**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC  20549**

**FORM N-Q**

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANANGEMENT INVESTMENT COMPANY

 

**Investment Company Act file number 811-02679**

**DAVIS SERIES, INC.**

(Exact name of registrant as specified in charter)

2949 East Elvira Road, Suite 101

Tucson, AZ  85706

(Address of principal executive offices)

 

Thomas D. Tays

Davis Selected Advisers, L.P.

2949 East Elvira Road, Suite 101

Tucson, AZ  85706

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 520-806-7600

**Date of fiscal year end: December 31, 2006**

 

**Date of reporting period: March 31, 2006**

 

 

**ITEM 1.  SCHEDULE OF INVESTMENTS**

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS OPPORTUNITY FUND**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (93.50%)**

 

**ADVERTISING – (1.34%)**

 

 

 

 

955,000

 

WPP Group PLC

$

11,456,887

 

**AUTOMOBILES & COMPONENTS – (4.15%)**

 

 

 

 

246,300

 

Autoliv, Inc. 

 

13,935,654

 

 

415,700

 

Harley-Davidson, Inc. 

 

21,566,516

 

 

 

 

 

 

35,502,170

 

**AUTOMOTIVE RETAIL – (5.37%)**

 

 

 

 

460,500

 

Advance Auto Parts, Inc. 

 

19,175,220

 

 

1,240,000

 

AutoNation, Inc.*

 

26,722,000

 

 

 

 

 

 

45,897,220

 

**BROADCASTING & CABLE TV – (3.38%)**

 

 

 

 

463,000

 

EchoStar Communications Corp., Class A*

 

13,820,550

 

 

519,610

 

NTL Inc.*

 

15,060,896

 

 

 

 

 

 

28,881,446

 

**CAPITAL GOODS – (5.58%)**

 

 

 

 

304,000

 

American Standard Cos, Inc. 

 

13,029,440

 

 

181,500

 

Franklin Electric Co., Inc. 

 

9,898,102

 

 

501,300

 

Robbins & Myers, Inc. 

 

10,828,080

 

 

16,910

 

Tae Young Corp. 

 

1,209,598

 

 

474,500

 

Tyco International Ltd. 

 

12,754,560

 

 

 

 

 

 

47,719,780

 

**CAPITAL MARKETS – (4.27%)**

 

 

 

 

947,500

 

E*TRADE Financial Corp.*

 

25,563,550

 

 

33,686

 

Julius Baer Holding, Ltd. AG

 

3,046,507

 

 

62,600

 

Legg Mason, Inc. 

 

7,845,658

 

 

 

 

 

 

36,455,715

 

**COMMERCIAL BANKS – (3.37%)**

 

 

 

 

748,700

 

Anglo Irish Bank Corp. PLC

 

12,339,439

 

 

448,000

 

Commerce Bancorp, Inc. 

 

16,419,200

 

 

 

 

 

 

28,758,639

 

**COMMERCIAL SERVICES & SUPPLIES – (0.43%)**

 

 

 

 

47,500

 

D&B Corp.*

 

3,642,300

 

**CONSUMER DURABLES & APPAREL – (6.99%)**

 

 

 

 

306,200

 

Blount International, Inc.*

 

4,932,882

 

 

319,300

 

Garmin Ltd. 

 

25,382,753

 

 

336,764

 

Hunter Douglas NV

 

22,364,279

 

 

87,100

 

Mohawk Industries, Inc.*

 

7,030,712

 

 

 

 

 

 

59,710,626

 

**CONSUMER FINANCE – (1.20%)**

 

 

 

 

237,700

 

First Marblehead Corp. 

 

10,280,525

 

**CONSUMER SERVICES – (3.85%)**

 

 

 

 

307,000

 

Apollo Group, Inc., Class A*

 

16,122,105

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS OPPORTUNITY FUND – (Continued)**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (Continued)**

 

**CONSUMER SERVICES – (Continued)**

 

 

 

 

1,281,000

 

ServiceMaster Co. 

$

16,806,720

 

 

 

 

 

 

32,928,825

 

**DEPARTMENT STORES – (1.19%)**

 

 

 

 

76,900

 

Sears Holdings Corp.*

 

10,155,799

 

**DIVERSIFIED FINANCIAL SERVICES – (4.67%)**

 

 

 

 

73,600

 

Groupe Bruxelles Lambert S.A. 

 

8,187,837

 

 

178,741

 

Pargesa Holding S.A., Bearer Shares

 

17,234,491

 

 

505,900

 

Power Corp. of Canada

 

14,511,838

 

 

 

 

 

 

39,934,166

 

**ENERGY – (2.40%)**

 

 

 

 

28,300

 

Tenaris S.A., ADR

 

5,112,961

 

 

191,500

 

Transocean Inc.*

 

15,377,450

 

 

 

 

 

 

20,490,411

 

**FOOD & STAPLES RETAILING – (0.84%)**

 

 

 

 

132,900

 

Costco Wholesale Corp. 

 

7,205,838

 

**FOOD, BEVERAGE, & TOBACCO – (2.27%)**

 

 

 

 

145,625

 

Heineken Holding NV

 

5,018,965

 

 

4,400

 

Lotte Chilsung Beverage Co., Ltd. 

 

4,890,902

 

 

5,160

 

Lotte Confectionery Co., Ltd. 

 

6,495,142

 

 

35,070

 

Nong Shim Holdings Co., Ltd. 

 

2,959,798

 

 

 

 

 

 

19,364,807

 

**GENERAL MERCHANDISE STORE – (1.05%)**

 

 

 

 

660,500

 

99 Cents Only Stores*

 

8,956,380

 

**HEALTH CARE EQUIPMENT & SERVICES – (6.13%)**

 

 

 

 

168,000

 

Cardinal Health, Inc. 

 

12,519,360

 

 

117,400

 

Fisher Scientific International, Inc.*

 

7,989,070

 

 

197,600

 

IDEXX Laboratories, Inc.*

 

17,063,748

 

 

193,000

 

Lincare Holdings Inc.*

 

7,516,385

 

 

107,300

 

Zimmer Holdings, Inc.*

 

7,253,480

 

 

 

 

 

 

52,342,043

 

**HOUSEHOLD & PERSONAL PRODUCTS – (0.68%)**

 

 

 

 

14,900

 

Amorepacific Corp. 

