         | $–          | $(2.18)             | $29.40                        | 14.20%        | $51,102                                 | 1.89%             | 1.89%              | 1.52%                            | 25%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.37)                           | $(0.64)                         | $–          | $(1.01)             | $27.67                        | 5.30%         | $75,289                                 | 1.94%             | 1.93%              | 1.26%                            | 17%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              |                            |              |                |                          |          |                                    |              |               |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.04)                           | $–                        | $–          | $(0.04)             | $23.53                        | (1.02)%       | $78,870                                 | 1.76%f            | 1.76%f             | 0.81%f                           | 10%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.25)                           | $–                        | $–          | $(0.25)             | $23.81                        | 48.36%        | $87,739                                 | 1.89%             | 1.89%              | 1.15%                            | 15%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.35)                           | $–                        | $–          | $(0.35)             | $16.24                        | (41.85)%      | $79,699                                 | 1.87%             | 1.87%              | 1.44%                            | 28%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.35)                           | $(1.33)                         | $–          | $(1.68)             | $28.34                        | 0.50%         | $169,456                                | 1.80%             | 1.80%              | 1.25%                            | 23%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.39)                           | $(1.79)                         | $–          | $(2.18)             | $29.84                        | 14.22%        | $90,692                                 | 1.88%             | 1.87%              | 1.54%                            | 25%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.38)                           | $(0.64)                         | $–          | $(1.02)             | $28.06                        | 5.34%         | $55,395                                 | 1.93%             | 1.93%              | 1.26%                            | 17%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.11)                           | $–                        | $–          | $(0.11)             | $23.58                        | (0.51)%       | $28,559                                 | 0.72%f            | 0.72%f             | 1.85%f                           | 10%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.46)                           | $–                        | $–          | $(0.46)             | $23.80                        | 50.05%        | $46,112                                 | 0.80%             | 0.80%              | 2.24%                            | 15%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.61)                           | $–                        | $–          | $(0.61)             | $16.22                        | (41.25)%      | $49,314                                 | 0.79%             | 0.79%              | 2.52%                            | 28%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.68)                           | $(1.33)                         | $–          | $(2.01)             | $28.33                        | 1.55%         | $105,327                                | 0.75%             | 0.74%              | 2.31%                            | 23%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.72)                           | $(1.79)                         | $–          | $(2.51)             | $29.84                        | 15.49%        | $50,052                                 | 0.80%             | 0.80%              | 2.61%                            | 25%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.69)                           | $(0.64)                         | $–          | $(1.33)             | $28.05                        | 6.52%         | $37,110                                 | 0.83%             | 0.83%              | 2.36%                            | 17%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                              |                            |              |                |                          |          |                                    |              |               |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.09)                           | $–                        | $–          | $(0.09)             | $20.52                        | 4.12%         | $230,161                                | 1.10%f            | 1.10%f             | 2.50%f                           | 31%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.24)                           | $–                        | $–          | $(0.24)             | $19.79                        | 31.72%        | $233,995                                | 1.35%             | 1.35%              | 2.55%                            | 64%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.09)                           | $(0.51)                         | $(0.33)           | $(0.93)             | $15.29                        | (46.89)%      | $202,878                                | 1.23%             | 1.23%              | 1.62%                            | 44%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.58)                           | $(8.70)                         | $–          | $(9.28)             | $30.50                        | (14.87)%      | $460,644                                | 1.08%             | 1.08%              | 1.84%                            | 46%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.88)                           | $(6.82)                         | $–          | $(7.70)             | $46.42                        | 34.58%        | $573,375                                | 1.09%             | 1.09%              | 1.37%                            | 38%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(0.83)                           | $(3.42)                         | $–          | $(4.25)             | $40.23                        | 12.76%        | $372,571                                | 1.10%             | 1.09%              | 1.48%                            | 25%                 |   |   |   |   |   |   |   |   |   |   |   |   |

