Notes to Financial Statements
1 Dodge & Cox Balanced Fund (the "Fund") is a separate series of Dodge & Cox Funds (the "Trust"). The Trust
is organized as a Delaware business trust and is registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management investment company. The Fund consistently follows accounting
policies which are in conformity with generally accepted accounting principles. Significant accounting policies are
as follows: (a) Security valuation: stocks are valued at the latest quoted sales prices as of the close of the New
York Stock Exchange or, if no sale, then a representative price within the limits of the bid and ask prices for the
day; a security which is listed or traded on more than one exchange is valued at the quotation on the exchange
determined to be the primary market for such security; long- term debt securities are priced on the basis of
valuations furnished by pricing services which utilize both dealer-supplied valuations and electronic data
processing techniques; securities for which market quotations are not readily available are valued at fair value as
determined in good faith by or at the direction of the Board of Trustees; short-term securities are valued at
amortized cost which approximates current value; all securities held by the Fund are denominated in U.S. Dollars.
(b) Security transactions are accounted for on the trade date in the financial statements. (c) Gains and losses on
securities sold are determined on the basis of identified cost. (d) Dividend and interest income are recorded on
the accrual basis. Premiums and discounts on debt securities purchased are amortized and accreted, respectively,
to interest income over the lives of the respective securities. (e) Distributions to shareholders of income and
capital gains are reflected in the net asset value per share computation on the ex-dividend date. (f) No provision
for Federal income taxes has been included in the accompanying financial statements since the