Coca-Cola

FEMSA, 29%

Cerveza, 31%

Comercio, 34%

Other, 6%

DODGE & COX

Investment Managers | San Francisco

Fomento

Economico

Mexicano

SAB de CV (FMX)

Per Share Valuation*

Company Profile

Headquartered in Monterrey,

Mexico

Founded in 1890

Holding company for three consumer businesses

Coca-Cola FEMSA (53.7% owned) is the 2

nd

largest Coca-Cola bottler in the world with

operations throughout Latin America

FEMSA Cerveza

(100% owned) is a beer business

with 44% market share in Mexico

FEMSA Comercio

(100% owned) is a chain of

5,851 convenience stores in Mexico

2007 Revenues = 115,493 Million Pesos *

Investment Thesis

Organic

Growth

Opportunities

All

three

business

lines

are

well-positioned

to

benefit

from

improving

demographic

and

consumer

spending

trends

in

Latin

America.

Favorable

Market

Structures

Both

FEMSA

Cerveza

and

Coca-Cola

FEMSA

have

strong

market

positions

in

industries

with

high

barriers

to

entry

and

a

fragmented

customer

base.

Strong

Management

Team

Management

is

focused

on

producing

a

strong

return

on

invested

capital.

Family

ownership

aligns

interests

with

long-term

shareholders.

Free

Cash

Flow

Company

generates

positive

free

cash

flow

after

capital

expenditures

despite

significant

investments

in

the

business.

Risks

Valuation

Trades

at

a

premium

to

historical

average

multiples

and

to

the

sector

as

a

whole.

Beer

Market

Dynamics

Margins

in

the

Mexican

beer

market

have

declined

due

to

high

raw

material

prices

and

competition

with

Grupo

Modelo

(56%

share).

Mexican

Retail

Structure

FEMSA

benefits

from

the

fragmented

retail

market

in

Mexico.

As

large

retailers

gain

share,

margins

could

decrease.

Acquisition

Risk

FEMSA

has

been

acquiring

assets

in

Latin

America.

Given

competition

for

those

assets,

the

Company

could

be

overpaying.

Conclusion: FEMSA was sold from the International Stock Fund.

3

rd

Quarter 2008

The

above

is

not

a

complete

analysis

of

every

material

fact

concerning

the

securities

described.

Statements

of

fact

may

be

inaccurate

or

incomplete.

The

information

provided

is

historical,

does

not

predict

future

results

or

profitability

and

is

subject

to

change

without

notice.

This

is

not

a

recommendation

to

buy

or

sell

any

security

and

is

not

indicative

of

Dodge

&

Cox’s

current

or

future

trading

activity.

The

securities

identified

do

not

represent

an

account’s

entire

holdings;

holdings

are

subject

to

change

at

any

time

without

notice.

Before

investing

in

any

Dodge

&

Cox

Fund,

you

should

carefully

consider

the

Fund’s

investment

objectives,

management

fees,

risks

and

expenses.

To

obtain

a

Fund’s

prospectus,

which

contains

this

and

other

important

information,

visit

www.dodgeandcox.com

or

call

800-621-3979.

Please

read

the

prospectus

carefully

before

investing.

08-392  |

FY

ends

December

31

Shares

Outstanding

:

357.8

MM

(ADR

equivalent)

*

Per

Share

Valuation

is

in

US

Dollars.

As

of

7/01/2008,

1USD=10.3688

Mexican

Pesos.

*

Coca-Cola

FEMSA

Revenues

adjusted

to

reflect

FEMSA’s

53.7%

ownership.

Share Price

$45

(07/01/2008)

2008e

2007

2008e

multiple

Revenues

38.4

44.5

1.0x

Earnings

2.18

2.46

18.2x

Dividend

0.38

0.44

1.0%

Book Value

23.3

19.9

2.3x

Dodge

& Cox  /  Investment Managers  /  San Francisco

CarMax, Inc. (KMX)

Investment Thesis

Strong Business Franchise

CarMax is the largest retailer of used cars in the United States.  Its scale and unique business model differentiates it

from competitors and provides a significant barrier to entering the market.

Fragmented Market

With only 2% share of its market, CarMax is in a position to further penetrate attractive regions and grow its brand.