----

| DAVIS SERIES, INC.                                                                                                                                                                                                                                                                                                                                                |                                |                        |                                       |                           |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-----------------------------|--------------------------------------------|--------------------------------|
|                                                                                                                                                                                                                                                                                                                                                              |                                |                        |                                       |                           |
| The following financial information represents selected data for each share of capital stock outstanding throughout each period:                                                                                                                                                                                                                                  |                                |                        |                                       |                           |
|                                                                                                                                                                                                                                                                                                                                                              |                                |                        |                                       |                           |
|                                    Income (Loss) from Investment Operations                   |                                |                        |                                       |                           |
|                                                                                                                                                                                                                                                                                                                                                              | Net Asset Value, Beginning ofPeriod | Net InvestmentIncome (Loss) | Net Realized and Unrealized Gains (Losses) | Total fromInvestmentOperations |   |
| Davis Real Estate Fund Class B:                                                                                                                                                                                                                                                                                                                                   |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                   | $19.55                              | $0.14e                      | $0.55                                      | $0.69                          |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                      | $15.13                              | $0.22e                      | $4.32                                      | $4.54                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                      | $30.29                              | $0.21e                      | $(14.63)                                   | $(14.42)                       |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                      | $46.16                              | $0.53e                      | $(7.46)                                    | $(6.93)                        |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                      | $40.05                              | $0.38e                      | $13.07                                     | $13.45                         |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                      | $39.36                              | $0.30                       | $4.34                                      | $4.64                          |
| Davis Real Estate Fund Class C:                                                                                                                                                                                                                                                                                                                                   |                                |                        |                                       |                           |   |   |   |   |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                   | $19.80                              | $0.17e                      | $0.56                                      | $0.73                          |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                      | $15.32                              | $0.27e                      | $4.36                                      | $4.63                          |   |   |   |   |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                      | $30.63                              | $0.24e                      | $(14.79)                                   | $(14.55)                       |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                      | $46.56                              | $0.52e                      | $(7.50)                                    | $(6.98)                        |   |   |   |   |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                      | $40.35                              | $0.44e                      | $13.12                                     | $13.56                         |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                      | $39.63                              | $0.31                       | $4.37                                      | $4.68                          |   |
| Davis Real Estate Fund Class Y:                                                                                                                                                                                                                                                                                                                                   |                                |                        |                                       |                           |
| Six months ended June 30, 2010d                                                                                                                                                                                                                                                                                                                                   | $20.05                              | $0.27e                      | $0.60                                      | $0.87                          |   |   |   |   |
| Year ended December 31, 2009                                                                                                                                                                                                                                                                                                                                      | $15.46                              | $0.46e                      | $4.41                                      | $4.87                          |
| Year ended December 31, 2008                                                                                                                                                                                                                                                                                                                                      | $30.82                              | $0.50e                      | $(14.85)                                   | $(14.35)                       |   |   |   |   |
| Year ended December 31, 2007                                                                                                                                                                                                                                                                                                                                      | $46.81                              | $0.92e                      | $(7.47)                                    | $(6.55)                        |
| Year ended December 31, 2006                                                                                                                                                                                                                                                                                                                                      | $40.53                              | $0.77                       | $13.37                                     | $14.14                         |   |   |   |   |
| Year ended December 31, 2005                                                                                                                                                                                                                                                                                                                                      | $39.78                              | $0.74                       | $4.42                                      | $5.16                          |

| a      | 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 year. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| b      | The ratios in this column reflect the impact, if any, of the reduction of expenses paid indirectly and of certain reimbursements and/or waivers from the Adviser.                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| c      | 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.                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                       |
| d      | Unaudited.                                                                                                                                                                                                                                                                                                                                                                                                                                 |