 

5,827,501

 

**INSURANCE BROKERS – (2.95%)**

 

 

 

 

582,000

 

Brown & Brown, Inc. 

 

19,322,400

 

 

200,800

 

Marsh & McLennan Cos, Inc. 

 

5,895,488

 

 

 

 

 

 

25,217,888

 

**INTERNET RETAIL– (3.75%)**

 

 

 

 

499,500

 

Expedia, Inc.*

 

10,127,363

 

 

757,800

 

Netflix Inc.*

 

21,949,677

 

 

 

 

 

 

32,077,040

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS OPPORTUNITY FUND – (Continued)**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (Continued)**

 

**LIFE & HEALTH INSURANCE – (0.46%)**

 

 

 

 

88,000

 

AFLAC Inc. 

$

3,971,440

 

**MATERIALS – (2.26%)**

 

 

 

 

105,000

 

Sealed Air Corp. 

 

6,076,350

 

 

200,500

 

Sigma-Aldrich Corp. 

 

13,200,920

 

 

 

 

 

 

19,277,270

 

**PROPERTY & CASUALTY INSURANCE – (2.63%)**

 

 

 

 

197,100

 

Ambac Financial Group, Inc. 

 

15,689,160

 

 

71,150

 

Cincinnati Financial Corp. 

 

2,990,790

 

 

50,000

 

FPIC Insurance Group, Inc.*

 

1,880,000

 

 

5,600

 

Markel Corp.*

 

1,891,008

 

 

 

 

 

 

22,450,958

 

**PUBLISHING – (3.24%)**

 

 

 

 

354,000

 

Lagardere S.C.A. 

 

27,648,709

 

**REINSURANCE – (1.39%)**

 

 

 

 

42,000

 

Everest Re Group, Ltd. 

 

3,921,540

 

 

136,825

 

Transatlantic Holdings, Inc. 

 

7,997,421

 

 

 

 

 

 

11,918,961

 

**SOFTWARE & SERVICES – (3.52%)**

 

 

 

 

1,125,747

 

Convera Corp. Private* (b)

 

8,623,222

 

 

289,800

 

Fiserv, Inc.*

 

12,309,255

 

 

224,700

 

Iron Mountain, Inc.*

 

9,154,278

 

 

 

 

 

 

30,086,755

 

**SPECIALTY STORES – (2.30%)**

 

 

 

 

528,000

 

Office Depot, Inc.*

 

19,662,720

 

**TECHNOLOGY HARDWARE & EQUIPMENT – (6.16%)**

 

 

 

 

401,900

 

Agilent Technologies, Inc.*

 

15,091,345

 

 

312,000

 

Lexmark International, Inc., Class A*

 

14,158,560

 

 

786,300

 

Molex Inc., Class A

 

23,349,179

 

 

 

 

 

 

52,599,084

 

**TELECOMMUNICATION SERVICES – (1.70%)**

 

 

 

 

3,308,600

 

Covad Communications Group, Inc.*

 

6,385,598

 

 

343,300

 

SK Telecom Co., Ltd., ADR

 

8,098,447

 

 

 

 

 

 

14,484,045

 

**THRIFT & MORTGAGE FINANCE – (2.00%)**

 

 

 

 

252,000

 

Golden West Financial Corp. 

 

17,110,800

 

**UTILITIES – (1.98%)**

 

 

 

 

365,000

 

Sempra Energy

 

16,957,900

 

 

 

 

 

Total Common Stock – (identified cost $592,533,859)

 

798,974,648

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS OPPORTUNITY FUND  – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**CONVERTIBLE BONDS – (1.02%)**

 

**TELECOMMUNICATION SERVICES – (1.02%)**

 

 

 

$

5,600,000

 

Level 3 Communications, Inc., Conv. Sr. Notes, 10.00%, 05/01/11

 

 

 

 

 

 

(identified cost $5,600,000)

$

8,736,000

 

 

**SHORT TERM INVESTMENTS – (5.47%)**

 

 

9,945,000

 

Banc of America Securities LLC Joint Repurchase Agreement, 4.80%,

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $9,948,978

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages in a pooled 

 

 

 

 

 

 

cash account, 5.00%-6.00%, 07/01/35-04/01/36, total market 

 

 

 

 

 

 

value $10,143,900)

 

9,945,000

 

 

13,084,000

 

Goldman, Sachs & Co. Joint Repurchase Agreement, 4.81%,

 

 

 

 

 

 

04/03/06, dated 03/27/06, repurchase value of $13,096,237

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages in a pooled 

 

 

 

 

 

 

cash account, 4.50%-6.50%, 10/01/18-03/01/36, total market

 

 

 

 

 

 

value $13,345,680)

 

13,084,000

 

 

23,678,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 4.83%,

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $23,687,530

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages and obligations 

 

 

 

 

 

 

in a pooled cash account, 4.375%-6.125%, 09/17/10-02/01/36, 

 

 

 

 

 

 

total market value $24,151,560)

 

23,678,000

 

 

 

 

 

Total Short Term Investments – (identified cost $46,707,000)

 

46,707,000

 

 

 

 

 

Total Investments – (99.99%) – (identified cost $644,840,859) – (a)

 

854,417,648

 

 

 

 

Other Assets Less Liabilities – (0.01%)

 

107,522

 

 

 

 

Net Assets – (100%)

$

854,525,170

 

 

*Non-Income Producing Security.

 

(a)    Aggregate cost for Federal Income Tax purposes is $656,349,910.  At March 31, 2006 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

 

Unrealized appreciation

$

201,956,447

 

 

 

 

Unrealized depreciation

 

(3,888,709

)

 

 

 

Net unrealized appreciation

$

198,067,738

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS OPPORTUNITY FUND  – (Continued)**

 

 

 

 

 

 

(b)    Restricted Securities.  Restricted securities are not registered under the Securities Act of 1933 and may not be subsequently offered or sold by investors in the United States absent registration or an applicable exemption from the registration requirements.  They are valued under methods approved by the Board of Directors as reflecting fair value.  The aggregate value of restricted securities in Davis Opportunity Fund was $8,623,222 or 1.01% of the Fund’s net assets as of March 31, 2006. 

 

(c)    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 three months ended March 31, 2006.  The aggregate fair value of the securities of affiliated companies held by the Fund as of March 31, 2006, amounts to zero.