KMX has grown sales at a 15.6% compound annual growth rate over the last four years.

Historically Low Valuation

KMX

is

trading

below

its

historical

average

valuation,

which

may

represent

an

attractive

buying

opportunity.

Strong Management Team

The KMX management team has an impressive background in the specialty retail and used car industries.

Risks

U.S. Consumer & Cyclical Downturn

The U.S. consumer is losing strength in the near term, thus affecting the market for used cars.  KMX has undergone a

significant

expansion

over

the

last

decade

and

plans

to

continue

growth

going

forward.

The

cyclical

downturn

could

be so severe that it causes a reduction in planned growth and a need to restructure existing stores.

Credit Market

KMX’s

ability to generate a profit from financing used vehicles has been compromised due to the current credit

environment.

There

is

also

a

risk

that

auto

loans

will

begin

to

default

at

increasing

rates.

August 31, 2008

Company Profile

Headquartered in Richmond, Virginia.

Founded in 1993.

Originally owned by Circuit City Stores,

Inc.

Largest used car retailer in the United

States with 98 superstore locations.

Sold over 600,000 cars last year,

including retail used cars (60%), new

cars (4%), and wholesale used cars

(36%).

Per Share Valuation

2007 Revenues = $8.2 Billion

FY ends February 28

Shares Outstanding = 221 million

All figures in USD

Conclusion: KMX is an attractive investment due to its long-term growth prospects and strong business franchise.

The above is not a complete analysis of every material fact concerning the securities described.  Statements of fact may be inaccurate or incomplete.  The information provided is

historical,

does

not

predict

future

results

or

profitability

and

is

subject

to

change

without

notice.

This

is

not

a

recommendation

to

buy

or

sell

any

security

and

is

not

indicative

of

Dodge

& Cox’s

current

or

future

trading

activity.

The

securities

identified

do

not

represent

an

account’s

entire

holdings;

holdings

are

subject

to

change

at

any

time

without

notice.

Before

investing

in

any

Dodge

&

Cox

Fund,

you

should

carefully

consider

the

Fund’s

investment

objectives,

management

fees,

risks

and

expenses.

To

obtain

a

Fund’s

prospectus,

which contains

this

and

other

important

information,

visit

www.dodgeandcox.com

or

call

800-621-3979.

Please

read

the

prospectus

carefully

before

investing.

08-392

Used Vehicle

Sales, 80%

New Vehicle

Sales, 5%

Wholesale

Vehicle Sales,

12%

Other, 3%

KMX

S&P 500

Price (8/31/08)

$15

$1,283

2007 EPS

0.82

87.72

2008 est. EPS

0.44

73.70

2007 Price/Sales

0.4x

2007 Price/Earnings

18.0x

17.4x

2007 Price/Book

2.3x

2.4x

Dodge & Cox  /  Investment Managers  /  San Francisco

Mobile

Devices

52%

Enterprise

Mobility

Solutions

21%

Home &

Networks

Mobility

27%

Motorola

Inc

(MOT)

—

Bought

Investment Thesis

Attractive Valuation

Current sum-of-parts valuation places no value on handsets business.

Handset Restructuring

Potential restructuring and enhanced product mix in handset business could raise profitability and increase spin-

off value.

Attractive Revenue Growth Prospects

Wireless

penetration

in

emerging

markets,

wireless

and

broadband

network

rollout

by

carriers

and

voice/data/video offerings by cable and telecom companies provide potential sources of long-term growth.

New Management

Co-CEO

Greg

Brown

(Networks/Enterprise

Mobility)

and

Sanjay

Jha

(Mobile

Devices)

are

revamping

company

with urgency.

Risks

Handset Issues

Weak product development and execution of business strategies led to large declines in profit. Continues to face

strong competition from Nokia and other peers. Management may sell handsets business at a discount.

Networks Business

Lack of market share in next-generation wireless network infrastructure (3G) and declining legacy network sales.

Strong competition and execution risks on future infrastructure systems (wireless and broadband).

Lack of Transparency

Management has not provided material guidance on business structure post potential handset unit spin-off

(capitalization, profitability, etc.).