----

| Financial Highlights – (Continued)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------|---------------------------------|-------------------|---------------------|-------------------------------|---------------|-----------------------------------------|-------------------|--------------------|----------------------------------|---------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                              |                            |              |                |                          |          |                                    |              |               |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                              |                            |              |                |                          |          |                                    |              |               |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         Dividends and Distributions                                                                                                                                  Ratios to Average Net Assets                                  |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Dividendsfrom NetInvestmentIncome | Distributions fromRealizedGains | Return of Capital | Total Distributions | Net Asset Value, Endof Period | Total Returna | Net Assets, End of Period (inthousands) | GrossExpenseRatio | Net Expense Ratiob | NetInvestment Income(Loss) Ratio | Portfolio Turnoverc |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.04)                           | $–                        | $–          | $(0.04)             | $20.20                        | 3.50%         | $5,864                                  | 2.20%f            | 2.20%f             | 1.40%f                           | 31%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.12)                           | $–                        | $–          | $(0.12)             | $19.55                        | 30.38%        | $6,616                                  | 2.46%             | 2.46%              | 1.44%                            | 64%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.05)                           | $(0.51)                         | $(0.18)           | $(0.74)             | $15.13                        | (47.41)%      | $7,581                                  | 2.13%             | 2.13%              | 0.72%                            | 44%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.24)                           | $(8.70)                         | $–          | $(8.94)             | $30.29                        | (15.52)%      | $24,872                                 | 1.87%             | 1.87%              | 1.05%                            | 46%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.52)                           | $(6.82)                         | $–          | $(7.34)             | $46.16                        | 33.50%        | $55,347                                 | 1.86%             | 1.86%              | 0.60%                            | 38%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.53)                           | $(3.42)                         | $–          | $(3.95)             | $40.05                        | 11.91%        | $87,039                                 | 1.89%             | 1.88%              | 0.69%                            | 25%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                              |                            |              |                |                          |          |                                    |              |               |                             |                |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.05)                           | $–                        | $–          | $(0.05)             | $20.48                        | 3.67%         | $28,512                                 | 1.92%f            | 1.92%f             | 1.68%f                           | 31%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.15)                           | $–                        | $–          | $(0.15)             | $19.80                        | 30.70%        | $29,222                                 | 2.18%             | 2.18%              | 1.72%                            | 64%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.05)                           | $(0.51)                         | $(0.20)           | $(0.76)             | $15.32                        | (47.33)%      | $28,789                                 | 2.00%             | 2.00%              | 0.85%                            | 44%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.25)                           | $(8.70)                         | $–          | $(8.95)             | $30.63                        | (15.48)%      | $73,594                                 | 1.84%             | 1.84%              | 1.08%                            | 46%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.53)                           | $(6.82)                         | $–          | $(7.35)             | $46.56                        | 33.54%        | $119,093                                | 1.84%             | 1.84%              | 0.62%                            | 38%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.54)                           | $(3.42)                         | $–          | $(3.96)             | $40.35                        | 11.93%        | $95,229                                 | 1.88%             | 1.87%              | 0.70%                            | 25%                 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                              |                            |              |                |                          |          |                                    |              |               |                             |                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.11)                           | $–                        | $–          | $(0.11)             | $20.81                        | 4.33%         | $16,866                                 | 0.75%f            | 0.75%f             | 2.85%f                           | 31%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.28)                           | $–                        | $–          | $(0.28)             | $20.05                        | 32.37%        | $25,947                                 | 0.92%             | 0.92%              | 2.98%                            | 64%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.10)                           | $(0.51)                         | $(0.40)           | $(1.01)             | $15.46                        | (46.75)%      | $29,282                                 | 0.89%             | 0.89%              | 1.96%                            | 44%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.74)                           | $(8.70)                         | $–          | $(9.44)             | $30.82                        | (14.58)%      | $57,995                                 | 0.75%             | 0.75%              | 2.17%                            | 46%                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(1.04)                           | $(6.82)                         | $–          | $(7.86)             | $46.81                        | 34.98%        | $113,856                                | 0.74%             | 0.74%              | 1.72%                            | 38%                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | $(0.99)                           | $(3.42)                         | $–          | $(4.41)             | $40.53                        | 13.20%        | $79,156                                 | 0.77%             | 0.77%              | 1.80%                            | 25%                 |

| e                                 | Per share calculations were based on average shares outstanding for the period.                                                                                                                                                                                                                                  |   |
|-----------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                              |                                                                                                                                                                                                                                                                                                             |   |
| f                                 | Annualized.                                                                                                                                                                                                                                                                                                      |   |
|                              |                                                                                                                                                                                                                                                                                                             |   |
| g                                 | Less than $0.005 per share.                                                                                                                                                                                                                                                                                      |   |
|                              |                                                                                                                                                                                                                                                                                                             |   |
| h                                 | Less than $0.0005 per share.                                                                                                                                                                                                                                                                                     |   |
|                              |                                                                                                                                                                                                                                                                                                             |   |
| i                                 | Davis Financial Fund received a favorable class action settlement from a company that it no longer owns. This settlement had a material impact on the investment performance of the Fund, adding approximately 1% to the Fund's total return in 2009. This was a one-time event that is unlikely to be repeated. |   |
|                              |                                                                                                                                                                                                                                                                                                             |   |
|                              |                                                                                                                                                                                                                                                                                                             |   |
| See Notes to Financial Statements |