 

Transactions during the period in which the issuers were affiliates are as follows:

 

Security

Shares

December 31, 2005

Gross

Additions

Gross

Reductions

Shares

March 31, 2006

 

 

Dividend

Income

 

Robbins & Myers,

Inc. (d)

 

754,500

 

–

 

253,200

 

501,300

 

$

41,498

 

 

(d)

Not an affiliate as of March 31, 2006.

 

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS GOVERNMENT BOND FUND**

 
 
 

 

 

 
 
**Principal**

**Security**

**Value**

 
 
**MORTGAGES – (53.49%)**

 
 
 

 

 

 

 
**FANNIE MAE  – (5.32%)**

 

 

 

 
$

1,138,434

 

Fannie Mae, 3.50%, 03/25/16

$

1,109,391

 

 
 

1,395,314

 

Fannie Mae, 4.00%, 10/25/23

 

1,377,824

 

 
 

 

 

 

 

 

 

 
 

 

 

Total FANNIE MAE – (identified cost $2,494,996)

 

2,487,215

 

 

**FANNIE MAE POOLS – (24.15%)**

 

 

 

 

407,526

 

6.324%, 10/01/08 Pool No. 380999

 

407,614

 

 

5,476,504

 

6.00%, 09/01/17 Pool No. 665776

 

5,556,883

 

 

1,672,718

 

4.876%, 03/01/35 Pool No. 773269 (b)

 

1,634,995

 

 

1,793,673

 

4.743%, 05/01/35 Pool No. 826242 (b)

 

1,752,211

 

 

1,994,066

 

5.029%, 01/01/36 Pool No. 848973 (b)

 

1,946,385

 

 

 

 

 

 

 

 

 

 

 

Total FANNIE MAE POOLS – (identified cost $11,548,479)

 

11,298,088

 

 

**FREDDIE MAC POOLS – (24.02%)**

 

 

 

 

136,323

 

5.50%, 10/01/06 Pool No. M90680

 

135,768

 

 

2,624,728

 

4.00%, 03/01/08 Pool No. M90802

 

2,579,287

 

 

1,534,977

 

4.50%, 03/01/08 Pool No. M90803

 

1,520,661

 

 

1,526,123

 

3.50%, 08/01/08 Pool No. M90830

 

1,477,950

 

 

1,960,951

 

3.00%, 04/01/10 Pool No. M90982

 

1,848,871

 

 

746,319

 

3.00%, 10/01/10 Pool No. M91001

 

698,998

 

 

983,036

 

3.50%, 04/01/12 Pool No. M80974

 

923,163

 

 

967,195

 

6.50%, 01/01/15 Pool No. G11063

 

986,116

 

 

1,049,071

 

6.00%, 10/01/16 Pool No. E01054

 

1,063,037

 

 

 

 

 

 

 

 

 

 

 

Total FREDDIE MAC – (identified cost $11,472,986)

 

11,233,851

 

 

 

 

 

 

 

 

 

 

 

Total Mortgages – (identified cost $25,516,461)

 

25,019,154

 

 

**GOVERNMENT AGENCY NOTES – (40.06%)**

 

 

 

 

5,000,000

 

Fannie Mae, 7.125%, 03/15/07

 

5,091,018

 

 

2,000,000

 

Fannie Mae, 6.00%, 05/15/08

 

2,035,036

 

 

1,000,000

 

Federal Home Loan Bank, 2.60%, 09/26/06

 

988,589

 

 

1,900,000

 

Federal Home Loan Bank, 3.875%, 09/14/07

 

1,867,028

 

 

1,000,000

 

Federal Home Loan Bank, 4.00%, 06/13/08

 

976,710

 

 

300,000

 

Federal Home Loan Bank, 5.37%, 07/12/11

 

296,938

 

 

5,000,000

 

Freddie Mac, 5.50%, 07/15/06

 

5,008,347

 

 

1,500,000

 

Freddie Mac, 3.00%, 09/29/06

 

1,486,097

 

 

1,000,000

 

Freddie Mac, 3.00%, 11/17/06

 

987,861

 

 

 

 
 

 

 

Total Government Agency Notes – (identified cost $18,992,281)

 

18,737,624

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS GOVERNMENT BOND FUND – (Continued)**

 
 
 

 

 

 
**Principal**

**Security**

**Value**

 
**SHORT TERM INVESTMENTS – (6.56%)**

 

$

625,000

 

Banc of America Securities LLC Joint Repurchase Agreement, 4.80%,

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $625,250 (collateralized

 

 

 

 

 

 

by: U.S. Government agency mortgages in a pooled cash account,

 

 

 

 

 

 

5.00%-6.00%, 07/01/35-04/01/36, total market value $637,500)

$

625,000

 

 

955,000

 

Goldman, Sachs & Co. Joint Repurchase Agreement, 4.81%,

 

 

 

 

 

 

04/03/06, dated 03/27/06, repurchase value of $955,893 (collateralized 

 

 

 

 

 

 

by: U.S. Government agency mortgages in a pooled cash account

 

 

 

 

 

 

4.50%-6.50%, 10/01/18-03/01/36, total market value $974,100)

 

955,000

 

 

1,488,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 4.83%,

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $1,488,599 (collateralized

 

 

 

 

 

 

by: U.S. Government agency mortgages and obligations in a pooled

 

 

 

 

 

 

cash account, 4.375%-6.125%, 09/17/10-02/01/36, total market

 

 

 

 

 

 

value $1,517,760)

 

1,488,000

 

 

 

 

 

Total Short Term Investments – (identified cost $3,068,000)

 

3,068,000

 

 

 

 

 

Total Investments – (100.11%) – (identified cost $47,576,742) – (a)

 

46,824,778

 

 

 

 

Liabilities Less Other Assets – (0.11%)

 

(50,312

)

 

 

 

Net Assets – (100.00%)

$

46,774,466

 

 

(a)    Aggregate cost for Federal Income Tax purposes is $47,576,742. At March 31, 2006 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

Unrealized appreciation

$

101

 

 

 

 

Unrealized depreciation

 

(752,065

)

 

 

 

Net unrealized depreciation

$

(751,964

)

 

(b)    The interest rates on adjustable rate securities, shown as of March 31, 2006, may change daily or less frequently and are based on indices of market interests rates.

