Davis Selected Advisers Portfolio Q2'2025: Top Holdings & Recent Changes
Welcome to the Value Sense Blog, your resource for insights on the stock market! At Value Sense, we focus on intrinsic value tools and offer stock ideas with undervalued companies. Dive into our research products and learn more about our unique approach at valuesense.io
Explore diverse stock ideas covering technology, healthcare, and commodities sectors. Our insights are crafted to help investors spot opportunities in undervalued growth stocks, enhancing potential returns. Visit us to see evaluations and in-depth market research.
Davis Selected Advisers continues to exemplify disciplined value investing with a distinctive blend of financials, technology, and consumer exposure. Their Q2’2025 portfolio showcases a $18.7 billion allocation across 107 positions, with notable activity in both core and satellite holdings. This quarter’s moves highlight a willingness to rebalance conviction bets while opportunistically adding to select names, reflecting Davis’s long-term, research-driven approach.
Portfolio Overview: Value Discipline Meets Strategic Flexibility
Portfolio Highlights (Q2’2025): - Market Value: $18.7B - Top 10 Holdings: 52.1% - Portfolio Size: 107 +3 - Average Holding Period: 31 quarters - Turnover: 12.2%
The Davis Selected Advisers portfolio remains a study in balance: over half of assets are concentrated in the top 10 holdings, yet the team maintains a broad reach with 107 positions. This structure allows for both high-conviction bets and diversified exposure, a hallmark of Davis’s risk-aware philosophy. The average holding period of 31 quarters underscores a patient, long-term orientation, while a 12.2% turnover signals selective but meaningful repositioning.
Strategically, Davis continues to emphasize financials and technology, but recent changes reveal tactical adjustments. The portfolio’s incremental growth (+3 positions) and measured turnover reflect a willingness to adapt without sacrificing core convictions. Investors tracking the Davis Selected Advisers portfolio will note that this blend of concentration and breadth is designed to capture upside while mitigating single-stock risk.
Top Holdings Analysis: Financials, Tech, and Tactical Shifts
This quarter, the portfolio’s top positions reflect both stability and significant rebalancing. Capital One Financial Corp. remains a cornerstone at 10.2% of assets, though Davis trimmed the position by 0.49%. Meta Platforms, Inc., Class A 8.3% also saw a notable reduction of 4.63%, signaling a cautious approach to large-cap tech after a period of strong performance.
In the semiconductor space, Applied Materials, Inc. 4.9% was modestly reduced by 0.71%, while U.S. Bancorp 4.7% stands out with a substantial 29.84% addition—one of the most aggressive moves this quarter, reflecting renewed confidence in regional banking. MGM Resorts International 4.4% was also increased by 14.44%, suggesting a positive outlook on consumer discretionary and travel.
Healthcare exposure was incrementally boosted, with CVS Health Corporation 4.3% seeing a 0.33% addition. Meanwhile, Berkshire Hathaway Inc., Class A 4.2% was sharply reduced by 31.64%, a significant rebalance of this long-held position. Markel Group, Inc 4.0% and Amazon.com, Inc. 3.8% were both trimmed, with Amazon down 7.12%.
Beyond the top 10, Wells Fargo & Co. 3.5% was reduced by 3.45%, further reflecting Davis’s active management within the financial sector. These moves, combined with incremental adds and trims across the portfolio, highlight a nuanced approach to risk and reward.
What the Portfolio Reveals About Current Strategy
- Quality and Value Focus: Davis continues to emphasize established, cash-generative businesses, particularly in financials and technology.
- Sector Rotation: The significant add to U.S. Bancorp and trims in mega-cap tech suggest a tactical rotation toward undervalued cyclicals.
- Risk Management: The sharp reduction in Berkshire Hathaway Inc., Class A and Amazon.com, Inc. demonstrates a willingness to lock in gains and rebalance risk.
- Long-Term Orientation: With an average holding period of nearly eight years, Davis’s strategy is built on patience and deep research, not short-term speculation.