----

| DAVIS SERIES, INC. | Director Approval of Advisory Agreements |
|--------------------|------------------------------------------|

| 1.   | Achieves satisfactory investment results over the long-term after all costs; |
|----------------|------------------------------------------------------------------------------|

| 2.   | Handles shareholder transactions, inquiries, requests, and records efficiently and effectively, and provides quality accounting, legal, and compliance services, and oversight of third party service providers; and |
|----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Fosters healthy investor behavior. |
|----------------|------------------------------------|

----

| DAVIS SERIES, INC. | Director Approval of Advisory Agreements – (Continued) |
|--------------------|--------------------------------------------------------------|

----

| DAVIS SERIES, INC. | Director Approval of Advisory Agreements – (Continued) |
|--------------------|--------------------------------------------------------------|

----

| DAVIS SERIES, INC. | Director Approval of Advisory Agreements – (Continued) |
|--------------------|--------------------------------------------------------------|

|   |
|--------|

----

| DAVIS SERIES, INC. | Fund Information |
|--------------------|------------------|

----

| DAVIS SERIES, INC. | Privacy Notice and Householding |
|--------------------|---------------------------------|

----

| DAVIS SERIES, INC. | Directors and Officers |
|--------------------|------------------------|

| Name(birthdate) | Position(s)Held WithFund | Term ofOffice andLength ofTimeServed | Principal Occupation(s)During Past Five Years | Number ofPortfolios inFundComplexOverseen byDirector | Other DirectorshipsHeld by Director |
|-----------------|--------------------------|--------------------------------------|-----------------------------------------------|------------------------------------------------------|-------------------------------------|
|            |                     |                                 |                                          |                                                 |                                |

|                          |              |                |                                                                                                                                                                                                                          |     |                                                                                                                                                                                                                          |
|-------------------------------|-------------------|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Marc P. Blum(09/09/42)        | Director          | Director since 1986 | Chief Executive Officer, World Total Return Fund, LLLP; of Counsel to Gordon, Feinblatt, Rothman, Hoffberger and Hollander, LLC (law firm).                                                                                   | 13       | Director, Legg Mason Investment Counsel & Trust Company N.A. (asset management company) and Rodney Trust Company (Delaware).                                                                                              |
|                          |              |                |                                                                                                                                                                                                                          |     |                                                                                                                                                                                                                          |
| John S. Gates,Jr.(08/02/53)   | Director          | Director since 2007 | Chairman and Chief Executive Officer of PortaeCo LLC, a private investment company (beginning in 2006); Co-founder of CenterPoint Properties Trust (REIT); Co-chairman and Chief Executive Officer for 22 years (until 2006). | 13  | Director, DCT Industrial Trust (REIT).                                                                                                                                                                                        |
|                          |              |                |                                                                                                                                                                                                                          |     |                                                                                                                                                                                                                          |
| Thomas S.Gayner(12/16/61)     | Director/Chairman | Director since 2004 | President and Chief Investment Officer, Markel Corporation (insurance company).                                                                                                                                               | 13       | Director, Washington Post Co. (publishing company); Director, Colfax Corp. (engineering and manufacturer of pumps and fluid handling equipment).                                                                              |
|                          |              |                |                                                                                                                                                                                                                          |     |                                                                                                                                                                                                                          |
| G. BernardHamilton(03/18/37)  | Director          | Director since 1978 | Managing General Partner, Avanti Partners, L.P. (investment partnership), retired 2005.                                                                                                                                       | 13       | none                                                                                                                                                                                                                          |
|                          |              |                |                                                                                                                                                                                                                          |     |                                                                                                                                                                                                                          |
| Samuel H.Iapalucci(07/19/52)  | Director          | Director since 2006 | Former Executive Vice President and Chief Financial Officer, CH2M-HILL Companies, Ltd. (engineering).                                                                                                                         | 13       | Director, Trow Global Holdings Inc. (engineering &consulting).                                                                                                                                                            |
|                          |              |                |                                                                                                                                                                                                                          |     |                                                                                                                                                                                                                          |
| Robert P.Morgenthau(03/22/57) | Director          | Director since 2002 | Chairman, NorthRoad Capital Management, LLC (investment management firm) since June 2002.                                                                                                                                     | 13       | none                                                                                                                                                                                                                          |
|                          |              |                |                                                                                                                                                                                                                          |     |                                                                                                                                                                                                                          |
| Christian R.Sonne(05/06/36)   | Director          | Director since 1990 | General Partner, Tuxedo Park Associates (land holding and development firm).                                                                                                                                                  | 13       | none                                                                                                                                                                                                                          |
|                          |              |                |                                                                                                                                                                                                                          |     |                                                                                                                                                                                                                          |
| MarshaWilliams(03/28/51)      | Director          | Director since 1999 | Senior Vice President and Chief Financial Officer, Orbitz Worldwide, Inc. (travel-services provider) since 2007; former Executive Vice President and Chief Financial Officer, Equity Office Properties Trust (REIT).          | 13       | Director, Modine Manufacturing, Inc. (heat transfer technology); Director, Chicago Bridge & Iron Company, N.V. (industrial construction and engineering); Director, Fifth Third Bancorp (diversified financial services). |