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS GOVERNMENT MONEY MARKET FUND**

 

 

 

 
**Principal**

**Security**

**Value**

 
**FANNIE MAE – (11.17%)**

 
$

8,730,000

 

2.35%, 04/29/06

$

8,720,979

 

 

10,000,000

 

4.78%, 05/09/06 (b)

 

9,999,804

 

 

5,000,000

 

2.50%, 05/10/06

 

4,992,185

 

 

3,235,000

 

2.25%, 05/15/06

 

3,226,362

 

 

1,000,000

 

2.41%, 05/26/06

 

997,396

 

 

2,475,000

 

3.02%, 06/01/06

 

2,470,823

 

 

500,000

 

2.00%, 06/09/06

 

497,636

 

 

5,000,000

 

1.75%, 06/16/06

 

4,975,793

 

 

500,000

 

2.75%, 08/11/06

 

496,569

 

 

3,400,000

 

4.05%, 08/14/06

 

3,390,198

 

 

3,000,000

 

2.55%, 08/17/06

 

2,976,086

 

 

500,000

 

2.77%, 08/25/06

 

496,212

 

 

1,000,000

 

3.01%, 11/17/06

 

987,634

 

 

2,000,000

 

2.125%, 12/29/06

 

1,959,509

 

 

5,500,000

 

3.51%, 01/05/07

 

5,444,997

 

 

 

 

 

 

 

 

 

 

 

Total FANNIE MAE – (identified cost $51,632,183)

 

51,632,183

 

 

**FEDERAL FARM CREDIT BANK – (6.71%)**

 
 

1,000,000

 

2.88%, 06/29/06

 

997,945

 

 

10,000,000

 

4.60%, 07/14/06 (b)

 

10,000,000

 

 

20,000,000

 

4.57%, 11/13/06 (b)

 

19,998,129

 

 

 

 

 

 

 

 

 

 

 

Total Federal Farm Credit Bank – (identified cost $30,996,074)

 

30,996,074

 

 

**FEDERAL HOME LOAN BANK – (33.63%)**

 
 

5,000,000

 

1.86%, 04/07/06

 

4,998,822

 

 

2,500,000

 

2.50%, 04/11/06

 

2,498,988

 

 

8,000,000

 

4.00%, 04/21/06

 

7,999,906

 

 

8,000,000

 

4.25%, 04/25/06 (c)

 

8,000,000

 

 

1,500,000

 

2.02%, 04/28/06

 

1,498,239

 

 

5,050,000

 

4.49%, 04/28/06 (b)

 

5,049,733

 

 

3,120,000

 

2.125%, 05/15/06

 

3,111,001

 

 

3,000,000

 

2.25%, 05/15/06

 

2,993,248

 

 

1,100,000

 

3.00%, 05/15/06

 

1,097,984

 

 

7,940,000

 

5.375%, 05/15/06

 

7,950,768

 

 

5,040,000

 

2.875%, 05/23/06

 

5,030,950

 

 

1,500,000

 

4.00%, 05/30/06

 

1,499,038

 

 

1,040,000

 

3.00%, 06/01/06

 

1,038,384

 

 

1,500,000

 

2.58%, 06/15/06

 

1,494,824

 

 

1,270,000

 

4.15%, 06/22/06 (c)

 

1,270,000

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS GOVERNMENT MONEY MARKET FUND – (Continued)**

 

 

 

 
**Principal**

**Security**

**Value**

 
**FEDERAL HOME LOAN BANK – (Continued)**

 
$

1,000,000

 

2.25%, 06/23/06

$

996,375

 

 

1,500,000

 

4.15%, 07/11/06 (c)

 

1,497,933

 

 

22,500,000

 

4.00%, 07/21/06 (c)

 

22,500,000

 

 

10,000,000

 

2.30%, 07/28/06

 

9,935,546

 

 

15,000,000

 

4.57%, 08/02/06 (b)

 

15,000,000

 

 

1,000,000

 

2.50%, 09/11/06

 

989,667

 

 

7,150,000

 

4.30%, 10/30/06

 

7,125,234

 

 

30,000,000

 

4.705%, 11/09/06 (b)

 

30,000,000

 

 

4,000,000

 

3.05%, 11/27/06 

 

3,950,324

 

 

2,000,000

 

2.29%, 12/11/06

 

1,964,517

 

 

2,000,000

 

2.20%, 12/26/06

 

1,963,221

 

 

4,000,000

 

4.80%, 02/27/07

 

3,992,900

 

 

 

 

 

 

 

 

 

 

 

Total Federal Home Loan Bank – (identified cost $155,447,602)

 

155,447,602

 

 

**FREDDIE MAC – (10.18%)**

 
 

5,000,000

 

2.50%, 05/05/06

 

4,991,888

 

 

2,000,000

 

2.75%, 05/05/06

 

1,997,022

 

 

5,000,000

 

2.75%, 05/05/06

 

4,993,598

 

 

4,500,000

 

2.60%, 05/12/06

 

4,491,356

 

 

4,295,000

 

2.15%, 06/02/06

 

4,282,343

 

 

1,000,000

 

2.50%, 06/12/06 (c)

 

996,719

 

 

2,000,000

 

1.875%, 06/30/06

 

1,989,683

 

 

3,000,000

 

2.09%, 07/06/06

 

2,981,200

 

 

1,000,000

 

2.03%, 07/07/06

 

993,977

 

 

2,000,000

 

2.00%, 07/14/06

 

1,986,922

 

 

8,000,000

 

4.00%, 08/11/06

 

7,979,503

 

 

500,000

 

2.50%, 08/24/06

 

495,740

 

 

8,000,000

 

2.75%, 10/15/06

 

7,900,018

 

 

1,000,000

 

2.45%, 12/11/06

 

984,450

 

 

 

 

 

 

 

 

 

 

 

Total FREDDIE MAC – (identified cost $47,064,419)

 

47,064,419

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS GOVERNMENT MONEY MARKET FUND – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**REPURCHASE AGREEMENTS – (38.25%)**

 

$

31,200,000

 

Banc of America Securities LLC Joint Repurchase Agreement, 4.80%,

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $31,212,480

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages in a pooled 

 

 

 

 

 

 

cash account, 5.00%-6.00%, 07/01/35-04/01/36, total market 

 

 

 

 

 