Bought February 2003, last updated August 2008

Company Profile

Headquartered in the United States.

#4 mobile handset vendor with 9% global

market share (June, 2008)

Leading provider of private radio systems

and supplier of cable/telecom set-top boxes.

Smaller player in wireless and broadband

networks.

2007 sales by geography: U.S. (51%),

Europe (13%), Latin America (12%), Asia

excluding China (9%), China (7%), and

Other Markets (8%).

Announced plans to spin-off mobile

devices business (likely by end of 2009)

Per Share Valuation

2007 Revenues = $36.6 Billion

Conclusion: We believe Motorola is an attractive investment at the current valuation.

The above is not a complete analysis of every material fact concerning the securities described.  Statements of fact may be inaccurate or incomplete.  The information provided is historical,

does not predict future results or profitability and is subject to change without notice.  This is not a recommendation to buy or sell any security and is not indicative of Dodge & Cox’s current

or future trading activity.  The securities identified do not represent an account’s entire holdings; holdings are subject to change at any time without notice.  Before investing in any Dodge &

Cox Fund, you should carefully consider the Fund’s investment objectives, management fees, risks and expenses.  To obtain a Fund’s prospectus, which contains this and other important

information

,

visit

www.dodgeandcox.com

or

call

800-621-3979.

Please

read

the

prospectus

carefully

before

investing.

R&D: Research & Development

FY End December 31

Shares Outstanding: 2.27 billion

All Figures in USD

08-392

MOT

S&P 500

Share Price (8/29/08)

$9.4

$1,283

2007 EPS

0.11

84

2008 est. EPS

0.08

74

2007 Price/Sales

0.6x

1.3x

2007 Price/Earnings

85x

15x

2007 Price/R&D

4.9x

n.a.

Dodge & Cox  /  Investment Managers  /  San Francisco

Mobile

Devices

52%

Enterprise

Mobility

Solutions

21%

Home &

Networks

Mobility

27%

Motorola

Inc

(MOT)

—

Bought

Investment Thesis

Attractive Valuation

Current sum-of-parts valuation places no value on handsets business.

Handset Restructuring

Potential restructuring and enhanced product mix in handset business could raise profitability and increase spin-

off value.

Attractive Revenue Growth Prospects

Wireless

penetration

in

emerging

markets,

wireless

and

broadband

network

rollout

by

carriers

and

voice/data/video offerings by cable and telecom companies provide potential sources of long-term growth.

New

Management

Co-CEO

Greg

Brown

(Networks/Enterprise

Mobility)

and

Sanjay

Jha

(Mobile

Devices)

are

revamping

company

with urgency.

Risks

Handset Issues

Weak product development and execution of business strategies led to large declines in profit. Continues to face

strong competition from Nokia and other peers. Management may sell handsets business at a discount.

Networks Business

Lack of market share in next-generation wireless network infrastructure (3G) and declining legacy network sales.

Strong competition and execution risks on future infrastructure systems (wireless and broadband).

Lack of Transparency

Management has not provided material guidance on business structure post potential handset unit spin-off

(capitalization, profitability, etc.).

Bought February 2007, last updated August 2008

Company Profile

Headquartered in the United States.

#4 mobile handset vendor with 9% global

market share (June, 2008)

Leading provider of private radio systems

and supplier of cable/telecom set-top

boxes. Smaller player in wireless and

broadband networks.

2007 sales by geography: U.S. (51%),

Europe (13%), Latin America (12%), Asia

excluding China (9%), China (7%), and

Other Markets (8%).

Announced plans to spin-off mobile

devices business (likely by end of 2009)

Per Share Valuation

2007 Revenues = $36.6 Billion

R&D: Research & Development

FY End December 31

Shares Outstanding: 2.27 billion

All Figures in USD

Conclusion: We believe Motorola is an attractive investment at the current valuation.

The above is not a complete analysis of every material fact concerning the securities described.  Statements of fact may be inaccurate or incomplete.  The information provided is historical,

does not predict future results or profitability and is subject to change without notice.  This is not a recommendation to buy or sell any security and is not indicative of Dodge & Cox’s current

or future trading activity.  The securities identified do not represent an account’s entire holdings; holdings are subject to change at any time without notice.  Before investing in any Dodge &

Cox Fund, you should carefully consider the Fund’s investment objectives, management fees, risks and expenses.  To obtain a Fund’s prospectus, which contains this and other important

information,

visit

www.dodgeandcox.com

or

call

800-621-3979.