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| DAVIS SERIES, INC. | Directors and Officers – (Continued) |
|--------------------|--------------------------------------------|

| Name(birthdate) | Position(s)Held WithFund | Term ofOffice andLength ofTimeServed | Principal Occupation(s)During Past Five Years | Number ofPortfolios inFundComplexOverseen byDirector | Other DirectorshipsHeld by Director |
|-----------------|--------------------------|--------------------------------------|-----------------------------------------------|------------------------------------------------------|-------------------------------------|

|                     |     |                |                                                                                                                                                                                                  |   |                                                                      |
|--------------------------|----------|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------|
| Andrew A.Davis(06/25/63) | Director | Director since 1997 | President or Vice President of each Davis Fund and Selected Fund; President, Davis Selected Advisers, L.P., and also serves as an executive officer in certain companies affiliated with the Adviser. | 9      | Director, the Selected Funds (consisting of three portfolios) since 1998. |

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| DAVIS SERIES, INC. |   |
|--------------------|--------|

| Investment Adviser                                                             |   |
|--------------------------------------------------------------------------------|--------|
| Davis Selected Advisers, L.P. (Doing business as “Davis Advisors”) |   |
| 2949 East Elvira Road, Suite 101                                               |   |
| Tucson, Arizona 85756                                                          |   |
| (800) 279-0279                                                                 |   |
|                                                                           |   |
| Distributor                                                                    |   |
| Davis Distributors, LLC                                                        |   |
| 2949 East Elvira Road, Suite 101                                               |   |
| Tucson, Arizona 85756                                                          |   |
|                                                                           |   |
| Transfer Agent                                                                 |   |
| Boston Financial Data Services, Inc.                                           |   |
| c/o The Davis Funds                                                            |   |
| P.O. Box 8406                                                                  |   |
| Boston, Massachusetts 02266-8406                                               |   |
|                                                                           |   |
| Overnight Address:                                                             |   |
| 30 Dan Road                                                                    |   |
| Canton, Massachusetts 02021-2809                                               |   |
|                                                                           |   |
| Custodian                                                                      |   |
| State Street Bank and Trust Co.                                                |   |
| One Lincoln Street                                                             |   |
| Boston, Massachusetts 02111                                                    |   |
|                                                                           |   |
| Counsel                                                                        |   |
| Greenberg Traurig, LLP                                                         |   |
| 77 West Wacker Drive, Suite 3100                                               |   |
| Chicago, Illinois 60601                                                        |   |
|                                                                           |   |
| Independent Registered Public Accounting Firm                                  |   |
| KPMG LLP                                                                       |   |
| 707 Seventeenth Street, Suite 2700                                             |   |
| Denver, Colorado 80202                                                         |   |

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|   | (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. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | (a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached. |
|--------|-----------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | (a)(3) Not Applicable |
|--------|-----------------------|

|   |   |
|--------|--------|

|   | (b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached. |
|--------|--------------------------------------------------------------------------------------------|

|   |   |
|--------|--------|

|   | SIGNATURES |
|--------|------------|

|   |   |
|--------|--------|

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

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

| By     | /s/ Douglas A. Haines       |   |
|--------|-----------------------------|--------|
|   | Douglas A. Haines           |   |
|   | Principal Financial Officer |
|   |                        |   |   |

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