 

value $31,824,000)

$

31,200,000

 

 

71,288,000

 

Goldman, Sachs & Co. Joint Repurchase Agreement, 4.81%,

 

 

 

 

 

 

04/03/06, dated 03/27/06, repurchase value of $71,354,674

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages in a pooled 

 

 

 

 

 

 

cash account, 4.50%-6.50%, 10/01/18-03/01/36, total market 

 

 

 

 

 

 

value $72,713,760)

 

71,288,000

 

 

74,287,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 4.83%,

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $74,316,901

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages and obligations in 

 

 

 

 

 

 

a pooled cash account, 4.375%-6.125%, 09/17/10-02/01/36, total 

 

 

 

 

 

 

market value $75,772,740)

 

74,287,000

 

 

 

 

 

Total Repurchase Agreements – (identified cost $176,775,000)

 

176,775,000

 

 

 

 

 

Total Investments – (99.94%) – (identified cost $461,915,278) – (a)

 

461,915,278

 

 

 

 

Other Assets Less Liabilities – (0.06%)

 

260,195

 

 

 

 

Net Assets – (100%)

$

462,175,473

 

 

(a)

Aggregate cost for Federal Income Tax Purposes is $461,915,278.

(b)    The interest rates on floating rate securities, shown as of March 31, 2006, may change daily or less frequently and are based on indices of market interests rates. For purposes of amortized cost valuation, the maturity dates of these securities are considered to be the effective maturities, based on the reset dates of the securities’ variable rates. 

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

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS FINANCIAL FUND**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (99.96%)**

 

**CAPITAL GOODS – (7.25%)**

 

 

 

 

2,450,000

 

Tyco International Ltd. 

$

65,856,000

 

**CAPITAL MARKETS – (3.28%)**

 

 

 

 

660,300

 

Ameriprise Financial, Inc. 

 

29,753,118

 

**COMMERCIAL BANKS – (5.10%)**

 

 

 

 

1,208,000

 

Commerce Bancorp, Inc. 

 

44,273,200

 

 

75,700

 

ICICI Bank Ltd., ADR

 

2,095,376

 

 

 

 

 

 

46,368,576

 

**COMMERCIAL SERVICES & SUPPLIES – (7.46%)**

 

 

 

 

883,750

 

D&B Corp.*

 

67,765,950

 

**CONSUMER FINANCE – (15.16%)**

 

 

 

 

1,949,000

 

American Express Co. 

 

102,419,950

 

 

815,000

 

First Marblehead Corp. 

 

35,248,750

 

 

 

 

 

 

137,668,700

 

**CONSUMER SERVICES – (1.89%)**

 

 

 

 

791,000

 

H&R Block, Inc. 

 

17,125,150

 

**DIVERSIFIED FINANCIAL SERVICES – (11.54%)**

 

 

 

 

1,019,560

 

JPMorgan Chase & Co. 

 

42,454,478

 

 

872,600

 

Moody’s Corp. 

 

62,355,996

 

 

 

 

 

 

104,810,474

 

**FOOD, BEVERAGE, & TOBACCO – (2.69%)**

 

 

 

 

345,000

 

Altria Group, Inc. 

 

24,446,700

 

**LIFE & HEALTH INSURANCE – (1.17%)**

 

 

 

 

208,700

 

China Life Insurance Co., Ltd., ADR*

 

10,654,135

 

**MATERIALS – (2.92%)**

 

 

 

 

459,000

 

Sealed Air Corp. 

 

26,562,330

 

**MULTI-LINE INSURANCE – (11.48%)**

 

 

 

 

826,796

 

American International Group, Inc. 

 

54,642,948

 

 

490,200

 

Loews Corp. 

 

49,608,240

 

 

 

 

 

 

104,251,188

 

**PROPERTY & CASUALTY INSURANCE – (10.99%)**

 

 

 

 

276

 

Berkshire Hathaway Inc., Class A*

 

24,936,600

 

 

337,300

 

FPIC Insurance Group, Inc.*

 

12,682,480

 

 

88,200

 

Markel Corp.*

 

29,783,376

 

 

311,000

 

Progressive Corp. (Ohio)

 

32,424,860

 

 

 

 

 

 

99,827,316

 

**REINSURANCE – (11.50%)**

 

 

 

 

225,000

 

Everest Re Group, Ltd. 

 

21,008,250

 

 

1,428,187

 

Transatlantic Holdings, Inc. 

 

83,477,530

 

 

 

 

 

 

104,485,780

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS FINANCIAL FUND – (Continued)**

 
 
 

 

 

 
**Shares**

**Security**

**Value**

 
**COMMON STOCK – (Continued)**

 

**THRIFT & MORTGAGE FINANCE – (7.53%)**

 

 

 

 

1,007,400

 

Golden West Financial Corp. 

$

68,402,460

 

 

 

 

 

Total Common Stock – (identified cost $435,914,965)

 

907,977,877

 

 

 

 

 

Total Investments – (99.96%) – (identified cost $435,914,965) – (a)

 

907,977,877

 

 

 

 

Other Assets Less Liabilities – (0.04%)

 

329,791

 

 

 

 

Net Assets – (100%)

$

908,307,668

 

 

*Non-Income Producing Security.

 

(a)    Aggregate cost for Federal Income Tax purposes is $435,914,965.  At March 31, 2006 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

 

Unrealized appreciation

$

472,062,912

 

 

 

 

Unrealized depreciation

 

–

 

 

 

 

Net unrealized appreciation

$

472,062,912

 

 

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS APPRECIATION & INCOME FUND**

 

 

 

**Shares/Principal**

**Security**

**Value**

**CONVERTIBLE PREFERRED STOCK – (5.87%)**

 

**CAPITAL GOODS – (1.83%)**

 

 

 

 

166,700

 

United Rentals Trust I, 6.50%, 08/01/28, Conv. Pfd. 

$

7,876,575

 

**PROPERTY & CASUALTY INSURANCE – (0.77%)**

 

 

 

 

137,420

 

Travelers Property Casualty Corp., 4.50%, 04/15/32, Conv. Pfd. 

 

3,296,706

 

**TRANSPORTATION – (1.24%)**

 

 

 

 

161,300

 

Continental Airlines Finance Trust II, 6.00%, 11/15/30, Cum. Conv. Pfd. 