- Diversification with Conviction: While the top 10 holdings account for over half the portfolio, the breadth of 107 positions provides a buffer against sector or stock-specific volatility.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Capital One Financial Corp. | $1,905.4M | 10.2% | Reduce 0.49% |
| Meta Platforms, Inc., Class A | $1,555.8M | 8.3% | Reduce 4.63% |
| Applied Materials, Inc. | $907.6M | 4.9% | Reduce 0.71% |
| U.S. Bancorp | $874.8M | 4.7% | Add 29.84% |
| MGM Resorts International | $819.2M | 4.4% | Add 14.44% |
| CVS Health Corporation | $799.3M | 4.3% | Add 0.33% |
| Berkshire Hathaway Inc., Class A | $776.2M | 4.2% | Reduce 31.64% |
| Markel Group, Inc | $741.3M | 4.0% | Reduce 0.09% |
| Amazon.com, Inc. | $717.2M | 3.8% | Reduce 7.12% |
The table above highlights a portfolio where the top two positions—Capital One Financial Corp. and Meta Platforms, Inc., Class A—command nearly 20% of total assets. The next tier of holdings, each between 3.8% and 4.9%, reflects a deliberate spread across sectors and business models. The outsized addition to U.S. Bancorp and the sharp reduction in Berkshire Hathaway Inc., Class A are particularly notable, signaling conviction-driven rebalancing rather than passive allocation.
This concentration strategy enables Davis to benefit meaningfully from winners while maintaining enough diversification to weather sector-specific downturns. The portfolio’s structure is a testament to the firm’s belief in both deep research and risk mitigation.
Investment Lessons from Davis Selected Advisers
- Conviction Matters: Davis is unafraid to size up positions like Capital One Financial Corp. and Meta Platforms, Inc., Class A when research supports it.
- Patience is a Virtue: With an average holding period of 31 quarters, Davis demonstrates the power of compounding through long-term ownership.
- Active Risk Management: Significant reductions and additions show a willingness to act decisively when valuations or fundamentals shift.
- Diversification with Purpose: While the top 10 are heavily weighted, the portfolio’s breadth provides downside protection.
- Sector Flexibility: Davis adapts to changing market conditions, rotating between sectors as opportunities arise.
Looking Ahead: What Comes Next?
With $18.7B in assets and a measured turnover rate, Davis Selected Advisers is well-positioned to capitalize on future market dislocations. The recent additions to financials and consumer discretionary suggest a belief in cyclical recovery, while trims in tech and conglomerates may indicate caution after strong rallies. Investors should watch for further moves in regional banks and healthcare, as well as potential new positions in undervalued sectors. The portfolio’s balance of conviction and flexibility sets the stage for continued outperformance in a dynamic market.
FAQ about Davis Selected Advisers Portfolio
Q: What were the most significant changes in the Q2 2025 portfolio?
The largest moves included a 29.84% addition to U.S. Bancorp and a 31.64% reduction in Berkshire Hathaway Inc., Class A, reflecting active rebalancing in response to market conditions.
Q: How concentrated is the Davis Selected Advisers portfolio?
The top 10 holdings represent 52.1% of total assets, showing a strong conviction in core positions while maintaining diversification across 107 stocks.
Q: What is the average holding period for positions?
Davis Selected Advisers holds positions for an average of 31 quarters, emphasizing a long-term, research-driven approach.
Q: Which sectors are most prominent in the portfolio?
Financials and technology are the largest sectors, with significant positions in Capital One Financial Corp., Meta Platforms, Inc., Class A, and Applied Materials, Inc..
Q: How can investors track Davis Selected Advisers’ moves?
You can follow the latest 13F filings and real-time portfolio updates on ValueSense’s Davis Selected Advisers portfolio page. Keep in mind that 13F filings are reported with a 45-day lag.
Explore More Investment Opportunities
For investors seeking undervalued companies with high fundamental quality, our analytics team provides curated stock lists:
📌 50 Undervalued Stocks (Best overall value plays for 2025)
📌 50 Undervalued Dividend Stocks (For income-focused investors)
📌 50 Undervalued Growth Stocks (High-growth potential with strong fundamentals)
🔍 Check out these stocks on the Value Sense platform for free!