Please

read

the

prospectus

carefully

before

investing.

08-392

Share Price

$9.4

(8/29/08)

2008E

2007

2008E

Multiple

Revenues

15.8

13.9

0.7x

Earnings

0.1

0.1

118x

Dividend

0.2

0.2

2.2%

R&D

1.9

1.6

6.1x

Dodge & Cox  /  Investment Managers  /  San Francisco

Wireline 15.7%

Wireless 84.3%

Sprint Nextel (S) —

BOUGHT

Updated 3

rd

Quarter 2008

Company Profile

Founded in 1938 and headquartered in

Overland Park, Kansas.

Third-largest wireless services provider

in the U.S., with over 50 million

subscribers.

Third-largest provider of long-distance

wireline voice and data services.

Sprint and Nextel merged in August

2005.

Per Share Valuation

Estimated 2007 Revenues = $40.1 Billion

FY ends December 31

Shares Outstanding = 2.85 billion

All figures in USD

Conclusion:  An investment was made in Sprint Nextel based on the factors above.

This material is for informational purposes only and is not an analysis of every material fact with respect to any security.  Opinions expressed above are subject to change without notice. 

Statements of fact may be inaccurate or incomplete.  Information

regarding a security is historical and is not intended to represent current conditions or predict future results.  The above

information is not an offer or recommendation to buy or sell any

security and may not be relied upon as an indication of Dodge &

Cox's current or future trading activity.  This material is

the proprietary product of Dodge & Cox and any unauthorized use,

reproduction or disclosure is strictly prohibited.  Before investing in any Dodge & Cox Fund, you should carefully

consider the Fund's investment objectives, management fees, risks and expenses.   To obtain a Fund's prospectus, which contains this and other important information, visit

www.dodgeandcox.com

or call 800-621-3979.  Please read the prospectus carefully before investing.

Investment Thesis

Wireless scale, good asset mix

S has 25% market share in wireless services. The company no longer owns a local wireline network, so it benefits

from the trend of wireless-only households.

Technology leadership/spectrum ownership

Vast

spectrum

ownership

enables

S

to

be

the

first

company

in

the

U.S.

to

offer

WiMAX,

a

new

data

platform.

Prospect for operational improvement

S is focused on improving its customer service, call quality, marketing, and handset slate to retain its customers.

Prospect for financial improvement

Higher customer retention, lower network expenses and merger synergy could reduce expenses by $2 billion/year.

Cash flow generation

S

is

free

cash

flow

generative

and

should

be

able

to

continue

to

build

a

cash

balance

over

5

years.

Wholesale positioning

S has aggressively pursued wholesale relationships and could benefit from the growth of wireless resellers.

Risks

Merger integration

Merger has led to current problems related to quality of service, organizational structure and management changes.

Slowing industry growth

Pricing declines and slowing subscriber growth will lead to lower growth rates in the wireless industry.

Spectrum swap

A spectrum exchange required by regulators could disrupt Nextel service.

Competition from other phone companies

Lack of local wireline network could be a disadvantage if wireless and wireline become more integrated in the

future.

08-392

S

S&P 500

Price (8/31/08)

$8.7

1,282.8

2007 EPS

1.2

84.4

2008 est. EPS

0.5

73.7

2007 Price/Book

1.1x

2.4x

2007 Price/Earnings

7.4x

15.2x

N. America,

59%

S. America

& Other,

10%

Asia-Pacific,

11%

Europe,

20%

General Motors Corporation (NYSE:GM)

Per Share Valuation

Company Profile

Headquartered in Detroit, Michigan.

Largest automobile manufacturer in the world by 2007

unit volume (9.37 million vehicles worldwide).

Operates under 13 brands: Buick, Cadillac, Chevrolet,

GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac,

Saab, Saturn, Vauxhall and Wuling.

Led by CEO, Rick Wagoner, since June 2000.