 

5,344,675

 

**UTILITIES – (2.03%)**

 

 

 

 

186,910

 

AES Trust III, 6.75%, 10/15/29, Conv. Pfd. 

 

8,721,221

 

 

 

 

 

 

 

 

 

 

 

Total Convertible Preferred Stock – (identified cost $19,820,439)

 

25,239,177

 

 

**CONVERTIBLE BONDS – (42.81%)**

 

**CAPITAL GOODS – (4.57%)**

 

 

 

$

17,600,000

 

Masco Corp., Series B Conv. Sr. Notes, Zero Cpn., 2.98%,

 

 

 

 

 

 

07/20/31 (c)(d)

 

8,184,000

 

 

5,500,000

 

Quanta Services, Inc., Conv. Sub. Deb., 4.50%, 10/01/23

 

8,538,750

 

 

3,000,000

 

Quanta Services, Inc., Conv. Sub. Notes, 4.00%, 07/01/07

 

2,913,750

 

 

 

 

 

 

19,636,500

 

**COMMERCIAL SERVICES & SUPPLIES – (8.15%)**

 

 

 

 

9,160,000

 

NCO Group Inc., Conv. Sub. Notes, 4.75%, 04/15/06

 

9,137,100

 

 

15,710,000

 

School Specialty, Inc., Conv. Sub. Notes, 3.75%/Zero Cpn., 08/01/23 (e)

 

15,808,188

 

 

10,000,000

 

Waste Connections, Inc., Ser. 144A Conv. Sr. Notes, 3.75%, 04/01/26 (b)

 

10,125,000

 

 

 

 

 

 

35,070,288

 

**CONSUMER FINANCE – (2.69%)**

 

 

 

 

11,100,000

 

American Express Co., Conv. Sr. Notes, 1.85%/Zero Cpn., 12/01/33 (e)

 

11,557,875

 

**ENERGY – (4.56%)**

 

 

 

 

12,400,000

 

Lehman Brothers Holdings Inc., Conv. Notes, (Convertible into

 

 

 

 

 

 

Devon Energy Corp.), 0.25%, 08/23/11 (f)

 

19,592,000

 

**FOOD & STAPLES RETAILING – (0.80%)**

 

 

 

 

2,800,000

 

Costco Wholesale Corp., Conv. Sub. Notes, Zero Cpn., 1.03%,

 

 

 

 

 

 

08/19/17 (c)(d)

 

3,458,000

 

**HEALTH CARE EQUIPMENT & SERVICES – (3.13%)**

 

 

 

 

22,900,000

 

Universal Health Services, Inc., Conv. Deb., 0.426%, 06/23/20

 

13,482,375

 

**MATERIALS – (2.75%)**

 

 

 

 

12,000,000

 

Sealed Air Corp., Ser. 144A Conv. Sr. Notes, 3.00%, 06/30/33 (b)

 

11,820,000

 

**MOVIES & ENTERTAINMENT – (2.23%)**

 

 

 

 

16,050,000

 

News America Inc., Conv. Notes, Zero Cpn., 3.38%, 02/28/21 (c)(d)

 

9,589,875

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS APPRECIATION & INCOME FUND – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**CONVERTIBLE BONDS – (Continued)**

 

**MULTI-LINE INSURANCE – (3.45%)**

 

 

 

$

2,500,000

 

American International Group, Inc., Conv. Sr. Deb., Zero Cpn., 1.76%,

 

 

 

 

 

 

11/09/31 (c)(d)

$

1,715,625

 

 

13,895,000

 

American International Group, Inc., Conv. Sr. Notes, 0.50%, 05/15/07

 

13,130,775

 

 

 

 

 

 

14,846,400

 

**PHARMACEUTICALS & BIOTECHNOLOGY – (0.88%)**

 

 

 

 

4,400,000

 

Valeant Pharmaceuticals International, Conv. Sub. Notes,

 

 

 

 

 

 

4.00%, 11/15/13

 

3,784,000

 

**REAL ESTATE – (2.23%)**

 

 

 

 

8,500,000

 

Vornado Realty L.P., Conv. Sr. Deb., 3.875%, 04/15/25

 

9,573,125

 

**RESIDENTIAL/COMMERCIAL BUILDING – (0.42%)**

 

 

 

 

1,600,000

 

WCI Communities, Inc., Conv. Sr. Sub. Notes, 4.00%, 08/05/23

 

1,828,000

 

**SEMICONDUCTOR & SEMICONDUCTOR EQUIPMENT – (6.95%)**

 

 

 

 

5,260,000

 

Fairchild Semiconductor Corp., Conv. Sr. Sub., 5.00%, 11/01/08

 

5,220,550

 

 

17,000,000

 

Intel Corp., Ser. 144A Conv. Deb., 2.95%, 12/15/35 (b)

 

14,662,500

 

 

10,220,000

 

International Rectifier Corp., Conv. Sub. Notes, 4.25%, 07/15/07

 

10,002,825

 

 

 

 

 

 

29,885,875

 

 

 

 

 

Total Convertible Bonds – (identified cost $175,459,782)

 

184,124,313

 

 

**CORPORATE BONDS – (1.93%)**

 

**AUTOMOTIVE RETAIL – (0.41%)**

 

 

 

 

1,900,000

 

AutoZone, Inc., Sr. Notes, 5.50%, 11/15/15

 

1,768,826

 

**ENERGY – (0.32%)**

 

 

 

 

1,300,000

 

Occidental Petroleum Corp., Sr. Notes, 6.75%, 01/15/12

 

1,392,592

 

**HOUSEHOLD & PERSONAL PRODUCTS – (1.20%)**

 

 

 

 

6,000,000

 

Avon Products, Inc., Sr. Notes, 4.20%, 07/15/18

 

5,152,812

 

 

 

 

 

Total Corporate Bonds  – (identified cost $8,762,456)

 

8,314,230

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS APPRECIATION & INCOME FUND – (Continued)**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (24.15%)**

 

**AUTOMOTIVE RETAIL – (1.46%)**

 

 

 

 

62,900

 

AutoZone, Inc.*

$

6,270,501

 

**CAPITAL GOODS – (2.10%)**

 

 

 

 

126,400

 

Masco Corp. 

