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Long-Term Investing Is Bred in This Firm's Bones

Davis heritage provides grounding; research and discipline does the rest.


Few firms that tout long-term investing can also claim that the approach is bred in its bones. Davis Advisors, which runs the Davis Funds, Selected Funds, and  Clipper Fund (CFIMX), can.

The Davis family has shaped its investment philosophy over three generations. The firm was founded in 1969 by Shelby M.C. Davis but has antecedents in the 1940s when the founder's father, Shelby Cullom Davis, used some savvy financial stock picks to lay the foundation of a fortune. Though the fund family, now run by the Shelbys' son and grandson Christopher Davis, has evolved its methods with each generation, its commitment to long-term investing and investors has been constant.

Direct Evidence
The firm has demonstrated this in a number of ways. It has strived to keep fees reasonable and makes clear, detailed articles on the firm's history, philosophy, process, and portfolio positioning available to shareholders. Those communications often include candid dissections of managers' mistakes, as well as their successes. Virtually all of the firm's commentary and its modicum of marketing stress long-term investing rather than short-term returns. Indeed, the fund family's board closely monitors the firm's efforts to keep investors focused on the long run.

Dan Culloton has a position in the following securities mentioned above: CFIMX. Find out about Morningstar’s editorial policies.