Founded in 1908.

In 2007, GM sold over 1 million vehicles in China

through joint ventures.

2007 Revenues = $178 Billion

Investment Thesis

Low

Valuation

Buying

$178

billion

in

auto

sales

for

a

$7

billion

equity

market

valuation.

Major

Restructuring

Removing

over

$5

billion

in

labor

and

healthcare

expenses

alone

by

2010.

Legacy

healthcare

liabilities

shifted

to

labor

union.

Further

restructuring

potential

includes

global

integration

of

units

and

capacity

reduction.

Product

Improvements

Products

have

vastly

improved

in

the

United

States

since

2004,

resulting

in

better

pricing.

International

Assets

Unnoticed

GM

now

produces

more

vehicles

outside

the

United

States

than

within

it.

GM’s

Asian

and

South

America

units

are

highly

profitable.

Risks

Bankruptcy                                          Liquidity:

Adequate

liquidity

today

($20.5

billion

in

cash

as

of

30

June

2008

plus

$4.5

billion

drawn

down

from

a

credit

line)

with

no

major

near-term debt

maturities,

but

continued

large

negative

cash

flows

could

result

in

a

liquidity

problem.

Macroeconomic:

Severe

problems

faced

by

the

U.S.

consumer

(housing,

oil

price)

have

resulted

in

adverse

volume

declines

and

product

mix

shift

for

GM.

GMAC

Finance

Unit

GMAC

has

adequate

liquidity

for

2008,

but

difficulties

in

the

auto

asset-backed

securities

market

could

limit

future

operations.

Conclusion                            

GM’s

product

portfolio,

cost

structure,

and

production

strategy

are

the

best

they

have

been

in

20

years.

While

substantial

risks

exist,

we

believe

GM’s

low valuation

and

potential

for

a

significant

turn

around

presents

a

good

investment

opportunity.

3

rd

Quarter 2008

The

above

is

not

a

complete

analysis

of

every

material

fact

concerning

the

securities

described.

Statements

of

fact

may

be

inaccurate

or

incomplete.

The

information

provided

is

historical,

does

not

predict

future

results

or

profitability

and

is

subject

to

change

without

notice.

This

is

not

a

recommendation

to

buy

or

sell

any

security

and

is

not

indicative

of

Dodge

&

Cox’s

current

or

future

trading

activity.

The

securities

identified

do

not

represent

an

account’s

entire

holdings;

holdings

are

subject

to

change

at

any

time

without

notice.

Before

investing

in

any

Dodge

&

Cox

Fund,

you

should

carefully

consider

the

Fund’s

investment

objectives,

management

fees,

risks

and

expenses.

To

obtain

a

Fund’s

prospectus,

which

contains

this

and

other

important

information,

visit

www.dodgeandcox.com

or

call

800-621-3979.

Please

read

the

prospectus

carefully

before

investing.

08-392 |

FY ends December 31

Shares Outstanding = 566 million

GM

S&P 500

Price (9/30/08)

$9.45

1,166.36

2007 Price/Sales

0.03x

1.1x

2007 Price/Earnings

nm

14.1x

2007 Price/Book

nm

2.2x

2007 EPS

-68.45

2008 est. EPS

-6.67

Recent Events

Early September 2008

Liquidity crisis leads to large decline in stock price of AIG.

September 16, 2008

The Federal Reserve Bank of New York provided an $85 billion revolving credit facility to AIG and received an 80% equity stake.

September 18, 2008

Edward Liddy, former CEO of Allstate, took over as CEO of AIG on September 18, 2008.

Post-Fed Action Investment Thesis

Strong Parts of Business Remain

History of focus on earnings and equity growth and profitability.  Still a leader in many of the world’s insurance markets.

Restructuring Prospects

Possibility of strong earnings post asset restructuring and credit problem mitigation.

Improved

Liquidity

$85

billion

Federal

Reserve

credit

line.

Risks

Business Deterioration

Uncertain future ownership might lead to higher employee turnover and business attrition.

Complex

Business

AIG’s

business

is

complex,

opaque

and

levered.

The

company

often

takes

on

developing

risks

where

historical

data

may

be

scarce

or

unreliable.