 

4,106,736

 

 

306,700

 

Quanta Services, Inc.*

 

4,913,334

 

 

 

 

 

 

9,020,070

 

**COMMERCIAL BANKS – (0.91%)**

 

 

 

 

234,369

 

HSBC Holdings PLC

 

3,929,407

 

**COMMERCIAL SERVICES & SUPPLIES – (1.09%)**

 

 

 

 

118,000

 

Waste Connections, Inc.*

 

4,697,580

 

**DEPARTMENT STORES – (1.97%)**

 

 

 

 

140,350

 

J. C. Penney Co., Inc. 

 

8,478,544

 

**DIVERSIFIED FINANCIAL SERVICES – (1.22%)**

 

 

 

 

111,500

 

Citigroup Inc. 

 

5,266,145

 

**ENERGY – (0.31%)**

 

 

 

 

14,500

 

Occidental Petroleum Corp. 

 

1,343,425

 

**FOOD & STAPLES RETAILING – (0.82%)**

 

 

 

 

64,900

 

Costco Wholesale Corp. 

 

3,518,878

 

**HOUSEHOLD & PERSONAL PRODUCTS – (2.27%)**

 

 

 

 

313,000

 

Avon Products, Inc. 

 

9,756,210

 

**MOVIES & ENTERTAINMENT – (0.47%)**

 

 

 

 

115,000

 

News Corp., Class B

 

2,019,400

 

**MULTI-LINE INSURANCE – (0.38%)**

 

 

 

 

24,900

 

American International Group, Inc. 

 

1,645,641

 

**REAL ESTATE – (8.58%)**

 

 

 

 

245,667

 

General Growth Properties, Inc. 

 

12,005,746

 

 

245,160

 

SL Green Realty Corp. 

 

24,883,740

 

 

 

 

 

 

36,889,486

 

**SEMICONDUCTORS & SEMICONDUCTOR – (1.27%)**

 

 

 

 

131,700

 

International Rectifier Corp.*

 

5,456,331

 

**SOFTWARE & SERVICES – (1.30%)**

 

 

 

 

103,000

 

SAP AG, ADR

 

5,594,960

 

 

 

 

 

Total Common Stock – (identified cost $55,073,301)

 

103,886,578

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS APPRECIATION & INCOME FUND – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**SHORT TERM INVESTMENTS – (24.85%)**

 

$

22,293,000

 

Banc of America Securities LLC Joint Repurchase Agreement, 4.80%,

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $22,301,917 

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages in a pooled 

 

 

 

 

 

 

cash account, 5.00%-6.00%, 07/01/35-04/01/36, total 

 

 

 

 

 

 

market value $22,738,860)

$

22,293,000

 

 

31,507,000

 

Goldman, Sachs & Co. Joint Repurchase Agreement, 4.81%, 04/03/06,

 

 

 

 

 

 

dated 03/27/06, repurchase value of $31,536,468 (collateralized

 

 

 

 

 

 

by: U.S. Government agency mortgages in a pooled cash account,

 

 

 

 

 

 

4.50%-6.50%, 10/01/18-03/01/36, total market value $32,137,140)

 

31,507,000

 

 

53,078,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 4.83%

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $53,099,364 

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages and obligations 

 

 

 

 

 

 

in a pooled cash account, 4.375%-6.125%, 09/17/10-02/01/36 

 

 

 

 

 

 

total market value $54,139,560)

 

53,078,000

 

 

 

 

 

Total Short Term Investments – (identified cost $106,878,000)

 

106,878,000

 

 

 

 

 

Total Investments – (99.61%) – (identified cost $365,993,978) – (a)

 

428,442,298

 

 

 

 

Other Assets Less Liabilities – (0.39%)

 

1,676,083

 

 

 

 

Net Assets – (100.00%)

$

430,118,381

 

 

*Non-Income Producing Security.

(a)    Aggregate cost for Federal Income Tax purposes is $366,115,992. At March 31, 2006 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

Unrealized appreciation

$

66,957,429

 

 

 

 

Unrealized depreciation

 

(4,631,123

)

 

 

 

Net unrealized appreciation

$

62,326,306

 

 

(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 $36,607,500, or 8.51% of the Fund’s net assets, as of March 31, 2006.

(c)    As of March 31, 2006, zero coupon bonds represented $22,947,500, or 5.34% of the Fund’s net assets. Because zero coupon bonds pay no interest their value is generally more volatile than the value of other debt securities.

(d)

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

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

(f)    Illiquid Security – Securities may be considered illiquid if they lack a readily available market or if valuation has not changed for a certain period of time.  The aggregate value of illiquid securities in Davis Appreciation & Income Fund was $19,592,000, or 4.56% of the Fund’s net assets as of March 31, 2006. 

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS REAL ESTATE FUND**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (93.03%)**

 

**APARTMENT REITS – (5.59%)**

 

 

 

 

604,800

 

American Campus Communities, Inc. 

$

15,670,368

 

 

894,521

 

United Dominion Realty Trust, Inc. 

 

25,529,629

 

 

 

 

 

 

41,199,997

 

**BUILDING PRODUCTS – (0.99%)**

 

 

 

 

129,200

 

Florida Rock Industries, Inc. 

 

7,263,624

 

**DIVERSIFIED REITS – (12.29%)**

 

 

 

 

785,100

 

Cousins Properties, Inc. 

 

26,245,893

 

 

720,973

 

Duke Realty Corp. 

 

27,360,925

 

 

1,036,100

 

Spirit Finance Corp. 

 

12,640,420

 

 

254,062

 

Vornado Realty Trust

 

24,389,952

 

 

 

 

 

 

90,637,190

 

**HEALTH CARE REITS – (2.97%)**

 

 

 

 

661,000

 

Ventas, Inc. 

 

21,931,980

 

**MORTGAGE REITS – (1.30%)**

 

 

 

 

384,300

 

Gramercy Capital Corp. 

 

9,580,599

 

**OFFICE PROPERTY REITS – (20.01%)**

 

 

 

 

334,013

 

Alexandria Real Estate Equities, Inc. 

 

31,841,459

 

 

300,742

 

Boston Properties, Inc. 

 

28,044,191

 

 

415,400

 

Columbia Equity Trust, Inc. 

 

7,302,732

 

 

716,238

 

Corporate Office Properties Trust

 

32,760,726

 

 

469,158

 

SL Green Realty Corp. 

