DODGE

&

COX

Investment Managers | San Francisco

Investments include WellPoint and UnitedHealth.

73%

46%

27%

54%

0

50

100

150

200

250

300

1995

2007

Insured through the 10 largest health plans

Insured through other health plans

224 million

253 million

Finding Opportunities in Managed Care

Dodge & Cox Stock Fund

Risks

Increased medical loss ratios from rising competition and costs.

A rise in the uninsured population and a decline in the core

commercial insurance business.

Reduced Medicare and Medicaid reimbursement if budget deficits

grow.

The political and regulatory environment may become more

difficult.

Source: FactSet

Source: U.S. census, company reports

Opportunities

Valuations are low relative to history and to the market.

Strong balance sheets and free cash flow provide downside

protection.

Significant cost-cutting opportunities, due to recent and potential

consolidation.

Well positioned to manage programs focused on:

Medical and pharmacy costs

Consumer-driven health initiatives

Disease management and wellness programs

Valuations Well Below Historical Averages

Leading Health Plans Continue to Grow Market Share

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. Opinions expressed are 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, which 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.

08-432

|

as of September 30, 2008

S&P 500 Managed Care Companies Price-to-Sales

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

2

'96

'97

'98

'99

'00

'01

'02

'03

'04

'05

'06

'07

Average: 0.8x

DODGE & COX

Investment

Managers

|

San

Francisco

Criteria for Foreign Companies in a “U.S. Portfolio”

Dodge & Cox Stock Fund

Sales are from most recent company reports. 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 the Fund’s entire holdings and are subject to change at any time without notice. Past performance does not guarantee future results. 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.

Look for companies that have some of the

following characteristics:

Primary Considerations

Attractive on an absolute valuation basis

Attractive on a relative valuation basis

Secondary Considerations

Multinational operations

Similar business franchise cannot

be found in the U.S.

as of September 30, 2008

08-433  |

Position

Size

Company

Country of Domicile

U.S. / North

America Sales

3.3%

Novartis AG (ADR)

Switzerland

46%

3.0%

Sanofi-Aventis (ADR)

France

34%

2.9%

GlaxoSmithKline PLC (ADR)

United Kingdom

44%

2.3%

Sony Corp. (ADR)

Japan

25%

1.7%

Panasonic Corp. (ADR)

Japan

13%

1.3%

Hitachi Ltd. (ADR)

Japan

9%

1.0%

HSBC Holdings PLC (ADR)

United Kingdom

26%

0.9%

Royal Dutch Shell PLC (ADR)

United Kingdom

25%

0.6%

Kyocera Corp. (ADR)

Japan

19%

0.6%

Aegon

N.V. (ADR)

Netherlands

42%

0.5%

Credit Suisse Group (ADR)

Switzerland

37%

0.5%

Cemex

S.A.B. de C.V. (ADR)

Mexico

25%

0.5%

Ericsson ADR

Sweden

7%

0.2%

Koninklijke

Philips Electronics N.V. (ADR)

Netherlands

25%

0.0%

Thomson (ADR)

France

39%

19.2%

TOTAL