Track A Portfolio Update and examples of the Davis Investment Discipline in practice
	Track B Integrating the lessons learned by portfolio mistakes, utilizing broad portfolio themes and why Davis prefers a low-turnover, research-intensive, value-sensitive approach to investing
	Track C The characteristics that define successful investors, suggested reading and the impact of investor behavior

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This material is authorized for use by existing shareholders. A current Clipper Fund prospectus must accompany or precede this piece if it is distributed to prospective shareholders. You should carefully consider the Fund's investment objectives, risks, fees, and expenses before investing. Read the prospectus carefully before you invest or send money.

Davis Advisors' investment professionals made candid statements and observations regarding investment strategies, individual securities, economic and market conditions; however, there is no guarantee that these statements, opinions or forecasts will prove to be correct. These comments also included expressions of opinions that are speculative in nature and should not be relied on as statements of fact. Comments included in this material are not recommendations to buy, sell, or hold any security mentioned.

Past performance is not a guarantee of future results. Investment return and principal value will vary so that an investor may lose money. Not all purchases by Davis Advisors will be profitable. A company that has contributed to performance in the past may not continue to do so in the future. Equity markets are volatile and an investor may lose money.

While Davis searches for out of the spotlight companies and companies that are subject to headline risk that can become global leaders, there can be no assurance that this will occur. A company's stock price that has decreased because of negative headlines may never recover.

Davis Selected Advisers, L.P. took over management of Clipper Fund on January 1, 2006. Clipper Fund was managed from inception until January 1, 2006 by another Advisor. In order to give shareholders and prospective shareholders a better understanding of the Advisors long term strategies and holding decisions, a number of securities and other issues unrelated to Clipper Fund were discussed in this interview. Information was provided that relates to other funds or portfolios that the Advisor has had under management for an extended period of time.

Clipper Fund's investment objective is long-term capital growth and capital preservation. There can be no assurance that the Fund will achieve its objective. Clipper Fund invests primarily in common stock of large companies with market capitalizations of at least $10 billion or more at the time of purchase. Some important risks of an investment in Clipper Fund are: non-diversification: concentrating a fund's portfolio in a select limited number of securities can increase the volatility of the portfolio; market risk: the market value of shares of common stock can change rapidly and unpredictably; company risk: the market value of a common stock varies with the success or failure of the company issuing the stock; industry risk: investing a significant portion of assets in one sector may cause a fund to be more volatile; and foreign country risk: companies operating, incorporated or principally traded in foreign countries may have more fluctuation as foreign economies may not be as strong or diversified, foreign political systems may not be as stable and foreign financial reporting standards may not be as rigorous as they are in the United States. As of September 30, 2007, Clipper Fund had approximately 5.9% of assets invested in foreign companies. See the prospectus for a complete listing of the principal risks.

The Clipper Fund prospectus places a 15% restriction on the amount of assets invested in foreign companies.

The views expressed by Davis Advisors' investment professionals in this material are subject to change, and some of the stocks discussed may no longer be owned. The information provided in this report should not be considered a recommendation to buy, sell, or hold any of the securities mentioned. As of September 30, 2007, Clipper Fund had invested the following percentages of its assets in the companies discussed in this material:

AIG 9.76%, American Express 9.12%, Ameriprise Financial 4.51%, Bank of NY Mellon 5.29%, Berkshire Hathaway 5.06%, ConocoPhillips 11.82%, Costco Wholesale 8.68%, Microsoft 3.73%, Millea 2.00%, Tyco Electronics 3.02%, Tyco International 3.78%, Wal-Mart Stores 3.89%

Clipper Fund has adopted a Portfolio Holdings Disclosure policy that governs the release of non-public portfolio holding information. This policy is described in detail in the prospectus. Visit clipperfund.com or call 800-432-2504 for the most current public portfolio holdings information.

The high and low turnover during the last five years for the Clipper Fund was 63% and 13%, respectively.

The Davis family, active employees, and directors have $2 billion of their own money invested in the mutual funds our firm manages.

The Fund's shares are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency and involve investment risks, including possible loss of the principal amount invested.

DAVIS DISTRIBUTORS, LLC, 2949 East Elvira Road, Suite 101, Tucson, AZ 85706, 800-432-2504, clipperfund.com