 

47,619,537

 

 

 

 

 

 

147,568,645

 

**REAL ESTATE OPERATIONS/DEVELOPMENT – (14.88%)**

 

 

 

 

1,644,983

 

Brixton PLC

 

14,061,320

 

 

371,700

 

Capital & Regional PLC

 

7,445,973

 

 

330,819

 

Derwent Valley Holdings PLC

 

9,299,692

 

 

807,284

 

Forest City Enterprises, Inc., Class A

 

38,063,441

 

 

433,100

 

Hammerson PLC

 

9,330,598

 

 

553,800

 

Liberty International PLC

 

11,324,760

 

 

254,900

 

St. Joe Company

 

16,017,916

 

 

360,600

 

Slough Estates PLC

 

4,178,796

 

 

 

 

 

 

109,722,496

 

**REGIONAL MALL REITS – (10.45%)**

 

 

 

 

800,957

 

General Growth Properties, Inc. 

 

39,142,769

 

 

187,200

 

Macerich Co. 

 

13,843,440

 

 

135,200

 

Pennsylvania REIT

 

5,948,800

 

 

215,053

 

Simon Property Group, Inc. 

 

18,094,559

 

 

 

 

 

 

77,029,568

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**                                                                                                                               

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS REAL ESTATE FUND – (Continued)**

 

 

 

**Shares**

**Security**

**Value**

**COMMON STOCK – (Continued)**

 

**SHOPPING CENTER REITS – (14.54%)**

 

 

 

 

550,708

 

Developers Diversified Realty Corp. 

$

30,151,263

 

 

719,490

 

Kimco Realty Corp. 

 

29,240,074

 

 

313,400

 

Pan Pacific Retail Properties, Inc. 

 

22,220,060

 

 

381,078

 

Regency Centers Corp. 

 

25,604,631

 

 

 

 

 

 

107,216,028

 

**TRANSPORTATION – (2.95%)**

 

 

 

 

363,400

 

Alexander & Baldwin, Inc. 

 

17,326,912

 

 

82,500

 

Florida East Coast Industries, Inc. 

 

4,446,750

 

 

 

 

 

 

21,773,662

 

**WAREHOUSE & INDUSTRIAL REITS – (7.06%)**

 

 

 

 

314,000

 

AMB Property Corp. 

 

17,040,780

 

 

654,892

 

ProLogis

 

35,036,722

 

 

 

 

 

 

52,077,502

 

 

 

 

 

Total Common Stock – (identified cost $439,362,042)

 

686,001,291

 

 

**PREFERRED STOCK – (0.46%)**

 

**APARTMENT REITS – (0.46%)**

 

 

 

 

43,700

 

Equity Residential, 7.00%, Series E, Cum. Conv. Pfd. 

 

2,288,787

 

 

32,000

 

Equity Residential, 8.60%, Series D, Cum. Pfd. 

 

836,320

 

 

10,000

 

Equity Residential, 9.125%, Series C, Cum. Pfd. 

 

254,000

 

 

 

 

 

Total Preferred Stock – (identified cost $2,204,017)

 

3,379,107

 

 

 

 

 

 

 

**DAVIS SERIES, INC.**  

SCHEDULE OF INVESTMENTS AT MARCH 31, 2006 *(Unaudited)*

**DAVIS REAL ESTATE FUND – (Continued)**

 

 

 

**Principal**

**Security**

**Value**

**SHORT TERM INVESTMENTS – (6.53%)**

 

$

7,955,000

 

Banc of America Securities LLC Joint Repurchase Agreement, 4.80%,

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $7,958,182 (collateralized

 

 

 

 

 

 

by: U.S. Government agency mortgages in a pooled cash account,

 

 

 

 

 

 

5.00%-6.00%, 07/01/35-04/01/36, total market value $8,114,100)

$

7,955,000

 

 

21,211,000

 

Goldman, Sachs & Co. Joint Repurchase Agreement, 4.81%,

 

 

 

 

 

 

04/03/06, dated 03/27/06, repurchase value of $21,230,838 

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages in a pooled 

 

 

 

 

 

 

cash account 4.50%-6.50%, 10/01/18-03/01/36, total

 

 

 

 

 

 

market value $21,635,220)

 

21,211,000

 

 

18,939,000

 

Nomura Securities International, Inc. Joint Repurchase Agreement, 4.83%,

 

 

 

 

 

 

04/03/06, dated 03/31/06, repurchase value of $18,946,623 

 

 

 

 

 

 

(collateralized by: U.S. Government agency mortgages and obligations 

 

 

 

 

 

 

in a pooled cash account, 4.375%-6.125%, 09/17/10-02/01/36,

 

 

 

 

 

 

total market value $19,317,780)

 

18,939,000

 

 

 

 

 

Total Short Term Investments – (identified cost $48,105,000)

 

48,105,000

 

 

 

 

 

Total Investments – (100.02%) – (identified cost $489,671,059) – (a)

 

737,485,398

 

 

 

 

Other Liabilities Less Assets – (0.02%)

 

(116,931

)

 

 

 

Net Assets – (100.00%)

$

737,368,467

 

 

 

                       

(a)    Aggregate cost for Federal Income Tax purposes is $491,193,694.  At March 31, 2006 unrealized appreciation (depreciation) of securities for Federal Income Tax purposes is as follows:

 

 

 

 

Unrealized appreciation

$

247,524,119

 

 

 

 

Unrealized depreciation

 

(1,232,415

)

 

 

 

Net unrealized appreciation

$

246,291,704

 

 

For information regarding the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent semi-annual or annual shareholder report.

 

 

 

 

 

**ITEM 2.  CONTROLS AND PROCEDURES**

 

 

(a)

The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940, as amended) are effective as of a date within 90 days of the filing date of this report.

 

 

(b)

There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls.

 

**ITEM 3.  EXHIBITS**

 

 

EX-99.CERT - Section 302 Certification

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

DAVIS SERIES, INC.

 

By /s/ Kenneth C. Eich

Kenneth C. Eich

Principal Executive Officer

 

Date:  May 30, 2006

 

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

 

By /s/ Kenneth C. Eich

Kenneth C. Eich

Principal Executive Officer

 

Date:  May 30, 2006

 

By /s/ Douglas A. Haines

Douglas A. Haines

Principal Financial officer

 

Date:  May 30, 2006