Exposure

to

Current

Credit

Correction

Recent

mark-to-market

adjustments

on

credit

default

swap

and

asset

backed

security

portfolios

resulted

in

reported

after-tax

losses

and

reductions

in

shareholders’

equity.

While

majority

of

adjustments

are

expected

to

reverse

in

the

future,

there

may

be

additional

mark-to-market

adjustments

and

some

may

develop

into

permanent

losses.

Slower

Future

Growth

Likely

to

experience

slower

growth

than

in

the

past

due

to

its

size,

more

conservative

position,

and

the

end

of

the

P&C

hard-pricing

cycle.

Legal

Challenges

AIG

believes

that

ultimate

liability

for

the

unresolved

litigation

and

investigation

matters

is

unlikely

to

be

material

to

its

financial

condition,

but

could

be

material

to

its

consolidated

results

of

an

individual

period.

Conclusion: We are maintaining our position, but given the significant change in capital structure, we will consider all of our options.

American International Group (AIG)

Per Share Valuation

Company Profile

Founded in Shanghai in 1919.

Headquartered in New York.

Leading global insurer.

Provides property & casualty (P&C) insurance, life

insurance, financial services and asset management

services in over 130 countries.

2007 Revenue = $110 Billion

3

rd

Quarter 2008

The above is not a complete analysis of every material fact concerning the securities described.  Statements of fact may be inaccurate or incomplete.  The information provided is historical,

does not predict future results or profitability and is subject to change without notice.  This is not a recommendation to buy or sell any security and is not indicative of Dodge & Cox’s

current or future trading activity.  The securities identified do not represent an account’s entire holdings; holdings are subject to change at any time without notice.  Before investing in any

Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, management fees, risks and expenses.  To obtain a Fund’s prospectus, which contains this and other

important information, visit www.dodgeandcox.com

or call 800-621-3979.  Please read the prospectus carefully before investing.

08-392  |

FY ends December 31

Shares Outstanding 13.4 billion (post Fed action)

AIG

S&P 500

Price (9/30/2008)

$3.33

$1,165

2007 Earnings (adj.)

6.45

87.72

2008e Earnings (adj.)

0.00

94.09

2007 Price/Earnings

NM

16.8x

2008e Price/Book

0.7x

2.9x

N. America,

59%

S. America

& Other,

10%

Asia-Pacific,

11%

Europe,

20%

General Motors Corporation (NYSE:GM)

Per Share Valuation

Company Profile

Headquartered in Detroit, Michigan.

Largest automobile manufacturer in the world by 2007

unit volume (9.37 million vehicles worldwide).

Operates under 13 brands: Buick, Cadillac, Chevrolet,

GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac,

Saab, Saturn, Vauxhall and Wuling.

Led by CEO, Rick Wagoner, since June 2000.

Founded in 1908.

In 2007, GM sold over 1 million vehicles in China

through joint ventures.

2007 Revenues = $178 Billion

Investment Thesis

Low

Valuation

Buying

$178

billion

in

auto

sales

for

a

$7

billion

equity

market

valuation.

Major

Restructuring

Removing

over

$5

billion

in

labor

and

healthcare

expenses

alone

by

2010.

Legacy

healthcare

liabilities

shifted

to

labor

union.

Further

restructuring

potential

includes

global

integration

of

units

and

capacity

reduction.

Product

Improvements

Products

have

vastly

improved

in

the

United

States

since

2004,

resulting

in

better

pricing.

International

Assets

Unnoticed

GM

now

produces

more

vehicles

outside

the

United

States

than

within

it.

GM’s

Asian

and

South

America

units

are

highly

profitable.

Risks

Bankruptcy

Liquidity:

Adequate

liquidity

today

($20.5

billion

in

cash

as

of

30

June

2008

plus

$4.5

billion

drawn

down

from

a

credit

line)

with

no

major

near-term

debt

maturities,

but

continued

large

negative

cash

flows

could

result

in

a

liquidity

problem.

Macroeconomic:

Severe

problems

faced

by

the

U.S.

consumer

(housing,

oil

price)

have

resulted

in

adverse

volume

declines

and

product

mix

shift

for

GM.

GMAC

Finance

Unit GMAC

has

adequate

liquidity

for

2008,

but

difficulties

in

the

auto

asset-backed

securities

market

could

limit

future

operations.

Conclusion

GM’s product portfolio, cost structure, and production strategy are

the best they have been in 20 years. While substantial risks exist, we believe GM’s

low valuation and potential for a significant turnaround presents a good investment opportunity.

3

rd

Quarter 2008

The above is not a complete analysis of every material fact concerning the securities described.  Statements of fact may be inaccurate or incomplete.  The information provided is historical,

does not predict future results or profitability and is subject to change without notice.  This is not a recommendation to buy or sell any security and is not indicative of Dodge & Cox’s

current or future trading activity.  The securities identified do not represent an account’s entire holdings; holdings are subject to change at any time without notice.  Before investing in any

Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, management fees, risks and expenses.  To obtain a Fund’s prospectus, which contains this and other

important information, visit www.dodgeandcox.com

or call 800-621-3979.  Please read the prospectus carefully before investing.

08-392  |

FY ends December 31

Shares Outstanding = 566 million

GM

S&P 500

Price (8/29/08)

$10.00

1,282.83

2007 Price/Sales

0.03x

1.3x

2007 Price/Earnings

nm

15.2x

2007 Price/Book

nm

2.4x

2007 EPS

-68.45

2008 est. EPS

-6.67

Genworth

(GNW)

Per Share Valuation

2007 Revenue = $11.1 billion

Investment Thesis

Attractive

Valuation

Trades

at

0.3

times

2008E

price-to-book

value.

Diverse

Business

Genworth

appears

capable

of

enduring

significant

distress

in

the

U.S.

mortgage

market.

U.S.

Mortgage

Recovery

Continued

distress

in

the

U.S.

mortgage

market

has

resulted

in

improved

pricing

and

should

enable

Genworth

to

earn

significant

returns

as

the

market

recovers.

ROE

Improvement

Genworth

has

been

disciplined

in

its

capital

allocation

and

product

pricing.

Asset

Restructuring

Possibility

of

separating

from

problematic

U.S.

Mortgage

Insurance

business.

Risks

Exiting

Mortgage

Insurance

Genworth

could

miss

the

recovery

phase

of

the

mortgage

cycle

if

it

exits

the

industry

before

it

turns

or

if

the

industry

is

restructured

in

a

way

that

prevents

participants

from

recovering

losses.

Investment

Portfolio

Genworth’s

investment

portfolio

could

underperform.

Increased

Competition

Increased

competition

could

hinder

ROE

improvement.

Conclusion: We believe Genworth

is an attractive investment at the current valuation.

3

rd

Quarter 2008

The above is not a complete analysis of every material fact concerning the securities described.  Statements of fact may be inaccurate or incomplete.  The information provided is historical,

does not predict future results or profitability and is subject to change without notice.  This is not a recommendation to buy or sell any security and is not indicative of Dodge & Cox’s

current or future trading activity.  The securities identified do not represent an account’s entire holdings; holdings are subject to change at any time without notice.  Before investing in any

Dodge & Cox Fund, you should carefully consider the Fund’s investment objectives, management fees, risks and expenses.  To obtain a Fund’s prospectus, which contains this and other

important information, visit www.dodgeandcox.com

or call 800-621-3979.  Please read the prospectus carefully before investing.

08-392  |

FY ends December 31

Shares Outstanding 433 million

Retirement &

Protection

68%

U.S. Mortgage

Insurace

7%

International

24%

Corporate &

Other

1%

Company Profile

Headquartered in the United States.

Provides life insurance, long-term care, payment

protection as well as savings and investment

products such as fixed and variable annuities and

guaranteed investment products.

Leading mortgage insurer in the U.S. and the

largest mortgage insurer internationally.

In 2007, 76% of revenues were from the U.S.

Spun off from General Electric in 2004 (30% of

company, remainder sold in 2006).

GNW

S&P 500

Price (9/30/2008)

$8.61

$1,165

2007 EPS

3.32

87.72

2008 est. EPS

2.22

94.09

2007 Price/Book

0.3x

2.9x

2007 Price/Earnings

NM

16.8x